A PROJECT REPORT ON Study the Mechanism of De-mat A/c & Online trading FOR SHAREKHAN LIMITED.

SUBMITTED IN PARTIAL FULLFILLMENT OF POST GRADUATE DIPLOMA IN MANAGEMENT (PGDM) SUBMITTED BY KAVERY CHAKI PGDM-III (FINANCE AND MARKETING) GUIDED BY- Prof. Suresh Vaze ASIAN SCHOOL OF MANAGEMENT Landmark centre, Satara Road pune-400098 2009 2011

PREFACE

The successful completion of this project was a unique experience for me because by visiting many place and interacting various person, I achieved a better knowledge about sales. The experience which I gained by doing this project was essential at this turning point of my career this project is being submitted which content detailed analysis of the research under taken by me.

The research provides an opportunity to the student to devote his/her skills knowledge and competencies required during the technical session.

The research is on the topic Study the mechanism of Sharekhan De-mat Account & Online trading.

ACKNOWLEDGEMENT
Behind any success, not only a single person use to be there. Success comes from teamwork. Likewise to made my project complete there are few people who guide me & support me to reach at this point. It is my great pleasure to express my gratitude and sincere thanks to those people. First of all, I would like to thanks our Director Mrs. K. Madhavi Khare for supporting me by providing the best faculty guide & the chance to have industry exposure. Then I would like to thanks my Project guide Mr. Ranjeet Kumar & the management staffs of the SHAREKHAN LTD. Pune, for giving me an opportunity to undergo training in the organization & guide me to complete my internship properly with having necessary knowledge of the topic . I would also like to express my gratitude towards my faculty guide Prof. Suresh Vaze for providing me regular guidance and necessary help regarding my project. Lastly I would like to express my gratitude & thanks towards my parents & friends for their blessings & encouragement, which make my work complete.

Kavery Chaki

CERTIFICATE OF INTERNAL GUIDE

This

is

to

certify

that

the the

project

titled

Study

Mechanism of De-mat A/c & Online trading work carried Chaki is a bonafide

out by Kavery for Post in

a candidate

Graduate

Diploma

Management, Pune under my guidance and direction.

4

Date: Place:

Signature of Guide Name: Prof. Suresh Vaze Designation: Faculty Institute: Asian School of Management

CERTIFICATE FROM INSTITUTE

This is to certify that the Project Report entitled as Study the Mechanism Online bonafide Graduate Sharekhan of Ltd, De-Mat Pune carried Diploma
5

A/c is out

& in the by in

trading work

done

Kavery Chaki, student of Post

Management of Asian School Of Management, Pune. She has worked under our guidance and direction. Her Work is found to be satisfactory and complete in all aspect.

Date: Place:

Signature of Director Name: Madhavi Khare

DECLARATION

I Kavery Chaki hereby declare that the project entitled Study the Mechanism of De-Mat A/c & Online Trading for Sharekhan Ltd, Pune is the work done by my own efforts to the best of my knowledge and belief. This project contains the materials which I have found during my Winter Internship. No previously used or published data are included in this project & also has not been submitted to anybody else in any other educational institute for any other reason.

Date: -

Signature (Name of the Student)

TABLE OF CONTENTS

Serial number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Details of document Introduction of share market Company profile Swot analysis Need for the Study Competitors Comparison among different share broking firm Objectives Research Methodology Data Analysis & Interpretation Hypothesis Finding Limitations Expected Contribution from the Study Suggestions & Recommendations Conclusion Bibliography Appendix

Page number 8 18 38 40 41 55 60 62 71 87 89 91 92 94 95 96 97

CHAPTER 1

Introduction to Share Market

Introduction
Stock markets refer to a market place where investors can buy and sell stocks. The price at which each buying and selling transaction takes is determined by the market forces (i.e. demand and supply for a particular stock). Pre- Independence scenario One of the oldest stock markets in Asia, the Indian Stock Markets has a 200 years old history. East India Company was the dominant institution and by end of the 18th century, business in its loan securities gained full momentum. Business on corporate stocks and shares in Bank and Cotton presses started in Bombay. Trading list by the end of 1839 got broader. In 1860-61 The American Civil War broke which caused a stoppage of cotton supply from United States of America; marking the beginning of the "Share Mania" in India. In 1874 with the rapidly developing share trading business, brokers used to gather at a street (now well known as "Dalal Street") for the purpose of transacting business. In 1875 "The Native Share and Stock Brokers' Association" (also known as "The Bombay Stock Exchange") was established in Bombay

Post Independence Scenario The depression witnessed after the Independence led to closure of a lot of exchanges in the country. Lahore Stock Exchange was closed down after the partition of India, and later on merged with the Delhi Stock Exchange. Bangalore Stock Exchange Limited was registered in 1957 and got recognition only by 1963. Most of the other Exchanges were in a miserable state till 1957 when they applied for recognition under Securities Contracts (Regulations) Act, 1956. The Exchanges that were recognized under the Act were: 1. Bombay 2. Calcutta 3. Madras 4. Ahmedabad 5. Delhi 6. Hyderabad 7. Bangalore 8. Indore

At present, there are twenty one recognized stock exchanges in India which does not include the Over the Counter Exchange of India Limited (OTCEI) and the National Stock Exchange of India Limited (NSEIL). Government policies during 1980's also played a vital role in the development of the Indian Stock Markets. There was a sharp increase in

10

number of Exchanges, listed companies as well as their capital, which is visible from the following table:
1 S. No. As on 31st December 9 4 6 1 No. of Stock Exchanges 7 1 2 No. of Listed Cos. 1 2 5 1 3 No. of Stock Issues of Listed Cos. 5 0 6 2 7 0 1 9 6 1 7 1 2 0 3 2 1 1 1 7 5 3 1 9 7 1 8 1 5 9 9 2 8 3 8 1 8 1 2 2 6 7 5 1 1 3 1 6 7 1 9 7 5 8 1 5 5 2 3 2 3 0 2 6 1 4 3 2 7 3 1 6 8 2 1 1 1 9 8 0 9 2 2 6 5 3 6 9 7 3 9 7 3 6 7 5 0 1 7 5 2 9 8 1 9 8 5 1 4 4 3 4 4 6 1 7 4 9 7 2 3 2 5 3 0 2 2 2 4 5 8 2 51 4 69 3 11 02 79 47 81 21 32 04 1 89 67 11 78 4 62 29 85 93 20 22 19 91 19 95

Capital of Listed Cos. (Cr. Rs.)

59 58 3

Market value of 5 Capital of Listed Cos. (Cr. Rs.)

9 7 1

1 2 9 2

Capital per Listed 6 Cos. (4/2) (Lakh Rs.) Market Value of 7 Capital per Listed Cos. (Lakh Rs.) (5/2) Appreciated value 8 of Capital per Listed Cos. (Lakh Rs.)

2 4

6 3

8 6

1 0 7

17 70

55 64

3 5 8

1 7 0

1 4 8

1 2 6

1 7 0

2 6 0

34 4

80 3

11

. National

Stock Exchange

In order to lift the Indian stock market trading system on par with the international standards. On the basis of the recommendations of high powered Pherwani Committee, the National Stock Exchange was incorporated in 1992 by Industrial Development Bank of India, Industrial Credit and Investment Corporation of India, Industrial Finance Corporation of India, all Insurance Corporations, selected commercial banks and others.

NSE provides exposure to investors in two types of markets, namely: `-` 1. Wholesale Debt Market: - It is similar to money market operations, debt market operations involve institutional investors and corporate bodies entering into transactions of high value in financial instruments like treasury bills, government securities, commercial papers etc. 2. Capital market: - The market where investment funds like bonds, equities and mortgages are traded is known as the capital market. The primal role of the capital market is to channelize investments from investors who have surplus funds to the ones who are running a deficit. The capital market offers both long term and overnight funds. The different types of financial instruments that are traded in the capital markets are equity instruments, credit market instruments, insurance instruments, foreign exchange instruments, hybrid instruments and derivative instruments.

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There are two kinds of players in NSE (a) Trading members. (b) Participants. Recognized members of NSE are called trading members who trade on behalf of themselves and their clients. Participants include trading members and large players like banks who take direct settlement responsibility. Trading at NSE takes place through a fully automated screen-based trading mechanism, which adopts the principle of an order-driven market. Trading members can stay at their offices and execute the trading, since they are linked through a communication network. The prices at which the buyer and seller are willing to transact will appear on the screen. When the prices match the transaction will be completed and a confirmation slip will be printed at the office of the trading member.

