A Study of Consumer Behaviour Towards Equities and Derivatives Market in Udaipur City

8/6/2019 A Study of Consumer Behaviour Towards Equities and Derivatives Market in Udaipur City

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A study of consumer behaviour towards equities and

derivatives market in udaipur city - Document Transcript

1.Projectsformba.blogspot.com A Project Study Report OnTraining Undertaken at INDIABULLS SECURITIES LTD.

UDAIPUR A STUDY OF CONSUMER BEHAVIOUR

TOWARDS EQUITIES AND DERIVATIVES MARKET IN

UDAIPUR CITY Submitted in partial fulfillment for the

Award of degree of Master of Business Administration

Submitted By: - MBA-II SEM 2008-

2010Projectsformba.blogspot.com

2.Projectsformba.blogspot.com Submitted To:-Projectsformba.blogspot.com

3.Content given in this format.Cover PageCertificate from theCompany/OrganizationPreface/PreludeAcknowledgementExe

cutive SummaryContents:1. Introduction to the Industry2.

Introduction to the Organization3. Research Methodology 3.1

Title of the Study 3.2 Duration of the Project 3.3 Objective of

Study 3.4 Type of Research 3.5 Sample Size and method of

selecting sample 3.6 Scope of Study 3.7 Limitation of Study4.

Fact & Finding5. Analysis and Interpretation6. SWOT7.

Conclusion8. Recommendation and Suggestions9.

Appendix10. Bibliography

4.PREFACEThe main motive behind the summer training of theMBA program is to providethe practical aspect of theorganizations working environment. The study is theoutcome

of my project that has been produced as partial fulfillment of

theMasters of Business Administration from Advent Institute

of ManagementStudies, Udaipur.This training has helped to

visualize and realize about the congruency betweenthe


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theoretical learning in the college and the actual practices of

management.This overall project has given me an insight into

the actual corporate world apartfrom the theoretical

environment. It has allowed me to face the world full of

upsand downs and to get a glance of the future corporateworld in which we aregoing to enter.My summer trainingproject at IndiaBulls Securities Ltd. Is a completeexperience

in itself and it has become an inspirable part of my knowledge

ofmanagement being learned in MBA programme.

5.AcknowledgementI express my sincere thanks to my projectguide .(Director) AdventInstitute Of

Management, Udaipur for guiding me right from the inceptiontillthe successful completion of the project. I sincerely

acknowledge him forextending their valuable guidance,

support for literature, critical reviews ofproject and the report

and above all the moral support he had provided to mewith all

stages of this project.I would also like to thank the supportingstaff

.

.. Advent Institute Of Management,Udaipur for theirhelp and cooperation throughout our project.

6.EXECUTIVE SUMMARYTITLE"A STUDY OFCONSUMER BEHAVIOUR TOWARDS EQUITIES AND

DERIVATIVESMARKET IN UDAIPUR CITY1. BACK

GROUND OF THE STUDYThis study is conducted for

Indiabulls Securities Ltd. at Udaipur, by

. first year of Master in Business

Administration (MBA) student asrequirement for partial

fulfillment for MBA.Indiabulls is lead by a highly regarded

management team that has invested ThousandLac of Rupee

into a World class Infrastructure that provides their clients

with real-timeservice & The objectives of the study include


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A) To study customers trading behavior B) To know what

major factors effects or influence customers trading behavior.

C) To know the satisfaction level of customers towards

INDIABULLS services.around Clock i.e.24 Hrs. access to

all information and products.2. Objectives

7.3. Research MethodologyThe methodology includescollection of data with the help of structured questionnaire;the

data has been collected by interviewing around 100 clients.4.

Data collection & InterpretationIt includes cross tabulation of

questionnaire by classification of responses andfrequency

distribution and appropriate graphical representation question

withcomments.5. Observations & FindingsObservation isrelated those issues only, which are not included and explored

throughthe questionnaire, it may not require a data

support.Findings are strictly based on the collected data,attempting to answer the objectives.6. Limitation of the

studyThe study can be biased to the extent of personal

perception, historical nature of datacollection and of the time

limit.7. SuggestionBased on findings, suggestions were given

in order to improve the communicationstrategy and widencompanys market.

8.CHAPTER -1Introduction to the Industry9.INTRODUCTION TO INDIABULLS LTD.Indiabulls is

Indias leading Financial Services and Real Estate Company

having over640 branches all over India. Indiabulls serves the

financial needs of more than 4,50,000customers with its wide

range of financial services and products fromsecurities,derivatives trading, depositary services, research &

advisory services, consumersecured & unsecured credit, loan

against shares and mortgage & housing finance. Witharound

4000 Relationship Managers, Indiabulls helps its clients tosatisfy theircustomized financial goals. Indiabulls through its


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group companies has entered IndianReal Estate business in

2005. It is currently evaluating several large-scale

projectsworth several hundred million dollars.Indiabulls

Financial Services Ltd is listed on the National Stock

Exchange, BombayStock Exchange and Luxembourg StockExchange. The market capitalization ofIndiabulls is aroundUSD 2,350 million (25th April 2007). Consolidated net worth

of thegroup is around USD 510 million (31st March 2007).

Indiabulls and its group companieshave attracted USD 500

million of equity capital in Foreign Direct Investment (FDI)

sinceMarch 2000. Some of the large shareholders of

Indiabulls are the largest financialinstitutions of the world

such as Fidelity Funds, Goldman Sachs, Merrill Lynch,

MorganStanley and Farallon Capital.Business of the company

has grown in leaps and bounds since its inception. Revenueof

the company grew at a CAGR of159% from FY03 to FY07.

During the same period,profits of the company grew at a

CAGR of184%.Indiabulls became the first company to bring

FDI in Indian Real Estate through a JV withFarallon Capital

Management LLC, a respected US based investment firm.

Indiabullshas demonstrated deep understanding and

commitment to Indian Real Estate marketby winning

competitive bids for landmark properties in Mumbai and

Delhi.

10. Group Companies of Indiabulls INDIABULLS LTD.INDIABULLS INDIABULLS SECURITIES LTD. REAL

ESTATE INDIABULLS CONSUMER FINANCE

LTD.INDIABULLS SECURITIES LTD.Indiabulls Securities,the retail equity broking arm of the Indiabulls group,

hasexperienced strong growth over the last two financial

years. Currently, it has a clientbase of75000 (29000 as at

March 31, 2004) and enjoys a market share 3 of about 4per

cent. Its widespread network, (79 offices in 60 cities) a strong


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technology base, andthe facility of loan against shares

provided to clients (through Indiabulls FinancialServices) for

purchasing equity shares has enabled it to gain market share.

Its clientdiversity reduces its dependence on any single client.

11. These strengths are, however, partially offset by the factthat it operates in a high-volume, price-sensitive business

segment. Retail brokerage rates are significantly lowerthan

institutional brokerage rates primarily because of an

institutional brokers expertiselevel and on account of its

offering of value-added services.However, CRISIL believes

that the leadership position of Indiabulls in the retail

equitybrokerage segment places it in a better position toweather the inherent risk in thesegment.Indiabulls securities

ltd. is the retail broking house that caters to the needs of

individualinvestors. While the investment world abounds with

jack of all trades, the co. chose tobuild the business by

focusing on what it knows best market driveninvestmentavenues like equities and derivatives. The co.

facilitate the investment process for itsclients and also provide

value added services like research, stock ideas, onlinetrading,demat, etc. to make the investment experience

rewarding.CORE SERVICES 1. Equity and derivativestrading on NSE 2. Depository services 3. Online trading 4.

