A

SUMMER TRAINING PROJECT REPORT ON

“SHARE TRADING IN INDIA”AT

Submitted in partial fulfillment of the requirementFor the award of degree

Of

MASTER’S OF BUSINESS ADMINISTRATION SESSION (2010-2012)

SUBMITTED TO: - SUBMITTED BY:-KURUKSHETRA UNIVERSITY, Name: HIMANSHU BANSALKURUKSHETRA Class: MBA 3rd SEM. College Roll No: 2014 University Roll No:

DRONACHARYA INSTITUTE OF MANAGEMENT AND TECHNOLOGY (Approved by AICTE, Affiliated to Kurukshetra

University, Kurukshetra)CERTIFICATE

This is to be certify that the project entitled “share trading in india ” Submitted by

Himanshu Bansal Kurukshetra University Kurukshetra in partial fulfillment for the

degree of Master of Business Administration(M.B.A) is a bonafide research work

completed under my guidance and Supervision. This is an original piece of work and has

not been submitted in part or full for any other degree to this or any university / Institute.

The assistance and help rendered during the course of study has been duly acknowledged.

Place:- Haryana Mr. Munish TayalDated (Research guide)

DECLARATION

I,, student of 3rd semester, studying at Dronacharya Institute of Management and

Technology, Kurukshetra hereby declare that the research project report on “SHARE

TRADING IN INDIA” submitted to Kurukshetra University, Kurukshetra in partial

fulfillment of degree of Master’s of Business Administration is the original work

conducted by me.

The information and data given in the report is authentic to the best of my knowledge.

This research project report is not being submitted to any other university for

award of any other degree, diploma and fellowship.

ACKNOWLEDGEMENT

No task can be achieved alone, particularly while attempting to finish a

project of such magnitude. It took many very special people to facilitate it

and support it. Hence, I would like to acknowledge all of their valuable

support and convey my humble gratitude to them.

First of all I thank Mr. Abhinav Sharma at Sharekhan who has guided and

fully supported me through out the making of this project report. I also want

to thank my faculty Mr. Munish Tayal who allowed and encouraged me to

do my research project on Sharekhan.

Thank you all for supporting me in making this projects a reality

PREFACE

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 difficult practice for any service provider.

Though India has a very big untapped market but the players will not flourish 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 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 efforts. 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.”

To give the student of management a feel of real world situation they are being sent to

any organization where they work on a prescribed problem or a topic and come out with

various conclusions and suggestions.

I am very lucky as I got an opportunity to work with “share khan.”, which is showing

phenomenal growth and success in the Securities.

.

My topic of study was “Client Acquisition and Competitor Analysis”.

This project is an effort to do a depth study and analysis of various known and unknown

reasons for customer satisfaction and retention. “To err is human ”and I am not an

exception, valuable comments are always welcomed since it will motivate to work with

greater zeal and efficiency in the future.

TABLE OF CONTENT

CHAPTER-1

Industry overview

Profile of the company

1. Introduction

2. History

3. Product profile

4. Sales figure

5. Organizational chart

Problem of the organization

SWOT analysis

Client acquisition

Competitors Information

CHAPTER-2

Research Methodology

1. Objectives of the study

2. Significance of study

3. Limitation of the study

4. Scope Of The Study

5. Managerial usefulness of the study

6. Types of the data

CHAPTER-3

Findings and analysis

CHAPTER-4

Conclusion

Recommendation

CHAPTER-5

Bibliography

Annexure

CHAPTER-1

INDUSTRY PROFILE

INDUSTRY OVERVIEW

A Brief History of Stock Exchanges

Do you know that the world's foremost marketplace New York Stock Exchange

(NYSE), started its trading under a tree (now known as 68 Wall Street) over 200 years

ago? Similarly, India's premier stock exchange Bombay Stock Exchange (BSE) can also

trace back its origin to as far as 125 years when it started as a voluntary non-profit

making association.

You hear about it any time it reaches a new high or a new low, and you also hear about it

daily in statements like 'The BSE Sensitive Index rose 5% today'. Obviously, stocks and

stock markets are important. Stocks of public limited companies are bought and sold at a

stock exchange. But what really are stock exchanges? Known also as News on the stock

market appears in different media every day. he stock market or bourse, a stock exchange

is an organized marketplace for securities (like stocks, bonds, options) featured by the

centralization of supply and demand for the transaction of orders by member brokers, for

institutional and individual investors. The exchange makes buying and selling easy. For

example, you don't have to actually go to a stock exchange, say, BSE - you can contact a

broker, who does business with the BSE, and he or she will buy or sell your stock on your

behalf.

All stock exchanges perform similar functions with respect to the listing, trading, and

clearing of securities, differing only in their administrative machinery for handling these

functions. Most stock exchanges are auction markets, in which prices are determined by

competitive bidding. Trading may occur on a continuous auction basis, may involve

brokers buying from and selling to dealers in certain types of stock, or it may be

conducted through specialists dealing in a particular stock.

But where did it all start? The need for stock exchanges developed out of early trading

activities in agricultural and other commodities. During the middle Ages, traders found it

easier to use credit that required supporting documentation of drafts, notes and bills of

exchange. The history of the earliest stock exchange, the French stock exchange, may be

traced back to 12th century when transactions occurred in commercial bills of exchange.

The first stock exchange in India, Bombay Stock Exchange was established in 1875 as

'The Native Share and Stockbrokers Association' and has evolved over the years into its

present status as the premier stock exchange in the country. It may be noted that BSE is

the oldest stock exchange in Asia, even older than the Tokyo Stock Exchange, which was

founded in 1878. The country's second stock exchange was established in Ahmedabad in

1894, followed by the Calcutta Stock Exchange (CSE). CSE can also trace its origin back

to 19th century. From a get together under a 'Neem Tree' way back in the 1830s, the CSE

was formally established in May 1908.

India's other major stock exchange National Stock Exchange (NSE), promoted by leading

financial institutions, was established in April 1993. Over the years, several stock

exchanges have been established in the major cities of India. There are now 23

recognised stock exchanges — Mumbai (BSE, NSE and OTC), Calcutta, Delhi, Chennai,

Ahmedabad, Bangalore, Bhubhaneswar, Coimbatore, Guwahati, Hyderabad, Jaipur,

Kochi, Kanpur, Ludhiana, Mangalore, Patna, Pune, Rajkot, Vadodara, Indore and

Meerut. Today, most of the global stock exchanges have become highly efficient,

computerized organizations. Computerized networks also made it possible to connect to

each other and have fostered the growth of an open, global securities market.

Realizing there is untapped market of investors who want to be able to execute their own

trades when it suits them, brokers have taken their trading rooms to the Internet. Known

as online brokers, they allow you to buy and sell shares via Internet.

Online Trading is a service offered on the Internet for purchase and sale of shares. In the

real world, you place orders on your stockbroker either verbally (personally or

telephonically) or in a written form (fax). In Online Trading, you will access a

stockbroker's website through your internet-enabled PC and place orders through the

broker's internet-based trading engine. These orders are routed to the Stock Exchange

without manual intervention and executed thereon in a matter of a few seconds.

There are 2 types of online trading service: discount brokers and full service online

broker. Discount online brokers allow you to trade via Internet at reduced rates. Some

provide quality research, other don’t. Full service online brokerage is linked to existing

brokerages. These brokers allow their clients to place online orders with the option of

talking/ chatting to brokers if advice is needed. Brokerage rates here are higher.

5Paisa.com, ICICIDirect.com, IndiaBulls.com, sharekhan.com, HDFCsec.com,

Tatatdw.com, HMRstreet.com are some of the online broking sites in India.

FLUCTUTION GRAPH OF NSE

ONLINE TRADING PROCESS

The various transactions involved in online trading can be shown from the point of view

of the

Client

Broker

Stock Exchange

BENEFITS OF ONLINE TRADING

This mode of trading has shifted the trading power from stockbrokers to individual

investors. The advantages are that it:

ENSURES THE BEST PRICE FOR INVESTORS

This technique offers the best price for the buying and selling transactions of the

investors, by ensuring proper matching of their orders within the communication network

itself. Also due to the high level of transparency with regard to display of information

relating to the specific stocks and company profiles, the investors will be able to get the

best quote for the shares. This leads to a reduction in the transaction cost for the

investors.