NSE has several advantages over the traditional trading exchanges. They are as follows:
NSE brings an integrated stock market trading network across the nation. Investors can trade at the same price from anywhere in the country since

inter-market operations are streamlined coupled with the countrywide access to the securities.

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 Delays in communication, late payments and the malpractices prevailing in the traditional trading mechanism can be done away with greater operational efficiency and informational transparency in the stock market operations, with the support of total computerized network. Unless stock markets provide professionalized service, small investors and foreign investors will not be interested in capital market operations. And capital market being one of the major sources of long-term finance for industrial projects, India cannot afford to damage the capital market path. In this regard NSE gains vital importance in the Indian capital market system.

Bombay Stock Exchange The Bombay Stock Exchange is the oldest exchange in Asia. The Bombay Stock Exchange developed the BSE Sensex in 1986, giving the BSE a means to measure overall performance of the exchange. In 2000 the BSE used this index to open its derivatives market, trading Sensex futures contracts. In 1995 The BSE has also introduced the world's first centralized exchangebased internet trading system, BSEWEB x.co.in to enable investors anywhere in the world to trade on the BSE platform.

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Transaction Cycle

1. Decision to Trade

2. Placing order

6. Funds / Securitie s

Transaction Cycle

3. Trade Execution

5. Settlemen t of Trades

4. Clearing of Trades

Step 1:- The above cycle is initiated by a client who wants to either buy or sell securities. In that case, he has to make a decision regarding the same. A Decision is taken by the client after considering the liquidity conditions
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And requirements or reshuffles his holdings in response to changes in The market conditions or perceptions. Step 2:- He then selects a broker and instructs him to place buy/sell order on an exchange. Step 3:- The order is converted to a trade as soon as it finds a matching sell/buy order. Step 4:- The trades are netted to determine the obligations of the trading Members to deliver securities/funds as per settlement schedule. Step 5:- Buyer/seller delivers funds/securities and receives securities/funds and acquires ownership of the securities.

Online Trading
Traditionally stock trading is done through stock brokers, personally or through telephones. As number of people trading in stock market increase enormously in last few years, some issues like location constrains, busy phone lines, miss communication etc start growing in stock broker offices. Information technology (Stock Market Software) helps stock brokers in solving these problems with Online Stock Trading. Online trading began in the 1900s with the advent of the Internet. It has opened a new window of opportunity for the investors.

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Online Stock Market Trading is an internet based stock trading facility. Investor can trade shares through a website without any manual intervention from Stock Broker. There are several types of online brokers and it is pertinent to choose a reputable company. Some things to consider when choosing an online broker include the minimum investment needed to begin trading; amount of inactivity fees; trading support; commissions and whether the broker is involved in other businesses. Some well-known brokers are Fidelity, TDAmeritrade, E*Trade and Scot trade. The benefits of online trading are the ability to take control of our own future. Online trading eliminates the "middleman," those sales agents who don't really have your best interests at heart. Online stock trading allows you to call your own shots. It also saves on trading commissions.

OBJECTIVES OF INTERNET TRADING Increase transparency in the markets. Enhance market quality through improved liquidity, by increasing quote Continuity & market depth. Reduce settlement risks due to open trades, by elimination of mismatches. Provide management information system (MIS). Introduce flexibility in system, to handle growing volumes easily and to support nationwide expansion of market activity.

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 Besides, through Internet trading three fundamental objectives of securities regulation can be easily achieved, these are: Investor protection, creation of a fair and efficient market and, reduction of the systematic risks.

Dos and Donts of Online Trading

1. Prices change at the blink of eye and the transactions are not

always in real time. So we should always make sure not to change our decision until the last moment. Taking time to examine the stock and make decision ahead of time so that we dont loose while in panic.
2. An important feature of stock markets is volatility. So if we dont

keep a close eye on how our stocks move while placing an order, we might land up in losses.
3. Online trading provides facility to place limit orders. If we dont

have sufficient time to keep track of the stock prices, we can fix up a buy/sell price based on our judgment and go for limit orders. Moreover limit orders help us to take ample advantage of volatile session during the day.
4. Online trading is a matter of trust between us and our broker

because there is no in-person contact. But we cant leave everything on trust. We should get detailed email statements and contract notes of executed trades time to time from our broker.
5. For novice traders, it is better to always trade with stop losses. Set

the stop loss to level to avoid the risks associated.

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6. Security is another important factor for online traders. It is advisable

always to follow security measures related to passwords and other personal information while login into the websites to eliminate chances of theft of identity and information.
7. In addition to the brokerage rate being paid, prudent investor should

always be well aware of the various Fees and commissions charged by the broker for various services offered like Mobile services, buy sell alerts, reporting, chart and other tools to facilitate easy trade as they really affect our net earnings. CHAPTER 2

Company profile
NAME: - Sharekhan Company Limited Year of Establishment: - 1925 Punch Line: - Youre Guide to the Financial Jungle.

Company Logo:Address :- Branch Head Office A-206, Phoenix House 2nd Floor, Phoenix Mills Compound, Lower panel, Mumbai 400013 Telephone no :- 022-67482000

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Tollfree no :- 1800227500 Website :- www.sharekhan.com Nature of Business: - Service Provider. Services:-Depository Services, Online Services and Technical Research.

About Sharekhan
Sharekhan Limited is in stock broking service for over 80 years now. SS Kantilal Iswarlal Securities Pvt. Ltd. was found and established in 1922 by Kantilal Morakhia. Since then it has focused on strengthening its presence in the rapidly expanding retail broking market.
Further SSKI was incorporated on 20th April 1995, it is known as

composite corporate member of stock exchange Mumbai (BSE) holding two cards. Company has recently obtained SEBI registration to act as Portfolio Manager, International private equity investor like HSBC private equity India fund limited. A first Carlyle venture, maturities an Intel capital, collectively hold 44.51% of the equity capital remaining 55.46% of the equity is between promoters and 0.03% is held by the employees. SSKI has its presence in the retail market since its inceptions over 80 years ago; it is one of the first introduced researches, exclusively suited for the retail investor giving recommendations.
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 Sharekhan has 640 outlets in 280 cities in India. Sharekhan offers its customers a wide range of equity related services

including trade execution on BSE, NSE, and Derivatives. Depository services, online trading, Investment advice, Commodities, etc.
The

Company's

online

trading

and

investment

site

www.Sharekhan.com - was launched on Feb 8, 2000. SSKI Corporate Finance Private Limited (SSKI) is a leading Indiabased investment bank with strong research-driven focus. Our team members are widely respected for their commitment to transactions and their specialized knowledge in their areas of strength.

ACHIEVEMENTS OF SHAREKHAN

Wired companies along with Reliance, HUJl, Infosys, etc by

Business Today, January 2004 edition. Awarded Top Domestic Brokerage House four times by Euro Asia money.
Pioneers of online trading in India amongst the top 3 money and

from India. Most preferred financial destination online trading websites.

Winners of Best Financial Website award. Amongst online broking

customers. Indias most preferred brokers within 5 years. Awaaz customers Award 2005.

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Future Plans
2, 00,000 plus retail customers being serviced through centralized call

centers/ web solutions.

250affluent / aggressive traders through high skill financial advisor. Independent investment managers/ franchisee servicing 50,000 highly

valued
New initiatives Portfolio management Services and commodities

trading.
Branches / Semi branches servicingcentralized call centers/ web

solutions.

Vision
To be the best retail brokering Brand in the retail business of stock market.

Mission
To educate and empower the individual investor to make better investment decisions through quality advice and superior service. Companys Objective To increase market share of the company as well as to increase customers satisfaction level.

Sharekhan is infact
Among the top 3 branded retail service providers No. 1 player in online business

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 Largest network of branded broking outlets in the country serving more

than 7, 00,000 clients. Sharekhan has two kinds of accounts to suit the trading habit of the clients
Classic account This account allows the client to through share

khans website and is suitable for retail investors. Share khans online trading website also comes with a dial-n-trade service that enables customer to buy and sell shares by calling toll free number.
Speed trade and speed trade plus account These are the state of

the art web trading products ideal for active traders and jobbers who transact frequently during the days trading session to capitalize on intra day price movements. Speed trade gives active traders and jobbers the edge with real time access to the market. Key features of speed trade and speed trade plus: Single screen trading terminal Real time streaming quotes Live tic by tic intra day charting Instant order/ trade confirmation in the same window Hot keys similar to a brokers terminal Customized alerts based on multiple parameters Back up facility to place trades on direct phone lines

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Terms and conditions PARTICULARS CLASSIC A/C SPEEDTRADE A/C One time Rs. 49 Rs.2000 Nil for 1st year form 2nd year SPEED TRADE PLUS A/C Rs.6000 Nil for 1st year Rs.300/annum form 2nd year.

registration fee A/c maintenance Nil for 1st year charges and Rs.300/annum form 2nd year. Brokerage Structure:Intraday trading: 0.1% Delivery Exposure : 0.5%

and Rs.300/annum and

: 4 times of the deposit.

