2009

SHARE KHAN LTD.

[PROJECT REPORT]
YUBARAJ GHOSH
[A STUDY ON INVESTOR SATISFACTION TOWARDS ONLINE
TRADING IN SHARE KHAN LTD. ;MUMBAI]
 Project Report

A study on investor satisfaction towards

Online trading In Share Khan Ltd.
Mumbai

Master of Business Administration

Bharathidasan University
Thiruchirapalli

SUPERVISION OF SUBMITTED BY

MS.PAWAN SUKLA YUBARAJ GHOSH

(Assistant Professor; Marketing) (Reg.no.08294482)

SESSION 2008-2010

BHARATHIDASAN UNIVERSITY
THIRUCHIRAPALLI

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 CERTIFICATE

This is to certify that the project at

SHARE KHAN LTD. “ONLINE TRADING”

Submitted in partial fulfillment of requirement for the degree of

MASTER OF BUSINESS ADMINISTRATION

To

BHARTHIDASAN UNIVERSITY

Is a record of bonafide training carried out by

YUBARAJ GHOSH
(Reg. no. 08294482)
Under my supervision and guidance and that no part of this report
has been submitted for the award of any other degree

FACULTY GUIDE

Signature:

Name: Ms. Pawan Sukla

(Professor; Marketing)

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YUBARAJ GHOSH
II-nd YEAR M.B.A
BHARATHIDASAN UNIVERSITY
TIRUCHIRAPALLI

DECLARATION

I hereby declare that the project work entitled “CONSUMER SATISFACTION

TOWARDS ONLINE TRADING MUMBAI” for the period of July2009-

September2009 Submitted by me as part of the course work of MASTER OF

BUSINESS ADMINISTRATION in BHARATHIDASAN UNIVERSITY, is original

And has not submitted preciously either in part of full to this university or any other

University for any other degree.

PLACE: Navi Mumbai

DATE: YUBARAJ GHOSH

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 CONTENTS

Preface ……………………………………………[7]
Acknowledgement ………………………………..[8]
CHAPTER NO.1
INTRODUCTION
GENERAL INTRODUCTION
 PHYSICAL CERTIFICATES –THE TRADITIONAL WAY ……………………..[10]
 INTRODUCTION OF ONLINE TRADING .………………………………………[12]
 INTRODUCTION OF SHAREKHAN LTD. ……………………………………...[14]
 ONLINE TRADING IN SHAREKHAN …………………………………………..[19]
 COMPITITION ANALYSIS ……………………………………………………...[23]
 SWOT ANALYSIS ………………………………………………………………..[26]

CHAPTER NO.2
OBJECTIVE & METHODOLOGY
 OBJECTIVE ……………………………………………………………………….[31]
 METHODOLOGY ………………………………………………………………...[32]
 LIMITATION ……………………………………………………………………...[34]

CHAPTER NO.3

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 CONCEPTUAL DISCUSSION

 STRATEGY MAKING …………………………………………………….[38]

 IMPLEMENTATION OF STRATEGY ……………………………………[39]

CHAPTER NO.4
DATA ANALYSIS
 ANALYSIS AND INTERPRETATION OF DATA ……………………….[43]

CHAPTER NO.5
FINDINGS & RECOMMENDATIONS
 FINDINGS ………………………………………………………………….[54]
 RECOMMENDATION …………………………………………………… [56]
 CONCLUSION ……………………………………………………………..[57]

ANNEXURE
………………………………………………………………………..[58]
BIBLIOGRAPH
……………………………………………………………………..[61]

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 Preface

Conceptually the mechanism of stock market is very simple. People who are
exposed to the same risk come together and agree that if anyone of the person
suffers a loss the other will share the loss and make good to the person who lost.

The initial part of project is about history of share market which focuses on
formation of share market in India. What kind of share trading was done from
initially? And what innovation was done year after year.

The next part tells about history of online trading. How online trading is beneficial
for investor (SWOT)? The service of online trading provided by Sharekhan And
how it is different from other Online trading service providers.

Next we will see the problems of traders towards online trading and how
Sharekhan trying to resolve these problems. Focusing on key problem factors and
make research and development
To generate new ideas

Next is Investors suggestion to Sharekhan to upgrade some more services & also
their opinion about Sharekhan .

