TRAINING REPORT

ON
ONLINE TRADING & COMPARATIVE ANALYSIS OF SHAREKHAN

Submitted to
MAHARSHIN DAYANAND UNIVERSITY, ROHTAK

In partial fulfillment of the requirements for the award of the degree of

BACHELOUR OF BUSINESS ADMINSTRATION

(INDUSTRY INTEGRATED)
(II Semester)

Submitted by

Name : Ankit Dua

Regn. No: 1073900342
Roll No. 1090110342

OJAS INSTITUTE OF MANAGEMENT

ELC CODE: 330923011
B-1, Sector 16, Rohini, Delhi-110085
JULY 2011

1
 CERTIFICATE

This is to certify that Ankit Dua, a student of the Maharshi Dayanand University,
Rohtak, has prepared his training report entitled “Online Trading & Comparative
Analysis of Sharekhan” at sharekhan ltd., under my guidance. He has fulfilled all
requirements leading to award of the degree of BBA (Industry Integrated). This report is
the record of bonafide training undertaken by him and no part of it has been submitted to
any other University or Educational institution for award of any other
degree/diploma/fellowship or similar titles or prizes.

I wish him all success in life.

Mr. Nitesh Sharma

Assistant Manager

2
 STUDENT DECLARATION

I hereby declare that the training Report conducted at

SHAREKHAN LTD.
411-412, Aggarwal Cyber Plaza, Netaji Subhash Place,
Pitampura, New Delhi – 110034

Under the guidance of

MS. REENA BAMEL

Submitted in partial Fulfillment of the requirements for the

Degree of
BACHELOR OF BUSINESS ADMINSTRASTIVE
(Industry Integrated)

TO

MAHARSHI DAYANAND UNIVERSITY, ROHTAK

is my original work and the same has not been submitted
for the award of any other degree/diploma/fellowship
Or other similar titles or prizes.

Ankit Dua
Place: Regn. No. : 1073900342
Date: Roll No. : 1090110342

3
 CERTIFICATE

This is to certify that Mr. Ankit Dua who is pursuing BBA (industry Integrated) course
of Maharshi Dayanand University, Rohtak, at Ojas Institute of Management has
undergone management training at our organization from 2nd APRIL 2011 to 30th JUNE
2011.

His performance during the training period was found to be good.

We wish him success for his future endeavours.

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 CONTENTS:

CHAPTER 1: INTRODUCTION
1.1 General Introduction about the sector
1.2 Industry Profile.
a. Origin and development of the industry.
b. Growth and present status of the industry
c. Future of the Industry.

CHAPTER: PROFILE OF THE ORGANIZATION

2.1 Origin of the Organization.
2.2 Growth, development & Present status of the Organization.
2.3 Organization Structure and Organization Chart.
2.4 Product and Service profile of the Organization.
2.5 Market profile of the Organization.

CHAPTER: 3 DISCUSSIONS ON TRAINING

3.1 Student’s work profile (Role and Responsibilities)
3.2 Key learning from training.

CHAPTER 4: STUDY OF SELECTED RESEARCH PROBLEM

4.1 Statement of research problem
4.2 Statement of research objectives.
4.3 Research design and methodology.

CHAPTER 5: ANALYSIS
5.1 Data Analysis.
5.2 Summary of findings.

CHAPTER 6: SUMMARY AND CONCLUSIONS

6.1 Summary of learning Experience.
6.2 Conclusions and Recommendations.

APPENDICES
Annexure re like copy of questionnaires, interview schedule, and leaf lets,
brochures, photographs to be enclosed.

BIBLOGRAPHY

5
 CHAPTER 1

INTRODUCTION

6
 Introduction

1.1) General Introduction about the sector

The financial sector in India includes services like broking firms, investment services,
financial consulting, national banks, private banks, mutual funds, car and home loans,
equity market and other banking services. Financial services have grown immensely in
the last few years.
Market analysts say that FII inflows into the country will continue to rise this year as well
because Indian market continues to be attractive.
Average assets under management (AUM) of the Indian mutual fund industry stood at
7,036.7 billion (US$ 158.26 billion) during January to March 2011, according to the
Association of Mutual Funds in India (AMFI).
India's foreign exchange reserves stood at US$ 308.2 billion as on April 8, 2011,
according to the data in the weekly statistical supplement released by the Reserve Bank
of India.
India has emerged as an attractive investment destination for global investors as 61 per
cent of merger and acquisition deals in the first quarter of 2011 were done by foreign
firms of Indian entities. The trend, going forward, is likely to heat up further. Out of the
57 deals that took place during January to March 2011, 35 deals had foreign bidders,
according to merger markets, the M&A intelligence service provider in India. Energy,
Insurance and Information Technology (IT) sectors accounted for most of the amount.
According to merger markets, India M&A Q1 2011 round-up, cross-border deals
dominate the top deals table, with four inbound and one outbound deals qualifying as the
five largest deals announced in Q1 2011. As many as 57 deals totalling US$18.3 billion
were recorded in Q1, 2011, a 270.6 per cent rise in value as compared to the same quarter
last year.
Driven by huge investments from infrastructure and manufacturing funds, private equity
(PE) firms' investments in the country reached an impressive US$ 3.3 billion in January-
March, 2011. PE investments in the January-March quarter of calendar year 2011 were
about 57 per cent higher than the US $ 2.1 billion registered in the year-ago period and

7
more than double the US$ 1.5 billion investments in October-December 2010, according
to data provided by Venture Intelligence.
The amount invested by PE firms in Q1 2011, was the highest since Q1 2008, according
to Venture Intelligence MD and CEO Arun Natarajan. The total deal count also increased
to 83 equity deals in the first quarter of 2011 from 81 deals in the corresponding period a
year ago.
Moreover, upbeat by expectations of nearly 9 per cent growth in India’s Gross Domestic
Product (GDP), venture capital (VC) and PE investors are optimistic that deal activity
will not only continue in 2011, but also rise from 2010 levels, according to a survey by
Bain and Co.
“India continues to be a very attractive destination for PE investments, locally and from
abroad. Pent-up demand is poised to help propel 2011 past 2010 as an investment year,”
said Sri Rajan, Managing Director of Bain in India.
As the economy grows, investors view banking and financial services, healthcare and
consumer products as the most attractive sectors. Infrastructure and energy are also
expected to see a strong influx of investment, with nearly 40 per cent of all PE
investments in India targeting infrastructure projects, according to the report.

Stock markets

The share of Indian equities in global market is increasing. Market capitalisation of India
as a proportion of world market cap has risen to a record high. The country's market
capitalisation as a proportion of the world market cap was 3.34 per cent as on September
22, 2010. India's market-cap as on September 22, 2010 was US$ 1.55 trillion as
compared with world market-cap of US$ 46.5 trillion. This was higher than the 3.12 per
cent share India enjoyed at the market peak of January 2008.

1.2) Industry profile

A. Origin and development of the industry
The term "financial services" became more prevalent in the United States partly as a
result of the Gramm-Leach-Bliley Act of the late 1990s, which enabled different types of
companies operating in the U.S. financial services industry at that time to
8
 merge.[2] Companies usually have two distinct approaches to this new type of business.
One approach would be a bank which simply buys an insurance company or
an investment bank, keeps the original brands of the acquired firm, and adds
the acquisition to its holding company simply to diversify its earnings. Outside the U.S.
(e.g., in Japan), non-financial services companies are permitted within the holding
company. In this scenario, each company still looks independent, and has its own
customers, etc. In the other style, a bank would simply create its own brokerage division
or insurance division and attempt to sell those products to its own existing customers,
with incentives for combining all things with one company.

