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PREFACE

Today India is one of the countries in the world which is included in the developed

country, and after a few years it may be converted into developed country.

Therefore being a management student, it is our responsibility to know where the

economy goes. To know this, it requires a practical as well as theoretical

knowledge of the current as well as past and future market knowledge.

Therefore as a partial fulfillment of my M.B.A. Programmed, I have made summer

project on Organization study of India Infoline. During the summer project I had

gain practical knowledge from the Research, selling and by doing some

administrative work in India Infoline.

My main objective behind the summer project is to gain stock market knowledge

as well as clear some financial concepts, which are used in day by day transactions.

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ACKNOWLEDGEMENT

I would like to express my deep sense of gratitude towards Mr. Kamlesh (Br.

Manager and Company Guide), Mr. Chinmay Jani (Sr. Relationship Manager), Mr.

Vivek Jarecha (Sales manager), Mr. Jigar Dave( Sr. Relationship Manager) and

Mr. Vipul Ramanuj (Sr. Relationship Manager) for the precious guidance and

support throughout the period of summer training.

I am indebted to all the respondents and all the staff members of India Infoline for

not only giving me vital information but also for their enthusiasm and co-operation

without which the study would never have been possible.

I am also thankful to my faculty guide Prof. Nitin Pillai for his valuable guidance

and support.

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Sr.NO Content Page No

1 Executive summary 6

2 Industry Details 9

3 Overview of NSDL 24

4 Overview of CDSL 27

5 Main Players in the Brokerage Industry 29

6 Company Profile 30

7 History And Background 32

8 Products 36

9 Services 40

10 Milestones 42

11 Competitors Details 50

12 Objectives 68

13 Research Methodology 67

14 Competitive Analysis 72

15 Findings

16 Suggestions

17 Bibliography

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EXECUTIVE SUMMARY

In this competitive world each organization has to play different role to

accomplishment of organizational goal. The goal is achieved by the effort of the

different department of the organization. These departments are like Operation

department, Finance department, Marketing department and Personal department.

The functions of the each department are required deep study to specify and

understand the role of each function to coordinate each and every activity of the

organization.

India Infoline group has around 560 branches and several sister concerns

companies across all over India like India Infoline Securities Pvt. Ltd., India

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Infoline Distribution co ltd., India Infoline Insurance Services ltd., India Infoline

commodities Pvt. ltd., money tree consultancy services Pvt. ltd etc.

During my summer project I have tried studied the all functions of the each

department. In this project report I have discussed the all aspects related to the

organization of India Infoline group in appropriate manner.

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INDIAN BROKERAGE INDUSTRY

The Indian broking industry is one of the oldest trading industries that have been

around even before the establishment of the BSE in 1875. Despite passing through

a number of changes in the post liberalization period, the industry has found its

way towards sustainable growth.

Share trading in India is undergoing a transition and consolidation phase witnessed

never before. The competition is likely to become so severe after the entry of many

players, retaining a customer is most dicult practice for any service provider.

Though India has a very big untapped market but the players will not ourish

unless they change the way the customers are being served. Given the awareness

level of today customers every player has to treat with care and make the customer

feel that he is the king. Number of Online Share trader in India has crossed the

line. More and more customers are coming under this umbrella and many of the

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existing one are changing pavilion. So customer retention and satisfaction is now

more important as it was never before. Players keep coming with new schemes in

order to attract new customers and retain the existing one. This is being

supplemented with increased advertising and brand building eorts. Success of any

organization depends upon its being proactive. An often quoted marketing adage is

to manage a business well is to manage its future and to manage its future is to

manage information.

The securities market has essentially three categories of participants, viz., the

issuer of securities, the investors in the securities and the intermediaries. The

issuers are the borrowers or decit savers, who issue securities to raise funds. The

investors, who are surplus savers, deploy their savings by subscribing to these

securities. The intermediaries are the agents who match the needs of users and

suppliers of funds for a commission. These intermediaries function to help both the

issuers and investors to achieve their respective goals. There are large variety and

number of intermediaries providing various services in the Indian securities

market. Need for a broker

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As per SEBI (Securities and Exchange Board of India.) regulations, only registered

members can operate in the stock market. One can trade by executing a deal only

through a registered broker of a recognised Stock Exchange or through a SEBI-

registered sub-broker. The nancials and investment industry is a highly

competitive in nature with almost well established rms diversifying and entering

into this industry. As of today there are Over2000 brokers, 10000 sub brokers and

1 crore investors. It is highly Competitive with entry of new aggressive players.

Retail broking is highly fragmented industry with falling brokerages value added

services and online trading, the new fad.

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INDUSTRY DETAILS

Indian Capital Market

Indian Financial System

Capital Market Intermediaries

Capital Market Process

Overview of NSDL

Overview of CDSL

Indian Capital Market

The function of the financial market is to facilitate the transfer of funds from

surplus sectors (lenders) to deficit sectors (borrowers). Normally, households have

excess of funds or savings, which they lend to borrowers in the corporate and

public sectors whose requirement of funds far exceeds their savings.

A financial market consists of investors or buyers, sellers, dealers and does not

refer to a physical location. It means that it is not requirement of existence of any

physical place in the market. We can say any condition that it is market when any

purchaser and seller come into existence.

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And in case of capital market we can say any condition a market when there is an

existence of investors and borrowers of the fund. Formal trading rules and

communication networks for originating and trading financial securities link the

participants in the market.

