PREFACE The successful completion of this project was a unique experience for me because by visiting many place and interacting various person, I achieved a better knowledge about sales. The experience which I gained by doing this project was essential at this turning point of my career this project is being submitted which content detailed analysis of the research under taken by me. The research provides an opportunity to the student to devote his/her skills knowledge and competencies required during the technical session. The research is on the topic Share Khan Demat Account.

ACKNOWLEDGEMENT

Any project would be incomplete without felicitating those instrumental in its successful completion. I honestly feel that the accolades for this project cannot just belong to one individual because it has been the result of consolidated efforts of many people whom I would like to express my concern and gratitude. I am grateful to Edelweiss Broking Limited for having given me this opportunity which has helped me in gaining an in depth knowledge in financial markets. Special thanks are also due to Mr. Amzad Khan (Regional Manager Retail BrokingEdelweiss Broking Limited) for giving his valuable inputs at every stage of project completion. His constant encouragement and words of wisdom have been very significant in the completion of this project. I express my deepest gratitude to Prof. H.P. Goyal (Faculty of Finance Unitedworld School of Business) under whose guidance I have successfully completed this project. I am also very much grateful to Dr. Thomas Mathew (Director Unitedworld School of Business) for providing me with this unique opportunity. I would also like to thank all those people whose names have not been mentioned here, but who were very instrumental in the successful completion of this project.

FINANCIAL SERVICESServices that are offered by financial companies connote financial service. Financial companies include both Asset Management Companies and Liabilities Management companies. Assets Management companies include leasing companies, mutual funds, merchant bankers, and issue/portfolio managers. Liabilities Management Companies comprise of the bill discounting and acceptance houses. Objective and Functions 1. Fund raising: - Financial services help to raise the required funds from a host of investors, individuals, institutions and corporate. For this purpose, various instruments of finance are used. The funds are demanded by corporate houses, individuals, etc 2. Fund deployment: - An array of financial services is available in the financial markets which help the players to ensure an effective Deployment of the funds raised. Financial services assist in the decision making regarding the financing mix. Services such as bill discounting, factoring of debtors, parking of short-term funds in the money market, credit rating, e-commerce and securitization of debts are provided by financial services firms in order to ensure efficient management of funds. 3. Specialized services :- The financial services sector provided specialized services such as credit rating, venture capital financing, lease financing, factoring, mutual funds, merchant banking, stock lending, depository, credit cards, housing finance, bookbuilding, etc., besides banking and insurance. Institutions and agencies such as stock exchanges, specialized and general financial institutions, non- banking finance companies, subsidiaries of financial institutions, banks and insurance companies also provide these services. 4. Regulation: - There are agencies that are involved in the regulation of the financial services activities. In India, agencies such as the Securities and Exchange Board of India, Reserve Bank of India and the Department of Banking and Insurance of the Government of India, through plethora legislations, regulate the functioning of the finance service institutions. 5. Economic growth :- Financial services contribute, in good measure, to speeding up the process of economic growth and development. This takes place through the mobilisation of the savings of a cross section of people, for the purpose of channeling them into productive in- vestments. In this connection, it is to be noted that a number of developed and developing countries which have a highly efficient financial market, have witnessed a greater rate of savings and investments. Characteristics 1. Intangibility :- The basic characteristics of financial services are that they are intangible in nature. For financial services to be successfully created and marketed, the institutions providing them must have a good image and the confidence of its clients. Quality and innovativeness of services are the focal points for building credibility and gaining the trust of the clients. 2. Customer orientation :- The institutions providing financial services study the needs of the customers in detail. Based On the results of the study, they come out with innovative financial strategies that give due regard to costs, liquidity, and maturity considerations for various financial products. This way, financial services are customer - oriented.

3. Inseparability :- The functions of producing and supplying financial services have to be carried out simultaneously. This cases for a perfect understanding between the financial services firms and Their clients. 4. Perishability :- Financial services have to be created and delivered to the target clients. They cannot be stored. They have to be supplied according to the requirements of customers. Hence, it is imperative that the providers of financial services ensure a match between demand and supply 5. Dynamism :- The financial services must be dynamic. They have to be constantly redefined and refined. On the basis of socio-economic changes occurring in the economy, such as disposable income, standard of living, level of education, etc. Financial services institutions must be proactive in nature and evolve new services by visualizing the expectations of the market Constituents 1. Market players :- Financial services are offered by a host of institutions and agencies that understand and meet the requirements of a wide spectrum of customers. The players include banks, financing institutions, mutual funds, merchant bankers, stock brokers, consultants, underwriters, market makers, etc. 2. Instruments :- Financial instruments constitute an important part of the financial services market. The instruments include equity instruments, debt instruments, hybrid and exotic instruments. It is characteristic of a financial services market that a number of innovative instruments such as zero-coupons bonds, etc., are floated on a continuous basis. 3. Specialized institutions :- These include acceptance houses, discount houses, factors, depositories, credit-rating agencies, venture capital institutions, etc. 4. Regulatory bodies :- The financial services market is regulated by a host of institutions and agencies. The regulatory bodies include the Department of Banking and Insurance of the Central Government, Reserve Bank of India, Securities and the Exchange Board of India, Board for Industrial and Financial Reconstruction, etc. The economic reform measures initiated by the government necessitated greater free play for various participants. As part of it, disinvestment guidelines have been issued by the SEBI in recent times, whereby foreign Institutional investors are permitted to operate in the Indian capital market. Such a step is aimed at enabling foreign investors to plunge into the Indian capital market and contribute to the growth and development financial services firms in India are increasingly looking for ways and means by which the Indian corporate sector could mop - up capital from the international financial market such as London, New York etc. The Indian financial services institutions work together with world-level financial services institutions, such as Lehman Brothers, Arthur Anderson as part of their efforts to upgrade to world standards in the matter of management of financial services. Growth of financial services in India 1. Merchant Banking Era (1960-1980) :- The period between 1960 and 1980 may be called the merchant banking era. During this period, financial services such as merchant banking, insurance and leasing services began to grow. Merchant banking carried out the following function: 1. Identifying projects, preparing feasibility report and developing detailed project reports