Banking services

The primary operations of banks include:

 Keeping money safe while also allowing withdrawals when needed

 Issuance of checkbooks so that bills can be paid and other kinds of payments can be
delivered by post
 Provide personal loans, commercial loans, and mortgage loans (typically loans to
purchase a home, property or business)
 Issuance of credit cards and processing of credit card transactions and billing
 Issuance of debit cards for use as a substitute for checks
 Allow financial transactions at branches or by using Automatic Teller Machines (ATMs)
 Provide wire transfers of funds and Electronic fund transfers between banks
 Facilitation of standing orders and direct debits, so payments for bills can be made
automatically
 Provide overdraft agreements for the temporary advancement of the Bank's own money
to meet monthly spending commitments of a customer in their current account.
 Provide internet banking system to facilitate the customers to view and operate their
respective accounts through internet.
 Provide Charge card advances of the Bank's own money for customers wishing to settle
credit advances monthly.

9
 Provide a check guaranteed by the Bank itself and prepaid by the customer, such as
a cashier's check or certified check.
 Notary service for financial and other documents
 Intermediation or advisory services - These services involve stock brokers (private client
services) and discount brokers. Stock brokers assist investors in buying or selling shares.
Primarily internet-based companies are often referred to as discount brokerages, although
many now have branch offices to assist clients. These brokerages primarily target
individual investors. Full service and private client firms primarily assist and execute
trades for clients with large amounts of capital to invest, such as large companies,
wealthy individuals, and investment management funds.

 Private equity - Private equity funds are typically closed-end funds, which usually take
controlling equity stakes in businesses that are either private, or taken private once
acquired. Private equity funds often use leveraged buyouts (LBOs) to acquire the firms in
which they invest. The most successful private equity funds can generate returns
significantly higher than provided by the equity markets
 Venture capital is a type of private equity capital typically provided by professional,
outside investors to new, high-potential-growth companies in the interest of taking the
company to an IPO or trade sale of the business.
 Angel investment - An angel investor or angel (known as a business angel or informal
investor in Europe), is an affluent individual who provides capital for a business start-up,
usually in exchange for convertible debt or ownership equity. A small but increasing
number of angel investors organize themselves into angel groups or angel networks to
share research and pool their investment capital.
 Conglomerates - A financial services conglomerate is a financial services firm that is
active in more than one sector of the financial services market e.g. life insurance, general
insurance, health insurance, asset management, retail banking, wholesale banking,
investment banking, etc. A key rationale for the existence of such businesses is the
existence of diversification benefits that are present when different types of businesses
are aggregated i.e. bad things don't always happen at the same time. As a
consequence, economic capital for a conglomerate is usually substantially less
than economic capital is for the sum of its parts.
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 Debt resolution is a consumer service that assists individuals that have too much debt to
pay off as requested, but do not want to file bankruptcy and wish to payoff their debts
owed. This debt can be accrued in various ways including but not limited to personal
loans, credit cards or in some cases merchant accounts. There are many
services/companies that can assist with this. These can include debt consolidation, debt
settlement and refinancing.

B) Growth and Present Status of the Industry

The objective before a present day economy is to ensure growth with distributive justice,
in tune with the democratic
principle of the greatest happiness of the greatest number. Growth cannot be considered
as an end in itself until it
translates into income generation and empowerment of the whole population,
irrespective of areas and sectors. In
other words, growth has to be an ‘inclusive’ phenomenon and not confined to a few
pockets of area and people,
which makes it “exclusive”.
Since finance is universally acknowledged as the most important contributor to growth
and empowerment in modern
day context, financial inclusion has emerged as a concept uppermost before
Governments, Planners, Financial Sector
players, Socio-economic Organisations etc. all across the globe. A definition of financial
inclusion, embracing all its essential aspects could be like this: “It is the delivery of
financial services at an affordable cost to the vast sections of disadvantaged and low
income groups”. In the Indian context, a specialty will be the coverage of rural areas as
the main target, in view of the concentration of these vulnerable groups in such areas.
The dimension of poverty in Odisha has been very large and civil societies have been
working relentlessly towards poverty alleviation and “Microfinance is barely an
instrument for the alleviation of poverty”. The major concern is, both finance and
community run on completely different models. While finance operates on
exclusiveness, community runs on the basis of inclusiveness. So it is a challenge for all
11
the stake holders, to bring together both inclusively and exclusivity or in other words, the
community and finance together. It is true that “financial inclusion and poverty
alleviation cannot be separated”, but components like savings, investment, credit,
insurance, and remittance should be included in financial inclusion. Empirical evidence
suggests that financial services to the poor have positive social impacts; nutrition, health,
education, status of women etc. are all enhanced. There is a need to further look into the
structural causes that lead to livelihood failures for the marginalized groups. Simply,
including the poor in the financial system could lead to further exclusion in rural areas.
CYSD organized a one-day workshop titled “Financial Inclusion in Odisha: A Way
Forward” on 23rd March 2009 in which Government officials, Bank Officials,
Academicians, MFIs, Civil Society representatives and Media representatives
participated. The workshop after a lot of meaningful discussion, concluded with “A way
forward and future action agenda”, which is as follows:
• As financial inclusion and financial sustainability go together, the implication is that the
state has to play a bigger role and there is need for commitment of resources for capacity
building etc. to make financial inclusion a reality.
• Use of creative adult learning techniques to promote financial literacy.
• As financial literacy is in the interest of the service providers, the service providers
must invest in such literacy programs.
• MFIs need appropriate product design.
• MFIs need to be well equipped with information on various insurance products in order
to pass them on to the beneficiaries.

C) Future of the financial industry

In 2006 (long before the crisis started), I was working on a project to understand the
evolution of the U.S. financial industry. I concluded that its growth seemed to reflect
fundamental economic needs up to 2001, but that it was not clear (at least to me) why it

12
kept growing so quickly after 2002.

Based on my simple model, I thought the financial sector was about one percentage point
of GDP too large (on the virtues on simple models, see Krugman). In April 2008, in an
interview with Justin Lahart of the WSJ, my idea was translated in the following way:
“Mr. Philippon argues that the surge of financial activity that began in 2002 created an
employment bubble that is now bursting. His model suggests total employment in finance
and insurance has to fall to 6.3 million to get back to historical norms, and that means
losing an additional 700,000 jobs in the sector.” In truth, my model is not about the
number of jobs but about the GDP share, so it would be more accurate to say that the
annual wage bill of the financial sector needs to shrink by approximately $100 billion.
At the time, this sounded like an overly pessimistic – even unrealistic – prediction. Not
anymore. These days the market seems to expect the financial sector to shrink to zero.
This, however, will not happen. Having been a bear two years ago on the financial sector,
I don’t feel obliged to inflate my pessimism credentials now by ringing a death knell for
this industry. Rather, I hope that I am in a good position to give a more or less objective
assessment of the situation.

But first, a little bit of history.

Financial institutions provide services to households and corporations. The financial
sector’s share of aggregate income reveals the value that the rest of the economy attaches
to these services. Historical data from the United States shows surprisingly large
variations in the economic importance of the financial industry.

13
The figure above shows the GDP share of all finance (commercial banking, investment
banking, private equity, etc.) and insurance (life and property) services in the U.S. from
1860 to 2007.

The financial industry was around 1.5% of GDP in the mid-19th century. The first large
increase between 1880 to 1900 corresponds to the financing of railroads and early heavy
industries.