OFFERS LIQUIDITY TO THE INVESTORS

Online trading offers 24-hour trading facilities or trading for longer hours when

compared to the traditional stock exchanges. This provides added liquidity to the

investors.

OFFERS GREATER TRANSPARENCY

Online trading gives greater transparency to the investors by providing them an audit

trail. This involves a complete integrated electronic chain starting from order placement,

to clearing and settlement and finally ending with a credit to the depository account of the

investor. All these stages are subject to inspection, thus bringing in transparency into the

system.

ENABLES HASSLE FREE TRADING

Online trading integrates the bank, the brokerage firm and the demat accounts, which

leads to easy and paperless trading for the client.

ALLOWS QUICK TRADING

The investor will be able to execute the entire trading transaction, right from logging on

to the broker’s site, to the execution and settlement of his bank account, in a very short

period of time.

PROVIDES A LEVEL PLAYING FIELD

Trading on the net, gives even the smallest retail investor access to information that

earlier was available only to the big traders. This provides a level playing field for all

investors in the securities market.

REDUCES THE SETTLEMENT RISK

This method of trading reduces the settlement risk for the investor, as in this case no short

sale is possible i.e. the seller will not be able to sell the securities unless he has their

actual possession. In the case of a demat account (required for an online transaction),

when a seller wants to sell the securities, his demat account is checked by the Depository

Participant before executing the sale transaction. This reduces the settlement risk for the

buyer, who is assured of the delivery of the securities.

 FACTORS TO KEEP IN MIND WHILE SELECTING ONLINE

BROKERS.

Brokerage cost: It is important to weigh up the subscription and trading costs charged by

an online broker against benefits offered by the site. All online brokers display their

charges on their sites. Some make sure you find the charges easily, while with others you

will have to search a bit.

Safety: We should make sure site has 128-bit encryption to ensure safety of transaction

online. ICICIDirect.com, 5paisa.com are few sites with 128-bit encryption. You normally

get a secured Login id and password. It is always advisable to frequently change trading

password. Ideally online trading site should be fully integrated. The greater the backward

integration, the better it is for the customer. Ideally broking account, demat account and

bank account should be linked electronically.

Rate refresh: Rate refresh has to be real-time with no time lag. The speed and reliability

comes with huge investment in technology. It is always advisable to check rates of online

broking sites with BSE/ NSE terminal rates.

Speed of execution: System has to be fast and reliable that does just one job- executes

your trades. The last thing you need is a site that is heavily congested with the users who

are downloading heavy jpeg graphs or pulling the latest story why market is moving. The

site should be one click wonder where squaring off all your positions or canceling all

your pending orders takes one click and a confirmation of action.

Trading limit: For trading, all sites provide 4 times buy and sell limit against margin

money put in by customer. For delivery of shares, buying limit is equal to margin money

put in by customer. Couple of sites also provides margin funding for buying of shares.

Free trial period: Site should allow users free trial period to familiarize yourself with

system before you decide to become trading member of the site.

Intraday chart/ historical chart: The site should provide Intraday chart tick-by-tick

time and price data / historical chart for technical analysis by investors of particular scrip.

Lot of people trade based on charting packages.

Before you can trade, you need to open an account and register as a trader as with online

broking site. This involves filling up trading account form, Demat account form and for

faster transfer of money- Internet enabled bank account. We should read terms and

condition of each site before commencing to deal with them. As per SEBI rule, Photo id

proof and current address proof is a must for opening trading account.

Online share dealing on the Internet is now a way of life for thousands of investors. 80%

of South Korea and 30%-40% US trade are executed online. If you want to deal in shares,

there is no easier way.

FUTURE OUTLOOK

With increasing globalisation and consolidation amongst exchanges, the future of the

regional stock exchanges, around 22 in India, is likely to be very uncertain and even their

very survival is a question mark.

SEBI has permitted the regional exchanges to form subsidiary companies, which are akin

to super brokers. These companies have acquired membership of both BSE and NSE at

confessional entry fees and permitted their members to trade on the BSE and NSE thus

increasing trade volumes and business in both BSE and NSE.

The stock markets of the future will have a redefined purpose and reinvented architecture

due to the advent and widespread use of technology. Information and stock price

quotations are available almost instantaneously and more importantly investors can act on

this data by executing a trade from anywhere at any time.

This new market will bring benefits to investors, listed companies, and the economies of

countries. Trading will be cheaper, faster and settlement will be simpler and with reduced

risk. Raising capital for companies will be easier, thus contributing directly to economic

expansion.

The leaders in this new world of investing will be the ones willing to be agents of change,

to best meet the needs of investors and companies, and to do what is best for these two

principal stakeholders in the capital markets.

If done right, the stock markets of the future will be even better vehicles than today in

helping companies grow, creating jobs, providing fair investment opportunities for

people, and in improving economies.

Both the exchanges, BSE and NSE, are visionary, proactive and increasingly use leading-

edge technologies to effectively compete in the global environment. In the not-too-distant

future, once full capital account convertibility is permitted in India one could well

witness an expansion of trading volumes and its resultant economic benefits to the

thriving and ever-young metropolis of Mumbai.

List of Stock Exchanges in India

1. Ahmedabad Stock Exchange Association Ltd.

2. Bangalore Stock Exchange

3. Bhubaneshwar Stock Exchange Association

4. Calcutta Stock Exchange

5. Cochin Stock Exchnage Ltd.

6. Coimbatore Stock Exchange

7. Delhi Stock Exchange Association

8. Guwahati Stock Exchange Ltd.

9. Hyberabad Stock Exchange Ltd.

10. Jaipur Stock Exchange Ltd

11. Kanara Stock Exchange Ltd

12. Ludhiana Stock Exchange Association Ltd.

13. Madras Stock Exchange

14. Madhya Pradesh Stock Exchange Ltd.

15. Mangalore Stock Exchange Limited

16. Meerut Stock Exchange Ltd.

17. Mumbai Stock Exchange

18. National Stock Exchange of India

19. OTC Exchange of India

20. Pune Stock Exchange Ltd.

21. Saurashtra Kutch Stock Exchange Ltd.

22. Uttar Pradesh Stock Exchange Association Ltd.

23. Vadodara Stock Exchange Ltd.

COMPANY PROFILE

COMPANY PROFILE

Sharekhan 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.

If you experience our language, presentation style, content or for that

matter the online trading facility, you'll find a common thread; one that helps you make

informed decisions and simplifies investing in stocks. The common thread of

empowerment is what Sharekhan's all about!

Sharekhan is also about focus. Sharekhan 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. And these

beliefs are reflected in everything Sharekhan does for you!

To sum up, Sharekhan brings to us a user- friendly online trading facility, coupled with a

wealth of content that will help you stalk the right shares.

Apart from this, Sharekhan also offers the facility to visit (or talk to) any of the share

shops across the country in order to cater to people who are not computer - savvy.

In fact Sharekhan runs India's largest chain of share shops with around 250 outlets in 113

cities.

Below an online polling is being conducted among 41 strong members from which

clearly shows the expert opinion with respect to Customer satisfaction, quality products

etc.

Poll Results: which online broker u prefer and why - choose one

5paise 10 24.39%

Sharekhan 12 29.27%

Motilal Oswal 0 0%

ICICI Direct 8 19.51%

HDFC 2 4.88%

India Bulls 7 17.07%

Kotak Securities 1 2.44%

any other 1 2.44%

Voters: 41. You may not vote on this poll

SERVICES OFFERED BY AN OUTLET

1. Online BSE and NSE executions (through BOLT and NEAT

terminals)

2. Free access to investment advice from Sharekhan's research team

Sharekhan Value Line (a fortnightly publication with

reviews of recommendations, stocks to watch out for etc

Daily research reports and market review (High Noon,

Eagle Eye)

Pre-market Report (Morning Cuppa)

Daily trading calls based on technical analysis

Cool trading products (Daring Derivatives, Trading Ring

and Market Strategy)

Personalized advice

Live market information

3. Depository services: Demat and Remat transactions

4. Derivatives trading (Futures and Options)

5. Internet-based online trading: Classic Account, SpeedTrade,

SpeedTradePlus

About SSKI group

SSKI group also comprises institutional broking and corporate Finance. While the

institutional broking division caters to the largest domestic and foreign institutional

investors, telecom and media. SSKI holds a sizeable portion of the market in each of

these segments.

