Embed Size (px)
Citation preview
A SUMMER TRAINING REPORT
ON
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELOR OF BUSINESS ADMINISTRATION (BBA)
CUSTOMER SATISFACTION ON ONLINE TREADING AT
SHAREKHAN
TRAINING SUPERVISOR SUBMITTED BY
ENROLLMENT NO. ….
SESSION 2008-2011
GURU JAMBHESHWAR UNIVERSITYHISAR-125001
1
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. Ravi K. Shankar Finance Manager at Sharekhan who has
guided and fully supported me through out the making of this project.
I also want to thank my faculty mss. Parul kumar who allowed and encouraged me to
do my research project on Sharekhan.
Thank you all for supporting me in making this projects a reality
2
TABLE OF CONTENT
CHAPTER 1 - INTRODUCTION
1.1 ONLINE TRADING PROCESS1.2 BENEFITS OF ONLINE TRADING1.3 FUTURE OUTLOOK1.4 PROBLEMS1.5 BRANDING1.6 COMPETITION FROM BANKS1.7 PRODUCT & SERVICES:1.8 SWOT ANALYSIS
CHAPTER 2 - COMPANY PROFILE
2.1 SERVICES OFFERED BY AN OUTLET2.2 MANAGEMENT TEAM2.3 SHAREKHAN SERVICES2.4 INVESTING ONLINE IS SO MUCH EASIER!2.5 SHAREKHAN ONLINE TRADING FACILITIES:
CHAPTER 3 –RESEARCH METHODOLOGY
3.1 SIGNIFICANCE OF THE STUDY3.2 MANAGERIAL USEFULNESS OF THE STUDY3.3 OBJECTIVES3.4 SCOPE OF THE STUDY3.5 RESEARCH METHODOLOGY
CHAPTER 4 - DATA ANALYSIS
CHAPTER 5 – CONCLUSION
CHAPTER 6 – RECOMMENDATIONS
CHAPTER 7 - ANNEXURES
CHAPTER 8 - BIBLIOGRAPHY
3
4
EXECUTIVE SUMMARYShare 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 “sharekhan.”, 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.
5
CHAPTER-1
INTRODUCTION
6
INTRODUCTION
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 tNews on the stock market appears in different media every day. he stock market
or bourse, a stock exchange is an organised marketplace for securities (like stocks, bonds,
options) featured by the centralisation 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
7
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,
computerised organisations. Computerised 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.
8
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.
9
1.1 ONLINE TRADING PROCESS
The various transactions involved in online trading can be shown from the point of view
of the
Client
Broker
Stock Exchange
The broker accepts and executes the order, and places it with the exchange.
The exchange accepts the order after checking the share limit for the day.
The broker makes the payment either directly via the client’s bank account or pays through his own account and recovers it letter from the client.
The exchange receives money and completes the settlements
The client is intimated the settlement either through the demat account or via e-mail.
10
The client places in order via the net by loggin on to his broker’s site .
1.2 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.
11
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
12
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.
13
1.3 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.
14
1.4 Problem of the Organization
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.
15
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
1.5 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.
1.6 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.
16
Competition InformationICICIDIRECT.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
17
ICICIDIRECT.COM
TRADING IN SHARES
TRADING IN DERIVATIVES
MUTUAL FUNDS
IPO AND BOND ONLINE
PERSONAL FINANCE
1.7 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.
18
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,
19
prospectus/offer documents, and IPO analysis are few of the features, which help
you, keep on top of the IPO markets.
20
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.
1. Customer Service Features:
With 'ICICIdirect Customer Tools & Updates' you can trouble shoot all
your problems online.
21
1.8 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.
22
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.
23
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
24
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 COMPETITORSA 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.
25
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.
26
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
27
(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.
28
CHAPTER - 2
COMPANY PROFILE
29
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
www.traderji.com, which clearly shows the expert opinion with respect to Customer
satisfaction, quality products etc.
30
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
Courtesy:
Traderji.com
31
2.1 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-
32
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.
33
2.2 MANAGEMENT TEAM
Founders- Shantilal,
Savantilal,
Kantilal,
Ishwarlal.
Management team- Tarun P. Shah (CEO)
Shankar Vailya (Director-Operations)
Jaideep Arora (Director-Product & Technolog
Gaurav Dua (head of researcher)
Chethan Kumar Recruitment, Employee Relations, HR Operations, Vendor Management.
V S Ganesh’s Exper Trader/Entrepreneur/Sub Broker
34
2.3 SHAREKHAN SERVICES
35
2.4 BRANCHES ALL OVER INDIA
36
2.4 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
37
SYSTEM REQUIREMENTS
You'll need access to a computer which has at least the following configuration:
Pentium 3 PC, Minimum 128 MB RAM
Windows 2000/XP
Internet Connection
Internet Explorer 6.0
Java enabled in IE
The Power and Speed of a Broker's Terminal on your Desktop!
