Académique Documents
Professionnel Documents
Culture Documents
PROJECT REPORT
ON
COMPARATIVE ANALYSIS OF
DIFFERENT ON-LINE
BROKING HOUSE
1
2
Declaration
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BONAFIDE CERTIFICATE FROM COMPANY
SAURABH PORWAL
BRANCH MANAGER
TRAINNING HEAD
DEPRTMENT
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BONAFIED CERTIFICATE FROM INSTITUTION
ANANT GWAL
Academics’ director
BHUMIKA JUNEJA
Training and placement head
INDORE INDIRA SCHOOL OF CAREER STUDIES
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Acknowledgement
I wish to thank the following individuals for help with various aspects of this project. Would
Like to acknowledge and extend my heartfelt gratitude to the following persons who have made
the completion of this PROJECT REPORT possible:
Our project mentor, SAURABH PORWAL who provided us opportunity to complete our
internship in KOTAK SECURITIES and heartily gratitude for his vital encouragement and
support given under his guidance.
I would like to thanks Mr. Anirudh Gautam and Mr. Roopesh Toopiwala for assisting in the
collecting information and data gathering for the projects reports.
I would also like to thanks Aashish, Ritesh sir and Naresh sir for understanding and assistance
provided by them during our training session.
Last but not least our college IISCS who made all things possible. Our TPO BHUMIKA MAM
to provide us golden opportunity to have a work experience in KOTAK SECURITIES.
Most especially to my family and friends who made all things possible.
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TABLE OF CONTENT
• Cover page
• Declaration
• Bonafide certificate from Company
• Bonafide certificate from Institution
• Acknowledgement
• Abstract
• Introduction of kotak group
• Introduction of kotak securities
• Accolades
• Our offering
• Organizational structure
• SWOT Analysis
• Marketing mix (4 p’)
• Competitor’s Analysis
• Introduction of the concern department
Hierarchy
Description of various duty/responsibility
Description of working
• Scope and Objective
• Requirement of online trading
• Competitive Analysis
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• Competitor Strategy
• If’s and Buts’ of online trading
• Recommendations
• Conclusion
• Bibliography
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ABSTRACT
During tanning, we are required to undertake assignment\jobs along with the day-
to-day function of the company, both at the assistance and execution level. This
will help to gain a deeper understanding of the work, culture, deadlines, and
pressure etc. of an origination.
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INTRODUCTION OF
KOTAK
Kotak Mahindra is one of India's leading financial organizations, offering a wide range of
financial services that encompass every sphere of life. From commercial banking, to stock
broking, to mutual funds, to life insurance, to investment banking, the group caters to the diverse
financial needs of individuals and corporates. This company was promoted by Uday Kotak,
Sidney A. Pinto and Kotak & Company.
The group has a net worth of over Rs. 7,500 crore and has a distribution network of branches,
franchisees, representative offices and satellite offices across cities and towns in India and
offices in New York, London, San Francisco, Dubai, Mauritius and Singapore. The Group
services around 6.7 million customer accounts.
Kotak Mahindra Bank Industrialists Harish Mahindra and Anand Mahindra took a stake in year
1986 and that’s why the company changed its name to Kotak Mahindra Finance Limited.
The Kotak Mahindra Group's flagship company, Kotak Mahindra Finance Ltd which was
established in 1985, was converted into a bank- Kotak Mahindra Bank Ltd in March 2003
becoming the first Indian company to convert into a Bank. Its banking operations offer a central
platform for customer relationships across the group's various businesses. The bank has presence
in Commercial Vehicles, Retail Finance, Corporate Banking, Treasury and Housing Finance.
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Kotak Mahindra Capital Company (KMCC) is India's premier Investment Bank. KMCC's core
business areas include Equity Issuances, Mergers & Acquisitions, Structured Finance and
Advisory Services.
Kotak Securities Ltd. is one of India's largest brokerage and securities distribution houses. Over
the years, Kotak Securities has been one of the leading investment broking houses catering to the
needs of both institutional and non-institutional investor categories with presence all over the
country through franchisees and coordinators. Kotak Securities Ltd. offers online and offline
services based on well-researched expertise and financial products to non-institutional investors.
Kotak Mahindra Prime Limited (KMP) (formerly known as Kotak Mahindra Primus Limited)
has been formed with the objective of financing the retail and wholesale trade of passenger and
multi utility vehicles in India. KMP offers customers retail finance for both new as well as used
cars and wholesale finance to dealers in the automobile trade. KMP continues to be among the
leading car finance companies in India.
Kotak Mahindra Life Insurance Limited is a joint venture between Kotak Mahindra Bank Ltd.
and Old Mutual plc. Kotak Life Insurance helps customers to take important financial decisions
at every stage in life by offering them a wide range of innovative life insurance products, to
make them financially independent.