IPO services 5. Portfolio management services 6. Technical

analysis 7. Research reports

12. INDIABULLS CONSUMER FINANCELTD.Indiabulls, a retail focused organization fulfills the credit

need of a large percentage ofpopulation in India. The key

aspect of Indiabulls business model is to provide anextremely

unique customer experience. The blend of power of the

Internet withpersonalized services allows Indiabulls to expand

its geographical coverage andcapture a greater share in the


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highly competitive retail market. It offer consumer

loans,home loans, personal loans, securities brokerage, and

other financial products andservices to retail customers from

across 640 Indiabulls offices in 127 leading cities ofthe

country.Indiabulls Fast LoansThe company offers the shortestroute to a loan with minimum paperwork andprocedures. WithIndiabulls Fast Loans, one can avail easy loans for a minimum

ofRs.10, 000 to a maximum amount of Rs.1, 00,000.1.

Features of Personal Loan Flexible loan tenure of up to 4

years (i.e.1 month to 48 months). Loans available from a

minimum of Rs.10, 000 up to a maximum of Rs.100, 000.

Easy monthly repayment through equated monthly

installments (EMI). Easy documentation and quick

disbursal.2. Commercial Vehicle LoansIndiabulls started

Commercial Vehicle Finance under the flagship of Indiabulls

CreditServices Ltd. in April 2006 to provide refinance to its

commercial vehicle clients. It havesound fundamentals,

competent management and expertise in financing

thetransporters. The companys reach gives it a unique market

position enabling it to excelin customer satisfaction, quick

service and growth-led profitability.

13. The Commercial Vehicle Finance provided by helps thesmall and medium operators toacquire vehicles with minimum

hassle and documentation. Co.s strength lies in thequick

completion of transactions, long association with transporters

and the intimateknowledge of the market and its nuances.3.

Mortgage LoansIndiabulls has commenced lending of

Mortgage Loans to prospective customers underthe flagshipof Indiabulls Housing Finance Ltd. Here it enable home-

seekers to accessfinance to buy their homes. The co. also

provide plot loans, Loan against Residential,Commercial and

Rental Property, thereby enabling the borrower to leverage

theproperty owned to fund any legitimate needs be it Business


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Expansion, ChildsEducation, Childs Marriage or for Holiday

Abroad.4. Indiabulls Home Loans Indiabulls Housing Finance

Company helps to realize a long cherished dream ofowning

home through hassle free and customer friendly home loans.

A person can availof the Home Loans purchasing a ready builthouse/flat, residential plot and even for re-financing existingloans of other banks or housing finance

companies.INDIABULLS REAL ESTATEThe Indiabulls

group has recently made an investment in real estate. Though

thearticulated purpose of the investment is to acquire fixed

assets for office space,nevertheless it is an equity exposure in

real estate and is thus exposed to the inherentrisks in real

estate to the extent of the equity capital that would be invested

by thegroup.

14. Growth StoryIndiabulls has emerged as one of theleading and fastest growing financial company inless than two

year, since its initial public offering in September 2004. It hasa marketcapitalization of around 2,350 million (25th April

2007) and consolidated net worth of thegroup is around USD

510 million. Indiabulls Financial Services Ltd. establishedIndias one of the2000-01 first trading platforms with the

development of an in house team. Indiabulls expands itsservice offerings to include Equity, F&O,2001-03 and

Wholesale Debt, Mutual fund, IPO distribution and Equity

Research. Indiabulls ventured into Insurance distribution and

commodities2003-04 trading. Company focused on brand

building and franchise model. Indiabulls came out with its

initial public offer(IPO) in Sep.2004. Indiabulls started itsconsumer finance business.2004-05 Indiabulls entered the

Indian Real Estate market and became the first company to

bring FDI in Indian Real Estate. Indiabulls is a market leader

in securities brokerage industry, With around 31% share in

online trading, Farallon Capital and its affiliates, the worlds


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largest hedge fund2005-06 committed Rs. 2000 million for

Indiabulls subsidiaries Viz. Indiabulls Credit Services Ltd.

and Indiabulls Housing Finance Ltd. Steel Tycoon Mr. LN

Mittal promoted LNM India Internet venture Ltd. Acquired

8.2% stake in Indiabulls Credit Services Ltd.

15. Indiabulls entered in a 50/50 joint venture with DLF,Kenneth Builders & Developers (KBD). KBD has acquired

35.8 acres of land from Delhi Development Authority through

a competitive bidding process for Rs 450 crore to develop

residential apartments. Indiabulls ventured into commodity

brokerage business. 2006-07 Indiabulls has received an in

principle approval from Government of India fordevelopment of multi product SEZ in the state of

Maharashtra. Indiabulls Financial Service Ltd. Board

resolves to Amalgamate Indiabulls Credit Services Ltd. and

demerge Indiabulls Securities Ltd.Board Of

DirectorsManagement TeamBoard of DirectorsNameDesignationMr. Rajiv Rattan Whole Time DirectorMr.

Aishwarya Katoch DirectorMr. Saurabh K Mittal DirectorMr.

Gagan Banga DirectorMr. Shamsher Singh DirectorMr. KaranSingh DirectorMr. Sameer Gehlaut Chairman & Wholetime

DirectorMr. Prem Prakash Mirdha Independent Director

16. CHAPTER -2Introduction to theOrganizationCOMPANY / ORGANIZATION PROFILE

17. Indiabulls is Indias leading Financial Services and RealEstate Company having over640 branches all over India.

Indiabulls serves the financial needs of more than4,50,000customers with its wide range of financial services

and products from securities,derivatives trading, depositary

services research & housing finance. With around

4000Relationship Managers, Indiabulls helps its clients to

satisfy their customized financialgoals.Indiabulls Financial


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Services Limited was established in the year2000 by

threepromoters all of whom are engineers from Indian

Institute of Technology, New Delhi,and has attracted over Rs.

700 million of investments from venture capital firms,

privateequity funds and institutional investors. The investorsinclude the proprietary fund of Mr.L.N. Mittal-LNM IndiaInternet Venture Limited, Transatlantic Corporation Ltd.,

FarallonCapital Partners LP and Infinity Technologies Trustee

Private Limited.Indiabulls headquarter are co-located in

Mumbai and Delhi, allowing us to access thetwo most

important regions for Indian financial Markets, the Western

region includingMumbai, rest of Maharashtra Gujarat and the

Northern region, including the NationalCapital Territory of

Delhi, nearby cities, parts of Haryana, Uttar Pradesh and

Punjab;and access the highly skilled and educated workforce

in Delhi; and back office, riskmanagement and internal

finance are headquartered out of one central location in

NewDelhi, allowing us to scale these process efficiently for

the nationwide network. All theback office work, transaction

processing work and issuance of cheques takes placefrom the

New Delhi office enabling us to have better control and

efficiency in the supportfunctions.Promoters and Their

Background

18. The company was established by three engineers fromIIT Delhi, and has attractedsignificant amount of investment

from venture, private equity and institutional investors.The

details are as follows:-Sameer Gehlaut, Chairman, CEO &

Whole Time DirectorSameer, aged 30 years graduated with aMechanical Engineering degree from theIndian Institute of

technology, Delhi. He has gained extensive experience in

theFinancial Services sector and developed in-depth

knowledge and strong understandingof all aspects of the

Securities Industry and Financial Services Business. Under


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hisLeadership, Indiabulls group has grown from one office,

310 clients, and 8 employees inFY 2000 to 32,359 clients, 70

office and 606 employees as on April 30, 2004.Rajiv Rattan,

President CFO & Whole Time Director:Rajiv, aged 30 years,

an NTSE Scholar, graduated with and ElectricalEngineeringDegree from the Indian Institute of Technology,Delhi. He gained extensive experiencein international best

practices, process management and risk management, which

hebrought to Indiabulls Group as one of the founders of the

company.Saurabh Mittal, Director:Saurabh, aged 30 years,

graduated with and Electrical Engineering Degree from

theIndian Institute of Technology, Delhi. He worked a

citigroup Asset Management as aninvestment analyst, and is

currently a senior portfolio manager at Farallon Capital.