2. Conducting marketing, managerial, financial and technical analysis on behalf of their clients 3. Assist in designing an appropriate capital structure 4. Acting as a bridge between capital market and fund seeking institute 5. Underwriting 6. Assisting enterprises in getting their issues listed on the stock exchange 7. Offering legal advice on relating to mergers and acquisitions 8. Providing technical advice on leveraged buyouts and takeovers 9. Extending syndication facility as part of arranging projects finance 10. Arranging working capital loans 2. Investment Companies Era :- This era marked the setting up of a variety of investment institution and banks. The investment companies include the Unit Trust of India, which is the largest public sector mutual funds in the world, the life insurance corporation of India that initiated the life insurance business and the general insurance corporation. The Life insurance Corporation of India has grown as a public monopoly. In 1970, insurance which until then was in the private sector, was nationalized. On nationalized, an insurance corporation was set up as a holding company with four subsidiaries to handle the general insurance business in the public sector. The leasing business started emerging at the close of the 1990s. although such companies were initially engaged in equipment lease financing, later they undertook leasing operations of different kinds, such as financial, operating and wet leasing. 3. Modern Services Era :- This stage marked the launch of a variety financial products and services during the eighties. These financial services included over the-counter services, share transfer, pledging of share, mutual funds, factoring, discounting, venture capital and credit rating. The mutual fund introduced innovated schemes for saving mobilization in order to encourage the savings habits among the people. With their transparent assets and liability management, a mutual fund offers attractive and stable returns on the investors money. 4. Depository Era :- In order to integrate the Indian financial sector industry with the global financial services industry, depositories were set up. The depository system was introduced with view to promoting the concept of paperless trading through dematerialization of shares and bonds. The stock-lending schemes approved by the central Government in the 1997-98 budget conceived the idea of setting up a separate corporation to deal with the trading of Gilts. 5. Legislative Era :- Several legislations were introduced in order to allow for broad-based development in the financial services sector. The FERA has been replaced by FEMA. Far-reaching amendments have been made in the Indian Companies Act, Income Tax Act, etc to facilitate safe and orderly trading, and settlements of transactions. A landmark development that took place in the legislative era was the enactment of a separate law to regulate the Internet trading of securities. 6. FIIs Era :- The economic reforms measures initiated by the government necessitated greater free play for various participants. As part of it, divestment guidelines have been issued by the SEBI in recent times, whereby Foreign Institutional Investor (FIIs) are permitted to operates in the Indian capital market. Such a step is aimed at enabling foreign investors to plunge into the Indain capital market and contribute to its growth and development.

Problems of financial service sector 1. Lack of expertise :- To be able to understand and implement many of the financial services schemes, experts are required despite the presence of a number of institutions and professional bodies, there has been a dearth of personnel with expert knowledge to manage the firms engaged in financial services in India. The public sector financial services industry, for instance, is constrained by restrictions imposed on salaries, etc., and the private sector firms too cannot match the offers made by the foreign financial firms. 2. Inadequate accommodation :Financial services firms require accommodation at central locations in order to be able to effectively. Cater to the needs of a wide variety of clients. Finding. a suitable place in the financial capital of India, Mumbai, has become a serious problem due to skyrocketing real estate prices. 3. Inadequate technology :- One of the basic problems faced by the Indian financial services firms is that they lack adequate and time-tested technology to efficiently create and deliver the financial products to the clients. For instance, relative tardy growth of corn- putter and. tel-communication technology has constrained the growth of the financial services industry in India considerably in the initial period. Institutions and banks lack sufficient networking facility needed for undertaking the transfer of various instruments. 4. Inadequate quality service :- Rendering financial services efficiently is the cornerstone of a successful financial services market. In fact, the key to survival is to deliver quality services and products at the right price, at the right place and at the right time. This calls for the application of appropriate technology to process a large flow of information to their clients. Indian financial services firms need to improve the quality of their services to the satisfaction of their clients. Very often there is a complaint of high fees and poor quality service. The work of credit rating agencies also comes under attack, as the grading furnished by them is often unreliable. 5. Captive organization :- The practice in India is that most financial service institutions have been set-up as subsidiary organizations of large commercial banks and financial institutions. The subsidiary institutions, thus, depend on their parent institutions for funds. 6. Restricted scope of operation :- The scope of operations relating to financial services is currently restricted to certain segments. For instance, the scope of venture capital operations in India is restricted to providing finance for start-up, high - tech projects and to converting R & D efforts into commercial production. Venture capital funds in India are shy of entering the service sector. The scope must be widened to include a variety of services such as supply of seed capital for expansion and growth, mergers and acquisitions etc. In the same way, lease financing should not be restricted to operating and financial leases. 7. Limited innovation :- The growth and development of the financial system is measured in terms of the width and depth of the range of products offered by it. There has been limited innovation in the realm of financial services products. It is imperative, therefore, that the financial services sector works to achieve growth and development by innovating and introducing a wide range of financial products tailor-made to suit the needs of varying entrepreneurs. For instance, a number of tailor-made and imaginatively designed financial packages may be offered by the venture capital funds to satisfy the

needs of entrepreneurs. Similarly, leasing firms should be encouraged to provide leasing facilities for a variety of capital equipment. 8. Lack of sound institutional mechanism :- An immediate requirement for a healthy financial sector is the existence of a sound institutional mechanism. This is important for a broad - based and a strong financial system. Moreover, there must be a wide range of financial services. The establishment of a sound institutiona1 mechanism, whereby the existing financial institutions, banks and insurance companies are allowed to open fullfledged subsidiaries, is called for. 9. Other problems 1. Lack of core-competence and insufficient competitive advantage 2. Lack of reliable benchmarking thus depriving them of the benefit of cost control, cost reduction and review of processes and procedures governing their activities 3. Indulgence by certain firms in unfair practices including imparting unethical advice to their clients REGULATORY FRAME WORK Need for regulation 1. Economic growth :- Adequate and proper regulatory frame work shall be put in place for the process of smooth financial intermediation and disintermediation. This is an essential requisite for the economy to grow and function smoothly. The credit creation function of banking institutions allows the economy to multiply its money circulation to the extent demanded by the economy. 2. Promoting savings and investments :- The financial services industry besides channeling savings into productive investments helps economic activities to take place without much difficulty. 3. Efficient financial services :- The efficiency with which the various constituents of a financial market render services is critical for the development of financial services and financial markets. 4. Investor protection :- Regulations of many houses are required to put in place in view of the importance of creating, safeguarding and sustaining the interest of the investors, especially the small and individual investors and thus, ensuring economic stability.

Types of regulatory frame work 1. Institutional regulation :- Institutional regulations, also known as structural regulation, are those that stem from a host of regulatory institutions set up in a financial market by the government. Structural regulations call for a clear demarcation of the activities of financial institutions. The object of these regulations is to promote healthy competition among the players. The most important among these is the constitution of the apex agency, the Securities and Exchange Board of India (SEBI). The agency insists that merchant bankers and stock broking institution have a separate fund-based activity. The Reserve Bank of India (RBI), another structural entity, prescribes the activities that commercial banks could provide to the investors. 2. Prudential regulation: - Regulation relating to the internal management of financial institutions and other financial service organization regarding capital adequacy, liquidity and solvency may be called as prudential regulation. These regulation aims at preventing the entry of firms without adequate resources. In this connection, the

minimum net worth requirement for various financial services firms is fixed by the SEBI. Similarly the RBI has come out with regulations relating to the non-banking finance companies in raising public deposits 3. Investors regulation: - Regulation that are designed to protect the interest of the small and individual investors , are called investor regulation. The primary objective of these regulations is to promote healthy trading and thereby instill confidence in investors. In this connection, the role of SEBI is laudable, as it comes out with periodic guidelines on investor protection. 4. Legislative regulation :- These regulation are contained in the legislative measures brought out by the government from time to time keeping in mind the need for all-round development of the financial services industry. Some of the important regulations include the Banking Regulation Act, Securities Contracts (Regulation) Act etc. The legislation give birth to various regulatory authorities that evolve rules, guidelines and regulations that govern the micro aspects and operational issues. 5. Self regulation:- In addition to the regulation ordained by the regulatory, institutions, legislation etc there are self-imposed regulation. For instance, the foreign exchange dealers have their self regulations, besides being governed by legislative guidelines. Similarly, the merchant bankers association in addition to SEBI regulation has developed self-regulation that governs their members.