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INDIAN FINANCIAL SYSTEM:

FINANCIAL SYSTEM

CAPITALMARKET

MONEYMARKET

DEBTMARKET

EQUITYMARKET

TREASURY BILLS

CALL MONEY MARKET

COMMERCIAL BILLS

SECONDARY

MARKET

DERIVATIVES

MARKET

PRIMARYMARKET

CERTIFICATES OF

DEPOSITS

COMMERCIAL PAPERSFUTURES&OPTIONS

NSEPUBLICISSUE

BSEPRIVATEPLACEMENT

TERM MONEYINDEX

OTCEIDOMESTICMARKET

PRIMARY SEGMENT

STOCKISE

INTER.MARKET

SECONDARYSEGMENT

REGIONALSTOCK

EXCHANGES

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Despite rapid expansion of the organized money market through a large network of

banking institutions that have extended their reach even to the rural areas, there is

still an active unorganized market. It consists of indigenous bankers and

moneylenders. In the unorganized market, there is no clear demarcation between

short-term and long-term finance and even between the purposes of finance. The

unorganized sector continues to provide finance for trade as well as personal

consumption. The inabilities of poor to meet them take recourse to the institutions

that still remain outside the regulatory framework of banking. But this market is

shrinking.

The capital market provides the framework in which savings and investment take

place. On the one hand it enables companies to raise resources from the investors

and on the other; it facilitates households to invest their savings in industrial or

commercial activities. Those saving instrument that can be bought or sold freely

are called securities. These include a range of products debt and equity that can be

traded. The market where such trades place is called the securities market where

such trades take place is called the securities market and comprises the various

exchanges, intermediaries and its regulatory institutions.

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The capital market consists of primary and secondary segments. The primary

market deals with the issue of new instruments by the corporate sector such as

equity shares, preference shares and debentures. The public sector consisting of

Central and State Government, various public sector industrial units, statutory and

other authorities such as state electricity boards and port trusts also issue bonds.

The primary market in which public issue of securities is made through a

prospectus is a retail market and there is no physical location. Direct mailing,

advertisements and brokers reach the investors. Screen based trading eliminates the

need for the trading floor.

The secondary market or stock exchange where existing securities are traded is an

auction arena. It may have a physical location like a stock, exchange or a trading

floor. Since 1995 the trading in securities is screen based training eliminates need

for a trading floor. And since the last year Internet-based trading has also made an

appearance in India.

The secondary market consists of23 stock exchanges including the National Stock

Exchange and the over the counter Exchange of India and Inter Connected Stock

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Exchange of India Ltd. The secondary market provides a trading place for the

securities already issued to be bought and sold. It all provides liquidity to the initial

buyers in the primary market to re-offer the securities to any interested buyer at

any price, if mutually accepted. An active secondary market and capital formation

because investors in the primary market are assured of a continuous market and

they can liquidate their investments in the stock exchange.

There are several major players in the primary market. These include the merchant

bankers, mutual funds, and financial institutions, foreign institutional investors

(FIIs) and individual investors. R & T (Registrar and Transfer) agents, custodians

and Depositories are capital market intermediaries that provide important

infrastructure services for both primary and secondary markets.

It is important to ensure a smooth working of this market, as it is the arena where

the players in the economic growth of a country interact. Various laws have been

passed from time to time to meet this objective. The financial market is India was

highly segmented until the initiation of reforms in 1992-93 on account of a variety

of regulations and administered prices including barriers to entry. The reform

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process was initiated with the establishment of Securities and Exchange Board of

India (SEBI)

Capital Market Intermediaries

CAPITAL MARKET

INTERMEDIARIES

MERCHANT

BANKERS

DEPOSITORIESMUTUAL

FUND

CUSTODIANS

STOCK

BROKERS

R & T

AGENT

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Merchant Bankers means any person who is engaged in the business of issue

management either by making arrangements regarding selling, buying or

subscribing or acting as manager, consultant, adviser or rendering corporate

advisory service in relation to such issue management.

R & T agent - Registrars to Issue

R & T agents are governed by SEBI. R & T agents are intermediaries who provide

services to shareholders on behalf of issuers. Issuers may engage share transfer

agents for maintaining Register of Member (ROM), managing corporate benefits

like distribution of dividends, interest on debentures, bonus shares, right forms etc.

R & T agents extend the depository connectivity services in the depository

environment.

Stock Brokers

Stock Brokers are regulated by SEBI (stock brokers and sub brokers) Regulations

1992. The stockbroker is a member of the stock exchange. The stock brokers are

the intermediaries who are allowed to trade in securities on the exchange of which

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they are member. They buy and sell on their own behalf as well as on behalf of

their clients.

Stockbrokers expand their business by engaging sub-broker. Sub-broker means

any person not being a member of a stock exchange who acts on behalf of a stock

broker as an agent or otherwise for assisting the investors in buying, selling or

dealing in securities through such stock-brokers

Custodians

Custodians of securities mean any person who carries on or proposes to carry on

the business of providing custodial services, Custodian service in relation to

securities means safekeeping of securities of a client.

SHCIL, Citibank N.A., Deutshe Bank, Standard Chartered Bank, HSBC Bank, IIT

Corporate Services, HDFC Bank are among the few registered custodians in the

country.

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Mutual Funds

Mutual Funds are financial intermediaries, which collect the savings of small

investors and invest them in a diversified portfolio of securities to minimize risk

and maximize returns for their participants. Mutual Funds have given a major

filliped to the capital market both primary as well as secondary. The units of

mutual funds, in turn are also tradable securities. Their price is determined by their

net asset value that is declared periodically.

There are various types of mutual funds, depending on whether they are open

ended or close ended and the end use of funds. An open-ended fund provides for

easy liquidity and is a perennial fund. A closed ended fund has a stipulated

maturity period, generally five years

Depositories

The principal function of a depository is to Dematerialization securities and

enables their transactions in book entry form.