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 ACKNOWLEDGEMENT

I express my sincere gratitude and thanks to respected, “Mr. Satish Dogra

(Territory Manager), my project guides and everyone in the SSKI Securities
Limited. My Project guides have been most accommodating and supportive and
have literally gone out of their way to make my experience a pleasant one.
I would also like to thank all my classmates who has always been open to
discussion and frequently enquired about the project and any problems faced etc.
He has also given me valuable guidance as to how to go about the project

I also thanks to Prof. Ms. Pawan Sukla, Mumbai School Of Business

Mumbai, who has sincerely supported me with the valuable insights into the
completion of this project.

I am grateful to all faculty members of Mumbai School Of Business, Mumbai and

my friends who have helped me in the successful completion of this
Project.
I would also like to thank the director of my institute Mrs. Rupa Vasudevan for
their support and continuous motivation

Yubaraj Ghosh

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CHAPTER 1:-

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GENERAL INTRODUCTION

PHYSICAL CERTIFICATES - THE TRADITIONAL WAY

The Indian capital market has seen an unprecedented boom in its activity in the last
decade. We can now boast of a very large investor population and substantial
volumes of trade. However, this surge in activity has brought with it, numerous
problems that threaten the very survival of the Capital market in the long run. A
closer inspection of the problems would reveal that most of them arise due to the
intrinsic nature of paper based trading and settlement.

This century-old system of trading and settlement requires handling of huge

volumes of paper leading to increased costs and inefficiencies. Simultaneously,
they expose the investors to greater risks putting them at a disadvantage. Some of
these areas are:

 Unwarranted delay in transfer of shares. It takes 30 to 60 days for the investors

to get the shares lodged in their name;

 Possibility of forgery on various documents leading to bad deliveries, legal

disputes etc;

 Theft of shares leading to defective title in shares purchased and subsequent

litigation;

 Prevalence of fake certificates in the market;

 Mutilation or loss of share certificates in transit;

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 Increased transaction costs due to stamp duty, fake shares, rejection by
registrars, etc.

This has made the investors, both retail and institutional, wary of entering the
Indian capital market. In this scenario, it was felt that the getting up of a depository
and the introduction of scrip less trading and settlement is imperative for the
efficient functioning of the market.

The Indian capital market has witnessed numerous changes in the

recent past. Historically stock market booms have always resulted in a number of
problems for the lay investor. Sometimes, the problem may magnify them and
threatens to engulf the entire capital market. A close introspection of these
problems will reveal that most of them are due to intrinsic nature of paper based
trading and settlement. All this may have driven away many potential investors and
Foreign Institutional Investors. Dematerialization of shares is looked upon as the
remedy for the ‘paper’ based problems.

With effect from august 19, 1998 SEBI has granted certificate of
registration of Central Depository Services (I) Ltd. (CDSL).

Yet even with demat, from the point of view of investors there are
numerous problems. Here Wallet Watch introduces you to setting up of a demat
account and introduction of scrip less trading and settlement. There are numerous
benefits of this scrip less trading and settlement, which Wallet Watch has discussed
in detail.

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Introduction of online trading

Making trades via the Internet. The use of online trading increased dramatically
in the mid to late 1990's with the advent of high-speed computers and Internet
connections. Stocks, bonds, options, futures, and currencies can all be traded
online.

In the past, investors had to call up their brokers and place an order on the
phone. The broker would then enter the order in their system which was linked
to trading floors and exchanges.

With the advent of the internet, investors can now enter orders directly online,
or even trade with other investors via ECN's (electronic communication
networks). Some orders entered online are still routed through the broker
allowing agents to approve or monitor the trades. This step assists in the
protection of both the client and brokerage firm from unlawful or incorrect
trades which could affect the client’s portfolio or the broker’s license.

Online brokers are most often referred to as discount brokers, due to their lower
fees as opposed to full service brokers who also give advice to clients.

Before choosing to invest or trade online it is important for investors to research

the online brokers that they plan to employ, assuring that they are licensed
within their state or provincial jurisdiction. This step will help to protect
investors from falling victim to unlawful or illegal securities schemes (e.g.
Boiler Room scams).

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Investors must also fully understand the potential risks of investing without the
help of a trained Stock Broker or Investment Advisor. These professionals are
experienced both in trade and education and forgoing their advice could be
costly. For this reason, most online brokers offer a number of investment tools.

Once the above two steps are complete it is dually important to research the
sector, business and financial statements of each company whose stock they
plan to purchase. This, along with diversification and basic portfolio theory, will
assist to mitigate some of the risks associated with the volatility in both the
stocks and the stock markets.