Kotak's International Business With a presence outside India since 1994, the international
subsidiaries of Kotak Mahindra Bank Ltd. operating through offices in London, New York,
Dubai, San Francisco, Singapore and Mauritius specialize in providing asset management
services to specialist overseas investors seeking to invest into India. The offerings are
differentiated India investment solutions that span all major asset classes including listed equity,
private equity and real estate. The subsidiaries also lead manage and underwrite international
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issuances of securities. With its commendable track record, large presence on the ground and a
team of dedicated staff in India, Kotak’s international arm is suitably positioned for managing
assets in the Indian Capital markets.
GROUP MANAGEMENT
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The journey so far
Kotak Securities Limited, a subsidiary of Kotak Mahindra Bank, is the stock broking and
distribution arm of the Kotak Mahindra Group. The company was set up in 1994. Kotak
Securities is a corporate member of both The Bombay Stock Exchange and The National Stock
Exchange of India Limited. Its operations include stock broking and distribution of various
financial products - including private and secondary placement of debt and equity and mutual
funds. Currently, Kotak Securities is one of the largest broking houses in India with wide
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geographical reach. The company has four main areas of business: (1) Institutional Equities, (2)
Retail (equities and other financial products), (3) Portfolio Management and (4) Depository
Services.
Institutional Business
This division primarily covers secondary market broking. It caters to the needs of foreign and
Indian institutional investors in Indian equities (both local shares and GDRs). The division
also incorporates a comprehensive research cell with sectoral analysts who cover all the
major areas of the Indian economy.
Depository Services
Kotak Securities is a depository participant with the National Securities Depository Limited
and Central Depository Services (India) Limited for trading and settlement of dematerialised
shares. Since it is also in the broking business, investors who use its depository services get a
dual benefit. They are able to use its brokerage services to execute transactions and its
depository services to settle these.
Kotak Securities' width, volume and quality of offerings regularly earn it accolades from
industry monitors.
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Kotak Institutional Equities, among the top institutional brokers in India. It mainly covers
secondary market broking and the marketing of equity offerings, including IPOs, to domestic and
foreign institutional investors. Its full-fledged research division comprises 26 analysts engaged in
macro-economic studies, industry-and company-specific equity research.
Kotak Institutional Equities has full financial service capability, which includes derivatives,
facilitating market access through affiliates and the distinctive offering of corporate access to
investors. The division services over 250 clients including FIIs, domestic institutions and mutual
funds. The division has sales desks in Mumbai, London and New York, with the India desk also
servicing clients in Hong Kong, Singapore, Japan and Australia.
In Kotak Securities, We see investing from your perspective, and make recommendations based
on your needs. One of our important goals is to simplify investing for you; along with this we
also provide long term values to our customers.
• Stability:
• Innovators in the Industry:
• Reliability:
• Value:
• Service:
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• Robust Technology:
• Centralized Risk Management System:
• Exceptional Research:
• Large Presence:
We are also a depository participant with National Securities Depository Limited (NSDL) and
Central Depository Services Limited (CDSL), providing dual benefit services wherein the
investors can avail our brokerage services for executing the transactions and the depository
services for settling them. We process more than 400000 trades a day which is much higher even
than some of the renowned international brokers.
We are present in 331 cities with 843 offices all over the country. Our employee strength extends
beyond 2750.
Kotak Securities Limited has Rs. 2599 crore of Assets under Management (AUM) as of 30th
June, 2009. The portfolio Management Service provides top class service, catering to the high
end of the market. Portfolio Management from Kotak Securities comes as an answer to those
who would like to grow exponentially on the crest of the stock market, with the backing of an
expert
• UTI MF – CNBC TV18 Financial Advisor Awards - Best Performing Equity Broker
(National) for the year 2009
• Finance Asia Award (2009)-Best Brokerage Firm In India
• Best Brokerage Firm in India by Asia money in 2008, 2007 & 2006
• Best Performing Equity Broker in India – CNBC Financial Advisor Awards 2008
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• Avaya Customer Responsiveness Awards (2007 & 2006) in Financial Services Sector
• The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
• Euro money Award (2007 & 2006) - Best Provider of Portfolio Management: Equities
• Euro money Award (2005)-Best Equities House In India
• Finance Asia Award (2005)-Best Broker In India
• Finance Asia Award (2004)- India's best Equity House
• Prime Ranking Award (2003-04)- Largest Distributor of IPO's
We have been the first in providing many products and services which have now become
industry standards. Some of them are:
OUR OFFERING:
Once you invest with Kotak Securities, you can enjoy access to a wide range of products and
services to help you make the most of your investments.
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Research : "What do I Buy?" Isn't this a common question we all have while investing in equity
& derivatives?
SMS Alerts : You can get expert tips and recommendations as SMS on your mobile phone so
that you know what to invest in at all times..
Competitive Brokerages: We bring you brokerage rates which are among the most competitive
in the industry. Our low brokerage rates let you concentrate on investing your savings without
worrying about the cost of investment.