INTRODUCTION OF INDIAN STOCK MARKETThe Indian broking industry is one of the oldest trading industries that have been around even before the establishment of BSE in 1875 y Inception- The roots of a stock market in India began in the 1860s during the American Civil War that led to a sudden surge in the demand for cotton from India resulting in setting up of a number of joint stock companies that issued securities to raise finance. Bubble burst- The early stock market saw a boom till 1865, and then in Jul 1865, what was then used to be called the share mania ended with burst of the stock market bubble. In the aftermath of the crash, banks, on whose building steps share brokers used to gather to seek stock tips and share news, disallowed them to gather there, thus forcing them to find a place of their own, which later turned into the Dalal Street. A group of about 300 brokers formed the stock exchange in Jul 1875, which led to the formation of a trust in 1887 known as the Native Share and Stock Brokers Association Beginning of a new phase- A new phase in the Indian stock markets began in the 1970s, with the introduction of Foreign Exchange Regulation Act (FERA) that led to divestment of foreign equity by the multinational companies, which created a surge in retail investing. Growth supporting factors-The early 1980s witnessed another surge in stock markets when major companies such as Reliance accessed equity markets for resource mobilization that evinced huge interest from retail investors. A new set of economic and financial sector reforms that began in the early 1990s gave further impetus to the growth of the stock markets in India. Setting up of SEBI- the Securities and Exchange Board of India (SEBI), which was set up in 1988 as an administrative arrangement, was given statutory powers

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with the enactment of the SEBI Act, 1992. The broad objectives of the SEBI include to protect the interests of the investors in securities to promote the development of securities markets and to regulate the securities markets

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Incorporation of NSE- NSE was incorporated in Nov 1992 as a tax paying company, the first of such stock exchanges in India, since stock exchanges earlier were trusts, being run on no-profit basis. NSE was r ecogni z ed as a stock exchange under the Securities Contracts (Regulations) Act 1956 in Apr 1993. It commenced operations in wholesale debt segment in Jun 1994 and capital market segment (equities) in Nov 1994. The setting up of the National Stock Exchange brought to Indian capital markets several innovations and modern practices and procedures such as nationwide trading network, electronic trading, greater transparency in price discovery and process driven operations that had significant bearing on further growth of the stock markets in India. To speed the securities s e t t l e m e nt pr oc e s s , T h e Depositories A c t 1 9 9 6 w a s pa s s e d t ha t allowed for dematerialization (and dematerialization) of securities in depositories and the transfer of securities through electronic book entry. The National Securities D e p os i t or y L i mi t e d ( NSDL) s e t u p b y l ea d i n g f i n a nc i a l institutions, commenced operations in Oct 1996. Despite passing through a number of changes in the post liberalization period, the industry has found its way towards sustainable growth. A stock Broker is a regulated professional who buys and sells shares and other securities through market makers or Agency Only Firms on behalf of investors. To work as a broker a certificate of registration from SEBI is mandatory after satisfying all the terms and conditions.

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Financial Markets The financial markets have been classified as y Cash market (spot market) largest traded, the spot market or cash market is a commodities or securities market in which goods are sold for cash and delivered immediately. Derivatives market after cash market, the derivatives markets are the financial markets for derivatives. The market can be divided into two that for exchange traded derivatives and that for over-the-counter derivatives. Debt market - The bond market (also known as the debt, credit, or fixed income market) is a financial market where participants buy and sell debt securities. Commodities mar ket a ft er co mmo dit i es ma r k et , C o mmo d i t y ma r ke t s ar e markets where raw or primary products are exchanged. These raw commodities are traded on regulated commodities exchanges, in which they are bought and sold in standardized contracts.

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AN INTRODUCTION TO EDELWEISS

Edelweiss capital was started by two IIM graduates Mr. Rashesh Shah and Mr. Venkat Ramaswami. The Company is operating in India as an Integrated Investment Banking Company. Edelweiss strives to be a thinking organization, trying to be innovative and imaginative. The policy of the company ensures transparency and greater opportunities for all its clients.

SNAPSHOT Approach- Client Focus, Execution orientation, Culture, Professional Integrity, Research Driven Aim- building long term relationships with the clients and equipping the clients about the market knowledge so that they can address the day by day fast growing opportunities USP- The single minded focus on thought leadership and relentless pursuit of the new and different is it in products, services or people, model of employee ownership Culture- Entrepreneurial and result driven emphasizing confidentiality and integrity Operations- stock broking, research services, distribution of financial products, depository services, and proprietary trading, 47 per cent of its revenue is from treasury and wholesale financing Research (POD) - 90 researchers, covers over 200 stocks across 19 sectors that accounts for about 70% of the total market capitalization Offices- operates from 56 offices in 21 Indian cities, employs over 1600 employees Major clients- ESL focuses on the wholesale equity segment, providing broking services to Institutional and corporate clients and high net worth individuals Market Capitalization- Rs 5,500 crore (Rs 55 billion), Equity Base- over Rs 2,000 crorer Website- www.edelcap.com, www.edelweiss.in

Highlights y EBL has a strong equity research team, which covers approximately 50 - 60 companies within 6 industry categories, with a focus on large and medium cap

stocks. y The companys Equities Broking division has now expanded to include 215 stocks in 19 sectors accounting for 70 percent of market capitalization Alternate Asset Managements total asset value currently stands at $625 million Wholesale Financing division soared to Rs. 141 crore in FY08 from Rs. 7 crore in the previous year Edelweiss is amongst the largest institutional broking firm, enjoying a healthy 5% plus market share in the institutional broking segment Edelweiss is also in the process of widening its product portfolio by penetrating into p r o d u c t specific a n d s e c t o r s p e c i f i c n i c h e s , w h i c h w i l l b r o a d e n a n d strengthen its entire institutional business Asset base of over INR 800 cr. In lending business It is empanelled with over 40 leading FIIs, FIs, Mutual Funds, Banks and Insurance companies Listing in various stock exchanges NSE: EDELWEISS, BSE: 532922, Bloomberg: EDEL.IN Awarded as Best Merchant Banker by the Outlook Money NDTV Profit Awards, 2008 Ranked among the top ten players in Annual Bloomberg and Annual ThomsonReuters Present Chairman and CEO- Mr. Raskesh Shah Well respected Brand with strong position in relevant market segments