Once investors have chosen an online brokerage that best suits their needs, they
will be provided a trading platform. This platform acts as the hub, allowing
investors to purchase and sell securities (fixed income and equities), options,
mutual funds, and forex. Included with the platform are tools to track and
monitor securities, portfolios and indices, as well as research tools, real-time
streaming quotes and up-to-date news releases; all of which are necessary to
trade profitably. Often, more robust research tools are available such as full, in-
depth analyst reports and analysis, and customized backtesting to see how
particular investment strategies would have been realized during different
historical periods.

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 Introduction of Sharekhan
Share khan is the retail broking arm of SSKI, an organization with more
than eight decades of trust & credibility in the stock market. It is India's leading
retail financial Services Company with We have over 250 share shops across
115 cities in India. While our size and strong balance sheet allow us to provide
you with varied products and services at very attractive prices, our over 750
Client Relationship Managers are dedicated to serving your unique needs.
Sharekhan is lead by a highly regarded management team that has invested
crore of rupees into a world class Infrastructure that provides our clients with
real-time service & 24/7 access to all information and products. Our flagship
Sharekhan Professional Network offers real-time prices, detailed data and news,
intelligent analytics, and electronic trading capabilities, right at your fingertips.
This powerful technology complemented by our knowledgeable and customer
focused Relationship Managers. We are Creating a world of Smart Investor
.Sharekhan offers a full range of financial services and products ranging from
Equities to Derivatives enhance your wealth and hence, achieve your
financial goals .Sharekhan' Client Relationship Managers are available to you to
help with your financial planning and investment needs. To provide the highest
possible quality of service, Sharekhan provides full access to all our products
and services through multi-channels.

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INVESTMENT BANK AND INVESTMENT BANKING
Investment Banking Strategy
• Niche Focus –
– Venture Capital & Private Equity
– Infrastructure advisory & financing
• Focus on, Infrastructure (Ports/ Logistics, Energy, Telecom)
Technology & Media
– Many firsts to our credit, in deal sizes, in sectors, in deal structures
– In sum, raised over $1 bn. of private equity deals

 Niche Focus –
– Venture Capital & Private Equity
– Infrastructure advisory & financing
– Focus on, Infrastructure (Ports/ Logistics, Energy, Telecom)
Technology & Media
– Many firsts to our credit, in deal sizes ,in sectors, in deal structures
– In sum, raised over $1 bn. of private equity deals

NSDL

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 Although India had a vibrant capital market, which is more than a century
old, the paper-based settlement of trades caused substantial problems like bad
delivery and delayed transfer of title till recently. The enactment of Depositories
Act in August 1996 paved the way for establishment of NSDL, the first
depository in India. This depository promoted by institutions of national stature
responsible for economic development of the country has since established a
national infrastructure of international standard that handles most of the trading
and settlement in dematerialized form in Indian capital market. Using
innovative and flexible technology systems, NSDL works to support the
investors and brokers in the capital market of the country. NSDL aims at
ensuring the safety and soundness of Indian marketplaces by developing
settlement solutions that increase efficiency, minimize risk and reduce costs. At
NSDL, we play a quiet but central role in developing products and services that
will continue to nurture the growing needs of the financial services industry.

In the depository system, securities are held in depository accounts, which is

more or less similar to holding funds in bank accounts. Transfer of ownership of
securities is done through simple account transfers. This method does away with
all the risks and hassles normally associated with paperwork. Consequently, the
cost of transacting in a depository environment is considerably lower as
compared to transacting in certificates.

DEPOSITORY PARTICIPANTS

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A Depository Participant (DP) is described as an agent of the depository. They
are the intermediaries between the depository and the investors. The relationship
between the DPs and the depository is governed by an agreement made between
the two under the Depositories Act. In a strictly legal sense, a DP is an entity
that is registered as such with SEBI under the provisions of the SEBI Act. As
per the provisions of this Act, a DP can offer depository-related services only
after obtaining a certificate of registration from SEBI. SEBI (D&P) Regulations,
1996 prescribe a minimum net worth of Rs.50 lakh for stockbrokers, R&T
agents and non-banking finance companies (NBFC), for granting them a
certificate of registration to act as DPs. If a stockbroker seeks to act as a DP in
more than one depository, he should comply with the specified net worth
criterion separately for each such depository. No minimum net worth criterion
has been prescribed for other categories of DPs. However, depositories can fix a
higher net worth criterion for their DPs. NSDL requires a minimum net worth of
Rs.100 lakh to be eligible to become a DP as against Rs.50 lakh prescribed by
SEBI (D&P) Regulations.

VISION
To be the best retail broking brand in the Indian Stock market.

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MISSION
To educate and empower the individual investor to make better investment
decisions through quality advice and superior service.