The second big increase between 1918 and 1933 corresponds to the financing of
theElectricity revolution, as well as automobile and pharmaceutical companies. GE did
its IPO in 1913, GM in 1920 and Procter&Gamble in 1932. Key discoveries of the 1920s
and 1930s, such as insulin and penicillin, became mass-manufactured and distributed.
After a continuous collapse in the 1930s and 40s, the GDP share of finance and insurance
industries was down to only 2.5% of GDP in 1947. It recovered slowly and was mostly
stable at around 4% until the late 1970s, and then grew quickly to reach 8.3% of GDP in
2006.

The third large increase, from 1980 to 2001, corresponds to the financing of the IT
revolution. From 2002 to 2006, I am not quite sure what the financiers were doing. Or
rather, I am not sure that the services provided by insane trading volumes and real estate
derivatives were worth the price tag.
The real economy and the future of the financial industry
The interactions between the financial industry and the rest of the economy are complex.
Economic growth in the 1960s was outstanding, but seemed to require little financial
intermediation. Finance grew quickly in the 1980s while the economy stagnated, and the
pattern changed again in the 1990s.

So it is certainly not true that a large financial sector is required for sustained economic
growth (see the 1960s). Rather, it appears that a large financial sector is needed when
economic growth is driven by young, cash-poor, innovative firms. This brings us to our
last topic.

14
The future of the financial industry depends on the needs of the real economy. The U.S.
is still an amazingly innovative economy. New startups still need sophisticated financial
tools, such as venture capital and risky loans. IPOs will come back. Sophisticated equity
traders will be needed to price these new stocks. Restructuring, M&As and efficient tools
for managing credit risk will still be needed as young sprouts grow and challenge tall old
corporate trees. Moreover, the U.S. financial sector will keep providing services to
consumers and innovative firms in other countries. What the current financial crisis tells
us is that we might not need to spend more than 8% of our economic ressources to buy
these financial services. My own estimate is that the financial sector should be around 7%
of GDP if the U.S. remains an innovative,

15
 CHAPTER – 2

PROFILE OF THE SHAREKHAN

16
2.1) Origin of the sharekhan
Share khan is one of the leading retail brokerage of SSKI Group which is running
successfully since 1922 in the country. It is the retail broking arm of the Mumbai-based
SSKI Group, which has over eight decades of experience in the stock broking business.
Share khan offers its customers a wide range of equity related services including trade
execution on BSE, NSE, Derivatives, depository services, online trading, investment
advice etc.
The firm’s online trading and investment site - www.sharekhan.com - was launched on
Feb 8, 2000. The site gives access to superior content and transaction facility to retail
customers across the country. Known for its jargon-free, investor friendly language and
high quality research, the site has a registered base of over 2 lacs customers. The number
of trading members currently stands at over 5 Lacs. While online trading currently
accounts for just over 2 per cent of the daily trading in stocks in India, Share khan alone
accounts for 27 per cent of the volumes traded online.
The content-rich and research oriented portal has stood out among its contemporaries
because of its steadfast dedication to offering customers best-of-breed technology and
superior market information. The objective has been to let customers make informed
decisions and to simplify the process of investing in stocks.
On April 17, 2002 Share khan launched Speed Trade and Trade Tiger, are net-based
executable application that emulates the broker terminals along with host of other
information relevant to the Day Traders. This was for the first time that a net-based
trading station of this caliber was offered to the traders. In the last six months Speed
Trade has become a de facto standard for the Day Trading community over the net.
Share khan’s ground network includes over 700+ Share shops in 130+ cities in
India.
Share khan has always believed in investing in technology to build its business. The
company has used some of the best-known names in the IT industry, like Sun
Microsystems, Oracle, Microsoft, Cambridge Technologies, Nexgenix, Vignette,
Verisign Financial Technologies India Ltd, Spider Software Pvt Ltd. to build its trading

17
engine and content. The Citi Venture holds a majority stake in the company. HSBC, Intel
& Carlyle are the other investors.
With a legacy of more than 80 years in the stock markets, the SSKI group ventured into
institutional broking and corporate finance 18 years ago. Presently SSKI is one of the
leading players in institutional broking and corporate finance activities. SSKI holds a
sizeable portion of the market in each of these segments. SSKI’s institutional broking arm
accounts for 7% of the market for Foreign Institutional portfolio investment and 5% of all
Domestic Institutional portfolio investment in the country. It has 60 institutional clients
spread over India, Far East, UK and US. Foreign Institutional Investors generate about
65% of the organization’s revenue, with a daily turnover of over US$ 2 million. The
Corporate Finance section has a list of very prestigious clients and has many ‘firsts’ to its
credit, in terms of the size of deal, sector tapped etc. The group has placed over US$ 5
billion in private equity deals. Some of the clients include BPL Cellular Holding, Gujarat
Pipavav, Essar, Hutchison, Planetasia, and Shopper’s Stop.

PRODUCTS OFFERED BY SHAREKHAN

1- Equity Trading Platform (Online/Offline).
2- Commodities Trading Platform (Online/Offline).
3- Portfolio Management Service.
4- Mutual Fund Advisory and Distribution.
5- Insurance Distribution.

REASONS TO CHOOSE SHAREKHAN LIMITED

Experience
SSKI has more than eight decades of trust and credibility in the Indian stock market. In
the Asia Money broker's poll held recently, SSKI won the 'India's best broking house
for 2004' award. Ever since it launched Share khan as its retail broking division in
February 2000, it has been providing institutional-level research and broking services to
individual investors.

Technology
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With our online trading account you can buy and sell shares in an instant from any PC
with an internet connection. You will get access to our powerful online trading tools that
will help you take complete control over your investment in shares.
Accessibility
Share khan provides ADVICE, EDUCATION, TOOLS AND EXECUTION services for
investors. These services are accessible through our centers across the country (Over 650
locations in 150 cities) over the Internet (through the website www.sharekhan.com) as
well as over the Voice Tool.
Knowledge
In a business where the right information at the right time can translate into direct profits,
you get access to a wide range of information on our content-rich portal,
www.sharekhan.com. You will also get a useful set of knowledge-based tools that will
empower you to take informed decisions.
Convenience
One can call our Dial-N-Trade number to get investment advice and execute your
transactions. We have a dedicated call-center to provide this service via a Toll Free
Number 1800-22-7500 & 39707500 from anywhere in India.
Customer Service
Our customer service team will assist you for any help that you need relating to
transactions, billing, demat and other queries. Our customer service can be contracted via
a toll-free number, email or live chat on www.sharekhan.com.
Investment Advice
Share khan has dedicated research teams of more than 30 people for fundamental and
technical research. Our analysts constantly track the pulse of the market and provide
timely investment advice to you in the form of daily research emails, online chat, printed
reports and SMS on your mobile phone.