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Strength of the Company

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Has an integrated business model, which specializes in providing a wide range of financial products and s er vices s uch as invest ment ba nking, inst itutiona l equities, wealth management, and wholesale finance. Is well positioned to leverage the growing financial sector in India and become a significant market player, especially in areas like investment banking, institutional equities etc. Has a strong research platform with research products, such as fundamental and alternative research, catering to institutions and HNWIs and retails. The fundamental research covers ~190 companies which represent ~69% of the market capitalization of all the companies listed on BSE as on August, 2008. On the other hand alternative research utilizes quantitative techniques to identify short term and medium term investment opportunities in the capital market The company has a strong internal controls and risk management system employed throughout t h e f i r m t o a c c e s s a n d mo n i t or r i s k a c r os s v a r i o u s business line. The Risk exposure is monitored and controlled through a variety of

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separate but complementary financial, credit and operational reporting system y y Is an established brand with strong track record of high growth and profitability? Is strongly focused on nurturing & maintaining strong business relationships o with corporate & institutional clients Well positioned to utilize the immense opportunities in the Indian financial sector

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Recent Approach Edelweiss is a premium broking firm whose targets were only HNWI clients. But seeing the opportunity in retail sector it has forayed into it. The company is providing the same research facility to its retail clients as it provided to its premium clients. It is offering an online platform to the clients which will increase transparency and make business hassle free for the clients. The company is making a shift from ESL (Edelweiss Securities limited) to EBL (Edelweiss Broking Limited).

The benefits offered by the company to its clients are:y y y y y Online Platform News alert through Mobile messages and e-mail Dealer support Portfolio Doctor (Turtle) Toll Free Number (Helpline Services)

Thus the company is customer focused and protects the wealth of its customers through its innovative ideas. The company is repositioning itself from a niche marketer to a mass marketer and is aiming at Brand Repositioning.

Product and Services of Edelweiss y Service

Financing Treasury Assest management Wealth management Insurance broking Private client broking Institutional equities Investment banking

Investment Banking: This includes services such as M&A advisory, transaction execution relating to structured finance, equity markets, real estate, and infrastructure. Institutional Equities: Edelweiss Institutional equities business comprises institutional equity sales, sales-trading, and research. Private Client Brokerage: These services are targeted at high net worth and other individuals who actively invest and trade in the equity market. Wealth Management: Wealth management involves providing investment advisory, planning & asset deployment services to high net-worth individuals. Asset Management: This involves both asset management as well as investment advisory services. Under this, the company advises three funds with an aggregate corpus of over USD 330 mn. Insurance Brokerage: Edelweiss has also entered the non-life insurance brokerage business as an IRDA registered broker in 2005 and it distributes insurance products through its subsidiary, Edelweiss Insurance Brokers Limited. Treasury: The internal treasury operations manage the excess capital funds by investing the same in low risk strategies to achieve risk-adjusted returns. Financing: Wholesale business provides the high net worth individual and corporate clients with facilities such as loans against shares, loans to finance IPO subscriptions, and loans against mutual fund units. This is done through a subsidiary, ECL Finance Limited.

Products y y Advisory Based Broking (ABB) an asset management service. Margin Funding- The Company provides funds to people who wish to invest large amount in stock market but are lacking in fund. Fund is provided against securities. The company has a policy of hair cut which means that the assets that are kept as securities, they are valued less than their original price. Fund is provided for investing in only those stocks that are listed in the stock brokers list of the company. This is to save the company from loss as company has those stocks in the list that are less volatile and whose market value is good. Structured Product- As such, structured products were created to meet specific needs that cannot be met from the standardized financial instruments available in the markets. Structured products can be used as an alternative to a direct investment, as part of the asset allocation process to reduce risk exposure of a portfolio, or to utilize the current market trend Mutual Fund- This is a product offered by the company that takes money from the investors and invests it in the stock market on their behalf as customers are not fully aware of the stock market. They take money from many customers and collectively invest in the stock market. Insurance- Another product offered by the company in which the agent gets commission on every insurance policy done by him Arbitrage- Arbitrage, or true arbitrage, involves buying and selling a security and taking advantage of prices differences that may exists on different markets. While rare, this does happen from time to time

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Portfolio Management Services- this product comes under wealth management. Customers are advised where they should invest their total investment savings. Initial Public Offering (IPO) - This product invites public to participate in the bidding process. Demat account- it refers to Dematerialized Account. It is necessary to sell and buy stocks. So it is just like a bank account where actual money is replaced by shares. One has to approach the DPs, to open his demat account. So one doesnt have to possess any physical certificates showing that you own these shares. They are all held electronically in the account. As one buys and sells the shares, t hey are adjusted in their account. Just like a bank passbook or statement, the DP provides with periodic statements of holdings and transactions. Commodity market- In this market metals and agricultural products are traded. MCX for metal products and NCDEX for agricultural products.

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Competitors

HDFC BANK is one of the leading Depository Participant (DP) in the country with over 8 Lac demat accounts. HDFC Bank Demat services offers you a secure and convenient way to keep track of your securities and investments, over a period of time, without the hassle of handling physical documents that get mutilated or lost in transit. HDFC BANK is Depository participant both with National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL). Features & Benefits : As opposed to the earlier form of dealing in physical certificates with delays in transaction, holding and trading in Demat form has the following benefits: Settlement of Securities traded on the exchanges as well as off market transactions. Shorter settlements thereby enhancing liquidity. Pledging of Securities. Electronic credit in public issue. Auto Credit of Rights / Bonus / Public Issues /Dividend credit through ECS. Auto Credit of Public Issue refunds to the bank account. No stamp duty on transfer of securities held in demat form. No concept of Market Lots. Change of address, Signature, Dividend Mandate, registration of power of attorney, transmission etc. can be effected across companies held in demat form by a single instruction to the Depository Participant (DP). Holding / Transaction details through Internet / email. In case you need any more information or have any queries , feedback & complaints , you may please mail us at dphelp@hdfcbank.com Secured & easy transaction processing HDFC Bank Ltd provides convenient facility called 'SPEED-e' (Internet based transaction) whereby account holder can submit delivery instructions electronically through SPEED-e website (https://speede.nsdl.com). SPEED-e offers secured means of transaction processing eliminating preparation of instruction slips and

submission of the same across the counter to the depository participant. The 'IDEAS' facility helps in viewing the current transactions and balances (holdings) of Demat account on Internet on real time basis. Disclaimer: Whatever have been stated above are in the good interest of the Investor / Demat Applicants / holders to provide a brief picture about the depository system. You are requested go through the guidelines of the depositories before taking any further action. For detailed guidelines, you are requested to approach your nearest HDFC Bank branch. HDFC Bank will not be responsible for any misunderstanding / act based on the above. Also HDFC Bank might ask for additional information / documentation than what has been stated above to process your application / instruction.