Sharekhan offers the following services

Online BSE and NSE executions (through BOLT & Free access to

NEAT terminals)
Sharekhan Value Line (an investment advice from Sharekhan's

Research team monthly publication with reviews of recommendations, stocks to watch out for etc) Daily research reports and market review (High Noon & Eagle Eye) Daily trading calls based on Technical Pre-market Report (Morning Cuppa)
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 Cool trading products (Daring Derivatives and Market Strategy). Analysis Depository Services: De-mat. Live Market Information. Personalized Advice & Commodities.

Derivatives Trading (Futures and Options)

De-mat Transactions IPOs Trading & Internet-based Online Trading. Mutual Funds Distribution Speed Trade.

Service provided by Sharekhan

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The structure of company

The structure of company can be diagrammatically presented as below:-

Managing Director

Zonal Manager

Zonal Manager

Zonal Manager

Zonal Manager

Regional Manager

Regional manager

Regional manager

Regional Manager

Branch Manager Ass. Sales Manager

Branch Manager Ass.Sales Manager

Branch 26 Manager Ass. Sales Manager

Branch Manager Ass. Sales Manager

Sale Executives

Sale Executives

Trainees

Trainees

Terms associsted with De-mat A/c & Online trading are as follows
1. De-mat A/c : - De-mat refers to a Dematerialized account. Dematerialization is the process by which physical certificates of an investor are converted to an equivalent number of securities form and credited into the investors account with his/her DP. 2. DP: - DP refers to Depository Participants. A depository holds the securities of investors in electronic form just like a bank holds cash of its customers. The National Securities Depository Limited (NSDL) is the first depository in India. The Depository Participants (DP) is the link between the Shareholder, the Company and NSDL. Banks, Financial Institutions, Custodians, Stock Brokers etc. The procedure for opening an account with the Depository Participant is similar to opening a Savings Bank Account with the Bank.
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3. Saving A/c: - An account used to deposit money at a bank or credit union and earn interest on the account over time. This is a regular bank a/c which is linked to D Mat a/c and trading a/c. required amount of money is used for trading from saving a/c. 4. Trading A/c:- A Trading account is an account through which you buy or sell the shares. All the transactions like buy and sell are done through this account. In online share trading all three accounts are interlinked.

DE-MAT ACCOUNT

SAVING ACCOUNT

TRADING ACCOUNT

5. Limit order: - To avoid buying or selling a stock at a price higher or lower than you wanted, you need to place a limit order rather than a market order. A limit order is an order to buy or sell a security at a specific price. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. By using a limit order we can also protect our self from buying the stock at too high a price.

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6. Market Order: - A market order is an order to buy or sell a stock at the current market price. The advantage of a market order is you are almost always guaranteed your order will be executed (as long as there are willing buyers and sellers). The disadvantage is the price you pay when your order is executed may not always be the price you obtained from a real-time quote service or were quoted by your broker.

7. Stop Loss Orders: - A stop loss order gives your broker a price trigger that protects us from a big drop in a stock. When we enter a stop loss order at a point below the current market price. If the stock falls to this price point, the stop loss order becomes a market order and your broker sells the stock. If the stock stays level or rises, the stop loss order does nothing. Stop loss orders are cheap insurance that protects us from a loss. (a) Buy stop order- Investors typically uses a stop order when buying stock to limit a loss or protect a profit on short sell. The order is entered at a stop price that is always above the current price. (b) Sell Stop order- A sell stop order helps the investors to avoid further losses or to protect a profit that exists if the stock price continues to drop. A stop order to sell is always placed below the current market price. 8. Short Sell- A short sell is generally the sale of a stock you do not own. Investors who sell short believe the price of the stock will fall. If the price of the stock drops, you can buy the stock at lower price and make the profit. If the price of the stock rises and you buy it back later at higher price, you will incur a loss.

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9. Trailing Stops: - The trailing stop order is similar to the stop loss order, but you use it to protect a profit, as opposed to protect against a loss. If we have a profit in a stock, we can use the trailing stop order to follow it up. We enter the trailing stop order as a percentage of the market price. If the market price declines by that percentage, the trailing stop becomes a market order and your broker sells the stock. If the stock continues to rise, the trailing stop follows it up since it is a percentage of the market price. This protects our additional gains. 10. Good till Cancelled: - A Good till canceled order instructs our broker to keep the order active until we cancel it. Obviously, we use this order with other order types to specify a time frame for the order. Some brokers have limits on how long they will hold a GTC order. 11. Day Order: - A day order is any order that is not a good till canceled order. If our broker does not fill our order that day, we will have to re-enter it the next day.

De-mat A/c opening process

To open a De-mat account we have to approach DP and he will be guided us the official procedure to open an account. To see who the register DP is, we can visit NSDL and CDSL website .we can choose the DP of our own choice. On opening a de-mat account, a unique BOID (Beneficial Owner Identification) Number is allotted, which should be quoted in all future transactions.

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We can open a De-mat account with no balance of shares, there is no minimum balance is required.

Documents required for opening De-mat A/c

To open a de-mat account we have to fill de-mat request form One Passport size photograph, proof of address like Voter ID card,

electricity bill or Ration Card, Employee ID Card, Bank attestation

Submit the DRF & share certificate(s) to DP. DP would forward them

to the issuer / R&T agents.

Deface the share certificate(s) we want to dematerialize by writing

across Surrendered for dematerialization.

After dematerialization, our depository account with our DP would be

credited with the dematerialized securities.

We have to Submit the PAN Card as a proof of identity .As of April

2006 it is mandatory, if any person want to open a de-mat account should have a PAN CARD (Permanent Account number) . Without a PAN CARD we are not be eligible to open a De-mat account

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Client Registration Process

FORM SUBMISSION

SCRUTINY

SEGREGATE

OPEN A/C OR REJECT

BANK

VALID FORM

INTIMATES CPU

OPEN A/C OR REJECT

DP

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Benefits of De-mat Account

Nomination facility is available in De-mat account. We can purchase, hold and sell shares in electronic form. We can save a transaction cost with quick transfer. Shares are credit automatically in De-mat account, no paper work is

required.
It is quick, easy, safe and secure; it reduces time taken during trading

and avoiding the problem like signature mismatch and loss of certificates and the risk due to fire and theft.
De-mat account holders need not pay stamp duty posted. We can even sold one share as per our choice. We can open as many account, there is no limit on that, and we can

open your account before you buy your first security.

We can open a multiple de-mat account, which can be operated by

multiple holders.

TYPES OF ACCOUNT IN SHAREKHAN LIMITED:

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Sharekhan offers two types of trading account for its clients: Classic Account (which include a feature known as Fast Trade Advanced Classic Account for the online users) and Trade Tiger Account CLASSIC ACCOUNT: - This is a User Friendly Product which allows the client to trade through website www.sharekhan.com and is suitable for the retail investor who is risk-averse and hence prefers to invest in stocks or who does not trade too frequently. This account allow investors to buy and sell stocks online along with the following features like multiple watch lists, Integrated Banking, De-mat and digital contracts, Real-time portfolio tracking with price alerts and Instant credit & transfer. This account comes with the following features: a. Online trading account for investing in Equities and Derivatives b. Free trading through Phone (Dial-n-Trade): Two dedicated numbers(1800-22-7500 and 39707500) for placing the orders using cell phones or landline phones Automatic funds transfer with phone banking facilities (for Citibank and HDFC bank customers) Simple and Secure Interactive Voice Response based system for authentication
get the trusted, professional advice of Sharekhan limited Tele Brokers

After hours order placement facility between 8.00 am and 9.30 am

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c. Integration of: Online Trading + De-mat Account + Cash to Margin. d. Instant cash transfer facility against purchase & sale of shares. e. IPO investments. f. Instant order and trade confirmations by e-mail. g. Single screen interface for cash and derivatives.