2.2) Growth, development & present status of the organization

Sharekhan is one of the leading retail brokerage firms in the country. It is the retail
broking arm of the Mumbai-based SSKI Group, which has over eight decades of
experience in the stock broking business. Sharekhan offers its customers a wide range of
19
equity related services including trade execution on BSE, NSE, Derivatives, depository
services, online trading, investment advice etc.
The firm’s online trading and investment site-www.Sharekhan.com-was launched on Feb
8, 2000. The site gives access to superior content and transaction facility to retail
customers across the country. Known for its jargon-free, investor friendly language and
high quality research, the site has a registered base of over one-lakh customers. The
number of trading members currently stands at over 3 Lacks. While online trading
currently accounts for just over 1 per cent of the daily trading in stocks in India,
Sharekhan alone accounts for 22 per cent of the volumes traded online.
The content-rich and research oriented portal has stood out among its contemporaries
because of its steadfast dedication to offering customers best-of-breed technology and
superior market information. The objective has been to let customers make informed
decisions and to simplify the process of investing in stocks.
On April 17, 2002 Sharekhan launched Speed Trade, a net-based executable application
that emulates the broker terminals along with host of other information relevant to the
Day Traders. This was for the first time that a net-based trading station of this caliber was
offered to the traders. In the last six months Speed Trade has become a de facto standard
for the Day Trading community over the net.
Sharekhan’s ground network includes over 337centres in 131cities in India, of which 20
are fully owned branches.
Sharekhan has always believed in investing in technology to build its business. The
company has used some of the best-known names in the IT industry, like Sun
Microsystems, Oracle, Microsoft, Cambridge Technologies, Nexgenix, Vignette,
Verisign Financial Technologies India Ltd, Spider Software Pvt Ltd. to build its trading
engine and content. The Morakhia family holds a majority stake in the company. HSBC,
Intel & Carlyle are the other investors.

With a legacy of more than 80 years in the stock markets, the SSKI group ventured into
institutional broking and corporate finance 18 years ago. Presently SSKI is one of the
leading players in institutional broking and corporate finance activities. SSKI holds a
sizeable portion of the market in each of these segments. SSKI’s institutional broking arm
accounts for 7% of the market for Foreign Institutional portfolio investment and 5% of all
20
Domestic Institutional portfolio investment in the country. It has 60 institutional clients
spread over India, Far East, UK and US. Foreign Institutional Investors generate about
65% of the organization’s revenue, with a daily turnover of over US$ 2 million. The
Corporate Finance section has a list of very prestigious clients and has many ‘firsts’ to its
credit, in terms of the size of deal, sector tapped etc. The group has placed over US$ 1
billion in private equity deals. Some of the clients include BPL Cellular Holding, Gujarat
Pipavav, Essar, Hutchison, Planetasia, and Shopper’s Stop.

Sharekhan 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. Our flagship Sharekhan Professional
Network offers real-time prices, detailed data and news, intelligent analytics, and
electronic trading capabilities, right at your fingertips. This powerful technology
complemented by our knowledgeable and customer focused Relationship Managers. We
are creating a world of Smart Investor.

Sharekhan offers a full range of financial services and products ranging from Equities to
Derivatives enhance your wealth and hence, achieve your financial goals.

Sharekhan' Client Relationship Managers are available to you to help with your financial
planning and investment needs. To provide the highest possible quality of service,
Sharekhan provides full access to all our products and services through multi-channels.

2.3) Organization Structure and Organization Chart

21
2.4) Product and service Profile of the Organization
Sharekhan having five types of products

1) Online Trading
2) Offline Trading
3) Dial N Trade (D.N.T)
4) Portfolio Management Systems (P.M.S)
5) Commodities

1) Online Trading-
With a Sharekhan online trading account, you can buy and sell shares in an instant!
Anytime you like and from anywhere you like!

22
 You can choose the online trading account that suits your trading habits and
preferences - the Classic Account for most investors and Speedtrade for active day traders.
Your Classic Account also comes with Dial-n-Trade completely free, which is an
exclusive service for trading shares by using your telephone.

The customer can choose the online trading interface that meets his requirement based
On his trading habits and preferences.
There are two important online products. This are-
a) CLASSIC / APPLET
The website is meant for customers who Invests in Equities
CLASSIC FEATURES
•Daily Research newsletter (Investor Eye) via e-mail
•Access to new IPO without any paperwork
•Advanced portfolio monitoring Tools
•Integrated DP account with trading account
•Option of linking additional 4 DP accounts to trading account
•Choice of linking 4 banks to trading a/c for online payments
•Cash and Derivatives trading in a single account
•E-mail confirmations for all transactions
•Choice of electronic / physical contracts

b) SPEEDTRADE EXE
The speedtrade is meant for customers who trade in Equities
SpeedTrade!
SpeedTrade is a next-generation online trading product that brings the power of your
broker's terminal to your PC... It's the perfect trading platform for active day traders.

SPEEDTRADE FEATURES-
•Real-time streaming quotes using 2 Market Watches
•Trade Execution in 2-3 seconds
•Instant order / trade confirmations in the same window

23
•Hot keys similar to a Broker’s Terminal
•Multiple Tic-by-Tic Intra-day charts with multiple indicators
•Availability of 2 ISP & 6 Servers ensuring maximum uptime
•Customized alerts based on Multiple Parameters
•Cancel All / Square Off All Facility
•Window for Top Gainers, Top Losers, and Most Active updated Live

1) Offline Trading-
As a corporate member broker of The Stock Exchange, Mumbai (BSE) and the National
Stock Exchange of India Ltd. (NSE), and depository participant of the Central Depository
Services of India Ltd. (CDSL), we provide capital market participation to our registered
clients through our own offices / nationwide network of business associates. As a client,
you would be registering at one of such office and enroll for our offline trading.

OfflineProcess:
You can also trade offline. Call from anywhere - House, Office or even when you are
traveling-:

a) Two dedicated numbers with multiple lines for placing order using either landline or
cell phone.

b) In case you call from an MTNL or BSNL line the toll free number is 1-800-22-7050 or
30307600

c) You have to just call any of the above numbers and after authentication, place the
orders with the dealer who will put through the trade on your behalf. Once the trade is
executed, the settlement process will take place.

Offline features:

 Daily Research newsletter (Investor Eye) via e-mail

 Access to new IPO without any paperwork
 Advanced portfolio monitoring Tools

24
  Cash and Derivatives trading in a single account
 E-mail confirmations for all transactions

Brokerage:
Delivery Trade: 0.50 % + Statutory Costs

Intraday Trade: 0.10 % + Statutory Costs.

Derivative Trade: 0.10 % + Statutory Costs.

2) DIAL N TRAD

Free with your Sharekhan Classic Account, the Dial-n-Trade service enables you to
place orders for buying and selling shares through telephone. you have to do is dial
any one of our two dedicated numbers (1-800-22-7050 or 30307600), enter your
TPIN number (which is provided at the time of opening your account) and on
authentication you'll be directed to a tele broker who will buy and sell shares for you.

Along with enabling access for your trade online, the CLASSIC and SPEEDTRADE
ACCOUNT also gives you our Dial-n-trade services. With this service, all you have to do
is dial our dedicated phone lines 1-800-22-7500.

Features of Dial-n-Trade
1) TWO dedicated numbers for placing your orders with your cellphone or landline.
Toll free number: 1-800-22-7050. For people with difficulty in accessing the toll-
free number, we also have a Reliance number 30307600, which is charged at Rs.
1.50 per minute for STD calls.

2) Automtic funds tranfer with phone banking (for Citibank and HDFC bank
customers)
3) Simple and Secure Interactive Voice Response based system for authentication
4) No waiting time. Enter your TPIN to be transferred to our telebrokers
5) You also get the trusted, professional advice of our telebrokers
25
 6) After hours order placement facility between 8.00 am and 9.30 am (timings to be
extended soon)

Requirements
All you need is access to a phone - either a landline or a cellphone: (the type of phone
doesn't matter)
1. If calling from a cellphone, please dial 022-1-800-22-7050
2. Currently for Citibank and HDFC customers. More banks to be added soon
3. After hour order timings: 8.00 am to 9.30 am
4. It takes approximately 10 minutes of.