Hehas developed and understanding of International financial

markets and extensiveexperience in the securities industry

Saurabh is responsible for strategic decision-making and is the

director of the company.

19. BUSINESSOVERVIEW Indiabulls Financial ServicesLimitedIndiabulls Securities Indiabulls CommoditiesIndiabulls Insurance Limited Advisors Pvt. Limited Pvt.

Limited 1. Equity & Debt Stock Insurance Product BrokingCommodities Trading Distribution 2. Depository Services 3.

Derivative Broking Services 4. Equity Research Services 5.

Mutual Fund Distribution 6. IPO Distribution Competitors:

Karvy Computer share Private Ltd. G S Raheja Finance

ICICI Securities Limited India Infoline Ltd. Indbank

Merchant Banking Services Ltd. Share Khan Securities Zuari Investments Kotak Mahindra SHCL Others.

Equity Broking Account

20. Ration CardAddress Proof - Photocopy of any one ofDriving License / Passport/Ration Card/VoterCard/ Telephone


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Bill / Electricity Bill/ Bank Statement.A Partnership firm

desirous to open an account would require the following as

well -A certified true copy of the partnership deedCopy of last

Income Tax Returns filed.Corporate desirous of opening an

account would require the following additionaldocuments -Certified true copy of a resolution passed by the Board ofDirectors naming theauthorized officials to sign the Member

constituent agreements.Regardless of how the market is

performing or which way the economic winds areblowing,

you, as a trader, are researching, charting, crafting a strategy,

buying andselling. You are getting in, getting out and moving

on to the next trade.Choose from a comprehensive offering of

accounts, platforms and products. Customizeour technology

and services to support the way you work.Features of Power

India bulls :i Driving License i Voter ID i PAN Card i

Passport iA passport size photograph.Proof of Demat

Account. If you intend to get a Depository account opened

withIndiabulls as well, please see the relevant requirements

for that.Proof of Bank Account - A cancelled cheque would

be sufficient.Photocopy of Income Tax Permanent AccountNumber(PAN) Card - If you do not havea PAN, then you

would be required to give a declaration to that effect.Identity

Proof - Photocopy of any of the following :-

21. Live Streaming Quotes Fast Order Entry Tic by TicLive Charts Technical Analysis Live News and Alerts

Extensive Reports for Real-time Accounting Introduction

About Demat MarketWhat is Demat accountThe depository

converts your physical holding of securities (backed by papercertificatesas evidence of ownership) to electronic balances

held in a Demat account with aDepository Participant (DP). A

Demat account holder(also called a beneficiary owner)can

have securities balances either by converting his existing

physical certificates or bybuying in Demat form.Benefits of


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Demats :- Electronic settlement of trades No stamp duty on

transfer of securities Elimination of risks associated with

physical certificates such as bad delivery, fake Securities

Reduction in paperwork involved in transfer of securities

Reduction in transaction cost Nomination facility Change inaddress recorded with DP gets registered electronically Withall companies in which investor holds securities eliminating

the need to Correspond with each of them separately

Transmission of securities is done by DP eliminating

correspondence with

22. Companies Investments in Equity, Debt instruments,Mutual Funds, Kisan Vikas Patras, National SavingCertificates and other Government Securities can be held in a

single account Automatic credit of shares, arising out of split

/ consolidation / merger, bonus, IPO allotments etc., into

demat account.What is a stock market?The stock market is a

central market place for raising funds by Governmentsandvarious corporations to expand their businesses and

shareholding base. This is usuallydone by issuing shares in a

company which can then be bought and sold.What is a stockexchange?The fundamental role of a stock exchange is to

provide a fair and internationallycompetitive market place forthe trading of financial securities for the benefit of

allparticipants (Listed Companies, Institutions and small

investors).All countries who have a local stock exchange aim

to provide a market place whereby: Companies and

Governments can raise funds, and Investors can invest

surplus funds in anticipation of receiving dividends andcapital gain from their share investments.What is a share

market?The share market comprises of two markets:The first

is a primary market whereby companies or Governments issue

new shares inorder to raise capital to expand their operations

(for whatever reason) and take on awider range of


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shareholders. This is done by issuing an investment statement

and/or aprospectus through an organizing or underwriting

broker.The second is the secondary market, which is the

central market place provided by thestock exchange, where

investors trade existing securities/shares.What is a share andwhat is their use?

23. A share is a basic unit of ownership in a company.When you buy a share, you become a part-owner of a

company. Ownership of that company is divided into millions

of parts. These parts are called shares and each person who

buys a share is a shareholder. The directors of the company

are employed to manage the business, but the company iswholly owned by its shareholders. When a company is

founded, it often progresses and develops and often to expand,

it requires financial help. The company can opt to borrow

funds from the bank and pay interest like a loan or they can

opt to raise funds by becoming a listed company on the sharemarket. There are many Rules and Regulations that a

company must abide by and comply with, if they wish to list

and issue securities on the New Zealand Stock Exchange.These Rules are administered and enforced by an independent

Market Surveillance Panel Once a Company has become aListed Company on the NZX, it can raise funds by offering

shares in return for cash. A share of ownership is what the

investor gets in exchange for their financial support.

PRODUCT PORTFOLIO / PRODUCT BUCKETIndiabulls

Securities Ltd works in three market :- 1. Equity 2.

Derivatives 3. CommoditiesEquityEquity is a term whosemeaning depends very much on the context. In general, you

canthink of equity as ownership in any asset after all debts

associated with that asset arepaid off. For example, a car or

house with no outstanding debt is considered the

ownersequity since he or she can readily sell the items for


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cash. Stocks are equity becausethey represent ownership of a

company, whereas bonds are classified as debt becausethey

represent an obligation to pay and not ownership of assets.To

support its investment, a firm must find means to finance

them. Equity and debtrepresent two broad sources of financefor a business firm.Derivatives

24. Derivatives as a term conjures up visions of complexnumeric calculations, speculativedealings and comes across as

an instrument which is the prerogative of a few smartfinance

professionals. In reality it is not so. In fact, a derivative

transaction helps coverrisk, which would arise on the trading

of securities on which the derivative is based anda smallinvestor, can benefit immensely.A derivative security can be

defined as a security whose value depends on the values

ofother underlying variables. Very often, the variables

underlying the derivative securitiesare the prices of traded

securities.Let us take an example of a simple derivativecontract:Ram buys a futures contract.He will make a profit of

Rs 1000 if the price of Infosys rises by Rs 1000.If the price is

unchanged Ram will receive nothing.If the stock price ofInfosys falls by Rs 800 he will lose Rs 800.As we can see, the

above contract depends upon the price of the Infosys scrip,which isthe underlying security. Similarly, futures trading has

already started in Sensex futuresand Nifty futures. The

underlying security in this case is the BSE Sensex and NSE

Nifty.Derivatives and futures are basically of 3

types:Forwards and FuturesOptionsSwaps( i ) Forward

contractA forward contract is the simplest mode of aderivative transaction. It is an agreement tobuy or sell an asset

(of a specified quantity) at a certain future time for a certain

price.No cash is exchanged when the contract is entered

into.What is an Index?