As the forerunner of investment research in the Indian market, we provide the best

research coverage amongst broking houses in India. Our research team is rated as one of

the best in the country. Voted four times as the Top Domestic Brokerage House by Asia-

money Survey. SSKI is consistently ranked amongst the top domestic brokerage houses

in India.

Broking….personalized

If you prefer the assurance and reliability of trading through a broker, you can use our

network of 250 branches and 157 business partner outlets in over 123 cities to trade in

equities as well as derivatives. We will help you with the investment process, give you

advice based on extensive research and provide you with relevant and updated

information to help you make informed investment decisions.

Our trading services are designed to offer an easy, hassle free trading experience, whether

you trade daily or occasionally. You will be entitled to a host of value-added services,

intended to assist you in your investment process depending of your investing style and

frequency.

Freedom @ www.sharekhan.com however, if you prefer the convenience of trading from

wherever you are, you can get yourself a Classic trading account and enjoy the freedom

that comes with it.

You can now place orders even after the trading hours, and the orders are queued up to be

executed as soon as the market opens. Sharekhan.com the winner of several prestigious

awards has been the most preferred destination for online trading ever since its launch.

MANAGEMENT TEAM

SHAREKHAN SERVICES

BRANCHES ALL OVER INDIA

INVESTING ONLINE IS SO MUCH EASIER!

This account enables you to buy and sell shares through our website. You get features

like

a) Streaming quotes (using the applet based system)

b) Mutltiple watchlists

c) Integrated Banking, demat and digital contracts

d) Instant credit and transfer

e) Real-time portfolio tracking with price alerts

and, of course, the assurance of secure transactions.

Features of Classic Account

that enable you to invest effortlessly

Online trading account for investing in Equities and Derivatives via sharekhan.com

Integration of: Online trading + Bank + Demat account

Instant cash transfer facility against purchase & sale of shares

Make IPO bookings

You get Instant order and trade confirmations by e-mail

Streaming Quotes

Personalised Market Scan with your own customized stock ticker!

Single screen interface for cash and derivatives Your very own Portfolio Tracker

SHAREKHAN.COM RESEARCH  

Sharekhan.com tigers dig meaty Stock Ideas out of the heart of the market and bring them

to you. Their skill at identifying their prey--Stock Ideas--while keeping your taste for

investment in mind is reflected in the depth of their research and the performance of the

ideas. The Market Strategy reports, on the other hand, identify the hunting-ground for

Stock Ideas, i.e. sectors and stock groups that are ripe for performance, discuss the state

of the economy and its impact on the stock market as well as advise you on dealing with

the impact of socio-political issues on the market.

Building and maintaining your ideal portfolio demands objective, dependable

information. Sharekhan.com Equity Analysis helps satisfy that need by rating stocks

based on carefully selected, fact-based measures. And because Sharekhan.com is not

focused on investment banking, it doesn't have the same conflicts of interest as traditional

brokerage firms. This objectivity is only one important difference in our ratings

Type of categories

1. Evergreen

2. Apple Green

3. Emerging Star

4. Ugly Duckling

5. Vulture's Pick

6. Cannonball

SHAREKHAN ONLINE TRADING FACILITIES:

DEMAT A/C free for first year and Rs.300 from

2nd year onwards.(Maintenance charges)

Trading through our website.(www. sharekhan.com)

No volume & minimum margin money commitment required .

NSE online and BSE offline.

Live applet for watching prices & trading purposes.

(b) SPEED TRADE: Account Opening Fee: Rs. 1000/-(life time charges)

DEMAT A/C free for first year and Rs.300 from

2nd year onwards.(Maintenance charges)

Trading through Software/Live Terminal provided by sharekhan.com.NSE & BSE online

(through software as well as through website & phone).

Monthly Access Fee (for SPEEDTRADE only) : Rs 500/- a month. The access charges

will be applicable to all the new customers signed up from 2nd month of activation.

To explain if an account is signed up in January 2005, and the same is activated in

January 2005, the access charges will be applicable for Feb 2005 month and the first

debit of access charges for the account will happen by the 7th of March 2005.

Non applicability of Monthly Access Fee :

At the end of a Month if the client has contributed more than Rs. 1000/- as Gross

brokerage, the access charges of Rs. 500/- will not be Debited to client's account. If the

brokerage is less than 1,000/- the access charges of Rs. 500 will be debited in the

subsequent month by 7th.

Exceptions applicable for Access Charges :

The access charges of Rs. 500 if charged to a client can be refunded in full if the total

brokerage by the client is above 3,000 in a Calendar Quarter.

BROKERAGE: -

CASH BROKERAGE:- DELIVERY : 0.50%, INTRADAY : 0.10%*

EXPOSURE :- 4 TO 6.6 TIMES* (ON MARGIN MONEY)

(* subject to change or as decided by Asstt Manager)

F&O BROKERAGE : - ON FIRST LEG{Buy} 0.10% ,

SAME DAY SQUARE {Sell} OFF: 0.02%

SECOND LEG : 0.10%

Settlements of trades follow T+2 transaction cycle.

OTHER FEATURES-

No Demat Transaction Charges in case of buying and selling through

For the fund transfer and withdrawl, we have tie-up with four banks- HDFC

Bank,CITI Bank, IDBI Bank & UTIBank.

If you are having bank a/c in one of them, you can transfer the funds and

withdraw the funds online from

Your trading a/c at anytime.

BTST (Buy today Sell Tomorrow) Facility in all scrips

DIAL-N-TRADE : Call and Trade through Toll free no. From anywhere in India

(CUSTOMER CARE: 1600 22 7500, TRADING: 1600 22

7050,30307600)

Online IPO filling facility.

Freedom from paperwork,trading facilities are completely online.

SMS alerts on your mobile phones.

Daily sharekhan.com research reports in your mailbox (5 online research

papers/magzines).

SWOT ANALYSIS

A SWOT analysis focuses on the internal and external environments, examining strengths

and weaknesses in the internal environment and opportunities and threats in the external

environment.

STRENGTHS

Service

As a product a extremely innovative product with very less cost. Services like online

trading facility, institutional and domestic broking, customized research reports with

almost 80% efficiency etc give sharekhan.com an edge over its competitors.

Sharekhan.com provides other support services that make retail investors more

confident and assured with their trading. SMS alerts (allowing traders and investors to

make the most of the available opportunities), Softer, intangible features like imagery,

equity driving preference. Through efficient trading processes Investors can place their

orders directly on the Internet, do all the information seeking and basically own the

investing process.

DISTRIBUTION NETWORK

Sharekhan.com with almost 250 branches spread across 123 cities beefed up by

comprehensive online research, advice and transaction services. In near future expect to

make 200000+ retail customers being serviced through centralized call center / web

solution, 60 branches/semi branches servicing affluent/aggressive traders through highly

skilled financial advisors, 250 independent investment managers/franchisees servicing

50000 highly valued clients, strong advisory role through Fundamental & technical

research and new initiatives are being made in Portfolio Management Services &

Commodities trading.

MARKETING

Sharekhan.com is a veteran equities solutions company with over decades of experience

in the Indian stock markets. sharekhan.com does not claim expertise in too many

things. sharekhan’s expertise lies in stocks and that's what it 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.

PRODUCTS

Company’s product line is quite flexible in the sense that there is a product for every kind

of investors. Also all the products cover all the loop holes of all the products offered by

the other competitors like low cost, user friendly online trading services etc.

WEAKNESS .

Customer Satisfaction

As far as customer satisfaction goes sharekhan.com has to tighten their socks. Many

broking houses catering to heavy investors or small segment of the market can afford to

and does provide relationship managers for their customers, who can understand the

trading needs of individual customers, and advise accordingly. However, a broking house

like sharekhan.com, which caters to the mass segment, is in no position to provide

relationship managers for individual customers.