TRADE TIGER ACCOUNT: - This is an internet-based software application, which enables one to buy and sell in an instant. It is ideal for active traders and jobbers who transact frequently during days session to capitalize on intra-day price movement. This account comes with the following features: a. Instant order Execution and Confirmation. b. Single screen trading terminal for NSE Cash, NSE F&O & BSE. c. Technical Studies. d. Multiple Charting. e. Real-time streaming quotes, tic-by-tic charts. f. Market summary (Cost traded scrip, highest value etc.) g. Hot keys similar to brokers terminal. h. Alerts and reminders. I. Back-up facility to place trades on Direct Phone lines.

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j. Live market debts.

SHAREKHAN LIMITEDS MANAGEMENT TEAM

Mr. Dinesh Murikya Owner of the company The Sharekhan Group of Companies was brought to life by Mr. Dinesh Murikya. He ventured into stock trading with an intention to raise capital for his own independent enterprise. However, he recognized the opportunity offered by the stock market to serve individual investors. Thus Indias first retail-focused stock- broking house was established in 1925. Under his leadership, Sharekhan became the first broking house to embrace new technology for faster, more effective and affordable services to retail investors. Mr. Tarun Shah Chief Executive Officer (CEO) of the company

A science graduate from St. Xaviers College, Mumbai, and Mr. Tarun Shah started his professional life in sales and marketing in a chemicals company. His hands on approach and rigorous

36

experience in sales led him to higher challenges that the capital markets provided. In 1987, he joined SSKI, a brokerage firm with over five decades of legendary service to its credit. The capital markets at that time was undergoing a sea change in its character and SSKI under the vision and guidance of Shripal Morakhia and the commitment and hard work of Mr. Shah was able to change and adopt the new business practices to achieve significant growth in a competitive environment. Accepting new challenges is a way of life for Mr. Tarun Shah. To ensure that SSKIs foray into retail stock broking business through Sharekhan meets with the same success every other SSKI venture has, Mr. Tarun Shah moved in to spearhead this new effort as CEO of the Sharekhan. Mr. Shankar Vailaya Director (Operations) of the company A graduate in commerce from the University of Mangalore and an Associate of The Member of the Institute of Chartered Accountants of India. Mr. Shankar Vailaya heads the operations, finance and legal functions. He is responsible for settlements, depository operations, risk and compliance and regulatory & other legal commitments and Treasury. Shankar has managed broking operations through the most turbulent times of the post securities scam period in 1992 and has managed to steer clear of a flurry of bad papers in the market during 1994-95. Mr. Jaideep Arora Director (Products & Technology) of the company Jaideep Arora completed his B.Tech from IIT (Kanpur) and his PGDM from IIM Kolkata. Jaideep worked with ICICI for 8 years where his work spanned a gamut of functions, which included project finance, equity sales and brokerage, investments etc. During his tenure there he set up and headed the Institutional Equity Brokerage Desk at ICICI Securities & Finance Co. Ltd. Jaideep joined Sharekhan in June 2000 as Head of Product Development. A year later he took over the reigns of the online business at Sharekhan. At present Jaideeps responsibilities include spearheading Sharekhans online foray and overall customer acquisition effort.

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 Pathik Gandotra: Head of Research Rishi Kohli: Vice President of Equity Derivatives Nikhil Vora: Vice President of Research

SSKI Group Companies

SSKI Corporate Finance. SSKI Investor Service Ltd (Sharekhan). S.S. Kantilal Iswarlal Securities Pvt Ltd (Share khan). Fin flow Investment Pvt Ltd. Palm spring estates Pvt Ltd. I dream Productions I dream Production UK Pvt Ltd. Arch fund Properties Pvt Ltd. Share khan Commodities Pvt Ltd.

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CHAPTER 3

SWOT ANALYSIS
Strengths: It is a pioneer in online trading with a turn over of Rs.400crores and more than 800 peoples working in the organization. SSKI the parent company of Share Khan has more than eight decades of trust and credibility in the Indian stock market. In the Asian Money Brokers poll SSKI won the Indias best broking house for 2004 award. Share Khan provides multi-channel access to all its customers through a strong online presence with www.sharekhan.com, 250 share shops in 130 cities and a call-center based Dial-n-Trade facility. Share Khan has dedicated research teams for fundamental and technical research. Which constantly track the pulse of the market and provide timely investment advice free of cost to its clients which has a strike rate of 70-80%? Weaknesses: Localized presence due to insufficient investments for country wide expansion. Lack of awareness among customers because of non-aggressive promotional strategies (print media, newspapers, etc). Lesser emphasis on customer retention.

39

Focuses more on HNIs than retail investors which results in meager marketshare as compared to close competitors. Opportunities: With the booming capital market it can successfully launch new services and raise its clients base. It can easily tap the retail investors with small saving through promotional channels like print media, electronic media, etc. 29 As interest on fixed deposits with post office and banks are all time low, more and more small investors are entering into stock market. Abolition of long term capital gain tax on shares and reduction in short term capital gain is making stock market as hot destination for investment among small investors. Increasing usage of internet through broadband connectivity may boost a whole new breed of investors for trading in securities. Threats: Aggressive promotional strategies by close competitors may hamper Share Khans acceptance by new clients. Lack of sufficient branch-offices for speedy delivery of services. Other players are providing margin funds to investors on easy terms where as there is no such facility in share khan. More and more players are venturing into this domain which can further reduce the earnings of Share Khan.
40

CHAPTER 4

Need for the Study

The need of the study arises because of the reason that a trainee must understand the company, its achievements and tasks, products and services and also to collect information about its competitors, its products and services offered. So that, after understanding and collecting information about the organization and its competitors, a trainee will be able to work well for the organization.

From the study we have learned very much, about the company as well as the strategy of the customers, which helps us a lot at our working days.

41

CHAPTER 5

Competitors of Sharekhan Limited

India bulls
India bulls are India's leading retail financial services company with 77 locations spread across 64 cities. Its size and strong balance sheet allows providing varied products and services at very attractive prices, our over 750 Client Relationship Managers are dedicated to serving your unique needs. India bulls are lead by a highly regarded management team that has invested crores of rupees into a world class Infrastructure that provides real-time service & 24/7 access to all information and products. The India bulls Professional Network offers real-time prices, detailed data and news, intelligent analytics, and electronic trading capabilities, right at your finger-tips. This powerful technology is complemented by our knowledgeable and customer focused Relationship Managers. India bulls offers a full range of financial services and products ranging from Equities, Derivatives, De-mat services and Insurance to enhance wealth.

42

Kotak Securities Limited (kotakstreet.com):

Kotak Securities Ltd., a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25% - one of the worlds leading investment banks and brokerage firms) is Indias leading stock broking house with a market share of 5 - 6 %. Kotak Securities Ltd. has been the largest in IPO distribution - It was ranked number One in 2003-04 as Book Running Lead Managers in public equity offerings by PRIME Database. It has also won the Best Equity House Award from Finance Asia - April 2004. The company has a full fledged research division involved in Macro Economic studies, sectoral research and company specific equity research combined with a strong and well networked sales force which helps deliver current and up to date market information and news. Kotak Securities Ltd is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL)

43

providing dual benefit services wherein the investors can use the brokerage services of the company for executing the transactions and the depository services for settling them. The company has 42 branches servicing around 1, 00,000 customers. Kotakstreet.com the online division of Kotak Securities Limited offers Internet Broking services and also online IPO and Mutual Fund Investments. Kotak Securities Limited manages assets over 1700 crores under Portfolio Management Services (PMS) which is mainly to the high end of the market. Kotak Securities Limited has newly launched Kotak Infinity as a distinct discretionary Portfolio Management Service which looks into the middle end of the market.

ICICI DIRECT
ICICI Direct (or ICICIDirect.com) is stock trading company of ICICI Bank. Along with stock trading and trading in derivatives in BSE and NSE, it also provides facility to invest in IPOs, Mutual Funds and Bonds. Trading is available in BSE and NSE. ICICI Direct offers 3 different online trading platforms to its customers.

44

Type of Account: 1. Share Trading Account:Share Trading Account by ICICI Direct is primarily for buying and selling of stocks in BSE and NSE. This account allows Cash Trading, Margin Trading, Margin PLUS Trading, Spot Trading, Buy Today Sell Tomorrow and Call and Trade on phone. ICICIDirect.com website is the primary trading platform for this trading account. They also provide installable application terminal based application for high volume trader. 2. Wise Investment Account: 1. 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 Saving Bonds. 2. 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. Active Trader also provides commodity trading.