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A depository established under the Depositories Act can provide any service

connected with recording of allotment of securities in the record of a depository.

Depository Participants (DPs)

DPs are described as an agent of the depository. They are intermediaries between

the depository and the investors. The relationship between the DPs and the

depository is governed by an agreement made between the two under Depositories

Act.

A DP can offer depository related services only after attaining a certificate of

registration from SEBI.

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CAPITAL MARKET PROCESS

1)IPO

2)Private Placement

3)Right Issue

4)Stock Trading

5)Internet Broking

1) Initial Public Offering (IPO)

market. This kind of tapping the savings for the first time is called IPO (Initial

Public Offer) and raise the fund from the market for the second time by any

existing company is known as FPO (Forward Public Offer) . SEBI guidelines

regulate various procedures involved in making a public issue but price of shares,

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size of the issue, timing of the issue, listing of the issue is decided by the issuer.

Issuers have to disclose all relevant facts and information in the prospectus.

Prospectus also has to disclose risk factors and management perception about those

risks.

Large initial public offers are made through book building route. Under this route,

market determines the price of issue by offering bids. Companies Act was

necessarily amended directing that all public issues above Rs. 10 crores have to be

necessarily in Demat form. Investor can receive shares in a public issue by writing

DP-Id and Client-Id in the share application form.

2) Private Placement

Methods of raising funds directly from investors without issue of prospectus to the

public are known as private placement. SEBI has prescribed the eligibility criteria

for companies and instruments as well as procedures for private placement.

Privately placed securities can also be listed if such placements fulfill all listing

criteria

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3) Preferential Offer/Rights Issue

Companies can expand their capital by offering the new shares to their existing

shareholders. Such offers for sale can be made to the existing shareholders by

giving them a preferential treatment in allocation or the offer can be on a rights

basis i.e. the existing holders can get by way of their right, allotment of new shares

in certain proportion to their earlier holding. If the shares are offered to a few of

the existing shareholders instead to all shareholders or at a price different from the

price at which they are issue to all, such issues are called preferential allotments.

Preferential allotments require shareholders approval in the general body meeting.

Further, all such offers have also to be in compliance with criteria laid down by

SEBI.

4) Stock Trading

An investor in securities needs assurance that they can convert their security

holdings to cash to meet their cash requirements. The ability to convert value of

securities into cash as and when anybody want is called liquidity. The liquidity is

provided by the stock exchange. Stock exchange is a platform where buyers and

sellers of securities will match their bids and offers for securities and exchange

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securities with cash. The offers and bids are routed through members of the stock

exchange, popularly known as a broker. Stock exchange regulates the

transactions of the broker and ensures that the transactions are conducted fairly and

transparently with justice to both buyers and sellers.

5) Internet broking

With the Internet becoming ubiquitous, many institutions have set up securities

trading agencies that provide online trading facilities to their clients from their

homes. This has been possible since all the players in the securities market, viz.

stockbrokers, stock exchanges, clearing corporations, depositories, DPs etc are

linked electronically. Thus information flows amongst them on a real time basis.

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Overview of National Securities Depository Limited (NSDL)

In a span of about four years, investors have switched over to electronic (Demat)

settlement and NSDL stands at the center of this change

NSDL is the first depository to be set up in India. It was incorporated on Dec. 12,

1995. IDBI the largest development bank in India, UTI the largest Indian mutual

fund and the NSE the largest stock exchange of India sponsored the setting of

NSDL and subscribed to the initial capital. NSDL commenced operations on Nov.

8, 1996.

The following organizations are the shareholders of NSDL

Industrial Development Bank of India

Unit Trust of India

National Stock Exchange

State Bank of India

Global Trust Bank Ltd.

Citibank

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Standard Chartered Bank.

HDFC Bank Ltd.

The Hong Kong and Shanghai Banking Corporation Ltd.

Deutsche Bank.

Dena Bank

Canara Bank

Operations performed at a depository are as follows:-

Holds Securities in accounts

Transfer Securities between accounts

Transfers without handling physical securities.

Safekeeping of securities

In the Depository:-

All joint holders to sign instructions.

No minimum balance required.

Interest can be earned only be participating in Stock Lending Scheme.

Does not move balances in account without account holders authorization.

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Signature and photograph of nominees to be provided.

Providing the safety of shares of the share holders which are in their Demat

account and in the Trading account.

SERVICE STANDARDS OF NSDL

A DP has to deal in business with the following characteristics:-

Sensitive and Demanding clients

Intense competition on the price front due to which the profit margins are under

tremendous pressure

Thin profit margins require high volume of clients/transactions for operating the

DP services profitably

High volume of business is error prone, unless supported by appropriate systems

and quality of manpower.

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Overview about Central DepositoryServices (India) Limited (CDSL)

CDSL is the second depository set up by the Bombay Stock Exchange (BSE) in

India. It commenced its operations on March 22, 1999. It was set up BSE and other

co sponsored with the net worth of Rs. 104 crores. In it BSE has a 45 % stake

while others have 55 % stake. In the same year it has Five Stock Exchanges

established connectivity with it for offering trade in Demat securities and 765

companies signed up with it to get their securities admitted for dematerialization. It

has 13 DPs in 91 cities across 168 locations covering 320 cities. Other co

sponsored are as under.

