A Project study report ON Training Undertaken at

Titled A COMPARISON STUDY OF INDIABULLS WITH OTHER BROKING FIRMS.

Submitted In the partial fulfillment for the Award of Degree of Master of Business Administration (2010-2012)

Submitted by: Priyanka MBA 3 SEM

rd

Submitted to:Ms. Padma Sharma Asst. professor MBA dept.

2010-2012 Arya College of Engineering & Research Centre

preface

The MBA curriculum is so designed that student get enough practical knowledge of business world which helps them to explore their skills in the corporate world in future

The summer training programme helps the students to understand and gain knowledge about the industry & market environment. It develops skills of analyzing & interpreting problems through application of concepts & techniques of management. Trainee did a project from indiabulls securities ltd., Dhanbad The study consists of following chapters. Introduction of indiabulls Study of product of indiabulls Market competitors of indiabulls Analysis of client satisfaction conclusion branch.

Acknowledgment
I express my sincere thanks to my project guide, Ms. Padma Sharma, Designation Asst. professor, Department.3rd SEM, for guiding me right from the inception till the successful completion of the project. I sincerely acknowledge her for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support she had provided to me with all stages of this project. I would also like to thank Mr. Rajesh Tiwari, for his help and cooperation throughout our project.

(Signature of Student) Name of student

Table of Contents 1 Executive summary 2 Overview of Indiabulls 3. Overview of Indiabulls Securities 4. Research Methodology 4.1 Title of the Study 4.2 Duration of the Project 4.3 Objective of Study 4.4 Type of Research 4.5 Sample Size and method of selecting sample 4.6 Scope of Study 4.7 Limitation of Study

5.The competitors 5 .Data interpretation 6 .SWOT Analyses 7 .Findings & Suggestions 8 .Conclusions 9 . Appendix 10. Bibliographies

Executive Summary

India is a large and growing economy with rapidly expanding financial services sector. The sector has witnessed a transformation over the last decade as a result of the economic liberalization which started in 1991.The Indian capital markets have undergone a substantial change over the last decade. India is now placed among the mature markets of the world. With over 20 million shareholders, India has the third largest investor base in the world after USA and Japan. IndiaBulls is Indias leading Financial Services and Real Estate Company having over 640 branches all over India. IndiaBulls serves the financial needs of more than 4,50,000 customers with its wide range of financial services and products from securities, derivatives trading, depositary services, research & advisory services, consumer secured & unsecured credit, loan against shares and mortgage & housing finance My summer internship was at indiabulls securities ltd, Dhanbad branch ,for a period of 45 days. I was involved in online trading. This Project titled A COMPARISON STUDY OF INDIABULLS WITH OTHER BROKING FIRMS is an attempt to understand the stock market and role played by Indian retail Brokerage Firms in stock market. The objective of brokerage firms is to help the investor to minimize the risk involved in investment and maximize the return. Some of the main characteristics of the brokerage industry include growth in e-broking; growing derivatives market, decline in brokerage fees etc. An endeavor was also made to understand the role played by Indiabulls Securities compared to its competitors in Indian retail brokerage market. The role played by Indian retail brokerage industry is of immense significance, taking into account the health of the capital markets and the intensity of competition among the brokerage companies.

OVERVIEW OF Introduction

Indiabulls Group is one of the country's leading business houses with business interests in Power, Financial Services, Real Estate and Infrastructure. Indiabulls Group companies are listed in Indian and overseas financial markets. The Net worth of the Group is Rs 16,844 Crore and the total planned capital expenditure of the Group by 2013-14 is Rs 35,000 Crore. Indiabulls Power is currently developing Thermal Power Projects with an aggregate capacity of 5400 MW. The first unit is expected to go on stream in May 2012. The net worth of Indiabulls Power is Rs 3,919 Crore. The company has a total capital expenditure of Rs 27,500 Crore. The company has been assigned 'BBB' rating. Indiabulls Financial Services is one of Indias leading non-banking finance companies providing Home Loans, Commercial Vehicle Loans and Secured SME Loans. The company has a net worth of Rs 4,661 crore with an asset book of Rs 23,792 Crore. The company has disbursed loans over Rs 50,000 Crore to over 300,000 customers till date. Amongst its financial services and banking peers, Indiabulls Financial Services ranks amongst the top few companies both in terms of net worth and capital adequacy. Indiabulls Financial Services has been assigned AA+ rating and has presence in over 87 cities and towns with a total branch network of 170 branches.

Indiabulls Real Estate is among India's top Real Estate companies with development projects spread across residential complexes, integrated townships, commercial office complexes, hotels, malls, Special Economic Zones (SEZs) and 6

infrastructure development. Indiabulls Real Estate partnered with Farallon Capital Management LLC of USA to bring the first FDI into real estate in the country. The company has a net worth of Rs 7,505 Crore and has purchased prime land, mostly in the metros and other Tier 1 cities worth Rs 4,000 Crore in government auctions alone. Indiabulls Real Estate is currently developing 64.32 million sqft into premium quality, high-end commercial, residential and retail spaces. The company has been assigned 'A+' rating.

Indiabulls Securities is one of India's leading capital markets companies providing securities broking and advisory services. Indiabulls Securities also provides depository services, equity research services and IPO distribution to its clients and offers commodities trading through a separate company. These services are provided both through on-line and off-line distribution channels. Indiabulls Securities is a pioneer of on-line securities trading in India. Indiabulls Securities in-house trading platform is one of the fastest and most efficient trading platforms in the country. Indiabulls Securities has been assigned the highest rating BQ-1 by CRISIL.

The rise & foundation of Year 2000-01: One of Indias first trading platforms was set up by IndiaBulls Financial Services Ltd. with the development of an in-house team Year 2001-03: The service offered by IndiaBulls was increased to include Equity, F&O, Wholesale Debt, Mutual fund, IPO Financing/Distribution and Equity Research.

Year 2003-04:

In this particular year IndiaBulls ventured into Distribution and Commodities Trading Business

Year 2004-05: This was one of the most important years in the history of IndiaBulls. In this year: IndiaBulls came out with its initial public offer (IPO) in September 2004. IndiaBulls started its Consumer Finance business. IndiaBulls entered the Indian Real Estate market and became the first company to bring FDI in Indian Real Estate. IndiaBulls won bids for landmark properties in Mumbai

Year 2005-06: In this year the company acquired over 115 acres of land in Sonepat for residential home site development. The world renowned investment banks like Merrill Lynch and Goldman Sachs increased their shareholding in IndiaBulls. It also became a market leader in securities brokerage industry, with around 31% share in Online Trading. The worlds largest hedge fund, Farallon Capital and its affiliates committed` 2000 million for IndiaBulls subsidiaries Viz. IndiaBulls Credit Services Ltd. and IndiaBulls Housing Finance Ltd. In the same year, the Steel Tycoon Mr. LN Mittal promoted LNM India Internet venture Ltd. acquired 8.2% stake in IndiaBulls Credit Services Ltd. Year 2006-07: In this year, IndiaBulls Financial Services Ltd. was included in the prestigious Morgan Stanley Capital International Index (MSCI). IndiaBulls Financial Services Ltd. was benefited with the Farallon Capital agreeing to invest` 6,440 million in it. The company also received an in principle approval from Government of India for development of multi product SEZ in the state of Maharashtra. IndiaBulls Financial Services Ltd acquired 100% of the equity share capital of Noble Realtors Pvt Ltd. Noble Realtors is a Company engaged in the business of 8

construction and development of real estate projects. IndiaBulls Real Estate Business was demerged to become a separate entity called IndiaBulls Real Estate Ltd. The Board of IndiaBulls Financial Services Ltd. Resolved to Amalgamate IndiaBulls Credit Services Ltd and demerge IndiaBulls Securities Limited. IndiaBulls Financial Services Ltd.