4) Portfolio Management Services

Sharekhan latest offering Portfolio Management services, will leverage on our
institutional and retail research capabilities and on the information that we enjoy through
out large distribution. We offer equity Portfolio Management Services to help our clients
earn healthy returns from the stock markets and thereby leaving our clients free to
concentrate on what they do best-earn from their respective jobs\ business.

Multi-disciplinary growth approach

 Key elements of sharekhan investment philosophy and approach are:

 Bottom-up stock selection
 In-depth, independent fundamental research
 Selecting high-quality companies with sustainable competitive advantages
 Disciplined valuation approach applying multiple valuation measures
 Long-term vision, resulting in low portfolio turnover

Sharekhan follow a multi-disciplined approach incorporating quantitative analysis,

fundamental analysis and technical analysis. This multi-pronged approach enables the
portfolio managers in controlling risks and provide risk-controlled returns for you.
Sharekhan portfolio managers try to develop a crore-equity portfolio based on quality and

26
broad diversification, controlling risks in the process. The common attributes that can be
found across all sharekhan equity portfolios are:
 High-quality securities
 Holding widely diversified among industry sectors
 Stock with adequate market capitalisations and free float
 Stock concentration as per client risk profile but generally to be kept at
manageable levels.

Better performance & linear returns with hedging:

 Better performance
 Superior performance is possible from superior market timing; out critical edge
 Superior performance is possible from picking stocks before inflection points in
their trading cycles
 Linear returns with moderated and hedged
 Linear returns are possible from having hedged/sell market position in
downtrends
 Linear returns are possible by using options market to change the portfolio beta.

Convergence of time frames

 The best of both worlds can be achieved by having positions in cash and options
 The best of both worlds are achieved by using swing/momentum based index
trading systems with stop and reverse trend following.
 Delivery position enable profit maximization while options positions offers high
beta short-term profile in the same portfolio.

Two-product offering
 Trading on Nifty: Nifty futures will be bought and sold on the basis of automated
trading systems generated calls to go long/short. The exposure will never exceed
the value of the portfolio i.e. no leveraging; but will allow us to be short / hedged
27
 in nifty in falling markets therefore allowing the client to earn irrespective of the
market direction.
 Trading Portfolio: stocks in long term technical up trends will be identified to
trade in at various inflection points in their trading cycles.80% of the portfolio
will trade in delivery of such stocks.20% will be used in creating an options book
i.e. buying calls/puts of the index/stocks to increase the beta of the portfolio and
to hedge against pitfalls. The use of timing for delivery and options for a higher
beta will attempt to offer a superior rate of return by trading a risk with only 20%
of the capital. Here too money management rules will be in place to see that the
capital is not eroded. Portfolio rebalancing may be conducted between the cash
and options segments based on the profitability of each segment.

2.5) Market Profile of the Sharekhan

There are five major Competitors
•ShareKhan.com
•5paisa.com
•KotakStreet.com
•IndiaBulls.com
•ICICIDirect.com
•HDFCsec.com

Company Background
• Share khan is the retail broking arm of SSKI Securities Pvt. Ltd. SSKI owns 56% in
sharekhan; balance ownership is HSBC, First Caryle, and Intel Pacific.
• Into broking since 80 years.
• Focused on providing equity solutions to every segment.
• Largest ground network of 210 Branded Share shops in 130 Cities.

28
Online Account Types
•Classic Account / Applet: Investor in equities
•SpeedTrade: Trader in equities & derivatives

Sharekhan classic acconts

Pricing for Retail Customers

•Account Opening : Rs 750

•Demat 1st Yr : Nil
•Initial Margin : NIL
•Min Margin Retainable : NIL
•Brokerage :
Trading 0.10% each side + All Taxes
Delivery 0.50% each side + All Taxes

Speed trade sharekhan

PRICING FOR HNI CLIENT

•Account Opening : Rs 1000 ( Refundable against brokerage in Month + 1)
•Demat 1st Yr : Incl in Account Opening
•Initial Margin : NIL
•Min Margin Retainable : NIL
•Brokerage :
Trading 0.10% each side + All Taxes
Delivery 0.50% each side + All Taxes
( Negotiable based on volume )
•Account Access Charges
Monthly Rs 500, adjustable qtrly against brokerage of Rs 1500/- for qtr
No access charges for gold customers ( Above 1 lac brokerage p.a)

29
2). 5paisa

Company Background
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, India’s leading and most popular finance and investment
portal. 5paisa has emerged as one of leading players in e-broking space in India.
Apart from offering online trading in stock market the company offers
Mutual funds online.
It also acts as a distributor of various financial services i.e. GOI securities,
Company Fixed Deposits, Insurance.
Limited ground network, present in 20 Cities

Online Account Types

•Investor Terminal: Investors / Students
•Trader Terminal: Day Traders / HNI’s

PRICING FOR RETAIL CLIENTS

Investor Terminal
Investor Terminal is recommended for infrequent investors, who fall into the "Buy and
Hold" school of investing, made very popular by Warren Buffet - the Oracle of Omaha. A
typical retail investor is a busy corporate executive or businessmen who makes equity

30
investments for long term and does not trade everyday. He prefers a trading interface
which works behind proxy and firewalls as they access the Internet and the stock markets
from their work place, where a direct connection is difficult because of corporate IT
security policies. This product does not have intra-day tick-by-tick charts.

•Account Opening: Rs 500

•Demat 1st Yr: Rs 250
•Initial Margin: Rs 2500(Compulsory)
•Min Margin Retainable: Rs 1000
•Brokerage:
Trading 0.10% each side + ST
Delivery 0.50% each side + ST

PRICING FOR HNI CLIENTS

Trader Terminal
Trader Terminal is for the dedicated day traders, who churn their portfolio on minor
movements in the market, sometimes several times a day. Their rapid and high volume
trading requires a powerful interface for lightning fast order execution. They monitor
marked to market positions on a minute-to-minute basis, with facilities for panic exit.
They need all the analysis - fundamental and technical, market gossip, price and volume
information and much more - all at one click.

•Account Opening: Rs 500

•Demat 1st Yr: Rs 250
•Initial Margin: Rs 5000 (Compulsory)
•Min Margin Retainable: Rs 1000
•Brokerage:
Trading 0.10% each side + ST
Delivery 0.50% each side + ST
(Negotiable to 0.05% each side & 0.25%)
Account Access Charges
31
 Monthly Rs 800, adjustable against Brokerage
Yearly Rs 8000, adjustable against brokerage

Deal Clinchers v/s 5 Paisa

•Company Background
Not having a very positive image, relatively new in the broking arena, limited network

•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)

•Manual Accounting
The 5 paisa accounting system is manual; online fund transfer through bank is not
credited instantly. Limit is provided EOD for shares sold from DP, or call
Similarly limit released for shares sold under BTST is manual Delay in receiving payout
of clear funds from trading to Bank Account

•Min Account Balance

Concept of Min Rs 1,000 to be maintained in form of cash / securities to keep account
active. This can be withdrawn only on closure of account.