State Bank of India

Bank of India

Bank of Baroda

HDFC Bank

CDSL has also attained membership of the Asia Pacific Central Securities

Depository Group (ACG). ACG has 22 members including depositories from

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Japan, Jog Kong, Singapore, Malaysia, Australia, and New Zealand. Membership

of the organization is expected to help CDSL enhancing its knowledge base and

contributing to the development of other member organizations in the best

international practices, settlement risk management, cross-border linkage and

technological development. This, in turn, would help CDSL to secure foreign

institutional investors business through their custodian.

OPERATION PERFORMED BY CDSL

Carrying out actually share transactions

To do PSU disinvestments

To provide Centralized system at one e-space

To secure Foreign Institutional Investors business

Dematerialization of the Securities

Pledge creation in against the securities

Dematerialization

Trading and settlement on day to day basis

Work as a custodian of its cli

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MAIN PLAYERS IN THE INDIAN BROKERAGE INDUSTRY

y India Infoline

y ICICI Direct

y Angel Broking

y Can Money

y Geojit

y HDFC Securities

y KotakSecurities

y Reliance Money

y Religare

y Share Khan

y Way to Wealth

y SBI Demat

y Bridge Securities Limited

y Mothilal Oswal

y Citi Bank Demat

y Frankfin

y KarvySecurities

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COMPANY PROFILE

The IIFL (India Infoline) group, comprising the holding company, India Infoline

Ltd (NSE: INDIAINFO, BSE: 532636) and its subsidiaries, is one of the leading

players in the Indian financial services space. IIFL offers advice and execution

platform for the entire range of financial services covering products ranging from

Equities and derivatives, Commodities, Wealth management, Asset management,

Insurance, Fixed deposits, Loans, Investment Banking, GoI bonds and other small

savings instruments. IIFL recently received an in-principle approval for Securities

Trading and Clearing memberships from Singapore Exchange (SGX) paving the

way for IIFL to become the first Indian brokerage to get a membership of the

SGX. IIFL also received membership of the Colombo Stock Exchange becoming

the first foreign broker to enter Sri Lanka. IIFL owns and manages the website,

www.indiainfoline.com, which is one of Indias leading online destinations for

personal finance, stock markets, economy and business.

IIFL has been awarded the Best Broker, India by FinanceAsia and the Most

improved brokerage, India in the AsiaMoney polls. India Infoline was also

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adjudged as Fastest Growing Equity Broking House - Large firms by Dun &

Bradstreet. A forerunner in the field of equity research, IIFLs research is

acknowledged by none other than Forbes as Best of the Web and a must read

for investors in Asia. IIFL research is available not just over the Internet but also

on international wire services like Bloomberg, Thomson First Call and Internet

Securities where it is amongst one of the most read Indian brokers.

A network of over2,500 business locations spread over more than 500 cities and

towns across India facilitates the smooth acquisition and servicing of a large

customer base. All IIFL offices are connected with the corporate office in

Mumbai with cutting edge networking technology. The group caters to a customer

base of about a million customers, over a variety of mediums viz. online, over the

phone and at our branches.

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History & Background

India Infoline was originally incorporated on October 18, 1995 as Probity Research

and Services Private Limited at Mumbai under the Companies Act, 1956 with

Registration No. 11 93797. It commenced their operations as an independent

provider of information, analysis and research covering Indian businesses,

financial markets and economy, to institutional customers. It became a public

limited company on April 28, 2000 and the name of the Company was changed to

Probity Research and Services Limited. The name of the Company was changed to

IndiaInfoline.com Limited on May 23, 2000 and later to India Infoline Limited on

March 23, 2001.

In 1999, it identified the potential of the Internet to cater to a mass retail segment

and transformed our business model from providing information services to

institutional customers to retail customers. Hence it launched their Internet portal,

www.indiainfoline.com in May 1999 and started providing news and market

information, independent research, interviews with business leaders and other

specialized features.

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In May 2000, the name of our Company was changed to India Infoline.com

Limited to reflect the transformation of our business. Over a period of time, it has

emerged as one of the leading business and financial information services provider

in India.

In the year 2000, they leveraged their position as a provider of financial

information and analysis by diversifying into transactional services, primarily for

online trading in shares and securities and online as well as offline distribution of

personal financial products, like mutual funds and RBI Bonds. These activities

were carried on by our wholly owned subsidiaries.

Their broking services was launched under the brand name of 5paisa.com through

our subsidiary, India Infoline Securities Private Limited and www.5paisa.com, the

e-broking portal, was launched for online trading in July 2000. It combined

competitive brokerage rates and research, supported by Internet technology.

Besides investment advice from an experienced team of research analysts, they

also offered real time stock quotes, market news and price charts with multiple

tools for technical analysis.

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Organization structure

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Corporate Structure

India Infoline Ltd

India InfolineInvestment

Services Ltd

India InfolineMarketingt

Services Ltd

India InfolineCommodities

Ltd

India Infoline

Asia Pte Ltd

India

InfolineWealthManagementLtd

India InfolineCapital Ltd

IIFL Inc.US

Investment

IIFLsecuritiesCe lon Ltd

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PRODUCTS

EQUITY

India Infoline provided the prospect of researched investing to its clients, which

was hitherto restricted only to the institutions. Research for the retail investor did

not exist prior to India Infoline. India Infoline leveraged technology to bring the

convenience of trading to the investors location of preference (residence or oce)

through computerized access. India Infoline made it possible for clients to view

transaction costs and ledger updates in real time.

MUTUAL FUND

A mutual fund is a body corporate registered with SEBI that pools money from the

individuals/corporate investors and invests the same in a variety of different

financial instruments or securities such as Equity Shares, Government Securities,

Bonds, Debentures, etc. The income earned through these investments and the

capital appreciations realized are shared by its unit holders in proportion to the

number of units owned by them. Thus a Mutual Fund is the most suitable

investment for the common man as it offers an opportunity to invest in a

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diversified, professionally managed basket of securities at a relatively low cost.