The Board of Directors Sameer Gehlaut Gagan Banga Rajiv Rattan Saurabh K Mittal Shamsher Singh Aishwarya Katoch Karan Singh Prem Prakash Mirdha Amit Jain CH and CFO Exec. Director CEO Director Director Director Director Director Co. Secretary

An overview of company people

The company was established by three engineers from IIT Delhi, and has attracted significant amount of investments from venture, private equity and institutional investors. The details are as follows:

Mr. Sameer Gehlaut Chairman, CEO, Whole-time Director Mechanical Engineer, IIT Delhi Worked for Halliburton In the United States. Acquired Inorbit Securities in 2000 to establish IndiaBulls.

Mr. Rajiv Rattan President, CFO, Whole-time Director Electrical Engineer, IIT Delhi Worked in Schlumberger

Mr. Saurabh Mittal Co-Founder, Electrical Engineer IIT, Delhi Worked in Schlumberger MBA from Harvard Business School

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VISION To achieve and retain leadership, India Bulls shall aim for complete customer satisfaction, by combining its human and technological resources, to provide superior quality financial services. In the process, India bulls will strive to exceed Customers expectations. QUALITY OBJECTIVE As per the Quality Policy, IndiaBulls will: Build in-house processes that will ensure transparent and harmonious relationships with its clients and investors to provide high quality of services. Establish a partner relationship with its investor service agents and vendors that will help in keeping up its commitments to the customers. Provide high quality of work life for all its employees and equip them with adequate knowledge & skills so as to respond to customers needs. Continue to uphold the values of honesty & integrity and strive to establish unparalleled standards in business ethics. Use state-of-the art information technology in developing new and innovative financial products and services to meet the changing needs of investors and clients.

Strive to be reliable source of value-added financial products and services and constantly guide the individuals and institutions in making a judicious choice of same.

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Introduction to particular firm INDIABULLS SECURITIES LIMITED :- The Company's primary business activity is to carry on business of stock and share broker on National Stock Exchange of India Limited and Bombay Stock Exchange Limited. The Company also provides depository services,mutual fund and initial public offering (IPO) distribution to its clients. The Company is a depositary participant with the National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) for settlement of dematerialized shares. It performs clearing services for all securities andco mmo di ti e s transactions. Clients of the brokerage business are able to use the depositary services to execute trades through the Company and settle transactions. ISL is a corporate member of capital market & derivative segment of The National Stock Exchange of India Ltd. IndiaBulls Commodities Private Limited (ICPL), a 100% subsidiary of IndiaBulls Securities Limited, offers commodity brokerage services to its customers. ICPL is a registered Trading-cum-Clearing member of Multi Commodity Exchange of India Ltd. (MCX) and National Commodity and Derivatives Exchange Ltd (NCDEX).

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INDIABULLS OFFERS Broker Assisted trade execution Automated online investing Access to all IPOs [Initial Public offer] Sales of Equity, Derivatives and commodities instruments listed on NSE, BSE, NCDEX and MCX BROKERAGE OFFERING:- IndiaBulls retail equity business primarily covers secondary market equity broking. It caters to the needs of individual Indian and Non-resident Indian (NRI) investors. They offer broker assisted trade execution and automated online investing and trading facilities to the customers. Automated online investing and trading includes automated order placement and execution of market and limit equity orders; and advanced trading platforms for active traders. All investors have full access to real -time quotes, personalized portfolio tracking, charting and quote applications, real-time market commentary, real-time quotes and news.

ONLINE AUTOMATED CHANNEL:-Automated Online Business contributes more than 34.6% of their overall revenues. They control more than 20% market share in the online business. Clients are able to obtain financial information and execute trades on an automated basis through their online channel using product offerings like Power IndiaBulls and IndiaBulls Market Trader. This channel is designed to provide added convenience for clients and minimize our costs of responding to and processing routine client transactions. Online channels include the IndiaBulls Group Professional Network that provides access via our web-site www.indiabulls.com to information and trading service on the Internet. Additionally, Power IndiaBulls online trading system is designed for the high volume trader and provides enhanced trade information and order execution integrated software-based trading platform There are 3 mediums of using / accessing their Trading Services.

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 Power IndiaBulls (PIB) IndiaBulls Signature Account Relationship manager (RM) Power IndiaBulls:-The Power IndiaBulls software is ideally suited for the active trader. This software gets installed on the client machine and is similar to a Dealer Terminal over the Internet. The terminal has a lot of features that makes it extremely usable from the point of view of a trader who is active in the market.

Some of the product features are Integrated market watches for cash and derivatives Multiple tick by tick charting Advanced Technical Analysis Single key stroke order entry Multiple customizable market watches Easy to use risk management reports Secured Socket Layer connectivity with server Two second order confirmation turnaround time even during peak hours

INDIABULLS SIGNATURE ACCOUNT:- A multitude of ways to access the account either through priority access to Relationship Manager over phone or online access to the Account & Research Tools

FEATURE: Priority Service Enjoy priority telephone access that gives direct access to the Relationship Manager. Premium Research Benefit from full access to IndiaBulls Equity Analysis , our objective, fact-based approach to rating stocks. Online Accounting Stay on the top of your investments with a snapshot of your Account Statements. Get access to Portfolio statement and access to digital contract notes.

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BENEFITS: Control Stay on top of your investments with convenient access to your account online or by phone. Confidence Support your investing decisions with premium in-depth research - IndiaBulls Equity Analysis. Value Enjoy competitive commissions and get the service and support you need at a fair price It offers the unique feature of relationship manager. RELATIONSHIP MANAGER:- Relationship Manager driven sales model, provide high quality service and exploit cross-sell opportunities. Companys clients benefit from the personal attention and advice of the trained and motivated relationship managers. All our relationship managers are qualified and educated professionals, who have been extensively trained in-house to provide the products and services to the clients. These relationship managers are encouraged to develop long-term relationships with the clients and can access a variety of resources within our Company, such as insurance specialists, research services and others to add value to our clients. Most of our clients have dedicated relationship managers irrespective of the channel they use. IndiaBulls Securities And Derivatives Broking:- ISL is engaged in the business of Internet based trading and is registered with SEBI as a stockbroker, trading and clearing member of NSE, member of BSE and as a depositary participant with National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL). ISL is also a member of the National Securities Clearing Corporation Limited.