3). Kotakstreet

32
Company Background
Kotakstreet is the retail arm of kotak securities. Kotak Securities limited is a joint venture
between Kotak Mahindra Bank and Goldman Sachs. Kotak Securities Ltd. is India's
leading stock broking house with a market share of around 8%. Kotak Securities Ltd. has
been the largest in IPO distribution
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.
Kotak Securities has 122 branches servicing more than 1,70,000 customers and a
coverage of 187 cities. Kotaksecurities.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 2500 crores of Assets Under Management
(AUM) .The portfolio Management Services provide top class service , catering to the
high end of the market. Portfolio Management from Kotak Securities comes as an answer
to those who would like to grow exponentially on the crest of the stock market ,with the
backing of an expert. z

Online Account Types

•Twin Advantage / Green Channel: 2 DP’s, Limit against shares
•Free Way: Flat Rs 999 Cover Charge p.m, 0.03% per transaction
•High Trader: 6 Times Exposure Cash & Derivatives, Auto sq off 2:55
•Cash Expressway: Spot payment, additional 0.5% charges
For Kotak FastLane / Keat Lite / Keat Desktop are trading interfaces.
Keat Desktop with advanced tools comes at a charge of Rs 500 p.m,
Non-refundable

33
PRICING OF KOTAK
•Account Opening: Rs 500
•Demat: Rs 22.5 p.m
•Initial Margin: Rs 5000(Compulsory)
•Min Margin Retainable: Rs 1000
•Brokerage Slab wise: Higher the volume, lower the brokerage. Even older customers
(on 0.25% & 0.40%) have been moved to the slab wise structure wef 1/4/2004

Slab structure of Kotak

Delivery Vol p m Brokerage *

< 1 lakhs 0.65%
1 lakhs - 5 lakhs 0.60% Square Vol off p m Brokerage **
< 10 lakhs 0.10% Both Sides
10lakhs - 25 lakhs 0.08% Both Sides
25lakhs – 2 Cr 0.06% Both Sides
2 Cr - 5 Cr 0.05% Both Sides
> 5 Cr 0.04% Both Sides
Brokerage is inclusive of All Taxes
** Min Brokerage of Rs 0.01 per share
Derivatives Vol off p m Brokerage
< 2 Cr 0.07% Both Sides
2 Cr - 5.5 Cr 0.05% Both Sides
5.5 Cr - 10 Cr 0.04% Both Sides
> 10 Cr 0.03% Both Sides
Brokerage is inclusive of All Taxes

5 lakhs -10 lakhs 0.50%

10 lakhs -20 lakhs 0.40%
20 lakhs -60 lakhs 0.30%
60 lakhs – 2 Cr 0.25%
>2 Cr 0.20%

34
 DP Charges Extra
Brokerage is inclusive of All Taxes
* Min Brokerage of Rs 0.05 per share

Deal Clinchers v/s Kotakstreet

•Rigid Account Opening Terms

No Flexibility of A/c opening charges (Rs 500) + Compulsory margin Rs 5000/-
Account opening free with Rs 10,000 Margin OR competitor Contract Note.
•No Customization of commercial Terms
No Flexibility in Leverage – Dependent on Type of Account (4 to 6 times only) No
flexibility in Brokerage, driven by slab structure
•Many Other Charges
Rs 22.5 p.m towards DP AMC charges
DP incoming charges extra, 0.02%
Rs 1,000 as retainable Margin to keep account active
Rs 25 per call after 20 calls for the month

•Restricted Access to Terminal Like product

KEAT Desktop restricted distribution on payment of Rs 500, Non-refundable

4.) Indiabull

Company Background

35
Indiabulls Financial Services Ltd. is a public company and listed on the National Stock
Exchange, Bombay Stock Exchange, Luxembourg Stock Exchange and London Stock
Exchange. The company ranks at 82nd position in the list of most valuable companies in
India has a market capitalization of approx US $ 800 million. The consolidated net worth
of the company is approx US $ 400 million.

Three Engineers from IIT Delhi have promoted Indiabulls. The company strives for rapid
growth in profits, leadership in the retail marketplace and better returns to its
shareholders.

Indiabulls, along with its subsidiary companies, offer consumer loans, brokerage and
depository services, personal loans, home loans and other financial products and services
to the retail markets.

Indiabulls Resources Ltd, a 100 per cent subsidiary of Indiabulls Financial Services
Ltd., has been established with the objective of evolving as an independent oil company
over time. The immediate short-term goal is to partner with oil companies who are
willing to come to India and bid in the current NELP-6 round. Through its group
companies, Indiabulls is also engaged in real estate development. The company is in the
process of developing modern commercial complexes in the heart of Mumbai. Indiabulls
Estates Pvt Ltd. the real estate arm of Indiabulls Financial Services, will set up an
integrated township across 100 acres in Sonepat, 15 km from DelhiIndiabulls is India's
leading retail financial services company with over 300 locations in more than 110 cities.
While our size and strong balance sheet allow us to provide you with varied products and
services at very attractive prices, our over 4400 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 access to all information and products. Our flagship Indiabulls Professional
NetworkTM 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. We
are Creating a world of Smart Investor. Indiabulls offers a full range of financial services
36
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 .

Online Account Type

•Signature Account:
•Power Indiabulls
•Signature Account:
A multitude of ways to access your account either through priority access to Relationship
Manager over phone OR online access to your Account & Research Tools.Plain Vanilla
Account with focus on Equity Analysis. The equity analysis is a paid service even for
A/c holders

Benefits

 Control — Stay on top of your investments with convenient access to your

account online or by phone.
 Confidence — Support your investing decisions with premium in-depth research
 Value — Enjoy competetive commissions and get the service and support you
need at a fair price

Pricing of signature Accounts

•Account Opening: Rs 250
•Demat: Rs 200 if POA is signed, No AMC for this DP
•Initial Margin: NIL
•Brokerage: Negotiable

•Power Indiabulls:
Account with sophisticated trading tools, low commissions and priority access to R.M.
Regardless of how the market is performing or which way the economic winds are

37
blowing, you, as a trader, are researching, charting, crafting a strategy, buying and
selling. You are getting in, getting out and moving on to the next trade.

Choose from a comprehensive offering of accounts, platforms and products. Customize

our technology and services to support the way you work.

Pricing of Power IndiaBulls

•Account Opening: Rs 750

•Demat: Rs 200 if POA is signed, No AMC for this DP
•Initial Margin: NIL
•Brokerage: Negotiable

PAID Research

SCHEME FACILITY
WebBased-1-Month-500: View & Print on website
WebBased-1-Year-6000 View & Print on website
PrintReport-1-Month-750: View & Print on website + 10 Reports
Delivered
PrintReport-1-Year-9000: View & Print on website + 10 Reports
Delivered

Deal Clinchers v/s IndiaBulls

•POA for Clients DMAT

38
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
•Paid Research Services

Access to a research even for an IB trading account holder is charged a min of Rs 500 a

month
•Margin Funding hoax
The interest on funding starts on leveraged delivery trades from T+1 day itself @21%
p.a, on a daily basis
•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.

5). ICICI Direct

Company Background
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.

A Unique 3-in-1 account -:

 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

39
 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.

Account Types

•ICICI Direct e-invest Account: Plain Vanilla Account with focus on 3 in 1 advantage.
Differentiated in services within the account

1.Cash on spot
2.Margin Plus
Premium Trading interface of ICICIDirect Link is given to DBC partners and HNI’s
•Account Opening: Rs 750
•Schemes: For short periods Rs 750 is refundable against brokerage generated in a qtr.
These schemes are introduced 3-4 times a year.
•Demat: NIL, 1st year charges included in Account Opening Plus a facility to open
additional 4 DP’s without 1st yr AMC
•Initial Margin: Nil
•Brokerage: All brokerage is inclusive of stamp duty and exclusive of other taxes.