Call and Trade: You can capitalize on market opportunities even when your computer is
inaccessible. Call & Trade essentially provides you the convenience of trading in equity &
derivatives by making a simple phone call. Know more
M-Trade: It is exclusively designed to give you instant access to the stock market through your
mobile phone, thereby allowing you to catch every little market movement when you are on the
move.
Easy IPO
Investing in IPOs – IPO is an abbreviation for an initial public offering.
An IPO (also known as floatation) is the process by which a company goes public i.e. offers its
shares to the public for sale for the first time. is not complex anymore, Kotak Securities has
made investing in IPOs very simple.
We also provide with you with information on IPO News , Forthcoming IPOs and a lots more.
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Given the unpredictable nature of the market it requires solid experience and strong research to
make the right decision. In the end to make the right move in the right direction at the right time.
That’s where the expert comes in.
Benefit
• An Investment Relationship Manager will ensure that you receive all the services related
to your investment needs
• A dedicated website and a customer services desk allows you to keep a tab on your
portfolio’s performance is tailored after a thorough research backed by the expertise from
Research team
• An experienced team of portfolio managers ensure your portfolio is tracked, monitored
and optimized at all times
• The personalized services also translates into zero paper work and all your financial
statements will be e-mailed
ORGANIZATIONAL STRUCTURE
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CEO&CMD
ZONAL
MANAGER
BRANCH
MANAGER
RELATIONSHIP
MANAGER AND
DEALERS
SALES
EXECUTIVE
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SWOT Analysis
STRENGTH:
• Kotak Securities Research Centre- the special research cell where some of India's
finest financial analysts bring you intensive research reports on how the stock market is
faring, when is the right time to invest, when to execute your order and more..
• Trade in D.P.: Unlike other securities in kotak all trade activities of trade are done in
there own D.P. .No transactions are done in pool a/c.
• Transparency is guaranteed or assured, there are no hidden charges in kotak securities.
• 0 balance bank account – while on opening a Dmat a/c you get facility to open an bank
a/c in kotak Mahindra bank which can be maintained on ‘0’ zero balance, along with you
get ATM card and credit card + other facility by depositing initial amount 0f rs. 5000/-
which can be withdrawn later.
• You can open your trading, Demat and Bank account with a single entity. This reduces
your need for maintaining separate accounts with different entities.
• Easy loan & Early payments: If there are share present in your D.P., you can get loan
against that share and equities from kotak Mahindra bank, with in an day or two.
According to SEBI, all shares and securities are transferred to and from D.P. in T+2
days, but in kotak you can get that payment with in a day with help of kotak bank.
• Pay-in & pay-out:- There are only pay-out charges prevailed in kotak, no pay-in
charges are entrained like other securities.
• You do not have to transfer margin money to and from your accounts. Your margin
money is automatically reflected in your accounts.
• Transactions are seamless and you do not lose time in unnecessary transactions.
• Provides off-line and on-line account.
• Through its web portal company provides a single platform for investments in equities,
Mutual Funds and currency derivatives. Available margin can be used for any of the three
segments.
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• Saxo's global trading platform provided by the company allows direct access to equities,
ETF's and REITS spanning 24 stock exchanges across the USA, Europe, Asia and
Australia.
• Kotak also provides a Call & Trade facility to its customers wherein they can place and
track their orders through phone when they are away from home.
• Kotak Securities provide daily SMS alerts, market pointers, periodical research reports,
stock recommendations etc.
• Kotak provides exclusive online tool to monitor what is happening in the market and also
investor can view gains/losses in real-time.
• Customer support chat helps customers to resolve issues faster.
WEAKNESS:
• Lack of awareness among the people is the biggest limitation found in this sector. Most
of the people is not aware about the, importance and the necessity of the investment in
their life. They are not aware how useful investment can be for their family member in
time of crises.
• Increased competition – Today the competition in the stock market sector has became
very stiff. Currently there are more than 14 stock broking companies working in India.
Today each and every company is trying to increase their relationship manager and sales
executive so that they can increase their reach in the market. This situation has created a
scenario in which to sell became very difficult.
OPPORTUNITY:
• Increasing interest – people are getting attracted towards the share market due to its
high returns more than any other form of investment like in bank, mutual fund, insurance
plans etc.
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THREAT
• Threat of stability of the system: failure of some weak research has often threatened the
stability of the system.
• ¦ Rise in inflation figures which would lead to decrease in interest of person in particular
segment.
• ¦ Increase in the number of foreign players would pose a threat to the private players.
• Perception of the people towards share market sector – People do not get benefit of
Tax saving just as a insurance sector. So today also there is always a rush to buy an
Insurance Policy only at the end of the financial year like January, February and March
where as people avoid to open an DP a/c in this months,
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Marketing mix :
AutoInvest
AutoInvest provides a combination of Gold ETFs, Stocks and Mutual Funds recommended by
our Advisors, depending on an investor's risk appetite and investment view.