45

Brokerage and fees Account opening fees: Rs 750/- (One time nonrefundable) Brokerage: ICICIDirect.com brokerage varies on volume of trade and inclusive of de-mats transaction charges, service taxes and courier charges for contract notes. It ranges from 0.1% to 0.15% for margin trades, 0.2% to 0.425% for squared off trades and 0.4% to 0.85% on delivery based trades. Disadvantages of ICICI Direct: 1. Getting access to ICICIDirect.com website during market session can be frustrating.

HDFC BANK
HDFC BANK is one of the leading Depository Participant (DP) in the country with over 8 Lac de-mat accounts. HDFC Bank De-mat services offers you a secure and convenient way to keep track of your securities and investments, over a period of time, without the hassle of handling physical documents that get mutilated or lost in transit.

46

HDFC BANK is Depository participant both with National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL). Features & Benefits: As opposed to the earlier form of dealing in physical certificates with delays in transaction, holding and trading in De-mat form has the following benefits: Settlement of Securities traded on the exchanges as well as off market transactions.
Shorter settlements thereby enhancing liquidity.

Pledging of Securities. Electronic credit in public issue. Auto Credit of Rights / Bonus / Public Issues /Dividend credit through ECS. Auto Credit of Public Issue refunds to the bank account.
No stamp duty on transfer of securities held in de-mats form.

No concept of Market Lots.

Change of address, Signature, Dividend Mandate, registration of power

of attorney, transmission etc. can be effected across companies held in de-mat form by a single instruction to the Depository Participant (DP). Holding / Transaction details through Internet / email.
Secured & easy transaction processing

In case we need any more information or have any queries, feedback & complaints, we may please mail there at dphelp@hdfcbank.com

47

HDFC Bank Ltd provides convenient facility called 'SPEED-e' (Internet based transaction) whereby account holder can submit delivery instructions electronically through SPEED-e website (https://speede.nsdl.com). SPEED-e offers secured means of transaction processing eliminating preparation of instruction slips and submission of the same across the counter to the depository participant. The 'IDEAS' facility helps in viewing the current transactions and balances (holdings) of De-mat account on Internet on real time basis. Disclaimer: Whatever have been stated above are in the good interest of the Investor / De-mat Applicants / holders to provide a brief picture about the depository system. You are requested go through the guidelines of the depositories before taking any further action. For detailed guidelines, you are requested to approach your nearest HDFC Bank branch. HDFC Bank will not be responsible for any misunderstanding / act based on the above. Also HDFC Bank might ask for additional information / documentation than what has been stated above to process your application / instruction.

48

5Paisa.com
5paisa is the trade name of India Infoline Securities Private Limited (5paisa), member of National Stock Exchange and The Stock Exchange, Mumbai. 5paisa is a wholly owned subsidiary of India Infoline Ltd, Indias leading and most popular finance and investment portal. 5paisa has emerged as one of leading players in e- broking space in India. The companys brokerage is one of the lowest in the industry. It also provides the research on commodities. Investors can benefit from its analysis and advice available at the click of the mouse. For those who prefer to trade the traditional way, India Infoline investor points are available across the country. India Infoline was founded by a group of professionals in 1995. Its institutional investors include Intel Capital, one of the leading technology companies in the world promoted by the U K government, ICICI, TDA and Reeshanar. The company offers a slew of products such as stock and derivatives broking, commodities broking and mutual funds.

49

IDBI Capital Market Services Ltd.

IDBI Capital is a leading Indian securities firm offering a complete suite of products and services to individual, institutional and corporate clients. IDBI Capital Market Services Ltd. (IDBI Capital), a wholly owned subsidiary of Industrial Development Bank of India (IDBI), is a leading Indian securities firm, offering a complete suite of products and services to individual, institutional and corporate clients. Our services include fixed income trading, equities brokerage, debt and equity derivatives, research, private placements, depository services, portfolio management and distribution of financial products. Over the last five years, we have emerged as a leading player in each of these businesses.
March 1995 Commenced Equity Broking on NSE CM segment.

July 1995 - Built agent Distribution Network across the country

October 1996 - Commenced Debt Broking on NSE WDM segment December 1996 - Started operations as a Depository Participant. 1996 - Started to act as Arranger to Privately Placed Bond issues. April 1998 - Commenced operations as a Portfolio Manager. February 1999 Acquired membership of BSE, Mumbai. November 1999 - Started operations as a Primary Dealer. June 2000 - Acquired Derivatives memberships of BSE and NSE.

50

 March 2002 - Achieved an outright secondary market turnover exceeding

Rs 100, 000.
October 2002- Commenced trading in Interest Rate Swaps.

Religare Securities Limited (RSL)

Religare Securities Limited (RSL), a 100% subsidiary of Religare enterprises Limited is a leading equity and securities firm in India. The company urgently handles sizeable volumes traded on NSE and in the realm of online trading and investments; it currently holds a reasonable share of the market. The major activities and offerings of the company today are Equity Broking, Depository Participant Services, Portfolio Management Services, International Advisory Fund Management Services, Institutional Broking and Research Services. To broaden the gamut of services offered to its investors, the company offers an online investment portal armed with a host of revolutionary features. RSL is a member of the National Stock Exchange of India, Bombay Stock Exchange of India, Depository Participant with National Securities Depository Limited and Central Depository Services (I) Limited, and is a SEBI approved Portfolio Manager. Religare has been constantly innovating in terms of product and services and to offer such incisive services to specific user segments it has also started the NRI, FII, HNI and Corporate Servicing groups. These groups take all the portfolio investment decisions depending upon a clients risk / return parameter.

51

 Religare has a very credible Research and Analysis division, which not only caters to the need of our Institutional clientele, but also gives their valuable inputs to investment dealers.

KARVY
Karvy is a premier integrated financial services provider, and ranked among the top five in the country in all its business segments, services over 16 million individual investors in various capacities, and provides investor services to over 300 corporate, comprising the who is who of Corporate India. Karvy has a professional management team and ranks among the best in technology, operations and research of various industrial segments. History of Karvy: - The birth of Karvy was on a modest scale in 1981. It began with the vision and enterprise of a small group of practicing Chartered Accountants who founded the flagship company, Karvy Consultants Limited. They started with consulting and financial accounting automation and carved inroads into the field of registry and share accounting by 1985. Since then, Karvy utilized its experience and superlative expertise to go from strength to strength, to better their services, to innovate, diversify and in the process, evolved as one of Indias premier integrated financial service enterprise.

52

Motilal Oswal Securities Ltd. (MOSt)

One of the top-3 stock-broking houses in India, with a dominant position in both institutional and retail broking, mOSt is amongst the best-capitalized firms in the broking industry in terms of net worth. MOSt was founded in 1987 as a small sub-broking unit, with just two people running the show. Focus on customer-first-attitude, ethical and transparent business practices, respect for professionalism, research-based value investing and implementation of cutting-edge technology have enabled it to blossom into a thousand-member team. The institutional business unit has relationships with several leading foreign institutional investors (FIIs) in the US, UK, Hong Kong and Singapore. In a recent media report MOSt was rated as one of the top-10 brokers in terms of business transacted for FIIs. The retail business unit provides equity investment solutions to more than 50,000 investors through 270 outlets spanning 150 cities and 22 states. MOSt provides Advice-Based Broking, Portfolio Management Services (PMS), E-Broking Services, Depository Services, Commodities Trading, and IPO and Mutual Fund Investment Advisory Services. Its Value PMS Scheme gave a 160% post-tax return for the year ended March 2004.

53

With value investing at the core of its investment philosophy, a strong research team consistently provides high-performance ideas. MOSts equity research has been consistently ranked very highly in surveys conducted by leading international publications like Asia money and Institutional Investor. In Asia Money Brokers Poll 2003 MOSt has been rated as the Best Domestic Research House - Mega Funds ,while in 2000 and 2002 it has been rated as the Best Domestic Equity Research House and Second best amongst Indian Brokerage firms respectively.

Refco - Sify Securities India Pvt. Ltd

Refco-Sify Securities India Pvt. Ltd., headquartered in Mumbai, is a joint venture between the Refco Group Holding Ltd., USA; and Satyam Info way Limited (NASDAQ: SIFY) to offer online and offline equity and derivatives trading for retail customers as well as execution and clearing services for financial institutions. Refco also provides clients with prime brokerage services, fixed income, equities, foreign exchange, OTC derivatives and asset management. Refco is a leader in providing clients with the latest technological advances in products and services. Its proprietary systems and global infrastructure provide the flexibility to meet all client requirements.