Delivery Vol per qtr Brokerage * Square Vol off p m Brokerage **

< 10 lakhs 0.75%
10 lakhs - 25 lakhs 0.70%
40
25 lakhs -50 lakhs 0.55%
50 lakhs – 1 Cr 0.45%
1 Cr – 2 Cr 0.35%
2 Cr – 5 Cr 0.30%
> 5 Cr 0.25%

Deal Clinchers v/s ICICI Direct

•Poor online Interface

Slow website interface with no real-time quotes creates a dissatisfaction among high
frequency traders
•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.
•Morning Trades Issue

Being one of the websites with largest no of after hour orders which are pushed 1st thing
in the morning, creates a choking of orders to the exchange, causes delay of
confirmations for new order placed during the early morning trades
•Restriction of BTST
The sale of shares purchased is restricted to T+1 day and is not permitted on T+2 Day.
•No leverage for Delivery trades
Delivery is restricted to the total money allocated into the trading account.
•No flexibility on leverage on Intra-day trades
The leverage of 4 times is available for intra- day trades.
•Restriction of Bank Account
The choice of bank is restricted to ICICI Bank.
•Higher Brokerage rates with slabs

41
The delivery brokerage is pegged at 0.75% and trading at 0.10% each side, this makes is
very unviable for customers dealing in large volumes. Although progressively the
delivery and trading brokerage reduce as volumes go up.

6) HDFC Securities

Company Background
The HDFC BANK, HDFC and Chase Capital promote HDFC SECURITIES LTD.
Capital Partners and their associates. Pioneers in setting up Dial-a-share services with the
largest team of Tele-brokers.
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.

Our 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.

Online Account Type

HDFC Online Trading A/c: Plain Vanilla Account with focus on 3 in 1 advantage
42
Pricing of HDFC Account

•Account Opening: Rs 750

•Demat: NIL, 1st year charges included in Account Opening
•Initial Margin: Rs 5000/- for non HDFC Bank customers (AQB)
•Brokerage:
Trading 0.15%* each side + ST
Delivery 0.50%** each side + ST

* Rs 25 Min Brokerage per transaction

** Rs 8 Min Brokerage per transaction

Deal Clinchers v/s HDFC Securities

•Poor online Interface
Apart from having no product to cater to Day-Traders, the hdfcsec.com website is
plagued with downtime. The same is currently being revamped.
•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.
•No Leverage
No leverage is available to clients even for Intra-Day trades, effectively all clients are on
cash and carry system.
•No flexibility in commercial terms
The delivery brokerage is pegged at 0.5% and trading at 0.15% each side, this makes it
unviable for customers dealing in large volumes.

43
 CHAPTER 3
DISCUSSIONS ON TRAINING

44
 3.1) Student’s Work Profile (role and responsibilities)
 Personal Introduction,
 Background of Sharekhan.
 Knowledge of stock market.
 Types of accounts i.e. Equity Account, Commodity Account and Currency
Account.
 Knowledge of Equity Account.
 Details of KYC regarding Equity Account.
 Document required for equity account.
 Knowledge of Equity Account.
 KYC regarding Commodity Account.
 Documents required for the commodity account.
 Knowledge about Currency Account.
 KYC regarding currency account.
 Documents required for currency account.
 Brokerage scenario for the equity account.
 Calculate brokerage in equity account.
 Brokerage in scenario for the commodity account.
 Calculate the brokerage in currency account.
 Income proof of clients i.e. ITR, salary slip.
 Fill the equity form.
 KYC for account opening.
 Log in for equity account.
 Fill the commodity form.
 KYC for commodity account.
 Log in for commodity account.
 Fill the currency account.
 KYC for currency account.
 Log in for currency account.
 Types of trading account i.e. Off Line and On line.

45
  Trade on the web base.
 View reports on Sharekhan web site.
 Download trade tiger.
 Login in trade tiger.
 Change the membership password
 Difference between membership password and trading account.
 View the NSE Sectorial segment.
 View the market segment for BSE.
 Types of Exposures.
 Graph for particular stock share.
 How to buy and sell the shares.

3.2) Key learning from training

 IMPORTANCE OF information technology in the field of stock

broking is immense.
 Stock broking companies run with the help of IT.
 The terminal through which the brokers buy and sell shares is the
software that completely depends on the internet. For, share khan this
terminal has been design by the software company ‘spider’.
 Buying and Selling through internet is fast. As soon as the prices of
shares goes up or comes down then they can be sold or purchased
instantly within seconds.
 Customer relationship is very necessary for the company to retain the
customers.
 In share khan I have learned how to maintain good relationship with
customers by giving them the proper services and solving their queries
regarding the share market.
46
 I have also learned how to maintain good relationship with the
employees and the co trainees.
 In share khan ltd, I have learned a lot related to the finance.
 Learned the meaning of the words that are mostly used in share
market.
 Learned about various products of share khan limited.
 Learned various aspects regarding share market.
 Learned about various product used in the share market especially
Demat Account and Mutual Funds.
 Learned how to use Online Trading Terminal.
 Enhanced my communication and convincing skills.
 Learned how to take appointments.
 Learned how to approach the customers.
 Learned how to open and closed the calls.
 Learned how to interact with people, how to convince them and guide
them in trading.
 Learned the various policies of the company.

47
 CHAPTER 4 :
STUDY OF SELECTED RESEARCH
PROBLEM

48
4.1 ) Statement of research Objective
Significance
The significance of the project is to make clients and let them know about the different
services offered by the Sharekhan, also to convince them about how Sharekhan services
out score there rivals. And how in future they will be benefited from the services offered
by Sharekhan.

This project will accomplish to understand the problem faced by the existing client and
find ways to solve there queries at your level otherwise let the above level know about
there problem.
It is necessary to be in regular contacts with the clients so that we come to know about
the problem they are facing. This also helps us to multiply our clients by getting the
further references.
By this we are able to make a chain of the customers, which expands as we satisfy there
needs.

Managerial and usefulness of the Study

The study reveals many facts that have come up during my and these facts can either be
used as opportunities in exploring and expanding the business as well as can be used as
safeguards against treat by the competitors. To prepare an effective marketing strategy, a
company must study its competitors as well as its actual and potential customers. A
company should maintain good relation with distributor and retailers. A company’s
closest competitors are seeking to satisfy the same customers and needs and making
similar offers. As important as a competitive orientation is in companies should manage a
good balance of consumer, Dealer and competitor monitoring.

The information will prove beneficial in taking proactive action or combating

competition. The standing of the company and its competitors in the minds of the
customers is a vital factor in deciding the success of business. The study also aims at
finding out the ranking of the company and its competitors in terms of certain parameters,
as adjudged by consumers. This information is a good guide to management as it brings
out the strengths of the competitors and the areas where the company needs to improve.

49
Thus the study is basically aimed at providing the management desired vital information
about the market situation.

2.3 Objectives
The Primary objective is:

 Checking the awareness level of online share trading.

 Evaluation of preferred investments in various mode and industry.
 Study of influencing factors affecting the purchase decision.
 Analyzing the preferred broking house.
 Checking the satisfaction level of customers towards preferred broking house.

Secondary objective:
 To make clients and let them know about the different services offered by the
Sharekhan.
 To understand the problem faced by customers and finding way to solve the
queries.

2.4Scope of the study

 The data was enough to fulfill the objection of the study.
 The study provides the knowledge of Sharekhan a part of S.S.Kantilal Ishwarlal
securities pvt. Ltd.
 The study help to learn the work culture in and around the organization.
 The study a lot to know about consumer behavior while purchasing the product.
 The study provides first hand information regarding the required services.