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RESEARCH METHODOLOGY
TITLE OF THE PROJECT Project Profile: COMPARISON OF INDIABULLS WITH OTHER BROKING FIRM DURATION OF THE PROJECT: The duration of the project was 45 days. Each research study has its own specific purpose. It is like to discover to question through the application of scientific procedure. But the main aim of my research is to find out the truth that is hidden and which has not been discovered as yet. My research study has two objectives:. OBJECTIVE OF THE PROJECT: PRIMARY OBJECTIVE: - How IndiaBulls Securities Ltd is best service provider as a stock broker in the Tri-city region.

SECONDARY OBJECTIVE: 1. To know about the awareness towards stock brokers and share market. 2. To study about the competitive position of IndiaBulls Securities Ltd in competitive market. 3. To know the perception and psychology of investors towards share trading. 4. To study about the effectiveness & efficiency of IndiaBulls Securities Ltd in relation to its competitors. 5. To know the perception and psychology of investors towards share trading.

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6. To study about whether people are satisfied with IndiaBulls Securities Services & Management System or not. 7. To study about the difficulties faced by clients while Trading in IndiaBulls Securities Ltd. 8. To study about the need of improvement in existing Trading system. Research Methodology refers to the search for Knowledge. It is a way to systematically solve the research problem. In it we study the various steps that are generally adopted by the researcher in studying his research problem along with logic behind them. TYPES OF RESEARCH On the basis of theoretical study a research has many types. All of these are distributed on the nature of research. Some of these are like 1. Descriptive and Analytical 2. Qualitative and Quantitative 3. Conceptual and empirical 4. Applied and fundamental 5. One time research My research is based on Descriptive, Qualitative and Quantitative research. Descriptive Research:- Descriptive research includes surveys and fact finding enquires of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. Researcher has no control over the variables of this type of research. Qualitative Research:- In our research we need comparison between different stock brokers. So this based on all qualitative data. In short, Qualitative research is especially important in the behavioral sciences where the aim is to discover the underline motives of human behavior. Through such research we can analyses various factors which motivate to people to behave in a particular manner or which make people like or dislike a particular thing.

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Quantitative research:- Quantitative research is based on the measurement of quantity or amount. It is applicable to phenomena that can be expressed in terms of quantity. So we can use it in our research for collection of all the numerical data. SAMPLE DESIGN A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting item for the sample Generally Sample designs are two types

1. PROBABILITY RESEARCH DESIGN 2. NON PROBABILITY RESEARCH DESIGN

I used the probability research design.

SAMPLING UNITS Sampling unit may be a geographical one, such as state, district, village etc. The researcher will have to decide one or more of such units that he has to select for his study. In my research study Dhanbad as a sampling unit. SIZE OF SAMPLE This refers to the number of items to be selected from the universe to constitute a sample In my research sample size is 70.

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But I also studied the stock broker companies related to security market like India infoline, ICICI direct, HDFC securities, Karvy consultant ltd. for the appropriate collection of the information. DATA COLLECTION While deciding about the method of data collection to be used for the study the researcher should keep two types of data. 1. Primary Data: - which is collected by new research called primary data. Personal Interview Close observation Survey conduction 2. Secondary Data: - already existing data is called secondary data. I collected them by following method Internet Books Survey Method: - Survey refers to the method of securing information concerning phenomena under study from all or selected number of respondents of the concerned area. In a survey the investigator examines those phenomena which exist in the universe independent of his action. We used the Scheduling Method. Scheduling: - In this method the enumerators along with schedules, go to respondents, put to them the questions from the Performa in the order the questions are listed and recorded the replies in the space meant for the same in the performa. Details of actual work undertaken As per my project which is comparison of indiabulls with other broking firm I have to compare the different stock brokers available in market and I have to find 19

out how many people know about the stock market and whether they are interested in investing. I have also learned how Demat accounts are opened and what all documents are required to open an account ACCOUNT OPENING To avail the services of a depository an investor is required to open an account with a depository participant of any depository.

PROCEDURE FOR OPENING AN ACCOUNT A Demat account are opened on the same lines as that of a Bank Account. Prescribed Account opening forms are available with the DP, needs to be filled in. Standard Agreements are to be signed by the Client and the DP, which details the rights and obligations of both parties The DP officials will make available the relevant account opening form (depending on whether the client is a retail investor or corporate client/clearing member) and specify the list of documents regarding references that should be submitted along with the form. It will also give a copy of the relevant agreement to be entered with the client, in duplicate. The client will submit the duly filled in account opening form and client has to visit personally for opening the account in DP. The DP officials have to do in person verification and affix the IN PERSON VERIFICATION stamp on the account opening form. It should also furnish such documents regarding references, as specified by the DP, along with the account opening form. After executing the agreement the client has to forward it to the DP. The DP officials will verify that the account opening form is duly filled in. It will also verify the enclosed documents, if any. Incomplete forms will be forwarded to the client for rectification. For Corporate Clients, the DP officials will verify if the board resolution for

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the authorized signatories is enclosed. In case the documents are not proper, the DP officials will reject the form and intimate the client of the same, stating the reasons for doing so. If the form is in order; the DP officials will accept the same and affix the stamp verified with original on each and every proof after seeing the original proofs. After completion of all documentation, the DP officials will verify the pan from income tax website. And affix the stamp PAN VERIFIED with date and sign on the stamp. The DP officials will enter the client details as mentioned in the account opening form in the DPM (software provided by NSDL & CDSL to the Participant) screen provided for the purpose. In case of NSDL A/c opening the SR. Assist will capture all the details in the DPM and record the clients signature (on the form) as specimen for authorizations in the future. After entering client details in the system, a client account number will be generated by the DPM. The DP officials will enter this in the account opening form. After that the officers will verify the details in the DPM captured by the SR. Assist. and activate the account. The DP officials are not allowed to give the demat a/c no to the clients

until the a/c is activate, this is applicable for both NSDL & CDSL. When the demat a/c is activated the DP officials have to send the client master and the copy of agreement between DP and client at the clients address The account holder is called 'beneficial owner' in a depository system and the account is known as 'beneficiary account'

DOCUMENTS REQUIRED FOR DEMAT ACCOUNT Proof of Identity (POI): Passport Voter ID card Driving license PAN card with photograph Identity card with applicants photograph issued by

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1. Central or state government and its department 2. Statutory/regulatory authorities 3. Public sector undertakings 4. Scheduled commercial banks 5. Public financial institutions 6. College affiliated to universities

proof of Address (POA): Ration card Passport Voter ID card Driving License Bank passbook Verified copies of : 1. Electricity bills (not more than 2 months old) 2. Residence landline telephone bill (not more than 2 months old) 3. Leave & license agreement/agreement to sell (duly attested) 4. Self declaration by supreme court/high court judges, giving the new address in respect of their own accounts Identity card with applicants photograph issued by 1. Central or state government and its department 2. Statutory/regulatory authorities 3. Public sector undertakings 4. Scheduled commercial banks 5. Public financial institutions 6. College affiliated to universities. Passport-size photograph Copy of PAN card along with original PAN card for verification

Bank details:

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 Copy of cancelled cheque with printed name from the bank. Copy of bank passbook with name and address and copy of cancelled cheque. Bank statement with name and address (duly authorized by the bank, if statement is on plain paper) not more than 4 months old and copy of cancelled cheque of MICR & bank detail verification.