STRENGTH

Service

Distribution network

Marketing

Products

WEAKNESS

Customer Satisfaction

Branding

Competition from Banks

OPPORTUNITIES

Ever increasing market

Improving technology

Unfulfilled needs of cust.

Education level

THREATS

New competitors

Technology based business

SWOT Analysis of Sharekhan

BRANDING

Though the company has a efficient products but large part of investment interested

population does not know the company. The most basic expectation for a trader or

investor when one begins trading is that one must get timely delivery of shares and

proceeds from sale of shares. Also ones cash balances with the broker must be safe and

secure. Though this confidence in the broker comes with time and experience, good and

transparent practices also play a major role in imbibing confidence in traders.

COMPETITION FROM BANKS

Most of the banks due to good branding have the faith of the customers of their banking

database. So they enjoy the liberty of huge database and customers find it more reliable to

trade there rather than with a unknown broker. Also banks like HDFC Bank and ICICI

Bank have the advantage of linking the trading accounts of their customers to saving

accounts. This makes trading easier, and at the same time a trader withdraws exactly as

much money from his account as is needed to complete the trade. Similarly sales

proceeds are credited directly to saving account.

OPPORTUNITIES

EVER-INCREASING MARKET

After the NSE brought the screen based trading system stock markets are now more

secured which has attracted lot of retail investors and the demand is increasing day by

day. This has resulted in improved liquidity and heavy volumes on transactions.

Sharekhan.com is one of the early entrants here. As to how much it will roar and how

swift it can swoop on the market, the future alone can answer such queries.

Sharekhan.com has been a mega player and is known for being a mover of stocks. It is

also known for putting big deals through and enjoys good networking with the FIIs. It has

been dynamic enough to move with the times and capture the opportunities that the

market throws up from time to time.

IMPROVING TECHNOLOGY

In country like India technology is always improving which gives the company a chance

to keep on improving their product with time whereas for the small players like local

brokers it will be difficult to keep the same pace as the changing technology. Also with

SEBI lying down some strict guidelines small brokers are finding it harder to retain the

customers with no research department and small capital. The traditional business model

is highly dependent on a large network of sub-brokers, and many established players may

not have systems (technology, customer service, etc.) capable of directly servicing so

many retail customers.

UNFULFILLED NEEDS OF THE CUSTOMERS

With so many competitors offering their products in the market but no one is able to

completely satisfy the customers. Some have the problem of lack of information or some

were scared of volatility of the stock markets. Sharekhan.com has the opportunity to tap

this unsatisfied set of customers and to make hold in the market. The Internet serves to

break all barriers to information, as it offers an extremely hassle-free investing platform.

And, sharekhan.com hopes to fully utilize and capitalize on this platform. This original

idea by sharekhan.com itself was born out of the consumer's need for a more

transparent, easy to understand and convenient option of investing in stocks.

EDUCATION LEVEL

The education level in the country is improving year after year as far as technology goes.

With that the understanding of the stock market is also increasing and a lot of retail

investors are steeping in the markets which are being shown by increasing volumes,

transactions and indices.

THREATS

NEW COMPETITORS

A lot of new competitors are trying to enter the market in this bullish run to taste the

flavor of this cherry. This is creating a lot of competition for large players like

sharekhan.com and it is creating little confusion in the minds of the customers about the

services provided by the broker. Also many banking firms are entering into the market

with huge investment.

TECHNOLOGY BASED BUSINESS

Online trading is totally based on the technology which is quite complex. Typically, the

technology solution has to start from the Internet front-end (or the screen that you see

when you begin trading). Then it needs to get into the 'middle tier' of risk management

systems that assess data from banks and depository participants (DP), calculate client risk

at that point in time, and give the 'Go/No go' advice to the trade. So technology is a kind

of threat because unless until it is working properly it is good but internet is not that safe.

Though a lot of cyber laws are being made but not yet executed.

PROCEDURE OF CLIENT ACQUISITION

In the first phase we are trained and they teach us different things about market. They

teach us about sharekhan.com introduction, products and services offered by

sharekhan.com in the market. We have been trained properly about sharekhan.com

After that they conduct a mock viva, in this they ask about the real life problem faced

by the customers.

They provide us leads and we make calls. Three types of leads are provided to us:

#People who registers themselves on sharekhan.com website willing to be client of

sharekhan.com and want to know about its product.

# People who have Demat account already with any another broker.

# People who are totally unknown to this market.

Then after that we have to provide details of product and convince them. People who

have already Demat account, we have to convince them by giving information about

sharekhan.com services benefits.

And people who are unknown to share market, we tell them about sharekhan.com

first step program for fresher.

Then we have to visit them and get the formed filled from them.

We collect all-important documents from client.

DOCUMENTS PHOTOCOPIES REQUIRED :-

(A) TWO COLOURED PHOTOGRAPHS (self signed).

(B) For Identification Proof - VOTER ID CARD /

DRIVING LICENCE /

PASSPORT/

PAN CARD (ANY ONE)

(C) For Residence Proof - BANK STATEMENT /

VOTER ID CARD /

RATION CARD /

DRIVING LICENCE /

PASSPORT /

TELEPHONE BILL STATEMENT

/ELECTRICITY BILL STATEMENT

(ANY ONE)

(D) One cancelled cheque leafe(For MICR No.record)(E)Latest bank statement/Front

page of passbook(showing Name,Address,A/C No.)

(F) One account opening cheque of Rs.750/1000

(G) You can also deposit the initial margin money at the time of opening the account

Maintaing dairy of clients and contacting them at regular basis. To get feedback

from them about sharekhan.com services.

COMPETITOR

ANALYSIS

ICICIDIRECT.COM

Products and Services

A product for every need: ICICIdirect.com is the most comprehensive

website, which allows you to invest in Shares, Mutual funds, Derivatives

(Futures and Options) and other financial products. Simply put we offer

you a product for every investment need of yours.

ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an

Affiliate of ICICI Bank Limited and the Website is owned by ICICI Bank

Limited

ICICIDIRECT.COM

TRADING IN SHARES

TRADING IN DERIVATIVES

MUTUAL FUNDS

IPO AND BOND ONLINE

PERSONAL FINANCE

PRODUCT & SERVICES:

1. Trading in shares:

ICICIdirect.com offers you various options while trading in shares.

Cash Trading: This is a delivery based trading system, which is generally done with

the intention of taking delivery of shares or monies.

Margin Trading: You can also do an intra-settlement trading upto 3 to 4 times your

available funds, wherein you take long buy/ short sell positions in stocks with the

intention of squaring off the position within the same day settlement cycle .

(ONLY for intraday)

Margin PLUS Trading: Through Margin PLUS you can do an intra-settlement

trading upto 25 times your available funds, wherein you take long buy/ short sell

positions in stocks with the intention of squaring off the position within the same

day settlement cycle. Margin PLUS will give a much higher leverage in your

account against your limits.

Spot Trading: When you are looking at an immediate liquidity option, 'Cash on

Spot' may work the best for you, On selling shares through "cash on spot", money

is credited to your bank a/c the same evening & not on the exchange payout date.

This money can then be withdrawn from any of the ICICIBank ATMs.

BTST : Buy Today Sell Tomorrow (BTST) is a facility that allows you to sell

shares even on 1st and 2nd day after the buy order date, without you having to wait

for the receipt of shares into your demat account.

CallNTrade®: CallNTrade® allows you to call on a local number in your city &

trade on the telephone through our Customer Service Executives. This facility is

currently available in over 11 major states across India.

Trading on NSE/BSE: Through ICICIdirect.com, you can trade on NSE as well

as BSE.

2. TRADE IN DERIVATIVES:

FUTURES

Through ICICIdirect.com, you can now trade in index and stock futures on the

NSE. In futures trading, you take buy/sell positions in index or stock(s) contracts

having a longer contract period of up to 3 months.

Presently only selected stocks, which meet the criteria on liquidity and volume,

have been enabled for futures trading.

Calculate Index and Know your Margin are tools to help you in calculating

your margin requirements and also the index & stock price movements..