Mutual fund units are issued and redeemed by the Asset Management Company

(AMC) based on the funds net asset value (NAV), which is determined at the end

of each trading session.

COMMODITIES

India Infolines extension into commodities trading reconciles its strategic intent to

emerge as a one stop solutions nancial intermediary. Its experience in securities

broking has empowered it with requisite skills and technologies. Increased

oering: The Companies commodities business provides a contra-cyclical alterna-

tive to equities broking. The Company was among the rst to oer the facility of

commodities trading in Indias young commodities market (the MCX commenced

operations only in 2003). Average monthly turnover on the commodity exchanges

increased from Rs 0.34 bn to Rs 20.02 bn. The commodities market has several

products with dierent and non-correlated cycles. On the whole, the business is

fairly insulated against cyclical gyrations in the business.

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INSURANCE

An entry into this segment helped complete the clients product basket; concur-

rently, it graduated the Company into a one stop retail nancial solutions provider.

To ensure maximum reach to customers across India, we have employed a multi

pronged approach and reach out to customers via our Network, Direct and Aliate

channels. Following the opening of the sector in 1999-2000, a number of private

sector insurance service providers commenced operations aggressively and helped

grow the market.

PMS

India Iinfolines Portfolio Management Service is a product wherein an equity in-

vestment portfolio is created to suit the investment objectives of a client. We at

India Infoline invest your resources into stocks from dierent sectors, depending

on your risk-return prole. This service is particularly advisable for investors who

cannot aord to give time or dont have that expertise for day-to-day management

of their equity portfolio. It is all about your money, being managed by the experts,

while you continue with your routine life. Isnt it simple and totally hassle free.

Whats more, you can keep track of your dividends / bonus / rights issues with

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paperless tracking. So you always know how fast your investment is growing. It

basically means assigning the right job to the right person.

DERIVATIVES

The Derivatives Market is meant as the market where exchange of derivatives

takes place. Derivatives are one type of securities whose price is derived from the

underlying assets. And value of these derivatives is determined by the fluctuations

in the underlying assets. These underlying assets are most commonly stocks,

bonds, currencies, interest rates, commodities and market indices. As Derivatives

are merely contracts between two or more parties, anything like weather data or

amount of rain can be used as underlying assets.The Derivatives can be classified

as Future Contracts, Forward Contracts, Options, Swaps and Credit Derivatives.

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y

Services Provided by IIFL

1) E-Broking

y Multiple exchanges on single screen

y Intra-day calls

y Historical charts with technical tools

2) Research

o Daily services

o Technical services

o Fundamental service

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3) DAILY SERVICES

y Market Outlook At 9:30 P M

y Technical Report At 6:00 P M

y Deravative Analysis Report

y Stock Analysis

y Intra-Day Calls

y Derivative Strategies

y COMMODITIES SERVICES

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Milestones:

October 1995 Incorporated as Probity Research and Services Private Limited

March 1996 Launched Probity 200, research reports on 200 leading listed Indian

companies

June 1998 Launched Probity Sector reports

May 1999 Launched our internet portal www.indiainfoline.com and changed our

name to India Infoline Limited

April 2000 Forayed into distribution of mutual funds, fixed deposits, RBI bonds

and other small savings products

July 2000 Launched www.5paisa.com, the e-broking portal and started online

trading with membership of BSE & NSE

December 2000 Corporate agency for ICICI Prudential Life Insurance Company

Limited

September 2001 IIFL became the Depositary Participant of NSDL

March 2004 Launched commodities trading by taking membership of MCX

April 2004 Received license from SEBI to offer Portfolio Management Service

August 2004 launched Portfolio Management Services

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May 2005 listed on BSE & NSE

May 2005 acquired NBFC license

Oct 2005 acquired 75% stake in Money tree Consultancy Services, which is a

distributor of mortgages & other loan products

Dec 2005 acquired 100% equity of Marchmont Capital Advisors Pvt. Ltd. which

have ventured into merchant banking

Dec 2005 DSP Merrill Lynch Capital subscribed to convertible bonds aggregating

Rs.80 crs.

2006 Acquired membership of DGCX

Commenced the credit & finance

March 2007 Theircurrent stake in India Infoline is a little over 14%.

2007 Formed Singapore subsidiary, IIFL (Asia) Pte Ltd

2008 Launched IIFL Wealth

2009 Acquired to insurance for Housing Finance

SEBI in-principle approval for Mutual Fund

Obtained Venture Capital License

2010 Received in-principle approval for membership of the Singapore Stock

Exchange .

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Received membership of the Colombo Stock Exchange.

2011 Received SEBI final approval for IIFL Mutual Fund.

Vision

Our vision is to be the most respected company in the financial

services space.

Mission

To become a full-fledged financial services company known for

its quality of advice, personalized services and cutting edge

technology

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IIFL CSR Initiatives

Barsana Eye Camp

The IIFL Foundation sponsored an eye and dental camp held in February, 2010

with the support of expert doctors and surgeons from the Bhaktivedanta Hospital in

Barsana near Mathura. While over2,600 people underwent eye tests and over 800

were selected for free eye surgery, a total of over 1,800 dental procedures like

extraction, scaling and filling, among others, were performed

Pandharpur Medical Camp

The IIFL Foundation sponsored the Pandharpur medical camp which was held by

the Bhaktivedanta Hospital in July 2010 at Pandharpur. Free medical treatment

was given at 4 camp sites, to approximately 49,815 pilgrims who had come to

Pandharpur during Ashadi Ekadashi. The pilgrims were treated for

fever,injuries,fractures,gastroenteritis,myalagia,headache,epilepsy,malaria,respirat

ory infections etc, during the camp.