In case of minor Date of birth certificate duly notarized Proof of address and identity documents of the guardian both minor and guardians photograph and guardian to sign across both photographs PAN card of minor as well guardian is mandatory

In case of NRI Foreign address and RBI approval date attested copy of RBI approval NRO-Indian address along with proofs Bank account details

In case of joint holdings In case of joint holdings, POI and POA documents along with PAN card must be submitted in respect of all account holders. Original documents must be taken to the DP for verification.

The DP will also provide a copy of the DP-Client agreement. Account opening form require the applicants to give the following details: (a) Name(s) of account holder(s) -The investor should ensure that the name is identical to that which appears on the certificate(s) to be dematerialized. In case of joint holdings, account may be opened in any one combination, irrespective of the sequence in which names are appearing on share certificates. Investors are advised to open their account in their fully expanded name, i.e., to

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spell to the first name as well as the middle name. This would obviate any doubts about the veracity of the information. (b) Mailing and communication address(es) - The veracity of the applicant's address is determined through the documents submitted for verification like ration card, passport, voter ID, PAN card, driving license, bank passbook, etc. For NRI accounts, proof is required for both addresses - that of the account holder as well as the constituted attorney. For corporate accounts, a copy of Memorandum of Association, Articles of Association, Board resolution permitting opening of account, the registered address of the company have to be furnished.

(c) Details of guardian in case account holder is a minor -Only a guardian can open a depository account for a minor. The guardian is required to sign the application form, and details of his name and address need to be given in addition to the details of the minor. (d) Foreign Address and RBI approval details for NRI, FII or OCB accounts -For foreign-based applicants like NRIs, Flls, OCBs, etc., the applicant must furnish original or attested copies of the power of attorney and the approval letter from RBI permitting them to invest, as the case may be.If the account holder is an FII or an OCB, SEBI registration details along with attested copy of registration certificate issued by SEBI and authorisation letter is required. (e) Details of bank account -Details of bank account of the account holder, including the nine digit code number of the bank and branch appearing on the MICR cheques issued by the bank have to be filled in the application form. Companies use this information for printing them on dividend/interest warrants etc. (f) Nomination declaration - A beneficial owner can make a nomination of his account in favour of any person by filing the nomination form with his DP. Such nomination is considered to be conclusive evidence of the account holder'(s) disposition in respect of all the securities in the account for which the nomination is made. (g) Standing Instruction - a facility of standing instruction is provided to

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the investors for receiving securities to the credit of their accounts without giving a separate receipt instruction.

The demat account cannot be operated on "either or survivor" basis like the bank account. In case of the joint account for the beneficial owners, all the joint holders have to sign the account opening form.

The investor will submit to his DP the duly filled in account opening form & DP-client agreement along with the documents.

The DP will verify whether the account opening form has been duly filled in or not. He will also verify the submitted documents. For corporate investors, the DP will also verify whether the board resolution for the authorized signatories has been enclosed. The DP will ensure that client's signature is recorded on the form which will serve as specimen for authorizations in future. If the application form and documents are in order, then the DP will accept them and give an acknowledgement slip duly signed and stamped to the client. The DP will execute the agreement and give a copy of it to the client. After completion of all documentation, the DP will enter the client details as mentioned in the account opening form in the DPM (software provided by NSDL to the DP) screen provided for the purpose. After entering client details in the system, a client account number will be generated by the DPM. The DP will enter this in the account opening form.

On successful opening of the account, the DP will give: Client Id - an eight digit number to be used along with DP Id for any future transactions. Delivery Instruction slip book.

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Scope of the study

. Research, as a general concept, is the process of gathering information to learn about something that is not fully known. Nearly everyone engages in some form of research. 1) Will help you better communicate: By conducting the research Indiabulls Securities Limited will be able to communicate to its clients easily. If the company has proper information regarding the market then they will be able to provide the required services to its clients on time. 2) Will help identify opportunities: By conducting research the company can check the competition. They will also be able to know that are they missing something they can capitalize on. What can they do better than they can? Are their clients in need of something nobody else is offering? 3) ) Will minimize risk: Just like any situation, if the company is well prepared then they will be less likely to loose and more likely to win. If the research is conducted on timely basis then they can also retain their clients for longer period of time. 4) Will create benchmarks to help you measure progress: If the research is conducted then they will come to know how well they are doing. By setting the standard high from the start, the company will be in a better position for sustained growth. 5) Will help to set competitive price: The research will also help to set better price as against its competitors in the market, like, many stock broking houses have low account opening charges as compared to Indiabulls Securities Limited.

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Limitation of the study:

As Jharkhand dealt in survey so it does not represent the view of the total Indian market.

Size of the research may not be substantial.

There was lack of time on the part of respondents

The survey was carried through questionnaire and the questions were based on perception.

There may be biasness in information by market participant

Complete data was not available due to company privacy & secrecy

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THE COMPETITORS
Major Competitors of Indiabulls Securities Ltd Indiabulls Securities faces significant competition from companies seeking to attract client financial assets, including traditional and online brokerage firms, mutual fund companies and institutional players having wide presence and a strong brand name. They are;

ICICI Securities Ltd. Sharekhan India Infoline Religare HDFC Securities

India Infoline Ltd India Infoline Ltd is listed on both the leading stock exchanges in India, viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE). The India Infoline group, comprising the holding company, India Infoline Ltd and its subsidiaries, straddles the entire financial services space with offerings ranging from Equity research, Equities and derivatives trading, Commodities trading, Portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits and other small savings instruments to loan products and Investment banking. India Infoline also owns and manages the websites, www.indiainfoline.com and www.5paisa.com .

India Infoline Securities Pvt Ltd India Infoline Securities Pvt Ltd is a 100% subsidiary of India Infoline Ltd, which is engaged in the businesses of Equities broking and Portfolio Management 28

Services. It offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE. A choice of technologically advanced trading that is with the help of 5paisa.com. 5 paisa also represents the availability of world class service to investors at the lowest possible rate - 5 paisa for every trade of Rs100, i.e., a brokerage rate of 0.05%.

Features of 5 paisa.com: Paisa sense - They offer a good value for money proposition. Their brokerage rates are very competitive, charging only 5 paisa for Rs100 of trade done, which is 0.05% brokerage. They offer the most reasonable rates, independent of your net worth or volumes. In case of trades that result in delivery, they charge an additional 0.20% for back office and securities handling. Personalized service - At 5paisa.com, they are committed to provide you with unparalleled service, using e-mail, call centers and support staff. They have also invested in physical infrastructure. Protection All transactions of 5paisa.com are secure and confidential. The orders are electronically routed via sophisticated trading systems for execution. They follow a world class security system that enables them to protect from any fraud or hacking. Pedigree - 5paisa.com is a brand renowned for quality of information and services, they are professionally managed, with a skill set which is of high standard. Their top management has years of experience in financial services with leading banks and institutions.