OPTIONS

To take the buy/sell position on index/stock options, you have to place certain %

of order value as margin. With options trading, you can leverage on your trading

limit by taking buy/sell positions much more than what you could have taken in

cash segment.

3. Mutual Funds:

4. IPOs and Bonds Online:

You could also invest in Initial Public Offers (IPOs) and Bonds online

without going through the hassles of filling ANY application form/

paperwork.

Get in-depth analyses of new IPOs issues (Initial Public Offerings), which

are about to hit the market and analysis on these. IPO calendar, recent IPO

listings, prospectus/offer documents, and IPO analysis are few of the

features, which help you, keep on top of the IPO markets.

6. Personal Finance:

Use our Personal Finance section and get hold of tools that can help you plan your

investments, retirement, tax etc. Analyse your risk profile through the Risk

Analyzer and get a suitable investment portfolio plan using Asset Allocator.

7. Customer Service Features:

With 'ICICIdirect Customer Tools & Updates' you can trouble shoot all

your problems online.

THE ICICI DIRECT ADVANTAGES

A Unique 3-in-1 account that gives you:

Convenience: the 3-in-1 accounts integrate your banking, broking and demat

accounts. This enables you to trade in shares without going through the hassles of

tracking settlement cycles, writing cheques and Transfer Instructions, chasing

your broker for cheques or Transfer Instructions etc.

Speed: You can now get the latest quotes of scrips on ICICIdirect.com and place

an order almost instantly.

Control: You can be assured that you have in fact placed an order at the price you

always wanted to, but may not have been able to do so till now. Thereby giving

you control over your own trades.

Independence: Instead of transferring monies to a broker's pool or towards

deposits, you can manage your own demat and bank accounts when you trade

through ICICIdirect.com.

Trust: ICICIdirect.com comes to you from ICICI, the organisation trusted by

millions of Indians

* We can trade into NSE, BSE, Derivatives, Mutual funds, Personal Finance, IPO’s

online.

* Margin plus trading is provided in which customer can buy share up to 25 times

of its margin

Icicidirect.com

Demat charges : Annual Fee Rs. 300

Brokerage:

Delivery : .75%

Intraday : .10%

(Exclusive of service tax for 10.2% & Service Transaction Tax)

Deal Clinchers Vs ICICIDIRECT.com

1. Brokerage is .75%(Delivery) and .10%(Intraday) exclusive of taxes. With taxes, it

becomes .85% (delivery) and .15% (Intraday).

2. Margin of RS 5000/- is necessary to maintain in ICICIBank A/C.

3. BTST facility is provided only on 127 scrips.

4. While watching applet, only one-company rates can be seen and we have to refresh it

again and again to update the rates.

5. Limited toll free number are provided, on 21st call RS 20/- are charged.

6. Compulsion to have bank a/c with ICICIBANK and your saving A/C is attached with

ICICI trading A/C. ICICIDIRECT has authority to debit your saving A/C directly

without customer informing about this.

7. Demat transaction charges are included in brokerage.

8. Research reports are provided at RS 450/-p.a.

9. Poor online Interface

Slow website interface with no real-time quotes creates a dissatisfaction

among high frequency traders

10. Margin trading restriction

The margin trading system is available up to 2:45 p.m, with outstanding

net positions under margin segment automatically squared off at any time between 2:45 –

3:30 p.m. Thus no control of square off price.

11.

Morning Trades Issue

Being one of the websites with largest no of after hour orders which are

pushed 1st thing in the morning, creates a choking of orders to the exchange, causes

delay of confirmations for new order placed during the early morning trades

12.Only Intraday Margin exposure :

The margin exposure of 3 or 4 times is only provided for intraday.

STOCK MESSAGING SERVICES:

Plan Amt

3 Months Rs. 1550

6 Months Rs. 2800

12 Months Rs. 5500

12 Months + 50% disc.on Wkly Newsletter Rs. 6000

Brokerage Structure:

5Paisa - Pure online trading

Turnover

per settlement

Brokerage

Rate

Maximum rate Any volume0.05%

Special rate 1 Rs15 lacs0.04%

Special rate 2 Rs20 lacs0.03%

5Paisa Plus - With offline and research support

Turnover

per settlement

Brokerage

Rate

Maximum Rate Any Volume0.25%

Special rate 1 Rs 10 lacs0.20%

Special rate 2 Rs 15 lacs0.15%

Special rate 3 Rs 20 lacs0.10%

Special rate 4 Rs 25 lacs0.05%

Special rate 5 Rs 35 lacs0.03%

Notes:

1. For trades that result in delivery, a nominal charge of 0.20% will be

levied for securities handling, only on the value of delivery.

2. Minimum brokerage per contract will be Rs25, regardless of number of

trades per contract.

3. "Turnover Per Settlement" refers to the turnover done in the Rolling One

day Settlement Cycle only.

1. ; it starts from .25%(Delivery) and .05% (intraday).

2. Trading on NSE, BSE, Derivatives, mutual funds, Arbitrage on delivery,

commodities is provided.

3. Account opening charges are RS 420/- in case of fresher and RS 250/- in case

of trader.

4. 10 times exposure is provided to offline customers.

Deal clinchers Vs 5Paisa.com

1. RS 1000/- brokerage commitment to be fulfilled by customer.

2. .05% or RS 15/- whichever is higher, are charged on selling as demat transaction cost.

3. Stock messaging servicing is paid from RS 1550/- to RS 6000/-.

4. Company Background

Not having a very positive image, relatively new in the broking arena,

limited network

5. Downtime

Recent past 5 paisa Trader Terminal (T.T) is experiencing high frequency downtime

between 3 – 3:30 p.m due to server load (as their T.T is feature heavy compared to

Speetrade charting)

INDIABULLS.COM

Indiabulls is India's leading retail financial services company with 135 locations spread

across 95 cities. While size and strong balance sheet allow it to provide you with varied

products and services at very attractive prices, its over 750 Client Relationship Managers

are dedicated to serving your unique needs.

Indiabulls is lead by a highly regarded management team that has invested crores of

rupees into a world class Infrastructure that provides our clients with real-time service &

24/7 accesses to all information and products. Indiabulls Professional NetworkTM

offers real-time prices, detailed data and news, intelligent analytics, and electronic trading

capabilities, right at your fingertips. This powerful technology is complemented by

knowledgeable and customer focused Relationship Managers. It is creating a world of

Smart Investor.

Indiabulls offers a full range of financial services and products ranging from Equities to

Insurance to enhance your wealth and hence, achieve your financial goals.

Indiabulls' Client Relationship Managers are available to you to help with your financial

planning and investment needs. To provide the highest possible quality of service,

Indiabulls provides full access to all our products and services through multi-channels.

SCHEDULE OF CHARGES (NSDL-DPID : IN302236)

[ w.e.f. 01 Feburary, 2011 ]

Charge Head Charges

Account with POA Account without POA

Stamp Paper Charges   Rs.200/-   Rs.100/-

AMC   Nil   Rs.250/-

Custody Charges   Nil   Nil

Transaction Charges

Buy (Market / Off-

Market) Transfers

  Nil   Nil

Transaction Charges

Sell (Market / Off-

Market) Transfers

  Rs. 17/- per Transaction   Rs. 17/- per Transaction

Failed Inst. Nil   Rs.20/- per instruction.

Pledge Creation /

Confirmation /

Closure/Invocation

  Rs.25/- per Transaction   Rs.25/- per Transaction

D'MAT   Rs.1 per certificate (max Rs.250 /-)+

Rs.25 courier charges

  Rs.2 per certificate (max

Rs.250 /-)+ Rs.25 courier

charges

D'MAT Rejections   Rs.20 per rejection + Rs.25 courier   Rs.20 per rejection + Rs.25

courier

Re'mat Charges   Rs.15 request or 0.02% whichever is

higher.

  Rs.15 request or 0.02 %

whichever is higher.

Delivery Instruction

Book

  Nil   Rs.10/-

No charges for first book.

Fax Indemnity

(Optional)

  N.A.   Actual

RESEARCH REPORTS:

  Scheme Facilities

1. WebBased-1-

Month-Rs.100:

This allows you to view and print reports for ONE MONTH

through our website.