The ideal tool for active traders and jobbers who transact frequently during the day's
trading session, Speedtrade enables you to capitalize on intra-day price movements.
Speedtrade is an Internet-based executable application that provides everything a trader
needs on ONE screen:
38
1: Real-time streaming quotes
2: Live Tic-by-Tic Intra-day charting
3: Trading in Cash and Derivatives on a single
screen
Features of Speed Trade that enable you to trade effortlessly
Instant order Execution & Confirmation
Single screen trading terminal
Real-time streaming quotes, tic-by-tic charts
Market summary (most traded scrip, highest value and lots of other relevant
statistics)
Hot keys similar to a brokers terminal
Alerts and reminders
Back-up facility to place trades on Direct Phone lines
39
Single screen interface for cash and derivatives
40
System RequirementsYou'll need access to a computer, which has at least the following configuration:
Pentium 3 PC
Minimum 128 MB RAM
Windows 2000/XP
Dial-up Modem / Cable modem
Internet Connection Account
Internet Explorer 6.0
Java enabled in IE
Trade in Equity by using your phone!
Free with your sharekhan.com Classic Account, the Dial-n-Trade service enables you to
place orders for buying and selling shares through your telephone.
All you have to do is dial any one of our dedicated numbers 9899824828 enter your
TPIN number (which is provided at the time of opening your account) and on
authentication you'll be directed to a telebroker who will buy and sell shares for you.
Features of Dial-n-Trade that enable you to trade effortlessly
Dedicated numbers for placing your orders with your cellphone or landline. Toll free
number:9899824828. For people with difficulty in accessing the toll-free number,
sharekhan.com also have a Reliance number which is charged at Rs. 1.50 per minute
for STD calls.
Automatic funds transfer with phone banking (for Citibank and HDFC bank
customers)
Simple and Secure Interactive Voice Response based system for authentication
No waiting time. Enter your TPIN to be transferred to telebrokers
You also get the trusted, professional advice of telebrokers
After hours order placement facility between 8.00 am and 9.30 am (timings to be
extended soon)
41
BUY shares TODAY and SELL them tomorrow under the BTST® segment.
Buy Today Sell Tomorrow® (BTST® ) is a facility that allows you to sell shares even
one day after the buy order date, without you having to wait for the receipt of shares into
your demat account.
BTST® relevant is relevant for you:
1. If you have you ever missed making a huge profit because you had bought the shares
just one day back and you could not sell them as they were not credited to your demat
account?
2. If you have ever found that squaring off your cash based transactions within a day is
not profitable as one days time does not allow to realize maximum profit?
3. If you have ever thought of an intermediate option between cash and Margin trades
where in you could make profits on volatile shares within one or 2 days of your buying
them without a compulsory square off?
If you have ever faced any of the above situations, BTST® is for you.
Let us take an example.
Assume that you buy shares of ABC Limited at 11.00 a.m. today. Suppose, at 2.00 p.m.
today, the price of this scrip has risen by Rs 10.
But you want to sell these shares tomorrow because you feel that the scrip price will rise
further. But the shares would not have come into your demat account tomorrow. What
can you do?
BTST® is the solution to your query. If you use a Margin Trade, you would gain only to
the extent of the price rise that happens today I.e. Rs 10. However, if you wish to take
advantage of the price rise over a longer time period, then you would use BTST®.
42
(Note that if you had instead bought shares in Cash and tried selling the same, you would
have to wait for payout day before you can sell the share.)
So, you would purchase the share today at 11.00 a.m. and sell it say tomorrow using
BTST® at 2.00 p.m.
In short, BTST® helps non-intra day square-off trading.
If you are a Cash Trader and found intra-day trading too unprofitable, BTST® gives 2
more trading days, thereby increasing the probability of better returns. So, even a Cash
Trader may like to use BTST®.
If you are a Margin Trader and in case for some scrips you find intra-day speculative
trading too unprofitable, BTST® gives 2 more trading days, thereby increasing the
probability of better returns.
So, you can benefit from the virtually elongated settlement cycle that BTST® brings to
you.
43
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
Evergreen
Apple Green
Emerging Star
Ugly Duckling
Vulture's Pick
Cannonball
44
45
2.5 SHAREKHAN ONLINE TRADING FACILITIES:
(a) CLASSIC ACCOUNT: A/C Opening charges: Rs. 750(life time charges)
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.
46
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)
47
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).
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
48
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.