ICICI DIRECT ICICI Direct (or ICICIDirect.com) is stock trading company of ICICI Bank. Along with stock trading and trading in derivatives in BSE and NSE, it also provides facility to invest in IPOs, Mutual Funds and Bonds. Trading is available in BSE and NSE. ICICI Direct offers 3 different online trading platforms to its customers. Type of Account: 1. Share Trading Account: Share Trading Account by ICICI Direct is primarily for buying and selling of stocks in BSE and NSE. This account allows Cash Trading, Margin Trading, Margin PLUS Trading, Spot Trading, Buy Today Sell Tomorrow and Call and Trade on phone. ICICIDirect.com website is the primary trading platform for this trading account. They also provide installable application terminal based application for high volume trader. 2. Wise Investment Account: 1. Online Mutual funds investment allows investor to invest on-line in around 19 Mutual Fund companies. ICICI Direct offers various options while investing in Mutual Funds like Purchase Mutual Fund, Redemption and switch between different schemes, Systematic Investment plans, Systematic withdrawal plan and transferring existing Mutual Funds in to electronic mode. This account also provides facility to invest in Government of India Bonds and ICICI Bank Tax Saving Bonds. 2. Active Trader account gives more personalized investment options to the investors. It allows investor to use online and offline stock trading. It also provides with independent market expertise and support through a dedicated Relationship Manager from ICICI.

Active Trader also provides commodity trading.

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

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

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

Kotak Securities Limited (kotakstreet.com): Kotak Securities Ltd., a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25% - one of the worlds leading investment banks and brokerage firms) is Indias leading stock broking house with a market share of 5 - 6 %. Kotak Securities Ltd. has been the largest in IPO distribution - It was ranked number One in 2003-04 as Book Running Lead Managers in public equity offerings by PRIME Database. It has also won the Best Equity House Award from Finance Asia - April 2004. The company has a full fledged research division involved in Macro Economic studies, sectoral research and company specific equity research combined with a strong and well networked sales force which helps deliver current and up to date market information and news. Kotak Securities Ltd is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the company for executing the transactions and the depository services for settling them. The company has 42 branches servicing around 1, 00,000 customers. Kotakstreet.com the online division of Kotak Securities Limited offers Internet Broking services and also online IPO and Mutual Fund Investments. Kotak Securities Limited manages assets over 1700 crores under Portfolio Management Services (PMS) which is mainly to the high end of the market. Kotak Securities Limited has newly launched Kotak Infinity as a distinct discretionary Portfolio Management Service which looks into the middle end of the market.

Motilal Oswal Securities Ltd. (MOSt): One of the top-3 stock-broking houses in India, with a dominant position in both institutional and retail broking, MOSt is amongst the best-capitalized firms in the broking industry in terms of net worth. MOSt was founded in 1987 as a small sub-broking unit, with just two people running the show. Focus on customer-first-attitude, ethical and transparent business practices, respect for professionalism, research-based value investing and implementation of cutting-edge technology have enabled it to blossom into a thousandmember team. The institutional business unit has relationships with several leading foreign institutional investors (FIIs) in the US, UK, Hong Kong and Singapore. In a recent media report MOSt was rated as one of the top-10 brokers in terms of business transacted for FIIs. The retail business unit provides equity investment solutions to more than 50,000 investors through 270 outlets spanning 150 cities and 22 states. MOSt provides Advice-Based Broking, Portfolio Management Services (PMS), E-Broking Services, Depository Services, Commodities Trading, and IPO and Mutual Fund Investment Advisory Services. Its Value PMS Scheme gave a 160% post-tax return for the year ended March 2004. With value investing at the core of its investment philosophy, a strong research team consistently provides high-performance ideas. MOSts equity research has been consistently ranked very highly in surveys conducted by leading international publications like Asiamoney and Institutional Investor. In Asia Money Brokers Poll 2003

MOSt has been rated as the Best Domestic Research House - Mega Funds ,while in 2000 and 2002 it has been rated as the Best Domestic Equity Research House and Second best amongst Indian Brokerage firms respectively.

IDBI Capital Market Services Ltd. IDBI Capital is a leading Indian securities firm offering a complete suite of products and services to individual, institutional and corporate clients. IDBI Capital Market Services Ltd. (IDBI Capital), a wholly owned subsidiary of Industrial Development Bank of India (IDBI), is a leading Indian securities firm, offering a complete suite of products and services to individual, institutional and corporate clients. Our services include fixed income trading, equities brokerage, debt and equity derivatives, research, private placements, depository services, portfolio management and distribution of financial products. Over the last five years, we have emerged as a leading player in each of these businesses. March 1995 - Commenced Equity Broking on NSE CM segment July 1995 - Built agent Distribution Network across the country October 1996 - Commenced Debt Broking on NSE WDM segment December 1996 - Started operations as a Depository Participant 1996 - Started to act as Arranger to Privately Placed Bond issues April 1998 - Commenced operations as a Portfolio Manager February 1999 - Acquired membership of BSE, Mumbai November 1999 - Started operations as a Primary Dealer June 2000 - Acquired Derivatives memberships of BSE and NSE March 2002 - Achieved an outright secondary market turnover exceeding Rs100,000 cr in G-Secs October 2002- Commenced trading in Interest Rate Swaps

Refco - Sify Securities India Pvt. Ltd Refco-Sify Securities India Pvt. Ltd., headquartered in Mumbai, is a joint venture between the Refco Group Holding Ltd., USA; and Satyam Infoway Limited (NASDAQ: SIFY) to offer online and offline equity and derivatives trading for retail customers as well as execution and clearing services for financial institutions. Refco also provides clients with prime brokerage services, fixed income, equities, foreign exchange, OTC derivatives and asset management.

Refco is a leader in providing clients with the latest technological advances in products and services. Its proprietary systems and global infrastructure provide the flexibility to meet all client requirements. Client service is what sets Refco apart from its competitors. Refco understands the unique business requirements of each of its clients and tailors its products and services to meet those requirements.

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

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

Religare Securities Limited (RSL) Religare Securities Limited (RSL), a 100% subsidiary of Religare nterprises Limited is a leading equity and securities firm in India. The company urrently handles sizeable volumes traded on NSE and in the realm of online trading and investments; it currently holds a reasonable share of the market. The major activities and offerings of the company today are Equity Broking,

Depository Participant Services, Portfolio Management Services, International Advisory Fund Management Services, Institutional Broking and Research Services. To broaden the gamut of services offered to its investors, the company offers an online investment portal armed with a host of revolutionary features.y

RSL is a member of the National Stock Exchange of India, Bombay Stock Exchange of India, Depository Participant with National Securities Depository Limited and Central Depository Services (I) Limited, and is a SEBI approved Portfolio Manager.y

Religare has been constantly innovating in terms of product and services and to offer such incisive services to specific user segments it has also started the NRI, FII, HNI and Corporate Servicing groups. These groups take all the portfolio investment decisions depending upon a clients risk / return parameter.y