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25. To understand the use and functioning of the indexderivatives markets, it is necessaryto understand the

underlying index. A stock index represents the change in

value of aset of stocks, which constitute the index. A market

index is very important for the marketplayers as it acts as abarometer for market behavior and as an underlying inderivativeinstruments such as index futures.The Sensex and

NiftyIn India the most popular indices have been the BSE

Sensex and S&P CNX Nifty. TheBSE Sensex has 30 stocks

comprising the index which are selected based on

marketcapitalization, industry representation, trading

frequency etc. It represents 30 large well-established and

financially sound companies. The Sensex represents a broad

spectrumof companies in a variety of industries. It represents

14 major industry groups. Thenthere is a BSE national index

and BSE 200. However, trading in index futures has

onlycommenced on the BSE Sensex.While the BSE Sensex

was the first stock market index in the country, Nifty

waslaunched by the National Stock Exchange in April 1996

taking the base of November 3,1995. The Nifty index consists

of shares of50 companies with each having a

marketcapitalization of more than Rs 500 crore.Futures and

stock indicesFor understanding of stock index futures a

thorough knowledge of the composition ofindexes is essential.

Choosing the right index is important in choosing the right

contractfor speculation or hedging. Since for speculation, the

volatility of the index is importantwhereas for hedging the

choice of index depends upon the relationship betweenthestocks being hedged and the characteristics of the

index.Choosing and understanding the right index is important

as the movement of stockindex futures is quite similar to that

of the underlying stock index. Volatility of the futuresindexes

is generally greater than spot stock indexes.Every time an


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investor takes a long or short position on a stock, he also has

an hiddenexposure to the Nifty or Sensex. As most often stock

values fall in tune with the entiremarket sentiment and rise

when the market as a whole is rising.

26. Retail investors will find the index derivatives useful dueto the high correlation of theindex with their portfolio/stock

and low cost associated with using index futures

forhedging.Understanding index futuresA futures contract is

an agreement between two parties to buy or sell an asset at

acertain time in the future at a certain price. Index futures are

all futures contracts wherethe underlying is the stock index

(Nifty or Sensex) and helps a trader to take a view onthemarket as a whole.Index futures permits speculation and if a

trader anticipates a major rally in the markethe can simply buy

a futures contract and hope for a price rise on the futures

contractwhen the rally occurs. We shall learn in subsequent

lessons how one can leverage onesposition by taking positionin the futures market.In India we have index futures contracts

based on S&P CNX Nifty and the BSE Sensexand near 3

months duration contracts are available at all times. Eachcontract expireson the last Thursday of the expiry month and

simultaneously a new contract isintroduced for trading afterexpiry of a contract.( ii ) OptionsStock markets by their very

nature are fickle. While fortunes can be made in a jiffy

moreoften than not the scenario is the reverse. Investing in

stocks has two sides to it a)Unlimited profit potential from

any upside (remember Infosys, HFCL etc) or b) adownside

which could make you a pauper.Derivative products arestructured precisely for this reason -- to curtail the risk

exposureof an investor. Index futures and stock options are

instruments that enable you to hedgeyour portfolio or open

positions in the market. Option contracts allow you to run

yourprofits while restricting your downside risk.Apart from


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risk containment, options can be used for speculation and

investors cancreate a wide range of potential profit

scenarios.What are options?

27.

Some people remain puzzled by options. The truth is thatmost people have been usingoptions for some time, becauseoptions are built into everything from mortgages

toinsurance.An option is a contract, which gives the buyer the

right, but not the obligation to buy orsell shares of the

underlying security at a specific price on or before a specific

date.Option, as the word suggests, is a choice given to the

investor to either honour thecontract; or if he chooses not to

walk away from the contract.To begin, there are two kinds ofoptions:Call Options and Put Options.A Call Option is an

option to buy a stock at a specific price on or before a certain

date.In this way, Call options are like security deposits. If, for

example, you wanted to rent acertain property, and left a

security deposit for it, the money would be used to insurethatyou could, in fact, rent that property at the price agreed upon

when you returned. Ifyou never returned, you would give up

your security deposit, but you would have noother liability.Call options usually increase in value as the value of the

underlyinginstrument rises.When you buy a Call option, theprice you pay for it, called the option premium, securesyour

right to buy that certain stock at a specified price called the

strike price. If youdecide not to use the option to buy the

stock, and you are not obligated to, your onlycost is the option

premium.A Put Options are options to sell a stock at a specific

price on or before a certain date.In this way, Put options arelike insurance policiesIf you buy a new car, and then buy auto

insurance on the car, you pay a premium andare, hence,

protected if the asset is damaged in an accident. If this

happens, you canuse your policy to regain theinsured value of

the car. In this way, the put option gains in value as the value


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of theunderlying instrument decreases. If all goes well and the

insurance is not needed, theinsurance company keeps your

premium in return for taking on the risk.With a Put Option,

you can "insure" a stock by fixing a selling price. If

somethinghappens which causes the stock price to fall, andthus, "damages" your asset, you canexercise your option andsell it at its "insured" price level. If the price of your stock

goesup, and there is no "damage," then you do not need to use

the insurance, and, once

28. again, your only cost is the premium. This is the primaryfunction of listed options, toallow investors ways to manage

risk.Technically, an option is a contract between two parties.The buyer receives a privilegefor which he pays a premium.

The seller accepts an obligation for which he receives

afee.There are two types of options: Call Options Put

OptionsCall optionsCall options give the taker the right, but

not the obligation, to buy the underlying sharesat apredetermined price, on or before a predetermined date.Put

OptionsA Put Option gives the holder of the right to sell a

specific number of shares of anagreed security at a fixed pricefor a period of time.eg: Sam purchases 1 INFTEC (Infosys

Technologies) AUG 3500 Put --Premium 200This contractallows Sam to sell 100 shares INFTEC at Rs 3500 per share at

any timebetween the current date and the end of August. To

have this privilege, Sam pays apremium of Rs 20,000 (Rs 200

a share for100 shares).The buyer of a put has purchased a

right to sell. The owner of a put option has the rightto

sell.Commodities

29. A commodity is something that is relatively easilytraded, that can be physicallydelivered, and that can be stored

for a reasonable period of time. It is a characteristic

ofcommodities that prices are determined on the basis of an


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active market, rather than bythe supplier(or other seller) on a

"cost-plus" basis. Examples of commodities includenot only

minerals and agricultural products such as iron ore, crude oil,

ethanol, sugar,coffee, aluminium, rice, wheat, gold, diamonds,

or silver, but also so-called"commoditized" products such aspersonal computers.Linguistically, the word commodity cameinto use in English in the 15th century, beingderived from the

French word "commodit", meaning todays (2000)

"convenience" interm of quality of services. The Latin root

meaning is commodities, referring variously tothe appropriate

measure of something; a fitting state, time or condition; a

good quality;efficaciousness or propriety; and advantage, or

benefit. The German equivalent is dieWare, i.e. wares or

goods offered for sale. The French equivalent is "product de

base"like energy, goods, or industrial raw material

TARGETS/TASKSI am doing my Executive Training with

INDIABULLS SEDCURITIES LIMITED inUdaipur Branch.