Blood Donaton Drive

IIFL regularly organizes blood donation drives via camps at its various locations

across India. Over 800 employees have participated in these camp

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Recent awards and accolades

1) Best Equity broker 2011

Best Equity Broker of the year at Bloomberg UTV Financial Leadership Awards

2011

2) Best Market Analyst 2009

Best Analyst Awards in the Oil & Gas and Commodities sectors at the Zee

business for2009

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3) Best Brokerage 2009

Amongst the top 3 for best Brokerage in India by Asia Money for2009.

4) Indias Most Valuable CEOs 2009

Nirmal Jain ranked second in Indias most valuable CEOs by Business World for

2009.

5) Best Broker India 2008

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6) Most Improved Brokerage-India 2008

7) Fastest Growing Broking House

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Management Team

Chairman : Nirmal Jain Managing Director :R .Venkitaraman

Institutional Equities H.Nemkumar

Investment Banking Ajit Menon,Donald D Souza

Consumer Finance Pratima Ram

Retail Broking Nandip Vaidya

Wealth Management Karan Bhaget

International Operations Bharat Parajia

Offshore Asset Management Deepesh Pandey, Manish Srivastava

Insurance Distribution Mukesh Kumar Singh

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Corporate Governance

Independent Directors of Group Companies

A.K.Purwar Independent Director

Nilesh Vikamsey Independent Director

Kranti Sinha Independent Director

M.N.Singh Independent Director

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COMPETITORS DETAILS

Angel Broking

Share Khan

Indian Bulls

Marwadi Group

KotakSecurities

Religare

ICICI

HDFC

Reliance Money

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Angel Broking

Angel Group has emerged as one of the top 3 retail broking houses in India.

Incorporated in 1987, it has memberships on BSE, NSE and the two leading

commodity exchanges in India i.e. NCDEX & MCX. Angel is also registered as a

depository participant with CDSL.

Rliance Money

Reliance Money is the subsidiary of Reliance Capital ltd. This is promoted by Anil

dhirubhai ambani group (ADAG).Whose Chairman is Mr. Anil Dhirubhai Ambani.

Reliance Money, through its affiliates/Partners, facilitates transaction in equities,

Equity & commodity derivative, Offshore Investments, Mutual Funds, IPO, Life

Insurance & General Insurance Products. The company is in the process of

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launching a comprehensive financial portal enabling to carry out on-line trading

and investment activities in a secured, cost-effective and in convenient manner. It

has presence in 95 cities across the country

SHAREKHAN

Share khan is an equities focused organization tracing its lineage to SSKI, a

veteran equities solutions company with over 8 decades of experience in the Indian

stock markets.

Share khan does not claim expertise in too many things. Sharekhan's expertise lies

in stocks and that's what he talks about with authority. So when he says that

investing in stocks should not be confused with trading in stocks or a portfolio-

based strategy is better than betting on a single horse, it is something that is spoken

with years of focused learning and experience in the stock markets.

Share khan brings a user- friendly online trading facility, coupled with a wealth of

content that will help investors stalk the right shares.

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INDIA BULLS

India Bulls is Indias leading retail financial services company with over 300

locations in more than 110 cities. They have 4400 Client Relationship Managers

are dedicated to serving customers unique needs. It is a public company and listed

on the National Stock Exchange, Bombay Stock Exchange, Luxembourg Stock

Exchange and London Stock Exchange. The company ranks at 82 positions in the

list of most valuable companies in India. Net worth of it is $400 million. Product

Offered by India Bulls are Stock Broking, Insurance Consultancy, Deliver and

receive cheque and securities, Obtain market information

MARWADI SHARES AND FINANCE PRIVATE LIMITED

Marwadi Shares And Finance Pvt. Ltd. Was incorporated in 1992.Marwadi

Group servicing more than 75000 clients, more than 554 pin codes. The company

ranked among top 50 broking houses. It has 250 franchisee / sub-brokers and

authorized persons network.

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KOTAKSECURITIES

Kotak Securities, an affiliate of Kotak Mahindra Bank, is the stock-broking and

distribution arm of the Kotak Mahindra Group. The institutional business division,

which brings you AKSESS, primarily covers secondary market broking. It caters to

the needs of foreign and Indian institutional investors in Indian equities (both local

shares and GDRs, Global Depository Receipts). The division also has a

comprehensive research cell with sartorial analysts covering all the major areas of

the Indian economy.

Kotak Mahindra is one of India's leading financial institutions, offering complete

financial solutions that encompass every sphere of life. From commercial banking,

to stock broking, to mutual funds, to life insurance, to investment banking, the

group caters to the financial needs of individuals and corporate

The group a net worth of over Rs.1, 550 crores and employs over3,000 employees

in its various businesses. With a presence in 59 cities in India and offices in New

York, London, Dubai and Mauritius, it services a customer base of over 5, 00,000

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Kotak Mahindra has partnerships with Goldman Sachs (one of the world's largest

investment banks and brokerage firms), Ford Credit (one of the world's largest

dedicated automobile financiers) and Old Mutual (a large insurance, banking and

asset management conglomerate).

ICICI WEB TRADE LTD. (ICICIdirect.com):

ICICIdirect.com was the first entrant into e-broking. ICICdirect.com provides the

3-in-1 to the users which ties in their saving bank account and their Demat account

to their brokerage account electronically. This integration ensures that money is

transferred to/from their bank account and the shares are transferred from/to their

Demat account automatically without writing any cheques or transfer instructions

while carrying out their trades in shares.