SSKI GROUP OF COMPANIES

• SSKI Investor Services Ltd (Share khan)

• S.S. Kantilla Ishwarlal Securities
• SSKI Corporate Finance
• Idream Productions

Product of Share khan ltd.

 Online Trading A/C
 Demat A/C
 Mutual Fund
 Bonds
 IPO’s
 Fixed Deposite

Online trading in Sharekhan

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TRADING in stock markets through the Internet, which took a dip due to
investor apathy because of prolonged bearishness in recent years, is witnessing a
revival of interest and is expected to record growth in the coming years.

The retail investors in the capital market are the most neglected lot with no
access to research and Share khan, the retail broking arm of SSKI Group, one of
the oldest members of the BSE, seeks to fill this vacuum felt by retail investors,
according to Mr. Tarun Shah, CEO, Share khan, Mumbai.

Speaking to Business Line on the sidelines of the opening of the Coimbatore

branch of Share khan, he said the company had invested about Rs 13 crore in
the last two years in creating the requisite infrastructure by way of branches and
for Internet trading.

With presence in about 123 cities across the country now, it will seek to
consolidate its presence in the current year and focus on expanding its
membership.

He said Share khan enjoyed about 20 per cent market share in Web business
(Internet trading) in stock markets. Three years ago, Web trading showed lot of
promise but with the market witnessing a downturn, there was not much interest
among retail customers.

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The company has been adding around 1, 000 customers a month and felt that for
retail customer, Web trading was a `very good medium' particularly as it
provided live information.

Mr. Tarun Shah, when asked about the number of investors who were hooked
on to Web trading, said numbers could be `misleading'. While his company has
about 10,000 plus customers, SHARE KHAN Securities claimed to have 1.20
lakhs customers and there were other players like HDFC too. His estimate was
that the number of active Web traders would be in the 30,000-50,000 regions.

He said this number was growing at 5 per cent to 10 per cent a month and this
was a segment that could not be ignored. He said in Share khan, Web trading
constituted about 1 per cent to 2 per cent of the revenue in 2001-02.

But in 2002-03, when the overall revenue trebled, the share of Web trading
constituted 22 per cent of the revenue. As Sharekhan's daily trading volume was
over Rs 200 crore, the share of Web trading at about Rs 40 crore a day was
substantial and a larger part of the volume was coming from day traders.

He expected the pricing for Web trading to come down and once the investment
was made on technology, the scalability would be high and there was minimum
involvement of staff in dealing with customers. The crediting of the
sale/purchase orders would be fast with no physical handling as the system does
every work.

Commenting on the growth of Internet trading in the stock markets, he said the
share of Web trading in the total turnover of the capital markets was miniscule
now just about 1 to 2 per cent.

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But in the next two or three years, he expected this to go up to 10 to 15 per cent.
There was huge scope for growth in this segment of business, he said. His
company knew share broking best and would stick to that, he added. Mr. Tarun
Shah said Share khan recently obtained license to offer Portfolio Management
Services (PMS). It was offering a range of products to suit retail investors and
PMS when launched, would cater to the requirements of the high net-worth
individuals. The entry-level investment for PMS membership may be around Rs
5-Rs 10 lakhs, which was needed for having a well-diversified portfolio. This
could be by way of taking over existing portfolio or fresh investment, he added.

HOW CAN ONE OPEN AN ACCOUNT IN DEMAT?

First an investor has to approach a DP and fill up an account opening form.

The account opening form must be supported by copies of any one of the approved
documents to serve as proof of identity (POI) and proof of address (POA) as
specified by SEBI. Besides, production of PAN card in original at the time of
opening of account has been made mandatory effective from April 01, 2006.

All applicants should carry original documents for verification by an

authorized official of the depository participant, under his signature.
Further, the investor has to sign an agreement with DP in a depository
prescribed standard format, which details rights and duties of investor and DP. DP
should provide the investor with a copy of the agreement and schedule of charges
for their future reference. The DP will open the account in the system and give an
account number, which is also called BO ID (Beneficiary Owner Identification
number).

The DP may revise the charges by giving 30 days notice in advance.SEBI

has rationalised the cost structure for dematerialisation by removing account
opening charges, transaction charges for credit of securities, and custody charges
vide circular dated January 28, 2005.