AutoInvest is unique from a general SIP in a way that it assesses the risk profile and investment
objectives of the investor, an important practice that Mutual Funds fail to carry. We offer 4
distinct Investment Portfolios based on your risk taking ability.
Benefits of AutoInvest
SIP Styled Investments
Diversified investment with Compounding effect. Example
Option to Invest In Gold ETFs
Option to purchase Gold Bars/Coins at the time of redemption of Gold
ETFs
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Wide Array of Portfolio Selections
The Investor holds his stocks in a Demat Account unlike Mutual Funds
Investing in Gold ETFs give you all the advantages of investing in gold while eliminating
drawbacks of physical gold -- cost of storage, liquidity and purity. Gold ETFs allow investment
in gold in small denominations, which makes it easy on the wallet . Investing in GOLD ETFs
gives investors tax advantages over investing in physical gold. Gold ETFs are transparent
investment vehicles that will have to conform to rigid regulations on investment norms and
valuations. This assures the quality of gold that the fund will invest in and transparency in
calculation of NAVs
Kotak Gateway Account
As Investor, you will have access to all the research and trading facilities to execute your trades.
You can decide what to buy, when to buy etc. either based on your own research or use Kotak
Securities research.
Kotak Securities Gateway Account, an Online Trading Account opens the gateway to a world of
investing opportunities for you. You may be anywhere, anytime and still manage to place your
trades using the Internet or our Call and Trade Facility.
Your benefits:
• Kotak Securities Knowledge Center, which helps you learn more about stock markets and
investments.
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• Enjoy higher returns by investing early - through Easy IPO.
• Our Research Reports on the economy, select industries and companies help you make
informed investment decisions while dealing in Easy Equity.
• Research advice via SMS alerts, you don't miss out on important buying and selling
opportunities.
• Buy and sell stocks on phone using Call & Trade.
• Access to 14 top-performing mutual funds through Easy Mutual Fund.
• Low brokerage rates.
• Exposure of upto 12 times your initial margin on select stocks with Super Multiple
• Now, you can trade Currency Derivatives as well through your kotak gateway account
Charges:
You can activate Kotak Securities Gateway with any amount between Rs 20,000 to 5, 00,000/- as
margin. This can be in form of cash deposit or the value of the shares you buy.
BROKERAGE STRUCTURE
Delivery
Intraday brokerages
< 25 lakhs 0.06% both sides Gateway A/C
25 lakhs - 2 crores 0.05% both sides
2 crores - 5 crores 0.04% both sides
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> 5 crores 0.03% both sides Privilege A/C
Futures
Intraday brokerages Settlement
< 2 crores 0.07% both sides 0.09% both sides Gateway A/C
2 - 5.5 crores 0.045% both sides 0.073% both sides
5.5 - 10 crores 0.036% both sides 0.046% both sides
10 - 25 crores 0.027% both sides 0.046% both sides Privilege A/C
> 25 crores 0. 23% both sides 0.032% both sides
Options
Monthly Premium Volume Intraday Brokerage% Settlement Brokerage% Minimum
Brokerage Per Lot (Intraday) Minimum Brokerage Per Lot (Settlement)
Upto 4Lacs 2.5 2.5 100 100 Gateway
4Lacs-11Lacs 2.25 2.5 100 100
11Lacs-20Lacs 1.8 2.3 100 100
20Lacs-50Lacs 1.35 2.3 80 100 Privilege
> 50Lacs 1.15 1.6 70 100
Here Premium Volume is considered as (Premium x Lot Size x No. of Lots). As per this new
structure you will be charged either a fixed minimum brokerage per lot or the new brokerage rate
based on the monthly premium value slabs you achieve, whichever is higher.
Even if a client starts with a Gateway/ value account, it is possible that he may avail brokerages
as low as 0.18%in the cash delivery segment (and 0.03% in the intraday cash square up segment)
depending on his trading volumes.. The minimum brokerage that is applicable in Kotak Gateway
Account is 4 paise on delivery and 4 paise in the cash segment.
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Understanding your individual investing needs,At Kotak Securities make sure you get to enjoy
premium and top of the line trading services only with Kotak Securities Privilege Circle. It is an
internet based trading account.
Executing your trades Independently with the Kotak Privileged Account gets you the lowest
charges in the industry as well as privileged services that only a few enjoy.
Your benefits
• A dedicated Privilege Circle customer service desk offers you assistance in opening
accounts, handling day-to-day problems, and more.
• Independent market expertise and support through a dedicated relationship manager.
Charges
You can activate Kotak Securities Privilege Circle with any amount more than Rs. 10,00,000/- as
margin, by way of cash or stock.
Kotaksecurities.com offers you one of the most competitive brokerage rates in the market.As a
Privilege Client, you can avail one of brokerages as low as 0.18% in the cash delivery segment
and 0.03% in the intraday segment. Detailed below is the brokerage charge on various account
types.