INDIABULLS SEDCURITIES LIMITED provides an online

tradingaccount in which three type of facilities are provided to

customers.These are: Demat account. Trading account.

Margin FundingMy task in the company is to meet with the

customers and convince them to open theiraccount with the

company. Daily my company guide tells us the areas where

we have totarget for achieving the target .For this period of

four months training our company has provided us not

specific targetfor each month.

30. Targets mentioned above are the minimum targets whichwe are expected to achieve.Only after achieving these targets,our path to get Pre Placement Offer and FinalPlacement

Offer.Through focused guidance of my company guide and by

my ability to work hard, I amconfident that I will be able to

achieve my targets on time and that would be help me outto

give edge of my carrier.Out of four months training period, I


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have completed my one month of training and thesecond

month is about to complete. In this month, I have learned

many things. Thefollowing table depicts the target I have done

to achieve in this period of one month andwhat I actually

achieved.

31. CHAPTER -3 Research MethodologyTitle of the Study"A Study on significance and relevance of internal &

interactive

32. marketing for financial marketing with special referenceto INDIA BULLs"Duration of the ProjectThe project is

Submitted in partial fulfillment for the Award of degree of

Master ofBusiness Administration & To find strength Toknow more about the Company / OrganizationThe duration

of the project is Objective of studyThe

main objectives of the study are as follows :- & To know

significance and relevance of internalweakness of the

Company / Organization & To know what major factors

effects or influence internalinteractive marketing &

interactive marketing for financial marketing RESEARCHMETHODOLOGYA Research is careful investigation orinquiry, especially through search for new factsin any branch

of knowledge. It is a systemized effort to gain more

knowledge.

33. Research methodology is a way to systematically solvethe research problem. It maybe understood as a science of

studying how research is done scientifically. We studythe

various steps that are generally adopted by a researcher instudying his researchproblem along with the logic behind

them. It is necessary for the researcher to know notonly the

research methods or techniques but also the methodology.

Researcher alwaysneeds to understand the assumptionsunderline various technique and they need toknow the criteria


21/38

by which they can decide that certain technique and

procedures will beapplicable to certain problems and other

will not.The predefined objective can be achieved by

following ways: o Studying the buying behavior of customer.

o Comparing sales of different players.TYPE OFRESEARCH:Personal interview approach was adopted for theproject. In this type of research, theresearcher has to contact

the person directly to know the available information

andanalyze the data was available in interviewers statements.

This was one of the mainsources for the project.The other

approach was PERSONNEL RESEARCH. It is based on the

personalknowledge. It is applicable to phenomenon that can

be expressed in terms of words.RESEARCH PROCESS:

34. Research Process consists of a series of action or stepsnecessary to effectively carryout the research and the desired

sequencing of these steps. The various steps, whichprovided

guidelines to the research process pertaining to the project, areas follows: 1) Formulating the research problem Formulation

of research problem involves understanding the problem

thoroughly and rephrasing the same into meaningful termsfrom an analytical point of view. 2) Extensive literature

survey It is necessary for the researcher to conduct anextensive survey connected with the problem. For the purpose

manual, company records, journals, published data can be

used. 3) Development of working hypotheses Working

hypotheses is a tentative assumption made in order to draw

out and rest its logical or empirical consequences.4)

Preparing the research design The researcher will be requiredto prepare a research i.e. he will have to state the conceptual

structure within which research would be conducted. The

function of research design is to provide the collection of

relevant evidence with minimum expenditure of efforts, time

and money.5) Determining the sample design The researcher


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must decide a way of selecting a sample or what is popularly

known as sample design. The types of sample design are: o

Simple Sampling

35.

o Random Sampling o Systematic Random Sampling oStratified Sampling o Quota Sampling o Cluster and AreaSampling o Multistage Sampling o Sequential Sampling o

CensusFor this project, Random Sampling was used among

the above-mentioned types.Since the time period was limited

to 2 months, the sampling size was limited to 75.6)

Collection of data While deciding the methods of data

collection to be used for study the researcher should keep in

mind two types of data viz. Primary Data The Primary Dataare those, which are collected a fresh and for the first time and

thus happen to be original in character. Secondary Data

Secondary data means data that are already available i.e. they

refer to the data which have already been collected and

segregated by someone else. The researcher has to determinethe various sources of obtaining secondary data. Secondary

data may be published or unpublished in nature.

36. Published data are available in: Publications of central,state and local newspapers Publication of foreign

government or of international bodies Technical or trade

journals Books, magazines and newspaper and Internet

Public record and statistics, historical documents and sources

of public information. Data Collection Data used for the

project was the secondary and primary data. Methods of Data

Collection Personal Interview Questionnaire &

Telephonic Interview.7) Analysis of data Analyses of data

can of two types: Quantitative analysis Qualitative

analysisThus analysis of data require a number of closely

related operations such asestablishment of categories, the

application of these categories into raw data


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throughtabulation, chart and then draw inferences. Analysis

work is generally based on thecomputation of various

percentage, co-efficient etc. by applying various

statisticalformulae.

37. Preparation of ReportsAfter analysis, the next step is inthe preparation of the report. The report has beenprepared

according to the report writing principles.The Objective,

clarity in presentation of ideas and the uses of charts have

beenmaintained throughout the report.Once the data has been

collected, the researcher has to process, analyze and

interpretthe same. It was emphasized that the researcher

should exercise good care to ensurethat reliable data are notproperly processed and analyzed. Sufficient attention is

oftennot given to these aspects, with the result that the quality

of the report suffers.Editing The first task in data is editing.

It is the process by which data are preparedfor subsequent

coding. As it is very subjective process, editing is the processofexamining errors and omission in the collected data and

making necessary in the samethis is desirable when there is

more inconsistency in the responses.Coding Coding is theprocedure of classifying the answers to a question

inmeaningful categories the symbol used to indicate thecategories are called codes.Coding is necessary to carry out

the subsequent operation of tabulation and

analyzingdata.Coding involves two steps:Tabulation:

Tabulation comprises of sorting of data into different

categories andcounting the number of cases that belongs to

each categories.One is unvaried tabulation. This includes thenumbers of responses to one question orto count. Its very

simplest way to tabulate where two or more variables are

involved intabulation. It is called vicariate or multivariate

tabulation. In marketing research project,generally both type

of tabulation is used.


24/38

38. INDIAN Capital Market-Indian Stock Markets are one ofthe oldest in Asia. Its history dates back to nearly 200years

ago. The earliest records of security dealings in India are

meager and obscure.The East India Company was the

dominant institution in those days and business in itsloansecurities used to be transacted towards the close of theeighteenth century.By 1830s business on corporate stocks and

shares in Bank and Cotton presses tookplace in Bombay.