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 Further, SEBI has vide circular dated November 09, 2005 advised that with
effect from January 09, 2006, no charges shall be levied by a depository on DP and
consequently, by a DP on a Beneficiary Owner (BO) when a BO transfers all the
securities lying in his account to another branch of the same DP or to another DP
of the same depository or another depository, provided the BO Account/s at
transferee DP and at transferor DP are one and the same, i.e. identical in all
respects.   In case the BO Account at transferor DP is a joint account, the BO
Account at transferee DP should also be a joint account in the same sequence of
ownership

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 COMPITITION ANALYSIS

 SHAREKHAN.COM

 ICICI DIRECT. COM

 HDFCSEC. COM

 5PAISA. COM

 INDIABULLS

 SBICAP SECURITIES

 MOTILAL OSWAL

 RELIGARE SECURITIES

 RELIANCE MONEY

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COMPARITION ANALYSIS CHART:-

NAME OF THE CHARGES FOR CHARGES FOR ACCOUNT

ONLINE OPENNING
INTRADAY DELIVERY
BROKER CHARGES

SHAREKHAN 0.015%-0.10% 0.03%-0.50% 750/-

ICICI DIRECT 0.15% 0.75% 750/-

HDFC SEC 0.15% 0.50% 799/-

5PAISA 0.07% 0.25%-0.85% 500/-

INDIABULLS 0.05%-0.10% 0.25%-0.50% 1200/-

RELIGARE 0.02%-0,03% 0.20%-0.30% 550/-

RELIANCE 0.01% 0.01% 1200/-

SHARE KHAN LIMITED

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Sharekhan.com is a truly online share-trading site. This means that from the time
you punch in a buy or sell trade on your computer to the final settlement in your
account, everything happens completely online. The 3-in-1 e-invest account
integrates your brokerage, bank and one or more depository accounts to make sure
that you can do the otherwise cumbersome share trading from the comfort of your
home or office, at absolutely any time of the day…or night.

Share khan also provide an another facilities to the client that is called Dial-n-
Trade. Here client can call to the toll free no 1800-22-7050 and placed order for
buying and selling, if they have on time to operate internet to trade.

Share khan also sends the tips or stock idea to the existing client into their e-mail
id by free of cost.

Share khan provides software free of cost to the client for easy trading. By using
this software clients can see the live market (BSE & NSE) status and according to
this they can trade in market online.

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 SWOT ANALYSIS
Strengths

 It is a pioneer in online trading with a turn over of Rs.400crores and

more than 800 peoples working in the organization.
 . SSKI the parent company of Share Khan has more than eight decades
of trust and credibility in the Indian stock market. In the Asian Money
Broker’s poll SSKI won the “India’s best broking house for 2004”
award.
 Share Khan provides multi-channel access to all its customers through
a strong online presence with www.sharekhan.com, 250 share shops in
130 cities and a call-center based Dial-n-Trade facility
 Share Khan has dedicated research teams for fundamental and
technical research. Which constantly track the pulse of the market and
provide timely investment advice free of cost to its clients which has a
strike rate of 70-80%.

Weakness

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  Localized presence due to insufficient investments for country wide
expansion.
 Lack of awareness among customers because of non-aggressive
promotional strategies (print media, newspapers, etc).
 Lesser emphasis on customer retention.
 Focuses more on HNIs than retail investors which results in meager
market-share as compared to close competitors.

Opportunities

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  With the booming capital market it can successfully launch new services
and raise its client’s base.
 It can easily tap the retail investors with small saving through promotional
channels like print media, electronic media, etc.
 As interest on fixed deposits with post office and banks are all time low,
more and more small investors are entering into stock market.
 Abolition of long term capital gain tax on shares and reduction in short
term capital gain is making stock market as hot destination for investment
among small investors.
 Increasing usage of internet through broadband connectivity may boost a
whole new breed of investors for trading in securities.

Threats

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 Aggressive promotional strategies by close competitors may hamper Share
Khan’s acceptance by new clients.
 Lack of sufficient branch-offices for speedy delivery of services.
 Other players are providing margin funds to investors on easy
terms where as there is no such facility in share khan.
 More and more players are venturing into this domain which can
further reduce the earnings of Share Khan.

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CHAPTER 2:-

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 OBJECTIVES

The primary objective is:

 Checking the awareness level of online share trading.

 Evaluation of preferred investments in various mode and industry.

 Study of influencing factors affecting the purchase decision.

 Analyzing the preferred broking house.

 Checking the satisfaction level of the customers towards preferred

broking house,

The secondary objective is:

 To make clients and let them know about the different services offered by
the SHAREKHAN.

 To understand the problem faced by customers and finding way to solve

the queries.