49
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 1 st 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:
50
5Paisa - Pure online trading
Turnover
per settlement
Brokerage
Rate
Maximum rate Any volume 0.05%
Special rate 1 Rs15 lacs 0.04%
Special rate 2 Rs20 lacs 0.03%
5Paisa Plus - With offline and research support
Turnover
per settlement
Brokerage
Rate
Maximum Rate Any Volume 0.25%
Special rate 1 Rs 10 lacs 0.20%
Special rate 2 Rs 15 lacs 0.15%
Special rate 3 Rs 20 lacs 0.10%
Special rate 4 Rs 25 lacs 0.05%
Special rate 5 Rs 35 lacs 0.03%
Notes:
1. For trades that result in delivery, a nominal charge of 0.20% will be levied for
51
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)
52
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.
53
SCHEDULE OF CHARGES (NSDL-DPID : IN302236)
[ w.e.f. 01 Feburary, 2005 ]
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.
54
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.
55
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
56
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.
57
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.
58
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
59
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.
60
CHAPTER-3
RESEARCH METHDOLOGY
61
3.1 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.
62
3.2 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
63
3.3 Objectives
The objective of my summer training is to gain knowledge about how an organization
works and in particular setup of a stock broking house.
Under this summer training a small project was undertaken, the primary objective of
which was to obtain a feedback from the clients of Sharekhan. Particularly about their
experience while opening the online trading account with Sharekhan.
The secondary objective of this project was to help out the clients with their problems in
Sharekhan to the extent possible.
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.
secondary objective of the project are:
1. To summer training on sharekhan .
2. To learn about company routine working.
64
3.4 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).
This study can be applied to find out an effective distribution channel to enhance the
sale of by-product of sharekhan.com
65
3.5 RESEARCH METHODOLOGYData Sources - Primary Data,
-Secondary Data
Data 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 and questionnaire. The researchers discuss with Team
Manager and employees of the company to get information about competitors of
sharekhan.com
Secondary DataUnder 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.
66
CHAPTER - 4
DATA ANALYSIS
67
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.
ANALYSIS
68
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(TRADE
R
TERMIN
AL,
INVEST
OR
TERMIN
Web based
69
PRIVILEGE
A/C, HMR
HIGHTRADE
R A/C,
HMR
FREEWAY
A/C)
AL)
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/
DERIVA
TIVES/
ARBITR
AGE ON
DELIVE
RY/MUT
UAL
NSE/
DERIVATI
VES
70
MUTUA
L FUNDS
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/-
commitm
ent of
brokerage
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
minimum
of Rs. 20/-
per
instructio
n
(ON
SELLING
)
RS. 17/-
PER
TRANSAC
TION
(ON
SELLING)
TIE UP
WITH
BANKS
HDFCBANK,
IDBIBANK,
ICICIBANK
ONLY
(COMPULSO
HMR
MAHINDRA
BANK
HDFCBA
NK
ONLY
HDFC
Bank,
ICICI
HDFC
BANK,
ICICIBAN
71
CITI BANK,
UTIBANK,
OBC
RY)CITI BANK
UTIBANK
HDFCBANK
(COMPULSIO
N)
(COMPU
LSORY) Bank,
UTI
Bank,
Citibank,
Global
Trust
Bank or
Centurion
Bank
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
S
FREE 450 P.A. FREE FREE FREE PAID 100/-
P.M
MINIMU 4 TO 6.7 4 TIMES 4 TO 6 TIMES 4 times 4 to 6 4 TIMES
72
M
MARGIN
EXPO-
SURE
TIMES times(onli
ne)
10
times(Offl
ine)
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/-
Commitm
ent as
brokerage
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)
73
CHAPTER – 5
CONCLUSION
74
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.
75
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.
76
CHAPTER – 6
RECOMMENDATION
77
FINDINGS AND RECOMMENDATIONS
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
FAC
TOR
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 & SUGGESTIONCUSTOMER SERVICE FEATURESCONVINIENCE(IN TRADE) BROKERAGEIMAGE
78
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
FAC
TOR
79
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.
Concept of margin funding should be introduced, as more and more people are asking for
80
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.
81
82
CHAPTER – 7
ANNEXURES
83
ANNEXURE
QUESTIONNAIRE
84
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
85
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: __________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________
CHAPTER – 8
BIBLIOGRAPHY
86
BIBLIOGRAPHY
BOOKS:
1. Kotler Philips, Marketing Management: 11th Edition, 2004,Prentice Hall of India
Ltd., New Delhi.
MAGAZINE: -
Business World
News Papers
Wed sites:-www.sharekhan.comwww.google.comwww.wikipedia.com
87