ICICIdirect.com has the option of trading in shares in cash, margin or spot

segments. An investor can also invest in 14 Mutual Funds (Prudential ICICI MF,

Franklin Templeton India MF, Alliance Capital MF, JM MF, Birla Sun Life MF,

Sundaram MF, IL&FS MF, Principal MF, HDFC MF, Standard Chartered MF,

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Reliance Capital MF, Kotak Mahindra MF, TATA MF and DSP MERRILL

LYNCH MF) through their trading account.

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Activation ,brokerage and other charges of different stockbroking companies

CRITERIA India Infoline Ltd.

Demat a/c opening charges 555/-( lifetime)

Brokerage intra day, delivery Classic Plan :- 5p,50p

Freedom Plan:- 1p,10p

AMC(Annual Maintenance Charges) Nil

Trading funding intra day, delivery 10 times

Interest rate

Debit period T+ 4 days

Mode of trading Both online and offline

Margin money 10000

Software installation charges No extra charges

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CRITERIA ANGEL STOCK BROKING

Demat a/c opening charges 660

Brokerage intra day, delivery Classic plan: 3p ,20p

Freedom plan; 1p,10p

AMC(Annual Maintenance Charges) Rs.225

Trading funding intra day, delivery 6times,4 times(minimum stock Rs50000)

Interest rate 18 %pa

Debit period T+2 DAYS


Margin money 5000,5000,10000


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CRITERIA RELIGARE SECURITIES LTD


Brokerage intra day, delivery

25P&25P,3P&30P,2P&20P

AMC(Annual Maintenance Charges) Nil

Trading funding intra day, delivery 6times,4 times

Interest rate 18 %pa



Margin money 2500,5000 and10000


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CRITERIA

HDFC

Demat a/c opening charges Ist Year Free.

Brokerage intra day, delivery 3P,35P

AMC(Annual Maintenance Charges) 3oo

Trading funding intra day, delivery 5 Time

Interest rate Nil

Debit period 6 Days

Mode of trading Both Online and Offline

Margin money Not required but bank account

compulsory with minimum balance of

10000

Software installation charges Nil

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CRITERIA ICICI DIRECT

Demat a/c opening charges RS 750/-


AMC(Annual Maintenance Charges) RS 500/-

Trading funding intra day, delivery 3-4 times of the available funds.

Interest rate 18% p.a.


Mode of trading Both Online & Offline

Margin money

Software installation charges

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CRITERIA Kotak securities


Brokerage intra day, delivery 2.5P,0.25P

AMC(Annual Maintenance Charges) RS 30pm

Trading funding intra day, delivery 7times,4 times

Interest rate 21%

Debit period T+2

Mode of trading Offline

Margin money Rs5000/-

Software installation charges -

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CRITERIA Shrekhan Securities


Brokerage intra day, delivery 5P,50 P

AMC(Annual Maintenance Charges) 400


Interest rate 21%

Debit period 5 days

Mode of trading Online



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CRITERIA Marwadi Securities





Interest rate Nil

Debit period 5 days

Mode of trading Online and Offline



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CRITERIA Reliance Money

Demat a/c opening charges 750 For One Year




Interest rate Nil

Debit period 7Days

Mode of trading Online and Offline



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Objective

1) To study the criterion of different companies for opening demat account

and trading account

2) To study the all kinds of financial services provided by IIFL to its client

3) To make a comparative analysis of the client services of different companies

4) To study the satisfaction level of existing client of IIFL

5) To analyze the policies of IIFL and its comparison with peers.

6) To know the functioning of a Stock Market

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Research Methodology

Research is scientific and systematic search for relevant information on specific

topic and the topic is Comparative analysis of Brokerage firms with respect

to IIFL

Research Objective:-

1 To study the various features of equity market

2) To study the criterion of different companies for opening demat account

and trading account

3) To study the all kinds of financial services provided by IIFL to its client

4) To make a comparative analysis of the client services of different companies

5) To study the satisfaction level of existing client of IIFL

6) To analyze the policies of IIFL and its comparison with peers.

7) To know the functioning of a Stock Market

Sampling design

Types of sampling

y Random Sampling

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Research Approach

y Descriptive approach

Techniques to be used in research approach

y Survey and interview

Sampling Unit

y Questionnaire

In this project Questionnaire is used as the research instrument. These

questionnaires include Close Ended as well as Open Ended questions. The

questionnaire is attached at the end of Annexure.

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Data collection

Primary Data Collection

y Structured questionnaire for the customer.

Secondary data collection

y Journals

y Web-sites

y News papers

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COMPETITIVE ANALYSIS

1) Are you aware of the different Brokerage firms in Ahmedabad?

Interpretation: 70% of the respondents are aware of the different brokerage firms

in Ahmedabad and 30% are not aware.

2) Your annual Earnings

Interpretation: Of the people who have invested in share market, 45% earn income

over Rs. 7 lakhs.

Yes

No

Less than 1 lac

1 lac to 2.5 lac

2.5 lac to 4 lac

4 lac to 7 lac

More than 7 lac

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3) Have you invested in share market?

Interpretation: Out of 100 respondents, 67%of the respondents have invested in

share market and 23% of the respondents have not invested in share market.

4) In which of these Financial Instruments do you invest into?

Interpretation: 30% of the respondents have invested in Bank FD and 30% of the

respondents invested in share market also, 20% invested in insurance, 10% have

invested in Mutual Fund and 10% have invested in Commodities.