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Religare:
Strengths of the Religare are: 1. Religare gives interest on unutilized cash when investor is waiting to make next trade or online investment. 2. Religare Allow their investor to trade without having to worry about cash margin. Investor can get exposure (on cash segment) as high as 20 times for intraday trades. 3. They provide intraday reports and historical charting. 4. Lifetime free DP account. 5. Varity of fee structure to fulfill need of different type of investors.

Sharekhan Securities Sharekhan was created when SSKI Investor Services Pvt. Ltd., a company in the securities and equities segment decided to harness the power of the Internet and offer services to its customers through an online stock trading portal. Sharekhan brings and provides a user-friendly online trading facility. They also have an extensive all-India ground network of franchisees across the country. The company offers its services through a combination of online and offline channels. The online model comprises a portal, chat facilities, and 'speed trade' terminals. And the offline model uses a combination of an IVR infrastructure and a team of customer agents to receive orders over the telephone.

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ICICI SECURITIES ICICI Securities, A subsidiary of ICICI Bank, was set up in February 1993 to provide investment-banking services to investors in India. As on date ICICI Bank holds 99.9% of the share capital of ICICI Securities. ICICI Securities Limited is Indias leading full service investment bank with a dominant position in all segments of its operations Corporate Finance Fixed Income and Equities.

Features of ICICI securities ICICI provides multiple channels in banking like, which is unique feature. Internet Banking Mobile Banking ATM banking Phone Banking ICICI Securities is amongst the largest arranger of funds in Debt and Equity segments and also amongst the leading advisors in Mergers and Acquisitions. COMPARATIVE ANALYSIS BETWEEN DIFFERENT STOCK BROKERS After the whole study I found out the following results:There are the two type of the transaction: - 1.Intrabased 2. Delivery based

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0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 INDIABULLS Intraday delivery 0.05 0.25 ICICI DIRECT 0.15 0.75 INDIA INFOLINE 0.1 0.5

RELIGARE 0.03 0.3

SHAREKHAN 0.1 0.5

HDFC 0.15 0.5

Indiabulls security ltd: Charge a 0.05 % on intra based and 0.25 % on delivery based transactions per 100 rupees.

ICICI Direct: charge a 0.75 % on delivery based and 0.15 % on intra based transactions per 100 rupees.

Indiainfoline security ltd: Charges a 0.01 % brokerage for intraday transactions. For trades that do result in delivery which is less than 20% of total trades, statistically speaking there is a nominal charge of 0.5 % for securities handling.

Religare Securities Limited:. Religare security ltd charges a 0.3 % on delivery based and 0.03 % on non delivery based transaction. Service charges and other charges are separately

Sharekhan: Sharekhan charges a 0.10 % on non delivery based and 0.50 % on delivery based transactions. HDFC Securities: HDFC charges 0.15 % on intraday transactions and 0.50 %

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on delivery transactions COMPETITIVE ANALYSIS The Indian retail brokerage industry consists of companies that primarily act as agents for the buying and selling of securities (e.g. stocks, shares, and similar financial instruments) on a commission or transaction fee basis. It has two main interdependent segments: Primary market and the Secondary market Objective: Analyze retail brokerage industry taking into account the health of the capital markets, Derivative Market and the intensity of competition among the brokerage companies. Doing Competitive Analysis for IndiaBulls.

The major growth drivers for brokerage revenue and trading volume are: Adoption of technology screen-based trading, electronic matching, and paperless securities Centralized operations, effective risk management, and control on large interconnected operations spanning multiple locations, which is enabled by telecom connectivity and low costs Increasing access to capital and the ability to provide margin finance

Parameter Assessment for Doing Competitive analysis

A differentiating aspect is a comparative assessment of the top retail brokerages on various value indicators, comprising of Product Pricing

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 Service delivery model Unique selling proposition. . Customers need to analyze the Brokerage Firms Based on these 5 Parameters. Brokerage & Miscellaneous charges Quote Software Execution Platform Demat Account Back office Support. Brokerage & Miscellaneous charges: This accounts for all the charges that you incur for your trading/investing. A few examples would be: Demat Account maintenance, Brokerage, Annual account Fee, Telephone based trading charges, trading software usage charges, etc. We should understand what all charges we are bound to incur from our broker. Quote Software: This is used mainly for technical study and for live quotes. Many people dont evaluate quote software. We typically use software that have stumbled upon and stick with it just because we have eventually grown comfortable using it. Does it allow us to back test our strategy? Does it allow customizing technical signals/parameters? Does it allow adding new indicators? Does it allow us to see historic data? For, what period is intraday data available? We might need all this information. We should be clear on what we need and ensure our quote software provides it all. Execution Platform: Its nothing but a platform that allows us to execute our trade fast. It should automate trade management and execution, and should give protection against human errors. Demat Account: Demat account should only be opened with a well known and established brokerage firm in the market. Back office Support: People while trading face lots of problem because of lack

34

of good back office support. Relationship Managers trading without their clients knowledge, funds not being transferred, trades not being executed, slow execution etc are a few examples. IndiaBulls Securities Trading Products They provide three products for trading. They are Cash account Intraday account Margin trading

Cash account provides the client to buy 4 times of cash balance in his trading account. Intraday product provides the client to buy 8 times of his cash balance in the trading account. Mantra account called as margin trading, is a special account to buy on leverage for a longer duration.

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ORGANISATION STRUCTURE

Senior Vice President

Regional Manager

Branch Manager Senior Sales Manager

Support System

Sales Function

Back Office Executive

Local Compliance Officer

RM/SRM

ARM

Dealer

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FUNCTIONING OF DEPARTMENTS 1. SALES KEY ASPECTS OF RMS ROLE a)CLIENT ACQUISITION Primary responsibility is to register clients who have the potential of generating high brokerage annually Focus not only on account opening but also on margin money from clients Educate the customers on Indiabulls Trading platform so that he can trade on his own Ensure smooth handling of the clients in terms of margin collection and relationship management Achieve monthly targets as given by the Vice President(VP) / Assistant Vice President (AVP) or above.

b) REVENUE GENERATION Primary responsibility is to generate revenue in excess of 3/4/5 times of own salary on a monthly basis from the allocated/acquired base of clients Prepare the plan of action; maintain the daily activity report and daily revenue plan so that you can meet your brokerage targets. Identify and acquire high net worth individuals (HNI) clients.

c) CLIENT SERVICING Guide clients in terms of investment and trading Rigorous follow up with the allocated clients. Explain ledgers, contract notes and charges . This maintains complete transparency with the clients . Ensure that clients are receiving all relevant documents on time.

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 Visit the top revenue generating clients at least once a week. Call up clients for trading, margin calls and for margin collection. Develop and maintain relation with the Clients. Ask for references. 2. OPERATIONS All work related to: Punching in kits Punching in cheques Checking client account status Maintaining vouchers of expenses Payment of various bills 3. Local Compliance To check whether the dealer is putting correct order or not. Issuing warning letters. Verifying the signatures of clients.