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

Comparative Analysis Edelweiss Sharekhan Religare India Infoline high average yes Motilal Oswal nominal good yes ICICI Direct High Very good Indiabulls

Brokerage Competitive competitive nominal Services Online trading Premium Yes with excellent Software Excellent Not good in Kolkata Good Yes with the most preferred good Very good average yes

low average

Yes but Real-time quotes no Streaming Very good Excellent average satisfactory

Research Brand image AMC

average average

average average

average good

Free for Rs.400 the 1st year, 562 Free account opening 3-4 times Rs.725

Rs.325

Rs.300

Rs.325

Rs.500

Rs.500

Demat account charges Exposure

Rs.300

Rs.550

Rs.425

Around Rs.750

Rs.500

5 times

5-6times

3-4times 6-7times

3-5 times

6-7times

Interpretation From the above table following conclusions can be drawn:o When it comes to brokerage, Edelweiss is very competitive. Though there are

many firms that are offering very low brokerage to the clients, the company has come up with its new prepaid plans in which the brokerage is as low as 10 paisa. There are different plans depending on the trading volume of the clients o Services offered by Edelweiss are premium and one of the best among all.

o Edelweiss has online trading platform that has live streaming quotes and Express trade facility wherein the client can punch in the trade while looking at the values of the stocks. o Research of Edelweiss is best among all its competitors and no one can beat Edelweiss on that o The only point that is not in the favor of Edelweiss is low Brand equity in Kolkata. The Brand image is not there in the minds of the people as the company is new in Kolkata. So the company needs to work on it and establish a good brand image as it matters a lot in this industry o From the above table it can be seen that ICICI and Sharekhan are its biggest competitors. ICICI is the major competitor, the benefit that it enjoys is that the customers can have their account I its bank so fund transfer is very easy. Besides it has a very good brand image and people trust on that. This is the reason that despite charging a high brokerage it is very popular among masses. Sharekhan is customer friendly and its terminal is considered very fast. So Edelweiss needs to focus on these two competitors

EDELWEISS DEMAT ACCOUNTOverview of Demat Account : Demat account allows you to buy, sell and transact shares without the endless paperwork and delays. It is also safe, secure and convenient. In India, a demat account, the abbreviation for dematerialized account, is a type of banking account which dematerializes paper-based physical stock shares. The dematerialized account is used to avoid holding physical shares: the shares are bought and sold through a stock broker. This account is popular in India. The Securities and Exchange Board of India (SEBI) mandates a demat account for share trading above 500 shares. As of April 2006, it became mandatory that any person holding a demat account should possess a Permanent Account Number (PAN), and the deadline for submission of PAN details to the depository lapsed on January 2007. Is a demat account a must? Now a day, practically all trades have to be settled in dematerialized form. Although the market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of up to 500 shares to be settled in physical form, nobody wants physical shares any more. So a demat account is a must for trading and investing. Why demat? The demat account reduces brokerage charges, makes pledging/hypothecation of shares easier, enables quick

ownership of securities on settlement resulting in increased liquidity, avoids confusion in the ownership title of securities, and provides easy receipt of public issue allotments. It also helps you avoid bad deliveries caused by signature mismatch, postal delays and loss of certificates in transit. Further, it eliminates risks associated with forgery, counterfeiting and loss due to fire, theft or mutilation. Demat account holders can also avoid stamp duty (as against 0.5 per cent payable on physical shares), avoid filling up of transfer deeds, and obtain quick receipt of such benefits as stock splits and bonuses.

What is dematerialization? Dematerialization is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form and credited into the investors account with his/her DP.

Steps involved in opening a demat account : First an investor has to approach a DP and fill up an account opening form. The account opening form must be supported by copies of any one of the approved documents to serve as proof of identity (POI) and proof of address (POA) as specified by SEBI. Besides, production of PAN card in original at the time of opening of account has been made mandatory effective from April 01, 2006. All applicants should carry original documents for verification by an authorized official of the depository participant, under his signature. Further, the investor has to sign an agreement with DP in a depository prescribed standard format, which details rights and duties of investor and DP. DP should provide the investor with a copy of the agreement and schedule of charges for their future reference. The DP will open the account in the system and give an account number, which is also called BO ID (Beneficiary Owner Identification number). The DP may revise the charges by giving 30 days notice in advance. SEBI has rationalized the cost structure for dematerialization by removing account opening charges, transaction charges for credit of securities, and custody charges vide circular dated January 28, 2005. Further, SEBI has vide circular dated November 09, 2005 advised that with effect from January 09, 2006, no charges shall be levied by a depository on DP and consequently, by a DP on a Beneficiary Owner (BO) when a BO transfers all the securities lying in his account to another branch of the same DP or to another DP of the same depository or another depository, provided the BO Account/s at transferee DP and at transferor DP are one and the same, i.e. identical in all respects. In case the BO Account at transferor DP is a joint account, the BO Account at transferee DP should also be a joint account in the same sequence of ownership. Rights: 1. You can open more than one depository account in the same name with single DP/ multiple DPs. 2. No minimum balance is required to be maintained in a depository account. 3. You can give a onetime standing instruction to your DP to receive all the credits coming to your depository account automatically. DEMAT Benefits? A safe and convenient way to hold securities. Immediate transfer of securities. No stamp duty on transfer of securities (0.5 % on physical shares). Elimination of risks associated with physical certificates such as bad delivery, fake securities, delays, theft etc. Reduction in paper work. Reduction in transaction cost.

No odd lot problem, even one share can be sold. Nomination facility. Holding investment in equity and debt instruments in a single account.etc. DEMAT Conversion:1. Surrender the certificates of physical shares for dematerialization to your depository participants. 2. Depository participant intimates depository of the request through the system. 3. Depository participant submit the certificates to the registrar to the issuer company. 4. Registrar confirms the dematerialization request from depository. 5. After dematerializing the certificates, registrar updates accounts and informs depository of the completion of dematerialization. 6. Depository updates its accounts and informs the depository participant. 7. Depository participant updates demat a/c of the investor.

What is a Depository? A depository is an organization which holds securities of investors in electronic form at the request of the investors through a registered Depository Participant. It also provides services related to transactions in securities. SEBI registered depositorys:NSDL: - National securities depository limited CDSL: - Central depository services limited Minimum net worth required for a depository is 100 crores NSDL: Although India had a vibrant capital market, which is more than a century old, the paperbased settlement of trades caused substantial problems like bad delivery and delayed transfer of title till recently. The enactment of Depositories Act in August 1996 paved the way for establishment of NSDL, the first depository in India. This depository promoted by institutions of national stature responsible for economic development of the country has since established a national infrastructure of international standard that handles most of the trading and settlement in dematerialized form in Indian capital market. Using innovative and flexible technology systems, NSDL works to support the investors and brokers in the capital market of the country. NSDL aims at ensuring the safety and soundness of Indian marketplaces by developing settlement solutions that increase efficiency, minimize risk and reduce costs. At NSDL, we play a quiet but central role in developing products and services that will continue to nurture the growing needs of the financial services industry.