54

Client service is what sets Refco apart from its competitors. Refco understands the unique business requirements of each of its clients and tailors its products and services to meet those requirements. UTI SECURITIES LTD.: (UTISEL) UTI Securities Ltd was incorporated on June 24, 1994 by Unit Trust of India as a 100% subsidiary and on the repealing of the UTI Act, the capital is now held by the Administrator of the Specified Undertaking of Unit Trust of India (ASUUTI). UTI Securities has been working as an independent professional entity for providing financial intermediary and advisory services to its corporate and retail clientele. The Company has presence in major cities with 20 branches and 50 franchisees to service a wide range of clients. The company has also invested in the joint-venture company with Standard Chartered Bank viz. Standard Chartered UTI Securities (P) Ltd. that is engaged in primary dealership and Government securities. The company is very soon going to start Commodity Trading through its subsidiary, USEc Commodities Ltd, which provides facility of commodity trading on NCDEX and MCX.

55

CHAPTER 6

Comparison among different Share broking firm

Compan y

Sharekhan ICICI .com .com

750/NIL (waive off if

Religare .com

HDFC

5Paise

INDIA BULLS .com

SEC.com .com
750/420/Fresher And 250/trader

Points
Opening A/c Charges

20550/(20000

(existing -relation -ship)

700/-

trading is > than Rs 1 lack. is margin)

De-mat A/c Charges

Free (1st Year & 415/- from 2nd year onwards

Free (1st Year & 300/- from 2nd year onwards 30/- per month 500/- per month 250/- per annum No AMC

56

Company

Sharekhan ICICI .com .com

Religare .com
5 types (HMR

HDFC

5Paise

INDIA BULLS .com

Points
Types of Account

SEC.com .com
2 types ( Traders Web based terminal, Investor terminal)

2 types ( classic & trade tiger)

Web based

gateway A/c, HMR value A/c, HMR high trader A/c, HMR freeway A/c Both are software

Web based

Trading through website or software

Both Website

1.Keat Desktop 2. Keats Premium

Website

Both

Website

Software Charges
Nil N.A

500/- Or 300/- P.M ( Negotiable on volume) N.A

1000/commitment of brokerage N.A

57

Company

Sharekhan ICICI .com .com

Religare .com

HDFC

5Paise

INDIA BULLS .com

Points
NSE/BSE /Deriva Tives/ Arbitrage /Mutual Funds

SEC.com .com

NSE/BSE NSE/BSE /Derivative / Mutual Funds / Derivative

NSE/BSE / Mutual Funds / Derivative NSE

NSE/BSE /Deriva Tives/ Arbitrage /Mutual funds

NSE/ Deriva Tives

On 21 call

st

Dial-&trade

Rs 20/- per Unlimited call (P.M) 15/- or 25/from 21st call RM number provided for trading 0.05% or Local call charges RM number provided for trading

De-mat transaction charges

minimum of Nil ( through Sharekhan) Including in brokerage 0.04% or Rs 0.04% or 25/- on selling whichever is higher Rs 25/- on selling whichever is higher Rs 20/- per instruction (on selling) Rs 17/per transaction (on selling)

58

Company

Sharekhan ICICI .com .com

Religare .com

HDFC

5Paise

INDIA BULLS .com

Points

SEC.com .com

Banks

HMR Mahindra ICICI bank only ( compulso ry ) bank, Citi bank, UTI bank, HDFC bank, (compulsory ) HDFC bank only ( ) ( HDFC, IDBI, CITI, Global Trust Bank or Centurion Bank (HDFC, CITI, ICICI, Abnamro, Stanch art) Banks

Tie up with IDBI, CITI, Banks

UTI, OBC, ICICI, YES, UNION, CANARA, INDUSIND

(HDFC,

compulsory UTI,)

Buy today sell tomorrow

Yes

Yes but only on 127 scrips of NSE

Yes up to 75% shares value

No

Yes

Yes

IPO online

Yes

Yes

Yes

No

Yes

No

SMS alert Research reports

100 P.M Free

Yes 450 p.a

100/- P.M Free

No Free

No Free

No Paid 100/p.a

Company

59

Points
Minimum margin exposure Minimum margin

Sharekhan ICICI .com

4 to 6.7 times 4 times

Religare .com

HDFC

5Paise

.com

SEC.com .com
4 to 6 times ( online) 10 4 times onwards

4 to 6 times 5000/-, 100000/- or

4 times

times (offline) 500 Blocked

Nil

5000/-

500000/Yes, according to

5000/Rs 1000/commitment Nil 0.15% (intraday) 0.5% (Delivery) excluding taxes as brokerage 0.05% (intraday) 0.25% (delivery)

by the system

Volume requirement
Nil Nil 0.1% to 15 % (intraday) 0.4% to 0.85% (Delivery)

product 0.06% (intraday) 0.59% (delivery)

Nil 0.1% (intraday) 0.5% (delivery)

Brokerage

0.1% (intraday) 0.5% (Delivery)

CHAPTER 7

OBJECTIVES
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Primary Objectives:

To find out potential customer by creating awareness among the To study the awareness and interest of customers for online trading To find out customers satisfaction level. To provide pricing strategy of competitors to fight cut throat

people for opening De-Mat a/c. services.

competition. Secondary objective To know and understand the thinking and perception of different people about D-mat account and online trading account and share market To see the interest of people to be an agent for SHAREKHAN LTD. To create the image about SHAREKHAN financial product.
Promotion of the product.

To know the functioning of a Stock Market Scope of the study: To find out customers overall perception about the system. To know what motivates prospective customer to think about going To know what options are used by customer in online trading? To get information regarding the current market share of the To know competitors of Sharekhan in the market.

for online share trading.

company.

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CHAPTER 8

RESEARCH METHoDOLOGY

62

Research is an organized activity with specific objectives on a problem or issue supported by compilation of related data and facts, involving application of relevant tools of analysis and deriving logically sound inferences based on originality The system collecting data for research projects is known as Research Methodology. It refers to the analysis of principles of methods, rules & techniques.

My Research Process is as follows:1. DEFINING THE OBJECTIVES:

The aim of this project as has already been mentioned was to Study the Mechanism of De-mat account & online trading.

2. DEVELOPING RESEARCH PLAN: The second stage of marketing research calls for developing a most efficient plan for gathering needed information. Designing a research Plan calls for taking decision on data sources research, approach, research Instrument, sampling plan and contact methods.

Data Source:(A) PRIMARY DATA:-

63

In primary data collection, we collect the data our self using methods such as interviews and questionnaires. The key point here is that the data we collect is unique to us and our research and, until we publish, no one else has access to it. There are many methods of collecting primary data and the main methods include:

Questionnaires Interviews Focus group interviews Observation Case-studies Diaries Critical incidents Portfolios.

1. Questionnaires Method. Questionnaires are a popular means of collecting data, but are difficult to design and often require many rewrites before an acceptable questionnaire is produced. Advantages:

Can be used as a method in its own right or as a basis for interviewing or a telephone survey. Can be posted, e-mailed or faxed. Can cover a large number of people or organizations.

64

Wide geographic coverage. Relatively cheap. No prior arrangements are needed. Avoids embarrassment on the part of the respondent. Respondent can consider responses. Possible anonymity of respondent. No interviewer bias.

Disadvantages:

Design problems. Questions have to be relatively simple. Historically low response rate (although inducements may help). Time delay whilst waiting for responses to be returned. Require a return deadline. Several reminders may be required. Assumes no literacy problems. No control over who completes it. Not possible to give assistance if required. Problems with incomplete questionnaires.

2. Survey Method:It is most popular method for the collection of necessary data from the respondents. I have used survey method for the collection of the necessary data.

65

Different types of the survey are given below, Personal interview. Telephonic survey.

3. Interview
Interviewing is a technique that is primarily used to gain an understanding of the underlying reasons and motivations for peoples attitudes, preferences or behavior. Interviews can be undertaken on a personal one-to-one basis or in a group. They can be conducted at work, at home, in the street or in a shopping centre, or some other agreed location. (a) In the personal interview, the interviewer will personally meet the respondent and will take is interview. The interviewer will ask question in face to face direction to the respondents or group of respondents. Advantages:

Serious approach by respondent resulting in accurate information. Good response rate. Completed and immediate. Possible in-depth questions. Characteristics of respondent assessed tone of voice, facial expression, hesitation, etc.