2. WebBased-3-

Month-Rs.270:

This allows you to view and print reports for a full QUARTER

through our website.

3. WebBased-1-

Year-Rs.1000:

This allows you to view and print reports for ONE YEAR through

our website.

4. PrintReport-1-

Month-Rs.350:

This allows you to view and print reports for ONE MONTH

through our website plus you can get 10 REPORTS PRINTED

AND DELIVERED to your doorstep on request.

5. PrintReport-3-

Month-Rs.950:

This allows you to view and print reports for a full QUARTER

through our website plus you can get 10 REPORTS PRINTED

AND DELIVERED to your doorstep on request EACH MONTH.

6. PrintReport-1-

Year-Rs.3500:

This allows you to view and print reports for ONE YEAR through

our website plus you can get 10 REPORTS PRINTED AND

DELIVERED to your doorstep on request EACH MONTH.

ADVANTAGES OF INDIABULLS:

1. No annual maintenance charges for Demat account.

2. Listed company and aggressive in brand promotion.

3. Control — Stay on top of your investments with convenient access to your account

online or by phone.

4. Confidence — Support your investing decisions with premium in-depth research -

Indiabulls Equity Analysis.TM

5. Value — Enjoy competetive commissions and get the service and support you need

at a fair price.

6. Priority Service — Enjoy priority telephone access that gives you direct access to

your Relationship Manager.

7. Premium Research — Benefit from full access to Indiabulls Equity AnalysisTM,

our objective, fact-based approach to rating stocks.

8. Online Accounting — Stay on the top of your investments with a snapshot of your

Account Statements. Get access to Portfolio statement and access to digital contract

notes

DEAL CLINCHERS VS INDIABULLS

1. Research reports are paid at RS 100 p.m.

2. SMS alert service is not provided.

3. IPO online is not there. It is offline.

4. RS 500/- is blocked by system as margin.

5. POA for Clients DMAT

All shares held by client trading with IB are moved to IB Pool Account

and the same is shown as a reflection in client DP account. Charges are levied to move

shares from IB pool Account to client DP account

6. Annual maintenance charges are charged, if power of attorney is signed.

7.Margin Funding hoax

The interest on funding starts on leveraged delivery trades from T+1 day itself @21%

p.a, on a daily basis

8.The role of Relationship Manager Each RM is looked upon as a revenue

generator and he gets a % on business generated from client. This can lead to over

leveraged (Interest) & high frequency (Brokerage) trading, which may not be in the best

interest of the client.

HDFCSEC.COM

HDFCsec is a brand brought to you by HDFC Securities Ltd, which has been promoted

by the HDFC Bank & HDFC with the objective of providing the diverse customer base of

the HDFC Group and other investors a capability to transact in the Stock Exchanges &

other financial market transactions.

HDFCsec, will equip you with the necessary tools to allocate, select and manage

your investments wisely, and also support it with the highest standards of service,

convenience and hassle-free trading tools.

HDFCsec mission is to provide our customers with the most useful investment

guidance and investment-related services available in the country. We want to

become a one-stop solution for all your investment needs, one that will help you

get the most out of your money.

HDFCsec services comprise online buying and selling of equity shares on the

National Stock Exchange (NSE).

Buying and selling of select corporate debt and government securities on the NSE

would be introduced in a subsequent phase.

WHY TO CHOOSE HDFCSEC.COM

A heritage that speaks for us

Our venture is supported by our parent companies, which have years of experience in

financial markets. And there’s our dedicated, motivated and experienced team that is

well versed in the field of trading and investment.

We use State-of-the-art technology

To extend and strengthen our reach to investors we have the technological resources

to make sure you have the best possible access to swift, easy and secure transactions.

We ensure seamless trading

With us, you can have the convenience of having trades executed, cleared and settled

without the need for interacting with multiple agencies in the process. HDFCsec.com

provides high quality investment services, in a simple, direct and cost-effective way

to help you achieve your financial goals.

Deal Clinchers Vs HDFCsec.com

1. Brokerage is .5% or RS 15/- whichever is higher (delivery) and .15% or RS 15/-

whichever is higher exclusive of taxes.

2. Only NSE is online and derivatives, BSE are offline.

3. A/C opening charges are RS 799/-.

4. Demat A/C annual maintenance charges are RS 500 p.m.

5. Compulsion to have bank a/c with HDFCBANK.

6. Minimum margin of RS 5000/- is necessary to have in your A/C.

7. SMS alerts service is not provided.

8. IPO is not online.

10. Poor online Interface

Apart from having no product to cater to Day-Traders, the hdfcsec.com website is

plagued with downtime. The same is currently being revamped.

11. Lack of focus on Broking

The core business of HDFC is Housing Finance and that of HDFC Bank is banking.

Broking as a business is a small part of the portfolio of financial services and hence the

commitment to resources is limited.

12.

No Leverage

No leverage is available to clients even for Intra-Day trades, effectively all

clients are on cash and carry system.

Objectives

Primary objectives of the project are:

1. To study the sharekhan’s competitors strengths

2. To study the sharekhan.com competitors weaknesses in relation to sharekhan.com

3. To analyze the product & services of competitors in relation to sharekhan.com

4. To learn the marketing techniques that are used to acquire a client, was the

secondary objective of the summer training.

5. To learn about company routine working.

CHAPTER-3

RESEARCH METHODOLOGY

RESEARCH DESIGN

At the outset may be noted that there are several ways of studying and

tackling a problem. The formidable problem that follows the task of defining the research

problem is the preparation of the design of research project popularly known as research

design.

Decision regarding what, where, when, how much, by what means concerning an enquiry

or a research study constitute a research design. A research design is an arrangement of

conditions for collection and analysis of data in a manner that aims to combine relevance

to research purpose with economy in procedure. More explicitly the designing decision

happened to be in respect of following

What is study about

Why is study being made

Where will the study be carried out

What type of data are required

What will be the sample design

How will the data be collected

How will the data be analyised.

EXPLORATORY RESEARCH DESIGN: -

Exploratory research design is termed as formulating research

studies. The main purpose of study is that of formulating a problem. The major emphasis

in such study is on discovery of new idea’s and insights. As such the research design

appropriate for such studies must be flexible enough to provide opportunity for

considering different aspects of problem.

DESCRIPTIVE AND DIAGNOSTIC RESEARCH DESIGN: -

Descriptive research design are those design which are

concerned with describing the characteristics of particular individual or of the group.

Whereas diagnostic research studies determine the frequency with which something

occurs or its association with some else. In descriptive and diagnostic study the

researcher must be able to define clearly what he wants to measure and must find

adequate method for measuring it.

TYPES OF RESEARCH DESIGN

EXPLORATORYRESEARCH DESIGN

DESCRIPTIVE & DIAGNOSTIC RESEARCH DESIGN

EXPERIMENTAL RESEARCH DESIGN

EXPERIMENTAL RESEARCH DESIGN: -

These are those studies where the researcher tests the hypothesis of

casual relationship between variables. Such study requires procedure that will not only

reduce biasness and increase reliability but will permit drawing influence about casuality.

Usually experiments meets this requirement, hence these research designs are prepared

for experiment.

Data Sources -

Primary Data

Secondary Data

Secondary Data

Under Secondary sources, we tapped information from internal & external sources. We

made use of Internet (such as search engine www.google.com),

www.icicidirect.com,

www.sharekhan.com

www.5paisa.com,

www.HDFCsec.com,

www.5paisa.com) and miscellaneous sources (such as brochures, pamphlets, library)

under external sources.

Primary Data

Primary data is a data that is collected for the first time in the processing of the analysis.

The researchers have adopted the contact through telephone for the purpose of collecting

Primary data. The researchers discuss with Team Manager and employees of the

company to get information about competitors of sharekhan.com

IV) ANALYSIS

To make our research project most effective in a given time period of two months

surveyed the information of the competitors. We undertook both Explorative as well as

Conclusive Research Design. The data has been collected from both Primary as well as

Secondary sources and we also did the fieldwork for which utmost care has been taken to

keep project unbiased from personal opinion.

.