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BROKERAGE STRUCTURE
Delivery
< 1lakh 0.59% Gateway A/C
1 - 5 lakh 0.55%
5 - 10 lakh 0.45%
10 - 20 lakh 0.36%
20 - 60 lakh 0.27%
60 lakh - 2 crore 0.23%
> 2 crore 0.18% Privilege A/C
Intraday brokerages
< 25 lakhs 0.06% both sides Gateway A/C
25 lakhs - 2 crores 0.05% both sides
2 crores - 5 crores 0.04% both sides
> 5 crores 0.03% both sides Privilege A/C
Futures
Intraday brokerages Settlement
< 2 crores 0.07% both sides 0.09% both sides Gateway A/C
2 - 5.5 crores 0.045% both sides 0.073% both sides
5.5 - 10 crores 0.036% both sides 0.046% both sides
10 - 25 crores 0.027% both sides 0.046% both sides Privilege A/C
> 25 crores 0 .023% both sides 0.032% both sides
Options
Monthly Premium Volume Intraday Brokerage% Settlement Brokerage% Minimum
Brokerage Per Lot (Intraday) Minimum Brokerage Per Lot (Settlement)
Upto 4Lacs 2.5 2.5 100 100 Gateway
4Lacs-11Lacs 2.25 2.5 100 100
11Lacs-20Lacs 1.8 2.3 100 100
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20Lacs-50Lacs 1.35 2.3 80 100 Privilege
> 50Lacs 1.15 1.6 70 100
The minimum brokerage that is applicable in Kotak Privilege Circle Account on delivery is 4
paise and 3 paise in the cash segment
Even if a client starts with a Gateway/ value account, it is possible that he may avail brokerages
as low as 0.18%in the cash delivery segment (and 0.03% in the intraday cash square up segment)
depending on his trading volumes. The minimum brokerage that is applicable in Kotak Gateway
Account is 4 paise on delivery and 4 paise in the cash segment.
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Brokerage for NRI Basic Account
Trinity Account
A 3 in 1 account is an account for internet based trading that integrates your Trading, Bank and
Demat account. With a Trinity Account your transactions will be seamless and very convenient.
Advantages of a 3 in 1 account
• You can open your trading, Demat and Bank account with a single entity. This reduces
your need for maintaining separate accounts with different entities.
• You do not have to transfer margin money to and from your accounts. Your margin
money is automatically reflected in your accounts.
• Transactions are seamless and you do not lose time in unnecessary transactions.
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KEAT
If you are a first time-investor, use this free online tool to monitor what is happening in the
market and also view your gains and losses in real-time. Click here to know more.
KEAT Pro
KEAT Pro, a free, easy-to-use integrated web based trading platform allows online trading
customers to trade in Equity, Derivatives and Currency Derivatives. KEAT Pro is a high speed
trading platform allows you to monitor the market real time. You can check live market rates of
scrips/contracts in NSE , BSE & NSE Currency, create multiple watch lists and simultaneously
place orders, view order reports, view positions etc.
KEAT Premium
KEAT Premium is an exclusive online tool that makes extensive use of detailed technical charts
to help you monitor what is happening in the market. It also enables you to view your gains and
losses in real-time.
Twin Advantages
This facility is for online trading customers, with Twin Advantage, all online customers not only
get exposure on their margin as cash, but they will also benefit by obtaining margin on the stocks
they have in their demat account.
Twin Advantage offers the following advantages:
With a margin of Rs. 50000 and Stock of 100000
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Total Rs. 150000 Rs. 200000
The Kotak Securities Research Centre - the special research cell where some of India's finest
financial analysts bring you intensive research reports on how the stock market is faring, when is
the right time to invest, when to execute your order and more.
Depending on what kind of investor you are, we bring you fundamental, technical research.
As an investor with Kotak Securities, you get access to these research reports exclusively. You
get access to the following reports.
Intraday calls, Daily Technical View, Morning Insight, Weekly Technical Report, Sectoral
Reports, Stock Ideas, Derivative Reports, Portfolio Advice, Research For Investors, Regular
research reports, Ideal for investors, Macro economic research, Industry or sector research ,
Company research
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Competitor’s Analysis
ICICIDirect
ICICIDirect (or ICICIDirect.com) is stock trading company of ICICI Bank. Along with stock
trading and trading in derivatives , it also provides facility to invest in IPOs, Mutual Funds and
Bonds. ICICIDirect.com website is the primary tool in investing in any product.
Type of Account
Share Trading Account by ICICIDirect is primarily for buying and selling of stocks..
This account allows Cash Trading, Margin Trading, Trading, Spot Trading, Buy Today Sell
Tomorrow and Call and Trade on phone. They also provide installable application terminal based
application for high volume trader.
Along with stock trading and IPO investing in BSE and NSE, Wise Investment account also
provide options to invest in Mutual Funds and Bonds online.