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 METHODOLOGY

DATA SOURCES

A research design is one, which simplifies the framework of plan for the study
and adds itself in the quick collection and analysis of the data. It is a blue print
that has been filled in completing the study. A market survey of the respondents
having on line trading in Mumbai. Some 100 respondents were taken randomly.

PRIMARY DATA

Here the respondents were met directly to collect information by means of

personal interviews. A questionnaire was prepared for there respondents where
there views were collected.

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SECONDRY DATA
The secondary data has been collected from share khan manuals, journals and
Internet.

QUESTIONNAIRE DESIGN / FORMATION

A questionnaire was prepared for the responses of the respondents. The

questionnaire was designed on the primary objections were of both open ended
and closed ended type.

SAMPLE DESIGN /SAMPLE ELEMENT / UNIT

The primary data was collected through survey that was systematically carried
in and around Mumbai. The responses of the respondents were recorded in the
questionnaire prepared for them. The data was collected in two ways i.e.
through personal interviews and through e-mail

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SAMPLING PLAN:

This refers to the number of items that were selected for the surveys. For this
survey 100 respondents were chosen randomly.

(a) Sample universe

The sampling universe in my project consisted of various travel agents , money

– changes , various companies and export houses .

(b) Sample size:

The total sample consisted of two hundreds travel agents and forty companies.

(c) Sampling procedures:

The procedure of sampling adopted during the course of the project was
purposive sampling .It was arbitrary in nature and the main focus was on soft
ware companies .

SAMPLING FRAME
Business Class

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 LIMITATIONS

 Lack of awareness of capital market:

Since the area is not known before it takes lot of time in convincing people to
start investing in shares primarily in IPO’s.

 Some people are comfortable with traditional system

As people are doing trading from there respective brokers, they are quite
comfortable to trade via physical form of paper.

 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.

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 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 as all the shares are in
electronic form and they don’t have any physical proof. Sometimes this
leads to a great misconception of the entire process.

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CHAPTER 3:-

Page 37
 STRATEGIES
A strategy that focuses on developing a unique long-run competitive position in
the market by assessing consumer needs and the firm's potential for gaining a
competitive advantage.
 A business’ approach to marketing its products/ services expresses in
broad terms, which forms a basis for developing a marketing plan.

 Marketing starts with market research, in which needs and attitudes and
competitors' products are assessed, and continues through into
advertising, promotion, distribution, and, where applicable, customer
servicing and repair, packaging, and sales and distribution.

 The broad marketing thinking that will enable an organization to develop

its products and marketing mixes in the right direction, consistent with
overall corporate objectives.

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MARKETING STRATEGIES OF THE COMPANY AND
IMPLEMENTATION

Tele Calling: -
The company uses the tele calling/ phone calling to reach the customer,
which are interested. This is the most important technique to save time
and giving demo of the companies’ product through making call in order
to know the customer interest towards the product. This is the strategy
with which one can motivate customer to go for the product and etc.
 LMS:
It is leads management system which means leads are generated by the
customers who want to purchase the product of the company. Companies
provide facility to the customer on online to fill the registration form
through which the companies’ executives can provide more information
to the customer.
 Yellow Pages:
Yellow pages are used to gather data for making calls so that customer
who did not fine time and are unaware of the product can know about the
product. Customers are given freedom to ask question related to the
products this is the technique used to increase the awareness of the
company.

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

* Direct Marketing
Share khan executive’s reaches to the does of the customer by fixing
appointments with the interested customer, they describe the details of the
product. Executive give demonstration of the products so that customer
can understand better.

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 Advertising:
Advertising is the most important tool of increasing awareness of the
product and this is the most widely used technique by the company to tell
about the new features and new lunch by giving briefing of the product.
Share khan use banners, distribution of pamphlets, and advertisement in
newspapers, magazines.
 References:
Share khan strategy is to satisfy the customer in terms of their need by
providing them timely services and knowledge about the trade in equities,
mutual funs by giving tips for investment advises through e-mails or toll
free calls for this purpose customers are provided relationship manager
who give investment advise and also make transaction on their behalf on
demand. B satisfying customer executives ask their references that not
only increase the awareness but also increase the good will of the
company.
 Competitiveness:
The company is innovative and uses the latest technology to improve the
product to fulfill the demands of the customers. Share khan makes it easy
for the customer to make online transaction of shares. The company is
competitive in terms of the product price and facilities it offers to the
customer.
 Internet:
Company provides detailed information about the products on Internet
so that customer can know about the product easily and completely.