Though the trading list was broader in 1839, there were only

half adozen brokers recognized by banks and merchants

during 1840 and 1850.The 1850s witnessed a rapid

development of commercial enterprise and brokeragebusiness

attracted many men into the field and by 1860 the number of

brokersincreased into 60.In 1860-61 the American Civil War

broke out and cotton supply from United States ofEurope was

stopped; thus, the Share Mania in India begun. The number of

brokersincreased to about 200 to 250. However, at the end of

the American Civil War, in 1865,a disastrous slump began

(for example, Bank of Bombay Share which had touched

Rs2850 could only be sold at Rs. 87).At the end of the

American Civil War, the brokers who thrived out of Civil War

in 1874,found a place in a street (now appropriately called as

Dalal Street) where they wouldconveniently assemble and

transact business. In 1887, they formally established

inBombay, the "Native Share and Stock Brokers Association"

(which is alternativelyknown as " The Stock Exchange "). In

1895, the Stock Exchange acquired a premise inthe same

street and it was inaugurated in 1899. Thus, the StockExchange at Bombaywas consolidated.GROWTHThe

working of stock exchanges in India started in 1875. BSE is

the oldest stock marketin India. The history of Indian stock

trading starts with 318 persons taking membershipin Native

Share and Stock Brokers Association, which we now know by


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the nameBombay Stock Exchange or BSE in short. In 1965,

BSE got permanent recognition fromthe Government of India.

National Stock Exchange comes second to BSE in terms

ofpopularity. BSE and NSE represent themselves as

synonyms of Indian stock market.The history of Indian stockmarket is almost the same as the history of BSE.

39. The 30 stock sensitive index or Sensex was firstcompiled in 1986. The Sensex iscompiled based on the

performance of the stocks of 30 financially sound

benchmarkcompanies. In 1990 the BSE crossed the 1000

mark for the first time. It crossed 2000,3000 and 4000 figures

in 1992. The reason for such huge surge in the stock marketwasthe liberal financial policies announced by the then

financial minister Dr. Man MohanSingh. The up-beat mood of

the market was suddenly lost with Harshad Mehtascam. It

came to public knowledge that Mr. Mehta, also known as the

big-bull of Indianstock market diverted huge funds frombanks through fraudulent means. He played with270 million

shares of about 90 companies. Millions of small-scale

investors becamevictims to the fraud as the Sensex fell flatshedding 570 points.To prevent such frauds, the Government

formed The Securities and Exchange Board ofIndia, throughan Act in 1992. SEBI is the statutory body that controls and

regulates thefunctioning of stock exchanges, brokers, sub-

brokers, portfolio managers investmentadvisors etc. SEBI

oblige several rigid measures to protect the interest of

investors.Now with the inception of online trading and daily

settlements the chances for a fraud isnil, says top officials ofSEBI. Sensex crossed the 5000 mark in 1999 and the 6000

mark in 2000. The 7000 mark was crossed in June and the

8000 mark on September 8 in 2005. Sensex crossed the

10000 mark in 2006. Many foreign institutional investors

(FII) are investing in Indian stock markets on a very large


26/38

scale. The liberal economic policies pursued by successive

Governments attracted foreign institutional.

40. Future of Indian stock marketsThe stock market isbooming in spite of the low agriculture output. The Monsoonis goodin an overall sense but still the question remains aboutwho will take the credit for it. Theanswer is the karma of the

people. I would like to appreciate the Indian politicians andthe

industrialists who are pawns of destiny for doing many things

positive andproductive. India as a country is running a very

good period and the very position of theplanets in transit are

giving wonderful result. Only less than 1 per cent of the

population own stocks and less than 1,000 individuals controlthe market, the majority being the FIIS, the promoters of the

company. The credit should go to the media for making stock

markets the headlines. First of all, Indian bourses in the future

will be one of the best investments in the world.There will be

a time when it can even reach 3000 points in the Nifty. Indiawill begin oneof the best data of sun which will work in its

favor. So before 2009 Indian boursesshould go from high to

high from time to time. Now this bull run will continue. There can be some correction in the BSE Sensex at the 7500

points level. The market will hover between the 6000-7000till mid-August. There will be huge fluctuations. Better for

many investors and new entrants for the market to cool down

a bit and let it come well below 7000. In any case, if you are

long-term players, then step in and buy now and forget for

another10 years. You will make a killing in the Indian

markets. Most of the tech companies and the main index willdo well but slightly on the lower side of expectations.

41. National Stock Exchange (NSE)With the liberalization ofthe Indian economy, it was found inevitable to lift the

Indianstock market trading system on par with the


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international standards. On the basis of therecommendations

of high powered Pherwani Committee, the National Stock

Exchangewas incorporated in 1992 by Industrial Development

Bank of India, Industrial Credit andInvestment Corporation of

India, Industrial Finance Corporation of India, allInsuranceCorporations, selected commercial banks andothers.Trading at NSE can be classified under two broad

categories:(a) Wholesale debt market and(b) Capital

market.Wholesale debt market operations are similar to

money market operations - institutionsand corporate bodies

enter into high value transactions in financial instruments such

asgovernment securities, treasury bills, public sector unit

bonds, commercial paper,certificate of deposit, etc.There are

two kinds of players in NSE:(a) trading members and(b)

participants.Recognized members of NSE are called trading

members who trade on behalf ofthemselves and their clients.

Participants include trading members and large playerslike

banks who take direct settlement responsibility.Trading at

NSE takes place through a fully automated screen-based

trading mechanismwhich adopts the principle of an order-

driven market. Trading members can stay at theiroffices and

execute the trading, since they are linked through a

communication network.The prices at which the buyer and

seller are willing to transact will appear on thescreen. When

the prices match the transaction will be completed and a

confirmation slipwill be printed at the office of the trading

member.

42. NSE has several advantages over the traditional tradingexchanges. They are asfollows: NSE brings an integrated

stock market trading network across the nation. Investors

can trade at the same price from anywhere in the country

since inter- market operations are streamlined coupled with

the countrywide access to the securities. Delays in


28/38

communication, late payments and the malpractices

prevailing in the traditional trading mechanism can be done

away with greater operational efficiency and informational

transparency in the stock market operations, with the support

of total computerized network.Unless stock markets provideprofessionalized service, small investors and foreigninvestorswill not be interested in capital market operations. And capital

market beingone of the major sources of long-term finance for

industrial projects, India cannot affordto damage the capital

market path. In this regard NSE gains vital importance in

theIndian capital market system. Bombay Stock Exchange

(BSE)

43. Bombay Stock Exchange Limited is the oldest stockexchange in Asia with a richheritage. Popularly known as

"BSE", it was established as "The Native Share &

StockBrokers Association" in 1875. It is the first stock

exchange in the country to obtainpermanent recognition in1956 from the Government of India under the

SecuritiesContracts (Regulation) Act, 1956.The Exchanges

pivotal and pre-eminent role in thedevelopment of the Indiancapital market is widely recognized and its index, SENSEX,is

tracked worldwide. Earlier an Association of Persons (AOP),the Exchange is now ademutualised and corporatized entity

incorporated under the provisions of theCompanies Act, 1956,

pursuant to the BSE(Corporatization and

Demutualization)Scheme, 2005 notified by the Securities and

Exchange Board of India (SEBI).With demutualization, the

trading rights and ownership rights have been de-linkedeffectively addressing concerns regarding perceived and

real conflicts of interest. TheExchange is professionally

managed under the overall direction of the Board ofDirectors.