SIGNIFICANCE OF THE STUDY

Every research is conducted to fulfill certain objective and these objectives in turn fulfill

some purpose. MBA curricular is designed to give more practical exposes to the student

so that he can make use of theoretical knowledge in the real life situation, with this thrust

dissertation study has been included which provides opportunity to research to gain

practical insight of the market. This hand on experience helps him in identifying the

critical factor of consumer buying behavior. This rich experience will be great help in

researcher’s future endeavors and it also solves the purpose for the partial fulfillment of

MBA curriculum.

I sincerely believe that road to improvement is never- ending and one always learns from

a new experience. This project is a step towards gaining knowledge about real world and

putting the theory of practice. I shall look forward to and gratefully acknowledge all

suggestion on this small step I have taken.

The report consists of a step–wise efforts towards meeting the objectives of the study. It

covers the step-wise collection of data collection and the representation of the data

together with the analysis. It also includes some suggestions put forward hoping it would

help the company achieve its vision.

MANAGERIAL USEFULNESS OF THE STUDY

The marketing department can use this study to enhance their marketing strategies for

better sales. This report helps marketing department in taking decision to what change in

distribution channels and what should be done so that marketing problem could be

shorted out and how to sell their range of product in the competitive market.

The very essence of every project related to marketing is providing a view to

management for chalk out the organization. So that they can maintain a viable fit between

the organization objective, skill and resources and it’s changing market opportunities.

Also give proper shape to the company business target profit and growth. It provides a

feedback to the organization about their sales, sales schemes and what impact dose it has

on the retailers and consumer. Every market research proves useful suggestion to the

organization. Marketing research helps the firm in every component of the total

marketing task. It helps the firm in every component of the total marketing task. It helps

the firm acquire a better understating of the buyer, the competition and marketing

environment. It also aids the formulation of the marketing mix, product, distribution and

pricing needs marketing research support. It also in taking the information of

competitor’s strategies and their impact on the buyer. The study revels may fact that have

come up during the project and these facts can either be used as opportunities in

exploring and expending the business as well as can be used as safeguard against threats

by the competitors to prepare an effective marketing strategy. Every market research

proves usefulness to the organization. Marketing research helps the firm in every

component of the total marketing task. Its helps the firm acquire a better understanding of

the consumer, the competition and the marketing environment. It also aids he formulation

of marketing mix, decision on each element of marketing mix, product, distribution and

promotion and pricing etc need the support of marketing research

LIMITATIONS OF THE PROJECT:

Services of competitors:

We cannot give proper comment on competitor’s services till we use it. But I try to

collect as accurate information as possible. As we all know services are intangible

and we cannot predict its quality, it is a thing to feel not to see.

No proper assurance of right information:

The main data sources are websites, telephonic information and offices visit.

# The data on websites might be possible, not get updated.

# The marketing person might be possible, is not through with all concepts to whom I

contacted.

# Sometimes, they try to hide information.

Lack of awareness of Stock market: -- Since the area is not known before it takes

lot of time in convincing people to start investing in shares primarily in IPO’s.

Mostly people comfortable with traditional brokers: -- As people are doing

trading from there respective brokers, they are quite comfortable to trade via phone.

Lack of Techno Savvy people and poor Internet penetration: -

o Since most of the people are quite experienced and also they are not

techno savy. Also Internet penetration is poor in India.

Some respondents are unwilling to talk: -- Some respondents either do not have

time or willing does not respond, as they are quite annoyed with the phone call.

Inaccurate Leads: -- Sometimes leads are provided which had error in it which

varies from only 5 digit phone number to wrong phone number

Misleading concepts: -- Some people think that Shares are too risky and just another

name of gamble but they don’t know its not at all that risky for long investors.

SCOPE OF THE STUDY

These are some of the following scope of the study:-

1. The present study can be extended to assess the present marketing condition of

stock market.

2. The study can be used to design a proper product, price, place & promotional

strategy for stock market.

3. From the present study we can know the market share of different by-products

and accordingly formulated strategy to enhance it.

4. The result of marketing success of different by-product can be interpreted to

assess the rate of employee’s satisfaction in that department (marketing).

5. This study can be applied to find out an effective distribution channel to enhance

the sale of by-product of sharekhan.com

FINDINGS AND ANALYSIS

On surveying various people who are involved in share trading both as trader as well as

investor, we found that brokerage is the most important factor on which people select /

opt a broking house, followed by image , convenience in trading , customer service,

features, tips & suggestion & AMC.

MOST IMPORTANT FACTOR WHILE SELECTING A BROKING HOUSE

AMC

TIPS & SUGGESTION

FEATURES

CUSTOMER SERVICE

CONVINIENCE(INTRADE)

IMAGE

BROKERAGE

FA

CT

OR

S

What is interesting to note is the weighted contribution of these factors towards decision

making. Although brokerage leads the pack it has only 19% contribution, and is closely

followed by broking houses’ image with 18% and convenience in trade with 16%. AMC

& tips & suggestions having only 10% contribution each towards decision making end up

the pack.

PIE CHART DEPECTING MOST IMPORTANT FACTOR IN SELECTING A BROKING HOUSE

19%

16%

12%

15%

10%10%18%

AMC TIPS & SUGGESTION

CUSTOMER SERVICE FEATURES

CONVINIENCE(IN TRADE) BROKERAGE

IMAGE

On surveying sharekhan.com Customer why they opted for same, we got to know it was

because of image sharekhan.com carries in the market, followed by its competitive

brokerage, convenience in trade, features, customer service, tips and suggestions, and

AMC.

REASON FOR SELECTING SHAREKHAN

AMC

TIPS & SUGGESTION

CUSTOMER SERVICE

FEATURES

CONVINIENCE(IN TRADE)

BROKERAGE

IMAGE

FA

CT

OR

ANALYSIS

SHAREKHA

N.COM

ICICIDIREC

T

. COM

HMRSTREE

T

. COM

HDFCSE

C

. COM

5PAISA

. COM

INDIABU

LLS

A/C

OPENIN

G

CHARG

ES

750/- FOR

CLASSIC

AND

1000/- FOR

SPEEDTRAD

E

750/-(waive off

if trading is

more than Rs.

1 lakh)

20550/-(20,000

as margin)

750/-

(EXISTIN

G

RELATIO

NSHIP)

OR 799/-

420/-

(fresher)

And

250/-

(Traders

)

700/-

DEMAT

A/C

CHARG

ES

FREE (1ST

YEAR)

AND 300/-

P.A.

FROM

2ND YEAR

ONWARDS

FREE FOR 1ST

YEAR

AND 300/-

P.A. FROM

2ND YEAR

ONWARDS

30 p.m. 500 p.a.250/-

P.A.

NO AMC

TYPE

OF

ACCO

UNT

2(CLASSIC &

SPEEDTRAD

E)

Web based 5 type(1. HMR

GATEWAY

A/C, HMR

VALUE A/C,

HMR

Web

based

2(TRAD

ER

TERMI

NAL,

INVEST

OR

TERMI

Web based

PRIVILEGE

A/C, HMR

HIGHTRADE

R A/C,

HMR

FREEWAY

A/C)

NAL)

TRADIN

G

THROU

GH

WEBSIT

E OR

SOFT-

WARE

BOTH WEBSITE Both are

Software

1. Keat

Desktop

2. Keat

Premium

WEBSITEBOTH

WEBSITE

SHAREKHA

N.COM

ICICIDIREC

T

.COM

HMRSTREE

T

.COM

HDFCSE

C

.COM

5PAISA

.COM

INDIABU

LLS

NSE/

BSE/

DERIVA-

TIVES/

ARBIT-

RAGE/

NSE/BSE/

DERIVATIVE

S

NSE/BSE/

MUTUAL

FUNDS/

Derivatives

NSE/

DERIVATIVE

S/

MUTUAL

FUNDS

NSE NSE/

DERIV

ATIVES

/

ARBITR

AGE

ON

DELIVE

NSE/

DERIVATI

VES

MUTUA

L FUNDS

RY/MU

TUAL

FUNDS

SOFT-

WARE

CHARG

ES

500/-P.M.