Page 41
CHAPTER 4:-

Page 42
 Data analysis

Questionnaire:
 Can you operate computer?
1) Yes
2) No

40%
40%
Yes
No
nhjjjj
nhjjjj
60%
60%

hh
hjhj
hjhj

Interpretation
The response is general to the above question which was put to different age
group was positive as indicated by the chart above. Only the younger and
middle age group people were affirmative and were optimistic regarding their
knowledge about the computer. The 40% strength is mostly in old age group.
With this we can conclude that young & middle age group can capture technical
terms of computer easily.

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  Can you surf Internet?
1) Yes
2) No

4545%%

YES

No
55%
55%

Interpretation
With this analysis we found that though 60% people are aware of computer but
5% of them are still unable to surf Internet. It affects the online trading.

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  How many prefer to invest;
A) shares
B) mutual funds
C) bonds
D) debentures

Preference of Investment

Only Shares-- 75 %
Mutual Funds-- 16%
Bonds--7%
Derivatives--2%

Interpretation:
This shows that although the mutual funds market is on the rise yet, the most
favored investment continues to be in the Share Market. So, with a more
transparent system, investment in the Stock Market can definitely be increased.

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  How many of you aware of online share trading?

Awareness of online share trading

Yes -- 91%

No-- 9%

Interpretation: With the increase in cyber education, the awareness towards

online share trading has increased by leaps and bounds. This awareness is expected
to increase further with the increase in Internet education.

 How many of you aware of Demat account market of;

a) Share Khan

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 b) ICICI Direct.com
c) Kotak Mahindra
d) India Bulls
e) Others

DEMAT account market

Sharekhan- 12%
ICICI Direct- 31%
Kotak Mahindra- 7%
India Bulls- 24%
Others-26%

Interpretation:
This shows that even with sufficiently high Brand Equity, Sharekhan ranks only 3 rd
amongst the Demat account providers. This is probably because of two main
reasons:

1. Lack of promotion and unfocussed approach towards Product awareness

2. Non – transparent marketing policies of the company

Hence, the company should crystallize its products and should indulge in
aggressive marketing and promotion.

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  How many of you satisfy with the level of current broker?

Satisfaction level among Customers with

current broker

Yes - 92% No- 8%

Interpretation:
This pie chart accentuates the fact that Strategic marketing, today, has gone
beyond only meeting Sales targets and generating profit volumes. It shows that all
the competitors are striving hard not only to woo the customers but also to make
them Brand loyal by generating customer satisfaction.

 How many of do training:

A) Daily

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 B) Monthly
C) Weekly
D) Yearly

Frequency of Trading

Daily- 9%
Weekly- 27%
Monthly-53%
Yearly-11%

Interpretation:
In spite of the huge returns that the share market promises, we see that there is still
a dearth of active traders and investors. This is because of the non – transparent
structure of the Indian share market and the skepticism of the target audience that
is generated by the volatility of the stock market. It requires efficient bureaucratic
intervention on the part of the Government.

 According to your perspective which investment gives you maximum

return?
(1) Share market
(2) Mutual funds
(3) Purchasing insurance policy

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 share market

mutual funds

purchasing insurance
policies

Interpretation
As of today people believe in secured investment with no risk & high return. So
insurance policy are the best option for them as they give good return after a
period of time .Share market has also come up in a big way though the risk factor
is a bit too high despite good return.

 Percentage of customers’ satisfaction with the trading demos provided

by the Share khan Ltd.
4%
20% 0%

52%
24%

Satisfied Mostly Satisfied

Neither Satisfied/ Unsatisfied Mostly Unsatisfiede Page 50
Unsatisfied
Interpretation

According to the survey 52% of the customers are satisfied with the
Trading Demos that are conducted by the Share khan Ltd. 24% are
mostly satisfied. So we can say that Share khan customers are
attending the demo programmers and the Share khan employees can
able to solve the queries of the customers.

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  Percentage of customers’ satisfaction of the services of Share khan Ltd.

2%

10%
0%

24%

64%

Satisfied Mostly Satisfied Newither Satisfied/ Unsatisfied Mostly Unsatisfied Unsatisfied

Interpretation

According to survey 64% of customers are satisfied with the services

of Share khan and 24% are mostly satisfied. Then we can say that
Share khan offers quality service that touches customers’ satisfaction
level.

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CHAPTER 5:-

FINDINGS

Page 53
 We suggest following measures, which Share Khan could take so as to take on
heavy competition from India bulls and 5 Paisa

1. To identify regions where promotions are required. Share Khan lacks visibility

in northern region where as it is a well known name in western region. Even

then, its promotional campaign focuses on western region where as northern
region is still waiting for promotional campaigns.