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Online Mutual funds investment allows investor to invest on-line in around 19 Mutual Fund
companies. ICICI Direct offers various options while investing in Mutual Funds like Purchase
Mutual Fund, Redemption and switch between different schemes, Systematic Investment plans,
Systematic withdrawal plan and transferring existing Mutual Funds in to electronic mode. This
account also provides facility to invest in Government of India Bonds and ICICI Bank Tax
SavingBonds.
ICICIDirect.com website is the primary tool to invest in Mutual Funds, IPOs, Bonds and stock
trading.
Active Trader account gives more personalized investment options to the investors. It allows
investor to use online and offline stock trading. It also provides with independent market
expertise and support through a dedicated Relationship Manager from ICICI.
For Online Stock Trading with ICICI, investor needs to open 3 accounts ICICI Bank
Account, ICICI Direct Trading Account and ICICI Demat Account (DP Account).
Advantages of ICICIDirect
1. 3-in-1 account integrates your banking, broking and demat accounts. All accounts are
from ICICI and very well integrated. This feature makes ICICI the most interesting
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player in online trading facility. There is absolutely no manual interfere require. This is
truly online trading environment.
2. Unlike most of the online trading companies in India which require transferring money to
the broker's pool or towards deposits, at ICICIDirect you can manage your own demat
and bank accounts through ICICIdirect.com. Money from selling stock is available in
ICICI bank account as soon as the ICICIDirect receive it.
3. Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal Savings Schemes all
from one website. General Insurance is also available from ICICI Lombard.
4. Trading is available in both BSE and NSE.
Disadvantages of ICICIDirect
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Indiabulls
Indiabulls is India's leading Financial Services and Real Estate Company having presence over
414 locations in more than 124 cities. Indiabulls Financial Services Ltd is listed on the National
Stock Exchange, Bombay Stock Exchange, Luxembourg Stock Exchange and London Stock
Exchange.
Type of Account
Indiabulls Equity Trading Account is standard Online trading account from India bulls and along
with online trading it also provides priority telephone access that gives you direct access to
your Relationship Manager and full access to 'Indiabulls Equity Analysis' Application
Trading Terminal
Power Indiabulls
Power Indiabulls trading terminal is the most advanced new generation trading platform with
great speed. This trading terminal is built in JAVA.
Power Indiabulls is extremely reach in features including Live Streaming Quotes, Fast Order
Entry and execution, Tic by Tic Live Charts, Technical Analysis, Live News and Alerts,
Extensive Reports for Real-time Accounting.
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200/- Demat Account opening charge
750/- Software changes
HDFC Securities
HDFC Securities (HDFCsec) is Equity Trading Company of HDFC Bank. HDFC Securities
provide both online trading and trading on phone. The HDFC Securities trading account has a
unique 3-in-1 feature that integrates your HDFC Securities trading account with your existing
HDFC bank savings account and existing Demat account. Funds / shares are seamlessly moved
from the linked Demat/Bank account to execute the transactions.
HDFCsec provides Cash-n-Carry on both NSE and BSE, Day trading on both NSE and BSE,
Trade on Futures & Options on the NSE and Online IPO Investment.
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Account opening fees Rs. 799/- (Including trading account, bank account and DP account with
HDFC)
Please note: HDFC Bank savings account required a quarterly minimum balance of Rs. 2,500/-.
5paisa
5paisa is Online Stock Trading Company of India Infoline Securities Private Ltd., Owner of
popular business portal Indiainfoline.com. Besides high quality investment advice from an
experienced research team, the site offers real time stock quotes, market news and multiple tools
for technical analysis.
Trading Terminals:
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 is design for high volume equity traders or day traders. Trader Terminal
provides high volume trading with powerful interface and fast order execution.
Few popular features of trader terminal are:
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o Set any number of price alerts on any number of scrips.
o Flexibility to customize screen layout and setting.
o Facility to customize any number of portfolios & watch lists.
o Facility to cancel all pending orders at one click.
o Facility to square off all transactions at one click.
o Top Gainers, Top Losers, Most Active, updated live.
o Index information; index chart, index stock information live.
o Market depth, i.e. Best 5 bids and offers, updated live for all stocks.
o Online access to both accounts and DP to check live updated Order and Trade
Book.
o Facility to place after market orders.
o Online fund transfer facility from leading Banks including ICICI, HDFC, CITI
and UTI.
o Online intra-day technical calls.
o Historical charts and technical analysis tools.
Advantages of 5paisa
Disadvantages of 5paisa
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1. No intra-day tick by tick charts in Investor Terminal (IT).
2. Investing in IPO and Mutual Funds is not so easy like in ICICIDirect.
3. Learning 5paisa Trading Terminal is little hard.
1. 5Paisa provides free facility of subscribing to mutual funds, equity IPOs and other
investment products using internet banking account of ICICI, HDFC, CITI and UTI
banks.
2. While applying for IPO shares online through 5Paisa, Investor are taken to there
corresponding banks homepage. Investors can use there net banking user id & password
& transfer funds directly using any of these banks.