In the depository system, securities are held in depository accounts, which is more or less similar to holding funds in bank accounts. Transfer of ownership of securities is done through simple account transfers. This method does away with all the risks and hassles normally associated with paperwork. Consequently, the cost of transacting in a depository environment is considerably lower as compared to transacting in certificates. DEPOSITORY PARTICIPANTS: A Depository Participant (DP) is described as an agent of the depository. They are the intermediaries between the depository and the investors. The relationship between the DPs and the depository is governed by an agreement made between the two under the Depositories Act. In a strictly legal sense, a DP is an entity that is registered as such with SEBI under the provisions of the SEBI Act. As per the provisions of this Act, a DP can offer depository-related services only after obtaining a certificate of registration from SEBI. SEBI (D&P) Regulations, 1996 prescribe a minimum net worth of Rs.50 lakh for stockbrokers, R&T agents and nonbanking finance companies (NBFC), for granting them a certificate of registration to act as DPs. If a stockbroker seeks to act as a DP in more than one depository, he should comply with the specified net worth criterion separately for each such depository. No minimum net worth criterion has been prescribed for other categories of DPs. However, depositories can fix a higher net worth criterion for their DPs. NSDL requires a minimum net worth of Rs.100 lakh to be eligible to become a DP as against Rs.50 lakh prescribed by SEBI (D&P) Regulations. Instruments: The changes in the regulatory framework of the capital market and fiscal policies have also resulted in newer kinds of financial instruments (securities) being introduced in the market. Also, a lot of financial innovation by companies who are now permitted to undertake treasury operations has resulted in newer kinds of instruments - all of which can be traded being introduced. The variations in all these instruments depend on the tenure, the nature of security, the interest rate, the collateral security offered and the trading features, etc y Debentures y y y y y y y y y Bonds Preference Share Equity Shares Government securities Capital Market Processes Initial Public Offering (IPO) Private Placement Preferential Offer/Rights Issue Private Placement

Benefits of Depository System: In the depository system, the ownership and transfer of securities takes place

by means of electronic book entries. At the outset, this system rids the capital market of the dangers related to handling of paper. NSDL provides numerous direct and indirect benefits, like:

y

y

y y

y

y

y

y y y

Elimination of bad deliveries :-In the depository environment, once holdings of an investor are dematerialized, the question of bad delivery does not arise i.e. they cannot be held "under objection". In the physical environment, buyer was required to take the risk of transfer and face uncertainty of the quality of assets purchased. In a depository environment good money certainly begets good quality of assets. Elimination of all risks associated withphysical certificates :-Dealing in physical securities have associated security risks of theft of stocks, mutilation of certificates, loss of certificates during movements through and from the registrars, thus exposing the investor to the cost of obtaining duplicate certificates and advertisements, etc. This problem does not arise in the depository environment. No stamp duty:-For transfer of any kind of securities in the depository. This waiver extends to equity shares, debt instruments and units of mutual funds. Immediate transfer and registration of Securities:-In the depository environment, once the securities are credited to the investors account on pay out, he becomes the legal owner of the securities. There is no further need to send it to the company's registrar for registration. Having purchased securities in the physical environment, the investor has to send it to the company's registrar so that the change of ownership can be registered. This process usually takes around three to four months and is rarely completed within the statutory framework of two months thus exposing the investor to opportunity cost of delay in transfer and to risk of loss in transit. To overcome this, the normally accepted practice is to hold the securities in street names i.e. not to register the change of ownership .However, if the investors miss a book closure the securities are not good for delivery and the investor would also stand to loose his corporate entitlements. Faster settlement cycle:-The exclusive demat segments follow rolling settlement cycle of T+2 i.e. the settlement of trades will be on the 2nd working day from the trade day. This will enable faster turnover of stock and more liquidity with the investor. Faster disbursement of non-cash corporate benefits like rights, bonus, etc.:NSDL provides for direct credit of non-cash corporate entitlements to aninvestors account, thereby ensuring faster disbursement and avoiding riskof loss of certificates in transit. Reduction in brokerage by many brokers for trading in dematerialized securities:-Brokers provide this benefit to investors as dealing in dematerialized securities reduces their back office cost of handling paper and also eliminates the risk of being the introducing broker. Reduction in handling of huge volumes of paper Periodic status reports to investors on their holdings and transactions, leading to better controls. Elimination of problems related to change of address of investor, transmission, etc:-In case of change of address or transmission of demat shares; investors are saved from undergoing the entire change procedure with each company or registrar. Investors have to only inform their DP with all relevant documents and the required changes are effected in the database of all the companies, where the investor is a registered holder of securities.

y

y

Elimination of problems related to selling securities on behalf of a minor:-A natural guardian is not required to take court approval for selling demat securities on behalf of a minor. Ease in portfolio monitoring:-Since statement of account gives a consolidated position of investments in all instruments.

HOW TO OPEN AN ACCOUNT LIMITED ? For online trading with EDELWEISS BROKING Ltd., investor has to open an account. Following are the ways to open an account with Edelweiss Broking Ltd.: One need to call them at phone number provided below and asks that he want to open an account with them. One can call on the Toll Free Number: 1-800-102-3335 to speak to a Customer Service executive One can SMS EDEL to 5757590 One can visit any one of Edelweiss Broking Limiteds nearest branches. One can send them an email at info@edelweiss.com to know about their products and services. One can also visit the site www.edelweiss.in and click on the option Open an Account to fill a small query form which will ask the individual to give details regarding his name, city he lives in, his email address, phone number, pin code of the city, his nearest Edelweiss Ltd.

These information are compiled in the headquarter of the company that is in Mumbai from where it is distributed through out the countrys branches in the form of leads on the basis of cities and nearest share shops. After that the executives of the respective branches contact the prospective clients over phone or through email and give them information regarding the various types of accounts and the documents they need to open an account and then fix appointment with the prospective clients to give them demonstration and making them undergo the formalities to open the account. After that the forms that has collected from the clients, is scrutinized in the branch and then it is sent to Mumbai for further processing where after a few days the clients account are generated and activated. After the accounts are activated, a Welcome Kit is dispatched from Mumbai to the clients address mentioned in the documents provided by them. As soon as the clients receive the Welcome Kit, which contains the clients Trading ID and Trading Password, they can start trading and investing in shares. Apart from two passport size photographs, one needs to provide with the following documents in order to open an account with Edelweiss Broking Limited.: Photocopy of the clients PAN Card which should be duly attached Photo copy of any of the following documents duly attached which will serve as correspondence address proof:

a. Passport (valid) b. Voters ID Card c. Ration Card d. Driving License (valid) e. Electricity Bill (should be latest and should be in the name of the client) f. Telephone Bill (should be latest and should be in the name of the client) g. Flat Maintenance Bill (should be latest and should be in the name of the client) h. Insurance Policy (should be latest and should be in the name of the client) i. Lease or Rent Agreement.

j. Saving Bank Statement** (should be latest) Cheques drawn in favour of Edelweiss Broking Limited.