Disadvantages:

Need to set up interviews.

66

Time consuming. Geographic limitations. Can be expensive.

(b). in the telephonic interview, the interviewer will make call to respondents, inform the respondents about the purpose of the call and then he will ask the related questions to the respondents. This method is used, when the information to be collected is limited. It is mostly used when information to be collected is limited. Advantages:

Relatively cheap. Quick. Can cover reasonably large numbers of people or organizations. Wide geographic coverage. High response rate keep going till the required number. No waiting.

Disadvantages:

Often connected with selling. Questionnaire required. Not everyone has a telephone.

67

Repeat calls are inevitable average 2.5 calls to get someone. Time is wasted.

4. Focus group interviews A focus group is an interview conducted by a trained moderator in a nonstructured and natural manner with a small group of respondents. The moderator leads the discussion. The main purpose of focus groups is to gain insights by listening to a group of people from the appropriate target market talk about specific issues of interest. 5. Observation Observation involves recording the behavioral patterns of people, objects and events in a systematic manner. Observational methods may be:

Structured or unstructured Disguised or undisguised Natural or contrived Personal Mechanical Non-participant Participant, with the participant taking a number of different roles.

(B) Secondary Data

68

Any data which had been gathered earlier for other purposes are secondary data in hand of marketing research. These data has been collected from company dealer like Dealer profile, industrial profile, company profile are collected from the internet. The secondary data are collected from the magazines, internet and Web -sites. Different web sites like www.sharekhan.com and GOOGLE Search engine help in collecting the detailed information.

3. RESEARCH APPROACH Out of 4 ways of research approaches i.e. 1. Observation research. 2. Survey Research 3. Focus Group research 4. Experimental research. In this project the approach used was survey approach & observation approach because the main objective of our survey was to study of the mechanism of De-mat A/c & online trading and have an idea about the customer awareness.

4. Sampling The theory of sampling is based on random samples where all items in the population have the same chance of being selected as sample units. Random

69

samples can be drawn in a number of ways but are usually based on having some information about population members. This information is usually in the form of an alphabetical list called the sampling frame. Three types of random sample can be drawn
Simple random sample (SRS),

Stratified sample and Systematic sample. Simple random sampling Simple random sampling can be carried out in two ways the lottery method and using random numbers. Stratified sampling A sample that is not drawn at random from whole population, but separately from a number of disjoint strata of the population in order to ensure a more representative sample.

Systematic sampling Whilst not truly random this is a method that is used extensively because it is easy to operate and quick, even when the population and the sample are large. 5. Research Instrument: - The research instrument which I have chosen is questionnaire (face to face) method & survey method.
70

(A). Sample universe: All De-mat account holder from Baner and Kothrud area in Pune. (b). Sample unit: - A customer of SHAREKHAN having de-mat A/c . Sample frame: A list of customer having saving account of SHAREKHAN in Pune city. (d). sampling size: 100 customer of SHAREKHAN having De-mat account

4. COLLECTING THE INFORMATION: With respect to primary and secondary data, the information is collected. Primary data tells us to asking the question to the person personally to become an adviser. Secondary data means that to get the data from the internet, company magazines, talking with people and convince them.

Data Analysis and Interpretations

71

CHAPTER 9

01. Investments Options

Frequency Percent Bank Insurance Post office Mutual-fund Total 2 20 10 18 50 4.0 40.0 20.0 36.0 100.0 Valid Percent 4.0 40.0 20.0 36.0 100.0 Cumulative Percent 4.0 44.0 64.0 100.0

72

This shows that most of people, who are observed, are interested in investing in Insurance or Mutual Fund. 20% people are also interested in investing in Post office. 02. BRAND AWARENESS
Companies ICICI Sharekhan Kotak Securities HDFC Securities Total No. of respondents 22 16 07 05 50 Percentage 45% 31% 14% 10% 100%

73

BRAND AWARENESS

45% 40% 35% 30%

Percentage of People

25% 20% 15% 10% 5% 0% ICICI Sharekhan Kotak HDFC Securities Securities

ICICI was at the top of the mind of 45% people out of 100% and Sharekhan securing second position with 31%, followed by Kotak and HDFC with 14% and 10% respectively.

03. Is online trading easy?

Valid Percent 82.0 18.0 100.0 Cumulative Percent 82.0 100.0

Frequency Percent yes no Total 41 9 50 82.0 18.0 100.0

74

This proves most of people accept that online trading is easy. This is a plus point for stock trading companies.

04. Do you need training?

Valid Percent 84.0 16.0 100.0 Cumulative Percent 84.0 100.0

Frequency Percent yes no Total 42 8 50 84.0 16.0 100.0

75

This shows that people need proper training or using online trading although it is easy.

05. SOURCES OF ADVERTISEMENT

Sources News papers magazines Friends Other media Total No. of respondents & 32 10 08 50 Percentage 64% 20% 16% 100%

76

SOURCES OF ADVERTISEMENT

70% 60% 50%

Percentage 40% Of people 30%

20% 10% 0% News papers & magazines Friends Other media

63% people come to know about online share trading through news paper and magazines whereas 20% people come to know through friends and 17% people come to know through other media like internet, news channel etc.

77

06. Which is better, NSE or BSE?

Frequency Percent NSE BSE 44 6 88.0 12.0 100.0 Valid Percent 88.0 12.0 100.0 Cumulative Percent 88.0 100.0

Total 50

This shows that most people like NSE in comparison of BSE.

78

07. AWARENESS OF E-BROKING

Reply Yes No Total No. of respondents 20 30 50 Percentage 40% 60% 100%

Awareness of e-broking

60% 50% 40% 30%

yes No

l f o g a t n c r e p

20% 10% 0% 1

60% people were unfamiliar of the term e-broking and only 40% people aware were with the concept of e-broking.

08. KNOWLEDGE THROUGH COMPANY WEBSITE

79

Reply Yes No Total

No. of respondents 22 28 50

Percentage 43% 57% 100%

KNOWLEDGE THROUGH COMPANY WEBSITE

60% 50% 40%

Percentage 30% Of people

20% 10% 0% Yes No

Out of the total sample size 43% people have visited the website of any ebroking company and 57% people have not visited any website regarding ebroking.

80

09. VISIT BY COMPANY REPRESENTATIVE

Reply Yes No Total No. of respondents 12 38 50 Percentage 24% 76% 100%

VISIT BY COMPANY REPRESENTATIVE

80% 70% 60% 50%

Percentage of40% People

30% 20% 10% 0%

Yes

No

81

Only 24% people who are interested in online share trading have been visited by the representatives of the e-broking company and rest of the 73% people have not been visited.

10. INTEREST IN E-BROKING

Reply Yes No Total No. of respondents 48 02 50 Percentage 96% 04% 100%

INTEREST IN E-BROKING

100% 90% 80% 70% 60% Percentage 50% Of people 40% 30% 20% 10% 0% Yes No

82

Out of the total sample size 97% people found the concept of e-broking interesting and 03% people do not find it interesting.

11. PREFERED SYSTEMS OF SHARE TRADING

System Online Traditional Cant say Total No. of respondents 26 21 03 50 Percentage 52% 42% 06% 100%

PREFERED SYSTEMS OF SHARE TRADING

6%

42%

52%

Online

Traditional

Can say

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Regarding the preferences towards the different systems of share trading, online share trading emerged as a clear cut winner with 53% people preferring it, followed by traditional with 41% while 06% people were unable to answer.

12. TRADITIONAL- INFLUENCING FACTORS

Reason Dependence on broker Lack of computer knowledge Fear of fraudulence Total No. of respondents 20 14 16 50 Percentage 40% 28% 32% 100%

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TRADITIONAL- INFLUENCING FACTORS

32%

40%

28%

Dependence on broker Fear of fraudulence

Lack of computer knowledge

39% people opt for traditional system of share trading because of there dependence on broker, 29% people opt for traditional system of share trading because of the lack of computer knowledge and 32% people wants to stick with traditional system due to fear of fraudulence.

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13. Preference for Investment

Frequency Percent Large cap Midcap Small cap Total 40 8 2 50 80.0 16.0 4.0 100.0 Valid Percent 80.0 16.0 4.0 100.0 Cumulative Percent 80.0 96.0 100.0

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By seeing this we can say that people prefer to invest in large cap companies. It may be due to less risk.