3. 5Paisa members can use the similar steps to invest in Mutual Funds IPO
Sharekhan
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 India’s 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
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also access other market related details such as board meetings, result announcements, FII
transactions, buying/selling by mutual funds and.
Type of 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.
This accounts for active traders who trade frequently during the day's trading session.
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b. Real-time streaming quotes with Instant order Execution & Confirmation
c. Hot keys similar to a traditional broker terminal
d. Alerts and reminders
e. 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 intra day or you could
say Sharekhan charges 50 paise per Rs 100.
Advantages of Sharekhan:
1. Online trading is very user friendly and one doesn't need any software to access.
2. They provide good quality of services like daily SMS alerts, mail alerts, stock
recommendations etc.
3. 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:
1. 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).
2. Lots of hidden rules and charges.
3. They do not provide facility to book limit order trades during after-hours.
4. Classic account holders cannot trade commodities.
5. Cannot purchase mutual funds online.
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INTRODUCTION OF THE CONCERN
DEPARTMENT
HIERARCHY
ASHLESH TIWARI
INDORE HEAD
SOURABH PORWAL
BRANCH HEAD
RELATIONSHIP
MANAGER AND
DEALER
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Target assigned by the company –
• The target assigned to team is to open 3 demat accounts in two month and also to
make them to do trade after the opening of account.
• Make 6 appointments in a week.
• Do punch at least 15 forms in a week.
• Do at least 80-90 calls a day.
• To provide best services to the clients because company believes in quality not in
quantity.
STRATEGY ADOPTED
• Tele-calling
• Personal appointments
• Making arrangements for the requirements
• Open Demat Account
• Again visit for trading
1. Photograph (Three)
2. PAN Card (Three)
3. Proof of Address (Passport, Driver's License, Ration Card, Voter's Identity card,
Telephone bill, and Electricity bill, Bank Passbook / Bank Statement or Rent Agreement)
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4. Proof of Identity (Passport, PAN Card, Voter's Identity Card, Driver's License or MAPIN
UID Card)
5. Signature Verification
6. Personalized cheque leaf or (cheque leaf along with Bank Statement or Bank Passbook).
7. Banker’s verification (from a Schedule commercial bank only)
Scope &Objective:
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.
Internet has given a whole new meaning to the financial service industry and changed it in a
manner that was never predicted. The online way of doing trade has gained huge popularity due
to the comfort and convenience it has offered to the consumers and supplier across the globe.
Online Stock trading when came into existence took over the market and crossed the threshold of
conventional brokerages in an unbelievable way. Online Stock Trading added ease, speed, and
convenience to the industry of commerce.
Online stock trading brokers have an edge over the conventional brokers and realizing the
benefits of internet, they are also creating an online presence for themselves. Since mid ‘90’s,
when Online Stock Trading came into being, it drastically transformed the financial services
industry and created a strong foothold in the commercial market. Online Stock Trading created a
virtual world of trading that is within the reach anyone and everyone. All you need to have is an
internet connection and you can log on from anywhere and anytime and carry out your trades
stocks Online.
Online Stock Trading gave the Online stock trading brokers an easy and economical way to carry
out trade by just holding online trading accounts. There was a rapid boom in the Online Stock
Trading scenario due the lower commission structures in comparison to the conventional
brokerages. There was also a tremendous increase in the Online Stock Trading accounts and
there was a major hike in the transaction volumes.
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Depository Services Dematerialization and trading in the demat mode is the safer and faster
alternative to the physical existence of securities. Demat as a parallel solution offers freedom
from delays, thefts, forgeries, settlement risks and paper work. This system works through
depository participants (DPs) who offer demat services and the securities are held in the
electronic form for the investor directly by the Depository.
Easy Access: Online stock trading brokers have an easy access to the market with advent of
internet as all they need to have is an Online Stock Trading account. The traders can check out
real time stock quotes and go through historical stock price trends; this will give them a fair idea
about the deal they are entering into. They can also assess the market analysis and do their own
research on various firms. They can also interact with the online stock trading brokers via forums
or chat rooms.
Eliminate middlemen: Online stock trading brokers have eliminated the long line of middlemen
involved in stock trading otherwise. It allows the traders to invest wisely and make buying and
selling of stocks much easier and simpler. It allows the traders to directly contact online stock
trading brokers whenever and wherever without any hassle.
Lower commission: Making an Online Stock Trading account is much more economical then
going in for the help of a conventional broker who are always looking for chance to make money
out of the client. On the other hand, online stock trading brokers only charge a fixed amount of
commission and help you in making deals that are beneficial for you. Traditional brokerage
houses turn out to be very expensive which gives the online stock trading brokers leverage in
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comparison.
Rich Information Source: Online Stock Trading has bridged the gap between the traders and
the commercial market. With the help of internet the traders can gain any type of information
related to stocks, companies, market trends, etc.