The Board comprises eminentprofessionals, representatives of

Trading Members and the Managing Director of theExchange.


29/38

The Board is inclusive and is designed to benefit from the

participation ofmarket intermediaries.In terms of organization

structure, the Board formulates larger policy issues

andexercises over-all control. The committees constituted by

the Board are broad-based.The day-to-day operations of theExchange are managed by the Managing Director andamanagement team of professionals.The Exchange has a

nation-wide reach with a presence in 417 cities and towns of

India.The systems and processes of the Exchange are

designed to safeguard market integrityand enhance

transparency in operations. During the year 2004-2005, the

tradingvolumes on the Exchange showed robust growth.The

Exchange provides an efficient and transparent market for

trading in equity, debtinstruments and derivatives. The BSEs

On Line Trading System (BOLT) is a proprietarysystem of

the Exchange and is BS 7799-2-2002 certified. The

surveillance and clearing& settlement functions of the

Exchange are ISO 9001:2000 certified.Demat account, short

term for dematerialized account is a type of banking

accountwhich dematerialize the paper-based physical

shares.The idea of dematerialized account is to avoid the need

to hold physical shares--theshares are virtually being bought

and sold through the banking account.

44. Report card of Indiabulls Financial Ltd.45. PE ratio25.9628/03/07EPS TTM (Rs)15.81Mar, 06Sales

(Rs crore)610.29Mar, 06Face Value (Rs)2Net profit margin

(%)41.32Mar, 06Last dividend (%)10031/01/07

46. Relevance of Internal & Interactive MarketInternalmarketing (IM) is an ongoing process that occurs strictly

within a companyor organization whereby the functional

process aligns, motivates and empowersemployees at all

management levels to consistently deliver a satisfying


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customerexperience.Key concepts of internal marketing

include: o IM functioning as a continual internal up skilling

process. o Alignment of the organizations purpose with

employee behavior. o Employees internalizing the core values

of the organization. o Motivation, reframing andempowerment of employee attitude. o Inside-out managementapproach. o Retaining a positive customer experience

throughout the business objectivesInternal marketing is an

important implementation tool. It aids communication

andhelps us to overcome any resistance to change. It informs,

ands involves all staff in newinitiatives and strategies. It is

simple to construct, especially if you are familiar

withtraditional principles of marketing.If not, it would be

valuable to spend some time considering marketing plans.

Internalmarketing obeys the same rules as, and has a similar

structure to, external marketing.The main differences are that

your customers are staff and colleagues from your

ownorganization.In previous lessons, you will have seen that

the process of marketing follows a familiarpattern for which

we use the acronym AOSTC - Analysis, Objectives,

Strategies,Tactics, and Control. In the diagram above, Jobber

(1995) uses a similar approach as astructure for the

implementation of internal marketing. The process is

straightforward. Set objectives for internal marketing e.g. to

persuade 100 staff to join a new Performance Related Pay

(PRP) scheme. Your strategy is internal marketing. Tactics

would include an internal application of the marketing mix,

and could include staff forums, presentations, an intranet,away days, videos, personal visits by company directors or

newsletters.

47. Evaluation would consider the take up of PRP againstyour objectives, attendees at away days, visits to an intranet

page, and so on..Lets have a look a closer look at the


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practicalities of internal marketing Internal marketingIn

previous lessons, you will have seen that the process of

marketing follows a familiarpattern for which we use the

acronym AOSTC - Analysis, Objectives, Strategies,Tactics,

and Control. In the diagram above, Jobber(1995) uses asimilar approach as astructure for the implementation ofinternal markefrom your own organization. Set objectives

for internal marketing e.g. to persuade 100 staff to join a new

Performance Related Pay (PRP) scheme. Your strategy is

internal marketing. Tactics would include an internal

application of the marketing mix, and could include staff

forums, presentations, an intranet, away days, videos, personal

visits by company directors or newsletters.Implications of

marketing Who are our existing / potential customers?

What are their current / future needs? How can we satisfy

these needs? Can we offer a product/ service that the

customer would value? Can we communicate with our

customers? Can we deliver a competitive product of service?

Why should customers buy from us?The marketing concept

choosing and targeting appropriate customers positioning

your offering interacting with those customers controlling

the marketing effort continuity of performance

48. Successful marketing requires: Profitable Offensive(rather than defensive) Integrated Strategic (is future

orientated) Effective (gets results) Hugh Davidson

1972Marketing management process Analysis/Audit - where

are we now? Objectives - where do we want to be?

Strategies - which way is best? Tactics - how do we getthere? (Implementation - Getting there!) Control - Ensuring

arrivalWhy is marketing planning necessary? Systematic

futuristic thinking by management better co-ordination of a

companys efforts development of performance standards

for control sharpening of objectives and policies better


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prepare for sudden developmentsWhy is marketing planning

necessary? Systematic futuristic thinking by management

better co-ordination of company efforts development of

better performance standards for control sharpening of

objectives and policies better prepare for sudden newdevelopments managers have a vivid sense ofparticipationCriticisms of marketing planning Formal plans

can be quickly overtaken by events Elements of the plan my

be kept secret for no reason gulf between senior managers

and implementing managers

49. the plan needs a sub-scheme of actionsObjectives of themarketing plan Acts as a roadmap assist in managementcontrol and monitoring the implementation of strategy

informs new participants in the plan of their role and function

to obtain resources for implementation to stimulate

thinking and make better use of resources Assignment of

responsibilities, tasks and timing Awareness of problems,opportunities and threats Essential marketing information

may have been missing if implementation is not carefully

controlled by managers, the plan is worthless!The contentsand structure of the marketing plan The executive summary

table of contents situational analysis and target market marketing objectives marketing strategies marketing tactics

schedules and budgets financial data and controlScope of

studyThe scope of the study are as follows :-Limitation of

study

50. However, I was able to achieve my targets assigned tome in this period of one month,but there are some roadblocks

that hinders me in achieving my targets or to excel meabove

my targets. These are as follows: - 1. Competitors :- In

security market there are lot many player which are being

emerged as a competitors and they are giving the tough


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competition to the Indiabulls Securities Ltd. The competitors

products are very attractive to create new customer and grab

the existing customer. 2. Lack of Knowledge:- Lack of

knowledge is hamper on our target because by this people are

not aware about the share market and they are having samemind set and they do not want to change their mind. 3.Conventional Ideas:- People are having conventional idea and

they do not want to be changed their account because they

believe in maintaining the relationship whether they are on

risk cause of they are having their account in local brokers so

it is also hassle to complete the target.4. Misconception:- In

the mind of the people they are having misconception because

they think that the share market is like gamble so the word to

mouth publicity is going in negative way.5. Time Constraint:-

Time limit is one of the most hassle in the way of achieving

the target because time can not be in hand and some times

customers give the time when we are on other work so it is the

lost of customer.6. Unknown Location:- We are not familiar

with the Udaipur city so sometimes we cannot reach out the

customer and that is why customer are switching their idea to

open demat account from Indiabulls to another.7.

Conveyance Problem:- We are out sider in Udaipur so we are

not having proper conveyance so we cannot reach out to last

or inside of the city.