14. INFLUENCING FACTORS

Factors Transparency Hassle Free Service Economical Time saving Total No. of respondents 32 07 06 05 50 Percentage 64% 14% 12% 10% 100%

INFLUENCING FACTORS

10% 12%

14%

64%

Transparency

Hassle Free Service

Economical

Time saving

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Out of the four fascinating factors of online share trading transparency is at the top as 64% people has voted for it followed by hassle free with 14%, economical with 12% and time saving with 10% respectively.

15. FUTURE PLANNING FOR ONLINE TRADING

Reply Yes No Cant say Total No. of respondents 26 22 02 50 Percentage 52% 44% 04% 100%

FUTURE PLANNING FOR ONLINE TRADING

Can say

4%

No

44%

Yes Percentage of people

52%

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Out of the total sample size 53% people are planning to go for online share trading and 43% people do not want to go for it while 4% people have not yet decided.

16. REASONS FOR NOT ENTERING INTO E-BROKING

Reasons Relationship with broker Trade rarely Other reasons Total No. of respondents 27 15 08 50 Percentage 54% 30% 16% 100%

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REASONS FOR NOT ENTERING INTO E-BROKING

60% 50% 40% Percentage of 30% People 20% 10% 0%

Relationship Trade rarely Other reasons With broker

55% people do want to do online share trading because they have good relationship with there broker, 30% people trade rarely and 15% have some other reasons.

CHAPTER 10

Hypothesis
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The hypothesis cannot be formulated because the research methodology used to carryout the project which is based on secondary data.

FINDINGS
It is found that people who were observed, they are yet investing in

CHAPTER 10

Insurance. And

mutual funds are also a good option for them. Post

office was 3rd favorable option for investing. It may be due to less knowledge of Share-market as well as it is considered risky. ICICI is found to be most popular among all. People are well aware of various services providers like sharekhan.com, kotakstreet.com, hdfcsecurities.com. Professionals and executive category are found to
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be in favor of the online share trading. They showed interest in going for online share trading. It is also seen that people think that online trading is convenient and easy to operate but they also need initial guidance and training. So it must be provided to them so that they can trade comfortably via online. According to most of the people observed NSE is better than BSE.
People prefer to invest in large cap companies because of less risk.

News and magazines are found to be of major source of information. 93% people found to be aware of online trading of securities. 43% people said that they have visited at least one of the website for the online share trading concept. The representative of at least one service provider has visited 24% people. 90% of the total population agrees that the concept is easy, convenient & interesting. Still only 53% people are sure to go for online share trading. 41% people rarely want to go for online trading. . People have highly voted for transparency feature of the online trading followed by hassle free service, economical and time saving features. Business class prefer off line share trading as most of them have good relationship with their broker.

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 Business class which can be defined as the people who are self employed entrepreneurs are found to be less interested and would like to stick to the traditional system and are much dependent on their broker regarding investments.

The others which can be described as who are below 200000 incomes and which rarely trade in share. They are unwilling to go online as they cannot afford the service charges.

LIMITATIONS
There is no activity without limitations so it had too. The main Limitation has been faced during project research are as follows: The research has been carried on time span of one & half months.

CHAPTER 11

Budget for research was limited. The research is totally based on the personal opinion of the respondents which may vary depending upon their personal view.

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 The research has done along with achieving our target given by company. Peoples response was also not favorable.
Due to instability of market people were afraid of it, so they were

interested in these things. Lack of awareness of capital market: Since the area is not known before it takes lot of time in convincing people to start investing in shares primarily in IPOs. 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. Misleading concepts: Some people think that as all the shares are in electronic form and they dont have any physical proof. Sometimes this leads to a great misconception of the entire process.
The study is limited to the different schemes available under the

De-mat account selected. CHAPTER 12

Expected Contribution from the Study

1. Although people have heard about online trading of securities still people have great doubt about its operational feasibility as they are not clear about the concept. Special awareness programs using various media mixes should be carried out to remove fear from the minds of people and make it familiarize.

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2. More emphasis should be laid on the convenience that the trading facilities offer by either introducing kiosks in the centre where the clients could have a demonstration for themselves and understand the various features of the product. This could help them determine how conventional mode of trading is. 3. There are large numbers of prospective customers, who trades in small volume or make infrequent transactions or like to hold the stock as a long term investment. The current price structures are not at all suitable for such population. E- Trading companies should look at such class. 4. Clients should be allowed to have bank and DP accounts in the banks of their own choice. In case of HDFC and ICICI I it becomes difficult for the client to operate from outside the metros, as the bank or ATM facilities are not available. 5. There is a demand for services like insurance, mutual funds and other capital market instruments. No E-trading company is offering this. Introduction of these products will surely increase the number of customers. 6. Awareness campaigns like giving idea about futures and options, derivatives, dividend policies will create interest in online trading. And this helps organization for market positioning as well as mind positioning. 7. Sharekhan.com can go for banking business as it has large customer base. Generally e-trading are not in banking business but this can be done as it will provide convenience. Many times customer faces problem because of lack of coordination between management of e-trading company and bank. 8. Development in public relation management and customer relationship management will lead organization towards strong brand image as well goodwill.
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9. Comparative study of customer care and services provide by other companies will help develop business strategies as well business policies. 10. Seminars can be conduct at corporate level so as to increase potential customer base. Corporate people do not go for share trading due to lack of time. This kind of seminar will motivate them and make them aware about e-trading. 11. Tie-up with banks will facilitate the customer as maximum customers have their salary accounts in banks and this account can be used for net banking as well share trading.

CHAPTER 13

Suggestions and Recommendations

1. Their should be proper information provided to the customers during opening De-mat account. 2. They should introduce some new schemes. 3. They should do advertisement in newspaper, magazines for their products And various schemes. 4. Their account opening charges is more than other companies, so it Should be reduce or more facilities should be given to customers.

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CHAPTER 14

Conclusion
Shares are the best kind of investment available over a long period of time. And also share market is a place where money earns money. For investing in share market every investor need to have an agreement with a Depository Participants. Depository Participants are the one who provide the services of De-mat. Sharekhan is very well known among the investors but from the analysis, I found that ICICI Direct Securities is one of the major competitors. During my research I found that there is a large market which is untapped, as most of people find the concept of online share trading very interesting but none of them have been visited by the representative of any company.

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During my research I also found that many people want to stick with the traditional system of share trading because of lack of computer knowledge and also many people are dependent of their personal broker. In the research I observed that Sharekhan limited is not effective in the advertisement of its products.

CHAPTER 15

BIBLIOGRAPHY

PHILIP KOTLER (11th Edition) Marketing Management C.R. KOTHARI (2nd Edition) Research Methodology RAMA SWAMI Research Design COMPANY WEBSITES: www.sharekhan.com

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 www.nseindia.com www.google.com

CHAPTER 16

Appendix

QUESTIONNAIRE
Personal Information:
1. Name: 2. Gender: (a) Male 3. Address:

(b) Female

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4. Contact No.: 5. Age: (a) Between 20-22 years (c) Between 25-30years 6. Are you married? (a) Yes 7. Education: (a) Postgraduate (c) 12th 8. Are you employed? (a) Yes 9. What is your monthly income? (In Rs) (a) Below 10000/(b) Between 10000-20000/(c) Between 20000-30000/(d) Above 30000/(b) Between 22-25years (d) Above 30 years (b) No (b) Graduate (d) below 12th (b) No

Research-Questions:
10. Which is the best investment-option for you? (a)Bank (b) Insurance (c)Post office (d) Mutual Funds (e)Stock-market (g) Others 11. Do you have De-Mat A/C? (a) Yes

(b) No

12. If yes, which companys de-mat a/c do you have? (a)Sharekhan (b) Reliance (c) Religare (d) India-Infoline (e) ICICI (f) Others 13. Which is the best company according to you? (a)Sharekhan (b) Reliance (c) Religare (d) India-Info line (e) ICICI (f) Others

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14. Have you ever done Share-trading? (a) Yes 15. Have you done Online-Trading? (a) Yes

(b) No

(b) No

16. Do you agree that online trading is easy & convenient? (a) Yes (b) No 17. Do you need training for online trading? (a) Yes 18. Which options do you use? (a)Intraday (c) Short sells (e) All

(b) No

(b) Delivery (d) Margin trading

19. Which is better according to you? (a) NSE 20. Which is your preference for investing? (a)Large-cap (c)Small-cap

(b) BSE

(b) Mid-cap (d) All

21. Are you interested to open a de-mat a/c. with Sharekhan? (a) Yes (b) No

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