(NEGOTIABL

E

ON

BROKERAGE

)

N.A. 500/- or 300 /-

p.m.

(NEGOTIABL

E ON

VOLUME)

N.A. 1000/-

commit

ment of

brokerag

e

N.A.

DAIL-N-

TRADE

UNLIMITED On 21st

call Rs 20/-

per call(P.M.)

15/- TO 25/-

FROM 21ST

CALL

RM

NUMBER

PROVIDE

D

FOR

TRADIN

G

Local

call

charges

RM

NUMBER

PROVIDE

D

FOR

TRADING

DEMAT

TRANSA

C-TION

CHARG

ES

NIL

(THROUGH

SHRAKHAN)

INCLUDING

IN

BROKERAGE

.04% OR RS.

25/- ON

SELLING

whichever

is higher

.04% or

Rs. 25

whichever

is higher

0.05 %

OR

minimu

m of Rs.

20/- per

instructi

on

(ON

SELLIN

G)

RS. 17/-

PER

TRANSAC

TION

(ON

SELLING)

TIE UP

WITH

HDFCBANK, ICICIBANK

ONLY

HMR

MAHINDRA

HDFCBA

NK

HDFC

Bank,

HDFC

BANK,

BANKSIDBIBANK,

CITI BANK,

UTIBANK,

OBC

(COMPULSO

RY)

BANK

CITI BANK

UTIBANK

HDFCBANK

(COMPULSIO

N)

ONLY

(COMPU

LSORY)

ICICI

Bank,

UTI

Bank,

Citibank

, Global

Trust

Bank or

Centurio

n Bank

ICICIBAN

K,

ABNAMR

O BANK,

STANCHA

RT BANK,

CITIBANK

SHAREKHA

N.COM

ICICIDIREC

T

.COM

HMR

STREET.

COM

HDFCSE

C

.COM

5PAISA

.COM

INDIABU

LLS

BUY

TODAY

SELL

TOMOR-

ROW

YES YES BUT

ONLY ON

127 SCRIPS

OF NSE

YES,

UPTO 75%

SHARES

VALUE

NO YES YES

IPO

ONLINE

YES YES YES NO YES NO

SMS

ALERTS

100 P.M. YES 100/- P.M. NO NO NO

RESEA-

RCH

REPORT

FREE 450 P.A. FREE FREE FREE PAID 100/-

P.M

S

MINIMU

M

MARGIN

EXPO-

SURE

4 TO 6.7

TIMES

4 TIMES 4 TO 6 TIMES 4 times 4 to 6

times(on

line)

10

times(Of

fline)

4 TIMES

ONWARD

S

MINIMU

M

MARGIN

Nil 5000/- 5000/-,1,00,00

0/-or

5,00,000/-

(according to

account)

5000/- 5000/- 500

BLOCKED

BY THE

SYSTEM

Volume

require-

ment

Nil Nil Yes, according

to

product

Nil Rs

1000/-

Commit

ment as

brokerag

e

NIL

BROKE-

RAGE

.1%

(INTRADAY)

.5%

(DELIVERY)

.1% to.15%

(INTRA-DAY)

.4% to .85%

(DELIVERY)

.06%

(INTRADAY)

.59%

(DELIVERY)

.15%

(INTRA-

DAY)

.5%

(DELIV-

ERY)

(excluding

taxes)

.05%

(INTRA

-DAY)

.25%

(DELIV-

ERY)

.1%

(INTRADA

Y)

.5%

(DELIVER

Y)

Conclusion:

In online trading, sharekhan.com.com have mainly competition with icicidirect.com,

HDFCsec.com, 5Paisa.com India bulls. HMR comes at no. 2 retail broker. It has an

advantage of being in this industry for more than 8 decades. It has launched its website in

2000 and were among the first player in the online share trading. The sharekhan.com has

decided to spend its advertisement budget through four medias i.e. Television, Print, Web

and Outlets. Mr. Boman Irani is the brand ambassador for Sharekhan on television media.

From the above analysis we can point out some points:

1. Sharekhan.com account opening charges are little higher than other competitors.

Sharekhan.com is less flexible to cut down its account opening charges on the

other side; some of the brokers are offering free account opening to High Net

Worth customers.

2. The charges of demat account are reasonable at 300 p.a. but Indiabulls is offering

pool account with no Annual Maintenance charges.

3. Sharekhan provides trading in NSE, BSE and Derivatives. It is also about to

launch online Mutual Funds. Arbitrage facility is not available to customers.

4. Sharekhan is the only one that does not have any Demat transaction charges either

on buying or selling.

5. Unlimited toll free calls service is provided to customer in Sharekhan.com.

6. Sharekhan accept offline payment from other banks also but icicidirect.com,

HDFCsec.com clients have compulsion to open an online account.

7. BTST facility is available on almost all scrips of NSE in Sharekhan, Indiabulls.

But this facilty is not providing by HDFCsec.com, HMRstreet offers it only for

75% of share value and icicidirect.com gives it only on 127 scrips.

8. SMS alerts facility is not available at HDFCsec.com, 5Paisa.com and Indiabulls.

9. IPO Online service is better provided in Sharekhan in comparative to others.

Indiabulls and HDFCsec.com don’t have this facility. 5paisa.com have recently

started it.

10. Sharekhan is only broker in which no margin needs to keep.

11. Sharekhan research reports come in client e-mail at free of cost around 5-6 times

in a day. But some brokers charged for it and some provide it only at once in a

day, while it is paid in Indiabulls, icicidirect.com and 5paisa.com.

12. In brokerage, 5paisa.com have an edge on others with lowest brokerage .25% on

delivery and .05% on intraday.

To sum up, we can say that computerization and automation are not to be avoided.

Technology has been able to make the stock markets accessible to every individual. It has

also led to positive developments in terms of reduced costs and fewer errors. But, as

some experiences have indicated, IT cannot be applied as a panacea for all problems.

Regulation and knowledge dissemination are still important. The use of technology

should be preceded by a detailed study and assessment of all other alternatives. The key

to successful use to technology is the appreciation of its constraints.

RECOMMENDATION

We suggest following measures, which Sharekhan could take so as to take on heavy

competition from India bulls and 5 Paisa

1. To identify regions where promotions are required. Sharekhan lacks visibility in

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

promotional campaign focuses on western region where as northern region is still

waiting for promotional campaigns.

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

Sharekhan keep on telling that it is difficult to reduce cost, because of services we

provide. But the fact is, India being a price sensitive market, people at times go for

monetary benefits rather than for long term non- monetary benefits.

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

so that services are provided to only those customers who are willing to pay the price

for services they are getting and let the other customers enjoy costs benefits without

getting services.

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

for it.

BIBLIOGRAPHY

Books & Journals

1. Securities Market (Basic) Module :- NCFM

2. “Securities Analysis And Portfolio Management”, Fischer And Jorden

3. “Investment Management: Security Analysis And Portfolio

Management”, V.K. Bhalla

4. Economic Times

5. Training Kit Provided By The Sharekhan

Websites

www.equitymaster.com www.investopedia.com www.valuenotes.com www.sharekhan.com

ANNEXURE

QUESTIONNAIRE

Questionnaire Name: Phone: Email_Id: Account Type: Speed Trade Classic

Q1. How was your first interaction with our sales executive?

Excellent Good Average

Bad Very Bad

Q2. Did he make you familiar with all the services offered by Sharekhan

Yes No Comments: _________________________________________

Q3. How did you find our sales executive when he gave you the demo of our product?

Courteous Polite Punctual Confident Informative Up To Date Communication Skills Comment____________________________________________

Q4. Did he explain you everything about the account and the services offered when he came for the demo, like.

Research Reports IPO Online Exposure Terminal Online Money Transfer

Q5. How did you find our processes from Client Acquisition to Client Servicing?

Efficient Tedious Unnecessary Comment: ___________________________________________

Q6. Did you face any problem while opening the account?

Yes No Comments: __________________________________________

Q7. Do you consider our terminal user friendly?

Yes No

Comments: __________________________________________

Q8. How frequently do you use it for trading?

Comments, Please Specify ______________________________

Q9. What extra do you expect from Sharekhan.

Comments: __________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________