51. 8. Irregularity of Market:- It is also one of the mosthassle by that investors fear to invest although they are having

good knowledge so we cannot help them out to break their

thinking. DATA COLLECTION & ANALYSIS 1.INVESTMENT CRITERIA OF CUSTOMERS FIELDS

EQUITIES DERIVATIVES OTHERS NO.40 52

8RESPONDENTS


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52. INTERPRETATION: From the above graph we cananalyze the priority level of the customers ininvesting

different markets.52% customers gave priority to do

investment in derivativesmarker, 40% liked to invest in

equities, but a very low % showed their interest to investinothers like: funding etc. 2. TYPE OF TRADING ResponseIntraday Cash Margin No. of 33 49 18 respondents

53. INTERPRETATION:The above graph shows thecomparison between different types of trading. The mass %of

customers shows their interest to trade in cash as it is 49%.

The 33% of customersliked to trade in intra day but very less

% was seen to do trading on margin. 3. AGE FACTOERINFLUENCING INVESTMENT IN EQUITIES AND

DERIVATIVESAGE GROUP 18-25 25-40 40-55 ABOVE 55

NO.OF 10 55 2510RESPODENTS

54. INTERPRETATION:INTERPRETATION:The aboveanalysis shows that 55% of people invest between the age

group of 25-40,which indicates that the age is big factor

which influence the customers tradingbehavior.4. PURPOSE

OF TRADINGResponse Investmen Earning FinancialProfessio Others t support n No. of 38 17 27 9 9Responden ts

55. Rests 9% do trade for professionalism.5. FREQUENCYOF TRADING Response Daily Alternative day Twice a week

Weekly Monthly No. of 20 2513 15 27Respondents17%

want financial support. 27% people like to trade for the

purpose of investment 38% of people do trade for the

purpose of earning.INTERPRETATION:From the abovegraph it is seen that purpose of trading is an another major

factorwhich influence the customers trading behavior.We can

see that


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56. But major %( i.e. 27) shows their interest to trademonthly.6. SATISFACTION LEVEL OF CUSTOMERS

Response Yes No No. of Respondents 67 3315% weekly,

13% twice a week, 20% daily, 25% people like to trade

alternative day, INTERPRETATION:

57. INTERPRETATION:This diagram shows thesatisfaction level of customers about the services provided

bythe Indiabulls,67% people were satisfied with the services

provided by the Indiabulls & 52% of customers prefer to

invest in derivatives, 40% in equitiesa very least %of

customers i.e. 33% were unsatisfied. FACT AND

FINDINGSFindings: & 49% of customers like to trade incash, 33% in intra dayrest in others. & 38% of people do

trade for the purpose of earning, 27% people like to trade for

the purpose of investment, 17% want financial support and

9% do trade for professionalism.The above analysis shows

that 55% of people invest between the age group of 25-40.

rest in margin

58. There is also no proper database for the employee aboutthe customers so it derives conflict between the employeesabout their prospective customers.SWOT

AnalysisSTRENGTH After giving the good departments in

one office there is always a conflict between both the

departments.(Because the work of both departments is same

in Online and Offline.) Services (Tipping/ Funding/ A/c

information) for Customer is more important as compared to

make them Customer. In some areas like: small customers,Relatives of the brokers etc. the demand of the service

provided by Indiabulls is very low. There are problems in

availability of services regarding to the tips, which is given to

the customers. In Udaipur most prospects trust brand, which

are i.e. local broker for trading of Equities and Derivatives.


36/38

Almost 67% of customers are satisfied with the services

provided to them by India bulls securities

limited.Observations: & OPPORTUNITY Inflation

Employment Disposable income Business cycles Energy

availability and cost Others?

59. WEAKNESS & THREATS Demographics Distribution of income Social mobility Lifestyle changes

Consumerism Levels of education Others?Conclusion

After studying all the aspects of the "A Study on significance

and relevance ofinternal & interactive marketing for financial

marketing with special reference toINDIA BULLs" including

the theoretical aspects we can conclude that internal&Interactive is applicable to the Indian stock market but to an

extend. It can benefit tostock market.

60. As far as financial marketing is very necessary for Indianstock market is concerned,which is constantly monitored and

upgraded to pre-empt market failures. It can betermed as good

but it is not enough to reduce the risk of broking house.

Broking housesitself have to take actions for reducing the risk

bears by itself and its customers.As far as Indiabulls securitiesltd. is concerned, its internal & interactive marketing

forfinancial marketing system is good. The company has

instituted a specialized internal &interactive marketing for

financial marketing management team and its systems

aremanaged centrally to ensure that it can, at all times,

measure and manage the financialmarketing on online and

offline transactions on a real-time basis. Marketing dept. of

theco. is doing well to increase the trading and settlement

process.As we all are very well aware that stock market is so

much volatile and unpredictablethat nobody can trace the

behavior of the market. In this situation risk

managementsystem provides effective tools to reduce the risk


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of investors and broking houses.RECOMMENDATION &

Exiting customers should be provided better

responseSUGGESTION & Company should focus on the

age group of 25-40. Interest rate on funds provided to

investors should be reduced. Awareness should be created

among the prospective clients. Advertisements should be

given in the magazines related to Business, Management

service, Electronics media, and business world or by installing

stalls in different-different areas etc.services so that by

there good Word Of Mouth Company will get more

customers.

61. D-MAT ACCOUNT--- QUESTIONNAIRE62. Question1. Pleaseshare somebasicinformationon dmat

a/cinvesting.Question2. Howshould Idecide in d-mat

a/cinvestmentis right forme?Question3. Howshould Istudy d-

mata/c before Imake myselection?

63. Question4. In whichmannershould Imanage myd-mata/c?Question5. Whenshould I buyto minimizemy costsand sell

tomaximizethe profits?Question6. What aretherisksinvolvedsharemarketinvesting?

64. Question7. How do Igoaboutinvestingsharemarket?Question8. What arethe costs

ofopening d-mat a/c?

65. Question9. How isincomefromsharetradingtaxed?Question10. Whichcategory ofshare

isbest forinvestment?Question11. Whatisthegrievanceredressalfacilityavailable

forsharetradinginvests.

66. QUESTIONAIRE Demographic DataContact Person:________________________________________Address:___


38/38

__________________________________________Designati

on:

________________________________City:______________

______Phone No.:_________________

Fax:_______________ E-mail:__________________Website:______________________1. Existing broker: i ISL g ICICI

Other(Local Broker)2. In which you prefer to do investment?

n Equities i Derivatives a Other3. What type of trading you

prefer to do? a Intraday d Delivery Based e F&O

67. Yes e No Cant Say4. What age group is best for theinvestment according to you? a 18-25 a 25-40 a 40-55 aAbove 555. What is your purpose of trading? Investment

Financial Support Earning n Profession s Other6. What is the

frequency of your trading? Daily Alternative Day Twice aWeek Weekly y Monthly7. Are you satisfied with the service

provided by the Indiabulls? r Yes r No8. Are you planning to

attach with Indiabulls? e

68. Options, Futures and othe Investment management:V.K. Bhalla BibliographyBooks referred

www.equityresearch.com www.bseindia.com

www.nseindia.com www.indiabulls.com Research

Methodology: C.R. Kothari.Websites Referred Financial

Management : Prasana Chandra Financial management:

M.Y. Khan, Jain r Derivatives : John C. Hull

Documents

A Study of Consumer Behaviour Towards Equities and Derivatives Market in Udaipur City