Yes

No

Equity

Mutual Fund

Bonds

Commodities

Insurance

Govt.Securities

Bank F D

Other

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5) What term period do you choose for Investment?

Interpretation: 45% of the respondents prefer long term investment (Below

3years), 20% of the respondents prefer long term investment (5-10Yrs), 30% of the

respondents prefer mid-term investment (3-5Yrs) and 5% of the respondents prefer

Tatkal model investment(15 days).

6) Do you have a De-mat a/c?

Interpretation: 70% of the respondents have DEMAT account and 30% of the

respondents dont not have DEMAT account.

Long term(5-10Yrs)

Mid term(3-5Yrs)

Short term(Below 3 Yrs)

Tatkal(15 Days)

Yes

No

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7) Which Broker do you prefer for Trading?

Interpretation: 28% of the respondent prefer ICICI, 25% of the respondents prefer

India Infoline,15% prefer Kotak securities, 12% prefer Indiabulls, 10% prefer

Share Khan and 10% prefer Angel broking.

8) Which type of trading you prefer?

0

0.5

1

1.5

2

2.5

3

ICICI ShareKhan Indiabull Kotak

Securities

Angel

Broking

India

Infoline

Other

Online

Offline

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Interpretation: 55% of the respondents prefer offline trading and 45% of the

respondents prefer online trading.

9) On Which Basis you trade?

Interpretation: 57% of the respondents prefer intraday trading, 32% of the

respondent prefer delivery trading and 11% of the respondents prefer Future &

Option.

10) Are You Satisfied with service of your Company?

Intraday

Delivery

Future&Option

Yes

No

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Interpretation: 90% of the respondents are satisfied with their companys service

only 10% are not satisfied.

11) How to differentiate your company from others?

Interpretation : 30% of the respondents prefer their company because of less

brokerage,25% of the respondents prefer their company because of good research

report,23% of the respondents prefer their company because of less De mat

opening charge,12% respondent s prefer their company because of good RM and

10% of the respondents prefer their company because of good software.

Brokerage

Research Report

Software

RM

A/C Opening charge

Products

Others

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12) How do you rate these trading companies? ( Rank 1 for highest and 5 for

lowest)

1. ___________

2. ____________

3. ___________

4. _____________

5. ____________

6._____________

7.______________

8.______________

0

0.5

1

1.5

2

2.5

3

ICICI ShareKhan India bull Kotak

Securities

Religare Angel

Broking

India

Infoline

ICICI DirectShareKhanIndiabullsKotak SecuritiesReligareAngel BrokingIndia InfolineOthers____________

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Interpretation: 25 of the respondents given highest rank to ICICI, Second highest

rank in India infoline, Third in Share Khan, and respondents given same rank for

India bulls, Kotak securities, Religare and Angel broking.

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Questionnaire on

Competitive Analysis of Broking Industries

13)Are you aware of the different Brokerage firms in Ahmadabad?

YesNo

14)Your annual Earnings

Less than 1 lacRs. 1 lac to 2.5 lac

Rs. 2.5 lac to 4 lacRs 4 lac to 7 lacMore than 7 lac

15)Have you invested some where else?

YesNo

16)In which of these Financial Instruments do you invest into?

EquityMutual FundsBondsCommoditiesInsuranceGovt. SecuritiesBank F.D.Other______________________

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17)What term period do you choose for Invest?

Long term (5 to 10 Yrs.)Midterm (3 to 5 Yrs.)

Short term (below 3 Yrs.)Tatkal ( 15 Days)

18) Do you have a De-mat a/c?

YesNo

19)Which Broker do you prefer for Trading?

ICICI DirectShareKhanIndiabullsKotak SecuritiesReligareAngel BrokingIndia InfolineOther________________________

20)Which type of trading you prefer?

OnlineOffline

21)On Which Basis you trade?

IntradayDeliveryFutureOption

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22)Are You Satisfied with service of your Company?

YesNo

23)How to differentiate your company from others?

BrokerageResearch Report servicesSoftwareRelationship ManagerAccount Opening Charges

ProductsOthers_______________________________

24)How do you rate these trading companies?( Rank 1 for highest and 5 for lowest)1. ___________

2. .____________3. .___________4. _____________5. .____________

6._____________7.______________8.______________

25)What additional features do you want to add in Broking firm?________________________________________________________

_________________________________________________________

_________________________________________________________

ICICI DirectShareKhanIndiabullsKotak SecuritiesReligareAngel Broking

India InfolineOthers____________

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Personal Information

Name:_____________________

Age: _____________________

Sex: Male Female

Phone No:

Occupation:

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Findings

1) According to this data 70% of the peoples know about the share market in

Ahmedabad.

2) People like to invest their money in to bank fixed deposit rather than share

market

3) According to this data the best preferred broking firm among the people of

Ahmedabad is ICICI followed by India Infoline

4) 90% of the people are satisfied with their broking firm.

5) People like to invest their money in to long term basis.

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Suggestion

1) Brokerage should be reduce to the possible extent , so that new customers can

be attracted

2) Margin amount should be reduced, so that new customers can be attracted

3) Advertisement should be given in news papers so that the persons who do not

know online facility of share trading can be attracted.

4) Some discount/offer can be given to those who are opening account in groups.

5) People not that much aware about commodity marketing ,so company arrange

seminar or special class for public.

6) The company should also organize seminars and similar activities to enhance

the knowledge of prospective and existing customers, so that they feel more

comfortable while investing in the stock market.

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Bibliography

www.india infoline .com

www.nseindia .com

www.bseindia .com

www.moneycontroll.com

Documents

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