** A cancelled cheque should be given by the client if he provides Saving Bank Statement as a proof for correspondence address. NOTE: Only Saving Bank Account cheques are accepted for the purpose of Opening an account. Generally the process of opening an account follows the following steps:

LEAD MANAGEMENT SYSTEM (LMS) / REFERENCES

CONTACT THE PERSON OVER PHONE OR THROUGH EMAIL

FIXING AN APPOINTMENT WITH THE PERSON

YES

GIVING DEMONSTRATION

NO

CHARGE STRUCTURE : Fee structure for General Individual: Charges Account Opening Brokerage Classic Account Nil Intra day 0.10% Delivery 0.50% Trade Tiger Account Nil Intra day 0.10% Delivery 0.50%

BROKARAGE: It is the charge taken by the guiding company for helping you in buying and selling your shares. There are different charges for Intraday and Delivery. INTRADAY: The day to day buying and selling or daily transactions are called as Intraday. You have to buy or sell the shares within the day only. DELIVERY:

It is the three day transaction. The day you buy the share and the next two days after that day is called as Delivery. It includes thre days. If you are buying any share then you have to sell it within three days including the buying day. T+2 = Today + 2 days Depository Charges: Account Opening Charges Annual Maintenance Charges Nil 1st Year Nil 2nd Year 450/-

ADVANCE BROKERAGE ACCOUNT: There are three types of Advance Brokerage account are provided to the customers accordingly they make transactions more and more. All Advance Brokerage accounts are valid for One year only. Scheme of Advance Brokerage : Advance Brokerage (p.a) Cash Futures and Options Futures 2450/Intra-day 0.035%(Single Side) Delivery 0.35% Intra-day 0.031% Delivery 0.31% Intra-day 0.026% Delivery 0.26% Intraday- 0.02% Delivery- 0.2% Intraday- 0.017% Delivery- 0.17% Intraday- 0.013% Delivery- 0.13% Intraday- 0.011% Delivery- 0.11% Intraday- 0.01% Delivery- 0.1% Intraday- 0.007% Delivery- 0.1% 0.035 Options Rs.90 per lot

4950/9950/15000/30000/50000/75000/100000/100000/- (3 Months)

0.031 0.026 0.02 0.017 0.013 0.011 0.01 0.007

Rs.80 per lot Rs.70 per lot Rs. 60 per lot Rs. 45 per lot Rs.40 per lot Rs.30 per lot Rs.25 per lot Rs.15 per lot

MY WORK AT EDELWEISS

Students work profile(role and responsibilities) : I worked there with EDELWEISS CAPITAL LTD. with a profile of sales trainee. This profile offers me to understand the need of customer and provide them the best deal possible with maximization of the profit, both for the company as well as for the customer. The most important aspect for the role of trainee is trust. So far fulfillment of the targets one needs to: y Capitalize on the old and loyal clientage which can be building slowly by advising people in the best possible way. Generating new leads through various activities.

y

Generation of leads : Since I was new in the field so I had to start from scratch and generate new leads to sustain in the market. Cold calling is one of the trusted ways of getting to the customers without meeting them. Although the rate of conversion remained very less, for cold calling the quality and accent remains a very important criterion. This activity gives me mixed result. I often got success and generated many leads through it but it also landed me in awkward position where the customer were in different mood and made us hear words for which a marketer should be always prepared to hear. Corporate calls always remained more difficult to crack with respect to retail sector. The corporate were the most difficult and most temping to get the business from. It took me one one day to crack Hi-tech Gears. At EDELWEISS BROKING LTD. after getting the product knowledge in the first week at the branch I was also allotted distributor to work with. In the initial phase I was accompanied by more experienced staff. After I became known to the market and procedure I started attending calls alone only. After the third week my performance also improved and I was able to get close to the targets, though it looked difficult to achieve in the beginning. To get awareness of the every product I attended diversified calls. This helped me to implement cross selling to get better results. LIMITATIONS: 1. Cold Calling: Voice and accent plays a major role. The right time to call a customer cannot be decided, as the customer may in a different mood at the time of calling. Time consuming Less success rate

2. Corporate: Time consuming Contacts with higher authorities play a major role

Description of live experience : I was supposed to use the database provided by the company to make cold calls or by directly meeting people to get new leads. While making cold calls, we need to have: Good Communication Skills (Voice quality is clear and articulate) Persistent and able to bounce back from rejection Good organizational skills. Ability to project a telephone personality (Enthusiasm, friendliness) Flexibility: can adapt to different types of clients and new situations.

Using a good database is very essential. Eighty percent of our business comes from 20 percent of our customers" is a frequent statement at any sales convention. There's hardly a sales executive who is not aware of the 80/20 rule. While talking to customers, I analyze their needs. Whether they want to go for investment purpose or insurance or both. Suggest them the plan that best suits them. If they agree to it then either we send across the agents to close the deal or close it themselves.

Problems faced while selling products: Customer dissatisfied with the services. People fear that Edelweiss Being a Private company and a new entrant may be able to sustain or not. Past experience, word of mouth. Misguidance by agents. People do not want insurance products. Lack of knowledge and less awareness about demat account. People risk appetite is very low, so they are afraid of mutual fund as well.

SUGGESTIONS 1. MORE BRANCHES Need to open more branches to be a topper in market Because it has a low distribution network. 2. LESS TIME They should try to make some arrangements to reduce account opening time by verifying documents at branch it selves.

3. LINK-BANK A/Cs Linked as many accounts as client wants to its online account. 4. NEW BANKS IN THE KITTY Need to tie up with major banks like SBI, Allahabad Bank, Bank of Baroda etc. 5.CUSTOMER SATISFACTION The company should focus on the customer satisfaction not on just taking money from their pocket.

7.CONTROLLED BRANCHES The company would have to make some arrangements to control the branches and make standardized procedures for all of them for their better control and performance appraisal.

Commitment should be equalized for every person. Provide the facility of free demonstrations for all.

Improvement in the opening of De-mat & contract notice procedure is required.

There should be a limited number of clients under the relationship manger. So that he can handle new as well as old customer properly.

Some promotional activities are required for the awareness of the customer.

People at young age should be encouraged to invest in stock market.

Seminars should be held for providing information to prospective and present customers.

CONCLUSION On the basis of the study it is found that Edelweiss Broking Ltd is better services provider than the other stockbrokers because of their timely research and personalized advice on what stocks to buy and sell. Edelweiss Broking Ltd. provide the facility of Trade tiger as well as relationship manager facility for encouragement and protect the interest of the investors. It also provides the information through the internet and mobile alerts that what IPOs are coming in the market and it also provides its research on the future prospect of the IPO.

Study also concludes that people are not much aware of commodity market and while its going to be biggest market in India.

The company should also organize seminars and similar activities to enhance the knowledge of prospective and existing customers, so that they feel more comfortable while investing in the stock market.