SOURCES OF FINANCE

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39

Offerings

IndiaBulls offers two products: -Get More At IndiaBulls. 1. NIB - Normal IndiaBulls 2. PIB - Power IndiaBulls NIB Normal IndiaBulls: A multitude of ways to access your account either through priority access to Relationship Manager over phone OR online access to your Account & Research Tools. Enjoy priority telephone access that gives you direct access to your Relationship Manager.

Stay on the top of your investments with a snapshot of your Account Statements. Get access to Portfolio statement and access to digital contract notes. PIB Power IndiaBulls: Trading just got faster

Features of PIB: Live Streaming Quotes Fast Order Entry Tic by Tic Live Charts Technical Analysis Live News and Alerts IndiaBulls: A Cut Above The Rest Service Industry is base on differentiation of the product and service IndiaBulls is different from its competitors because of following reason

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 Internal Marketing: The main aim of internal marketing is to train and motivate employees to serve customers. The selection, training and motivation of the employees will make a huge difference in customer satisfaction. In IndiaBulls the employees are well trained and motivated to work and they work delicately. Because IndiaBulls know that employees attitude will promote stronger customer loyalty. IndiaBulls designed a sound training programme and support and rewards for good performance. They can use Internet, internal newsletters, daily remainders, and employee roundtables to reinforce customer-centered attitude External Marketing: -

Describe the normal work to prepare, price, distribute and promote the service to customers. It is mainly for customers to provide better service for this purpose IndiaBulls is providing following unique services to his customers: 1.Relationship Managers who are dedicated to supporting customers trading and investing needs. They always keep in touch with client and they give various tips to client by which he can invest in good stocks. 2.Dealers everyday gives confirmations of the clients whole day trading in the evening after signing out from the Market.

IndiaBulls is providing Funding for trading to its client on nominal rates of interest i.e. on 18% limit of funding is as follow Delivery- for delivery trading IndiaBulls providing 2 times funding Intraday- for this type of trading IndiaBulls is proving 8 times Funding without charging any interest.

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 and

Risk management team of IndiaBulls taking care of client portfolio

whenever the value of his portfolio will go decrease by 30% client always informed by his Relationship Manager. IndiaBulls is providing a software called Power IndiaBulls as describe above if a client have his own PC and Internet then he can trade from his home or office.

Depository Services: -

IndiaBulls is a depository participant with the National Securities Depository Limited and Central Depository Services (India) Limited for trading and settlement of dematerialized shares. IndiaBulls performs clearing services for all securities transactions through its accounts. Company offer depository services to create a seamless transaction platform execute trades through IndiaBulls Securities and settle these transactions through the IndiaBulls Depository Services. NRI Account

You can now enjoy the convenience of hassle-free and fast way of trading in the Indian Equity Markets through IndiaBulls NRI Investor Services Our unique integrated service creates one window for all your trading, depository and banking needs. You can buy and sell on your computer using our NRI Trading Account Services, which have been seamlessly integrated with your IndiaBulls Depository Account and with the HDFC NRE/NRO Bank Account. IndiaBulls NRI Trading Account - Provides access to comprehensive trading tools for independent NRI investors

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 IndiaBulls Depository Services - Integrated services for seamless delivery HDFC Bank Account - NRE/NRO Accounts with built in tax management solutions and facility to source all regulatory approvals IndiaBulls Equity Analysis - Premium Research on 540+co mpa n i e s updated daily

Promotion: IndiaBulls is turning to marketing public relations to directly support corporate and product promotion and image making. Because public is any group that has an actual or potential interest in or impact on a companys ability to achieve its objective. IndiaBulls has its team relationship manager that monitors the attitudes of organizations publics and distributes information and communications to built goodwill. They are performing following five functions: 1. Press Relations: - They present news about the organization in the most positive light.

2.Product Publicity: - All Relationship managers are sponsoring efforts to publicize product offerings by IndiaBulls i.e. NIB and PIB.

3. Corporate Communication: - They promoting understanding of the organization through internal and external communications.

4. Counseling: - All RMs advise management about public issues and company positions and image during good and crises.

IndiaBulls is promoting its product by advertising by following medium: Electronic media: - By advertise its product via Television

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 Print media: - By various newspapers, brochures, etc.

From above campaign we had good result we have come to know that public is interested to know about IndiaBulls and shares trading. Infrastructure: - IndiaBulls also try to demonstrate its service quality through physical evidence and presentation. Because if we talk about online security trading then we have to say that physical evidence is important for the company in IndiaBulls office all client come every day and they trade but with the time passing IndiaBulls is growing and number of client increasing day by day so space of office is not sufficient for both staff members and clients also. FUTURE PLANS OF INDIABULLS SECURITIES LTD IndiaBulls is now looking at standardizing on Linux and is also considering migrating to Red Hat Enterprise Linux v.3 to further increase performance. With growing popularity of Linux on the desktop, IndiaBulls is considering to port its client application to Linux. In doing so, it hopes to meet the needs of investors who prefer to use Linux desktops from their home or office in connecting to their services network

Data interpretation & analyses

Research is conducted for finding the solution of the problem. So to find the solution of the problem data analysis and interpretation is must. There are some questions related to this research to interpret the result. The sample size in this study consisted of 70 individuals and data analyzed from the response of these 70 individuals. 1.Are you aware of the stock market? The basic purpose of this question is to know about how many people are aware of the stock market and its activities.

44

responses no.of

%o

respondents response yes no total

80 70 60 50 40 30 20 10 0 yes no no yes

70 0 70

100 0 100

Interpretation:This graph shows that all the 70 individuals were aware of stock market. So it can also be possible that investors will rise in near future. 2. Do you know about investment options available?

knowledge yes No total

% age 80 20 100

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yes

no

20%

80%

Interpretation Only 80% people know the exact meaning of investment. Because of remaining 20% take his/her residential property as an investment. According to law purpose this is not an investment because of it is not create any profit for the owner. 3.Are you aware of Demat account ? The basic purpose of this question is to know about awareness of Demat account among respondents. Response Yes No Total No of response 60 10 70 %of response 86 14 100

46

14%

yes no 86%

Interpretation : The above table clearly shows that from a sample size of 70 respondents, 60 individuals were aware of Demat account. 4. Most preferable investment scenario Investment scenario Banks Derivatives & securities market Insurance Bonds Real estate Others Total % age 24 28 4 20 20 4 100

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4% 20% 24% banks derivatives & securities market insurance 20% 28% 4% bonds real estate others

Interpretation: Today scenario is changed so that most area covered by the derivative and securities market. It is 28% of the total population 5. What is the basic purpose of your investment ? Investment purpose liquidity returns Capital appreciation Tax benefits Risk covering others total % 30% 25% 10% 20% 5% 10% 100%

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5%

10%

30%

liquidity return capital appreciation

20%

10%

tax benefits 25% risk covering others

Interpretation : 75% people are interested in liquidity, returns and tax benefits. And remaining 25% are interested in capital appreciations, risk covering, and others. 6. Most important things you take into your mind while making investments? Factors Risk Return Both Total % 8 17 75 100

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8% 17% Risk Return 75% Both

Interpretation 75% people are considered the both factors risk as well as returns but, only 25% considered the risk or returns factor. 7.Do you have Demat & trading account?
Account yes No Total % 60 40 100

40% 60% YES no

Interpretation Only 75% respondents have de-mat and trading account and remaining 25% says no because they dont know why shares move up and down. 50

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

Satisfaction Operating expenses Services Brokerage Total % 18 25 57 100

18% Operating expenses Services Brokerage

57%

25%

Interpretation We can see that most of the clients are satisfied with their broking houses because of the lower brokerage charges which is followed by services they provide.