2. Try to reduce cost, so that benefits can be passed on to customers. Senior

managers at Share Khan keep on telling that it is difficult to reduce cost,

because of services we provide. But the fact is, India being a price sensitive
market, people at times go for monetary benefits rather than for long term non-
monetary benefits.

3. If charges can’t be reduced because of costs involved, make the services

customized, so that services are provided to only those customers who are
willing to pay the price for services they are getting and let the other customers
enjoy costs benefits without getting services.

4. Concept of margin funding should be introduced, as more and more people are

asking for it.

5. Share Khan should contact with their clients regularly for knowing the

problems faced by them. This will help Share Khan in providing best services
to customers. This will result in additional customer base by getting further
references from satisfied clients.

6. To launch slab wise brokerage structure as Share Khan has fixed brokerage

structure which can not be negotiated. But other players in the market offer

Page 54
launch slab wise brokerage structure which motivate customers to increase their
volumes. That’s why heavy investors do not open their account with Share
Khan

RECOOMENDATIONS

Page 55
We suggest following measures, which Share Khan could take so as to take on
heavy competition from India bulls and 5 Paisa

1. To identify regions where promotions are required. Share Khan lacks visibility
in northern region where as it is a well known name in western region. Even then,
its promotional campaign focuses on western region where as northern region is
still waiting for promotional campaigns.

2. Try to reduce cost, so that benefits can be passed on to customers. Senior

managers at Share Khan keep on telling that it is difficult to reduce cost, because
of services we provide. But the fact is, India being a price sensitive market, people
at times go for monetary benefits rather than for long term non- monetary benefits.

3. If charges can’t be reduced because of costs involved, make the services

customized, so that services are provided to only those customers who are willing
to pay the price for services they are getting and let the other customers enjoy costs
benefits without getting services.

4. Concept of margin funding should be introduced, as more and more people are
asking for it.

5. Share Khan should contact with their clients regularly for knowing the problems
faced by them. This will help Share Khan in providing best services to customers.
This will result in additional customer base by getting further references from
satisfied clients.

6. To launch slab wise brokerage structure as Share Khan has fixed brokerage
structure which can not be negotiated. But other players in the market offer launch

Page 56
slab wise brokerage structure which motivate customers to increase their volumes.
That’s why heavy investors do not open their account with Share Khan

7. It must also tap the rural sector where penetration is poor; it can be made
possible by better offer with its product i.e. margin level, loan on low percentage.

CONCLUSION

Share khan is performing very well in the field of online share trading
business and having very good administration also.
Each departments doing their job very well comparing to the standard
performance fixed by the management and it leads to overall good
performance of the company.
There existing a good relationship between employees and
management
The management taking keen interest for finding their weakness and try
their level best to overcome this weakness

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 ANNEXURES

QUESTIONNAIRE

Q1. In which of these Financial Instruments do you invest into?

Shares Mutual Funds Bonds Derivatives

Q2. Are you aware of online Share trading?

Yes No

Q3. Heard about Share khan?

Yes No

Q4. Do you know about the facilities provided by Share khan?

Yes No

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Q5. With which company do you have your DEMAT account?

Share khan ICICI Direct Kotak Mahindra India Bulls

Others (please specify)

Q6. What differentiates your Share trading company from others?

Q7. Are you currently satisfied with your Share trading company?

Yes No

Q8. How often do you trade?

Daily Weekly Monthly Yearly

Page 59
Q9. What percentage of your earnings do you invest in share trading?

Up to 10% Up to 25% Up to 50% Above 50%

Q10. How do you rate these share trading companies?

a. Share khan
b. SHARE KHAN Direct
1. 2. 3. c. India Bulls
d. Kotak Mahindra
e. Others (Please specify)
4. 5.

Q11. What more facilities do you think you require with your DEMAT
account?

Page 60
 BIBBLOGRAPHY

Books and Newspapers:

 The Economic Times, Business Standard, Business line

 Securities Market (Basic) Module :--NCFM

 Economic Times.

 Training Kit Provided by the Sharekhan.

 Indian financial system by M.Y KHAN

 NSDL Depository operations module :--NCFM

Websites:-

www.hinduonnet.com/businessline/iw/2001/05/27/stories/07276053.htm

www.cdslindia.com/FAQ/demat.htm

www.nsdl.co.in/services/demat.php

www.sebi.gov.in/faq/faqdemat.html

www.scribd.com

www.tradersplace.in

www.sharekhan.com

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www.jdpower.com

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