Wider Investment Choice: Online Stock Trading gave the traders a wider choice in terms of
investment. They can invest in stocks, bonds, mutual funds, mortgages, insurance, derivatives,
futures, options, etc. depending upon their choice. Online investment phenomenon offered an
extensive variety of products to the traders.
Quick trade execution: Online Stock Trading has significantly speeded up the process of
commerce. It have made things accessible and available to the traders and decreased the time
related to the completion of the overall trading procedure drastically.
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COMPETATIVE ANALYSIS
TRADE
NON-DILIVERY 0.15% 0.04% 0.15% N.A 0.10% N.A
TRADE
MIN.ORDER Rs.500 Rs.500 Rs.500 Rs.500 N.A N.A
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JOBBING N.A 3.10 p.m 3.15 p.m N.A 2.40 p.m 3.15 p.m
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form
STAMP 0.02% N.A N.A N.A Rs 420 p. 0.01%
CHARGES form
DMAT ICICI KOTAK INDIA HDFC 5PAISA SHER
ACCOUNT DIRECT SEC. BULLS SEC. KHAN
REJECTION Rs.20 N.A Rs.20 NIL Rs 20entry N.A
PLEDGE 0.20% NO 0.02% RS.10 RS 30 0.02%
CHARGES N.A 380 P.A. N.A Rs 3 p.ce Rs 5 N.A
p.cer
COMPETITOR STRATEGIES
According to me ICICI DIRECT and INDIA BULLS are the main competitor of the KOTAK
SECURITIES.
Accounting charges of all the banks are close to the figure of Rs. 700-750 and if KOTAK
SECURITIES has to win the race in the competition they have to lower down their
accounting charges to between Rs. 600-700.
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Brokerage charges of the entire competitor are similar with the KOTAK SECURITIES i.e. .
04-0.40 % except ICICI that is charging .65%. So the strategy to compete with ICICI is to
provide more service with the same brokerage.
ICICIDirect brokerage is high and not negotiable, whereas in kotak securities brokerage are
negotiable for high trading /turnover customer. Not all stocks are available under Margin
Plus whereas in kotak securities customer can access each and every script.
Learning kotak securities Trading Terminal is very easy unlike 5paisa which is hard for a
new investor.
There are lots of rules and hidden charges prevailed in securities like Sharkhan, Adatiya Birla
but, in kotak securities transparency is assured.
The brokerage involved in ICICI is very high i.e. 0.75% ( Motilal Oswal brokerage is very
less just .2% for delivery).Which result that we can not do day trading as a result. The
options are also very less flexible as compared to kotak securities.
In ICICIDirect, customer also face problem like if you go for intra day trading and the stock
price falls, you can’t take the delivery and have to sell at lower price. If you go for buy today
sell tomorrow feature, you can’t sell the same day. And the high brokerages eat away your
profit.
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Another problem faced in online trading is whenever there is huge volatility in the market,
the site stops working most of the time.
I would suggest not to go for ICICIDirect as these people charges hell lot of brokerage as
compared to other brokers especially like kotak securities.
It is common practice of the ICICIDirect that they Sometimes in intraday trades square off
your positions before 3:00 pm and sometimes it accidentally keep it open and settle it on next
day.
After considering this problem Kotak securities is the best available option in market.
ICICIDirect are often recommended to the long term investor as its safe and secure except
for high brokerage and if you are going to day trade then forget about ICICI.
BROKERAGE CHARGES :
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Ifs and Buts of Indian online share trading
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Mostly people comfortable with traditional brokers : - As people are doing trading
from there 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. Also whenever there is huge volatility in the market, the site
stops working most of the time.
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.
Finding accurate data – There is always problem in finding in which script to invest
where to invest it took lots of time in finding that the data which is accurate.
Market Time – This was the biggest problem as we could contact our Assistant Manager
only after the share market closed and they completed their work and settlements that is
after 4 P.M.
RECOMMENDATIONS
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MORE BRANCHES –Need to open more branches to be a topper in market Because it has a
low distribution network.
LESS TIME –They should try to make some arrangements to reduce account opening time by
verifying documents at branch it selves.
LESS CHARGE –Since they are charging more in comparison to others, they should reduce the
account opening charges.
NEW BANKS IN THE KITTY –Need to tie up with major banks like SBI, Allahabad Bank,
Bank of Baroda etc.
CUSTOMER SATISFACTION –The company should focus on the customer satisfaction not
on just taking money from their pocket.
CONCLUSION
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“From the above study, it can be concluded that although kotak securities has
But it has long way to go in terms of awareness and get established and
standardized.”
BIBLIOGRAPHY
Books
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Security Analysis And Portfolio Management
SMU MODULE
Other Sources –
· Securities Market (Basic) Module: --NCFM
· Economic Times.
· Business world.
· Training Kit Provided by the kotak securities
Websites:
www.kotaksecurities.com
www.sharekhan.com
www.equitymaster.com
www.icicidirect.com
www.hdfcsecurities.com
www.indiabulls.com
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