9.In which company you have Demat and trading account?

Company INDIABULLS INDIAINFOLINE ICICI direct SHAREKHAN KARVY OTHERS TOTAL % 38 20 14 12 9 7 100

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9% 12% 14%

7% 38%

INDIABULLS INDIAINFOLINE ICICI Direct SHAREKHAN 20% KARVY OTHERS

Interpretation:In IndiaBulls Securities Ltd 38% respondents have de-mat & trading account because of better services and no annual maintenance and other charges except for brokerage charges

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SWOT ANALYSIS

STRENGTH Integrated technology platform Pan India distribution network Relationship manager facility Power indiabulls has developed into brand Strong sales & marketing teams that deliver market leading product innovation OPPORTUNITIES Changing demographics with higher disposable income Rapid penetration of internet & computers Market size & characteristics

WEAKNESS Lacking of banking arm Loss of relationship manager leads to loss of clients

THREATS Economic slowdown Political instability Volatile movement in market indices Competition substitutes low product differentiation

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Competitive Strength of Indiabulls Securities Indiabulls securities Ltd have a distinct set of competitive advantages that make it uniquely capable of winning in the marketplace against its competitors Diverse Branch Network Bouquet of financial products and services Advanced technology innovation Strong sales and marketing teams with continuous reinvestment and training Strong cross-selling opportunities. Strong and experienced promoters Leading product innovation and marketing strategies Well capitalized player, with strong banking relationships and credit ratings Ability to combine people and technology in unique ways Strong market presence and increased market share leading to a virtuous cycle of growth and Profitability. Core pillars of Business strategy Increase the number of Client Relationships. Offer Diversified Financial Products & Services. Multiple Channels Enhance Customer Experience and Opportunities. Low cost and highly scalable business. team that delivers market leading product

Merits of Indiabulls Securities Low brokerage charges (Competitive) with 0.10 for Intra-day and 0.50 % for delivery. Indiabulls securities provide 8 times margin for Intra-day and 4 times margin for delivery. 54

Indiabulls is suitable for both Day trading & Long term investment IndiaBulls has software called Power IndiaBulls. It is a Java based application, with real-time streaming quotes. It is fast in terms of speed and execution

Research reports are free of cost to trading members. They Provide 3 in 1 interface, i.e. Demat Account, Trading account & bank account all are linked in one interface.

De-Merits of Indiabulls Securities You have to open a bank account with the banks mentioned in Indiabulls site for Credit/ Debit Facility as they dont have their own bank. And In ICICI direct , you have a direct debit/credit facility with the bank Most customers feel that it is difficult to understand the ledger reports of Indiabulls securities, so proper customer guidance should be given. Lack of Banking arm Rural market is yet to be tapped. More importance should be given to promotions & advertisements.

Value Proposition of Indiabulls Securities ISL provide a very good Trading tools like Power Indiabulls & Indiabulls market trader. Power Indiabulls: A desktop Trading application offering clients sophisticated trading tools accessible at lightning fast speed. Indiabulls Market Trader: Browser based trading application built for retail investor. Indiabulls Equity Analysis: Premium research on 400 plus companies. Indiabulls Professional Network: Offers real-time prices, detailed data and news, intelligent analytics and electronic trading capabilities.

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Relationship manager: Indiabulls securities robust technology is integrated with knowledgeable and customer-focused relationship managers who are available 24X7 to assist the clients.

In Depth Market Analysis and Research Their special research cell 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, they bring you fundamental or basic research and technical research.

Merits & De-merits of Competitors ICICI securities: It provides products & services in fixed income, equity & corporate finance. Merits of ICICI Securities ICICI Direct is considered best for long term investment.( Indiabulls is suitable for both Day trading & Long term investment) A direct debit/credit facility with the bank. All facilities available under one umbrella. BTST (Buy today & sell tomorrow) is available; this facility is available only in ICICI Direct. Can apply for IPO online (we cant do this in Indiabulls). Can apply for mutual funds online and can also sell them online. Internet banking demo which gives customers an opportunity to learn.

De-Merits of ICICI Securities Brokerage charges are high - intraday 0.3% and 0.75% delivery compared to other brokerage firms (is considered as highest in the market). Day trading is a night mare in ICICI because of Web based terminal, which is very slow. Orders placed at or around 10.00 hrs may be queued for a while. So

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intra-day Margin trading could be annoying now & then. It's not much of a hassle for Cash trading though. (Indiabulls offers you a trading terminal 'power Indiabulls', which is java based software. It is fast in terms of speed and execution). ICICI Direct brokerages are not negotiable ( Where as Indiabulls Brokerage Charges are negotiable) While opening Demat account, three accounts are opened ,the saving bank account, trading account and Demat account and you have to maintain minimum of rs5000 in case if it is not a salaried account. (That Rs5000 sleeps without earning any money) Other banks account cannot be linked with the ICICI trading account. They charge an annual maintenance charges are Rs540.

Value Proposition of ICICI Securities E-Instructions: You can transfer securities 24 hours a day, 7 days a week through Internet & Interactive Voice Response (IVR) at a lower cost. Now with "Speak to transfer", you can also transfer or pledge instructions through our customer care officer. Mobile Request: Access your Demat account by sending SMS to enquire about Holdings, Transactions, Bill & ISIN details. The equities research team tracks over 15 key sectors of the Indian economy and publishes in-depth research reports every year. The equities team at ICICI Securities comprises of research desk, sales desk and the trading desks.

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ShareKhan Merits of ShareKhan Securities Low brokerage charges, intraday 0.1% and 0.5% for delivery. Live streaming quotes Customer support is good No monthly charges Can trade in both BSE and NSE

HDFC SECURITY HDFC security is the subsidiary of HDFC (Housing Development Financial Corporation). www.hdfcsec.com would have an exclusive discretion to decide the customers who would be entitled to its online investing services. www.hdfcsec.com also reserves the right to decide on the criteria based on which customers would be chosen to participate in these services .The present web site (www.hdfcsec.com) contains features of services that they offer/propose to offer in due course. The launch of new services is subject to the clearance of the regulators, i.e, SEBI, NSE and BSE. PRODUCT OFFERED BY HDFC SECURITY Online trading for Resident & Non Resident Indians. Cash-n-Carry on both NSE and BSE. Day trading on both NSE and BSE. Trade on Futures & Options on the NSE. Online IPO's. Telephone-based Broking (Equity & Derivatives). De-Merits of ShareKhan Securities No BTST (buy today sell tomorrow), in ShareKhan you cant sell a share today which you bought yesterday. You have to open a bank account with the banks mentioned in ShareKhan site.

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Streaming quotes requires JVM (Java Virtual Machine); this may be big headache for customers. Annual charges are Rs330. Their trading terminals are certainly not for "investors", only for active traders. That is because, you have to trade a certain volume every month, otherwise you end up paying a fine Comparing ShareKhan & ICICI Direct

Sharekhan Live Streaming quotes but streaming quotes require JVM No BTST facility (Buy today sell tomorrow) Annual Maintenance charge Rs 330 You have to open a bank account With the banks mentioned in ShareKhan site Can apply IPO online Not necessary

ICICI Securities No live streaming quotes

BTST facility is available

Annual Maintenance charge Rs 540 other banks account cannot be linked with ICICI trading account Can apply IPO online while opening a Demat account you Need to maintain a minimum of Rs 5000

Can trade in BSE & NSE No Monthly Charges

Can Trade in BSE & NSE No Monthly Charges

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Cannot apply

can apply mutual funds online

India Infoline Merits of India Infoline (5 Paisa.com) Securities Low brokerage charges, intraday 0.10% and 0.50% for delivery and it is negotiable. Minimum brokerage per share will be 1 paisa for trading transactions and 5 paisa for delivery based transactions. 5 paisa provides 6 times margin for Intraday & 8 times margin for Delivery. All customers will get Digital Contract Notes. Physical contract notes could be provided on request which would entail a nominal charge. De- Merits of India Infoline (5 Paisa.com) Securities Registration Fees (one time) Rs.500/ and is non-refundable. Software License Fee Rs.799/- per month or 7999/- per annum and is nonrefundable. There is lot of Hidden costs. Annual Service Charges Rs.250. Customers who just want to have a depository relationship will be required to pay Rs.1000/-, for each Demat account, which will be adjusted against service charges. The information in their web based terminal is too much compressed in one screen. Trader terminal is good, but the interface is too complicated

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FINDINGS & SUGGESTIONS Aggressive Promotions: Indiabulls Securities compared to its competitors concentrates less on advertising and promotions, especially through electronic media. Its competitors like Sharekhan, ICICI and Kotak are advertising aggressively through media. Hence Indiabulls should concentrate more on advertising through print and electronic media. Tapping Rural Market: The Indian rural investors market are relatively untapped, with only small and private firms meeting the current demand. Indiabulls Securities can gain the First Mover Advantage over its competitors, especially in areas were commercial crops are grown and the standard of living is high. These people do not have much option to invest other than banks and post offices. Reduce the initial account opening charges: The charge for opening a trading and Demat account in Indiabulls securities is high compared to its competitors. This influences the potential investors to open their account with another company which provides the same at lower prices. Thus it acts as a mental barrier for potential customers, who tend to overlook all other benefits offered by Indiabulls. Hence Indiabulls should consider reducing their account opening charges. Bring in more product differentiation: Product differentiation here means that Indiabulls securities should bring in more customized services and more value proposition for large investors. It can reduce the brokerage charges for large investors which will encourage them to invest more in the company.

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Invest more on R&D: Indiabulls should concentrate on its research and development since most of its competitors are investing on R&D. This will help the company to read the market better and will also be in a better position to understand the needs of the customers. This can be extremely beneficial for Indiabulls in the long run.

QUESTIONNAIRE
Q1 Do You invest in shares?. o Yes o no

In case ``yes`` start filling q2,but in case of ``NO`` reply switch on to Q12 Q2. Through which brokerage firm you are dealing______________________________________ Q3.How do you come to know about the firm? O newspaper O Executive Q4. You are more interested in? O Intraday Q5.How do you trade? O through phone O by visiting broker firm yourself Q6. On what basis do you buy a scrip? O On the recommendation of the broker O fundamental analysis O on the recommendation of your friend O with your own research O On the basis of news Q7.What is the basic purpose of your investment? O capital appreciation O Liquidity O high returns O diversification O through internet O Short term O Long term O friends O others(please specify)____________

Q8. What is your trading exchange preference?

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ONSE

O BSE

Q9. How do you like to trade ? OAs a spectacular/trader O As an investor

Q10.Do you invest in futures and options? Yes/no Q11. TO what extent do you agree /disagree with the following statement about share trading Statement strongly disagree neutral agree ya disagree a) I m satisfied with the services of my broker b) I am ready to shift to other brokerage house if he promises me to provide better services c) Trading software of my brokerage house keeps me update about scrip prices. In case ``no`` option start filling Q12. Q12. If you do invest in shares then in which other mode of investments do you invest your savings? ( you can tick more than one ) O Saving account O insurance O Mutual Funds Q13. If a professional guides you to invest in equity, are you ready to make investments? O YES can tick more than one) O Motilal Oswal securities Ltd. O Kotak securities Ltd. O ICICI Direct O Indiabulls O Indiainfoline O Religare securities ltd. O karvy O NO Q14. Which of the ollowing names of brokerage houses have you heard ?( O Fixed deposits O REAL ESTATE

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Personal information Name: Contact no. Age group: O 20-25 Occupation O Business O House wife Income: O upto 1.5 lacs O 1.5- 3 Lacs O More than 3 lacs O Professional O Student O Service O 25-30 O 30-50 O more than 50

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CONCLUSION Indiabulls faces significant competition from companies seeking to attract clients financial assets including traditional and online brokerage firms, mutual fund companies and institutional players, having wide presence and a strong brand name. As Indiabulls enter newer markets, they are likely to face additional competition from those who may be better capitalized, have longer operating history, have greater retail and brand presence, and better management than Indiabulls. As new players like Reliance Money enters the market the competition will only get more intense. If they are unable to manage their business it might impede their competitive position and profitability. Hence they should continue to compete vigorously to capture more market share and should add more management personnel to manage their growth in an optimal way. Post economic liberalization in 1991 the Indian financial services industry has experienced significant growth. Exposure to global practices has made the Indian customer more demanding. As a result of falling interest rates, bank deposits, other traditional investment opportunities are losing their attraction. Thus, Indian investors are getting attracted towards alternate investments such as the Retail Security Market and are looking for newer financial products. As the Indian Retail Security Market is still in a nascent stage and as a lot of potential for growth, its a very good opportunity for companies like Indiabulls to increase their market presence. They will have to concentrate more on the Research and Development and come up with strategies which are beneficial for the company. Thus for the purpose of Applied Research Projects in the company, they can do more research on the market and identify the major factors which will drive the market in the future.

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ANNEXURE 1.Are you aware of the stock market? O YES O NO

Do you know about investment options available? O YES O NO

Are you aware of Demat account ? O YES O NO

Most pref erable investment scenario O Investment scenario market O Insurance O Bonds O Real estate O.Others O Banks O Derivatives & securities

What is the basic purpose of your investment ? O liquidity benefits O returns O Risk covering O Capital appreciation O.others O Tax

6. Most important things you take into your mind while making investments? O Risk O Return O Both

7.Do you have Demat & trading account? O.YES O No

8 Specify the reason of satisfaction with the current broking house? O Operating expenses OServices O Brokerage

9.In which company you have Demat and trading account?

OINDIABULLS OSHAREKHAN OINDIAINFOLINE O RELIGARE O ICICI direct O OTHERS

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