4.2) Research design and methodology.

Research Design

50
Research design is the conceptual structure within which the research would take place.
The presentation of such a design facilitates research to be as efficient as possible
yielding maximum information.
1. Deciding the Objective of the Study.

2. Questionnaire.

3. Sample Selection.

4. Feedback Collection.

5. Analysis.

Types of research
I used a descriptive type of research. It is one which includes surveys and fact – finding,
Enquiries of different kinds. The major purpose of such research is description of the
state of affairs, as it exists at present.

Data Sources
There are 2 types of data. They are:
1. Primary data
2. Secondary data

Primary Data are those, which are collected afresh and for the first time and thus happen
to be original in character. Primary data will not only be relevant for research project but
it is also reliable, accurate and dependable.
Secondary Data are those which have already been collected by someone else and which
have already been passed through the statistical process.
For my research data has been procured from both primary and secondary sources.
Dealers, customers and organization constituted the primary source.
Newspapers, magazines and websites constituted the Secondary d
Research approach: -
51
There are 2 basic types of approaches to research. They are,
1. Quantitative Approach
2. Qualitative Approach

Quantitative Approach involves the generation of data, which can be subjected to

rigorous quantitative analysis in a formal and rigid fashion. This approach can be further
sub classified into inferential, experimental and simulation approaches to research. The
purpose of inferential approach to research is to form a database to infer characteristics or
relationships of population.
Qualitative Approach to research is concerned with subjective assessment of attitudes,
opinions and behaviour; research in such a situation is a function of researcher’s insight
and impressions.
In this research a quantitative as well as Qualitative approach was used.

Research Instruments:
The various research instruments at the hands of the researcher are as follows: -

1) Observations: Under this the information is sought by way of investigators,

own direct observation without asking the respondents.
2) Interview: It involves presentation, oral-verbal, stimuli and reply in terms of
oral-verbal responses. This method can be used through personal interviews and if
possible, through telephone interviews.
3) Questionnaires: It consists of number of questions printed or typed in a definite
order on a form or a set of forms; the respondents have to answer the questions
themselves.

Types of questionnaires:-
Questionnaires can be of 2 types.
 Structured: It is one in which all questions and answers are specified and
comments in the respondent’s own words are held to the minimum.

52
  Unstructured: It is one in which the answers to the questions can be framed in
the respondents own words.

Types of questions: -
Open Ended and Closed Ended
Sample Plan
A sample plan is a definite plan for obtaining a sample from a given population. It refers
to the technique or the procedure the researcher would adopt in selecting items for the
sample. It includes the following.

Sample size: -
This refers to the number of items to be selected from the universe to constitute a sample.

Sampling procedure
There are 2 main sampling procedures.
1. Probability Sampling
2. Non-Probability Sampling

Non-Probability sampling is that sampling procedure which does not afford any basis
for estimating the probability that each item in the population has of being included in the
sample.
Probability sampling is one in which every item of the universe has an equal chance of
inclusion in the sample. It is further divided into random sampling and non-random
sampling.
Random Sampling form a finite population refers to that method of sample section,
which gives each possible sample combination an equal probability of being picked up
and each item in the entire population to have an equal chance of being included in the
sample.

RESEARCH METHODOLOGY ADOPTED

• Type of research: - Qualitative research
• Sampling Plan:

53
 Population:
-Element- Consumers
-Sampling unit- Each element acts as an independent unit.
• Sampling Type: - Area sampling.
As research was limited on the basis of geographical location i.e.
Delhi
• Sample Size: - 100 Respondents
• Data Source: - Primary Data collected by conducting face to face
Personal interviews.
• Research instruments: -
Questionnaire was used to extract the information from the
respondents.
 Questions were
- Open-ended
- Close ended
• Method of Sampling: - Random

54
CHAPTER 5 : ANALYSIS

55
 5.1) Data Analysis
To make our research project most effective in a given time period of two months
surveyed the information of the competitors. We undertook both Explorative as well as
Conclusive Research Design. The data has been collected from both Primary as well as
Secondary sources and we also did the fieldwork for which utmost care has been taken to
keep project unbiased from personal opinion.
Are you aware of online share trading ?

38
No

yes 62

0 10 20 30 40 50 60 70

Number of respondents

Answer No. of Respondents

Yes 62
No 38

Interpretation

Awareness factor of online share trading is good as responded by consumer i.e. 62% of
investor were well versed but 38% of them are unaware of it. Therefore it can be said that
there is potential market for sharekhan to increase its customer base.
The points to be mentioned to lure consumer are:
1. Self-management of its portfolio.
2. More knowledge of capital market as a whole, thus resulting in better investment.
3. More control.
4. Own Trading terminal, thus resulting in more Ethical practices.
56
In which securities do you invest ?

Percent

Equity
20%
Commodities
8% Mutual Funds
Derivatives 10%
9%

Insurance Fixed Deposit

23% 30%

Will Invest In Percentage

Equity 20
Mutual Funds 10
Fixed Deposits 30
Insurance 23
Derivatives 9
Commodities 8

Interpretation
The result show that most of the people till date are not very much, most people still go
for the conventional investment i.e. Fixed deposit (30%) and Insurance (23%) whereas
the investment in Equity (20%), Mutual Funds (10%), Derivatives (9%)and commodities
(8%). Many people have now also started to invest in new modes as the awareness has
increased from the past as compared to today.
57
Your investment decisions are influnced by ?

40
Number of Respondents 35
35

30

25

20 18 17
15 13 13

10
4
5

0
Oneself Brokers Economic policies Market rumours Friends Relatives

Investment Decision

Investment Decision No. of Respondents

Oneself 13
Brokers 35
Economic Policies 18
Market Rumours 4
Friends 17
Relatives 13

Interpretation
The people still rely on Brokers as source of Market Calls to invest into equities with
about 35% of the people falling under this category. Then people keep track of Economic
policies and then use that knowledge to invest into securities with 18% of such investors,
then comes those investors who rely more on formal/ Informal Market Calls which they
get from their friends and accomplice, then the investors rely on the knowledge which
they obtain through self sustained efforts and through their relatives acting as a source of
information to them with 13% falling in both the categories. However a small percentage
of people constituting of about 4% of the population rely on Gossips and Rumors that
spread across the market.

58
In which sectors you currently invest?

Steel ind. 4

Petrochemica
ls 17

Banking 23

Automobiles 20

FMCG 12

IT 24

Prefential Sector No. of Respondents

Steel Industries 4
Petrochemicals 17
Banking 23
Automobiles 20
FMCG 12
I.T 24
Interpretation
IT Sector is the hot favorite and the investors choice with 24% of total market
investment, Banking is the second choice when it comes to asking them about the most
preferred investment sector with 23% of the investment going into this sector.
Automobile Companies then comes next with 20% of people investing into this sector.
Petrochemical Companies then follow the automobile sector with 17% of Investment
coming to it, which is again followed by FMCG companies having 12% of shares. Last
but not the least comes the good old steel industries with 4% market share.

59
What are the factors that you consider before investing in a particular
company ?

Future
prospects
Financial
15%
Company name position
11% 34%

Current Market
position
40%

Factors Percentage
Future Prospects 15
Financial Position 34
Current Market Position 40
Company Name 11

Interpretation
When the respondents were asked about the factors, which they considered before
investing, 40% of the investors say that they see current market situation then comes the
Companies Financial Position with 34% of the population going for it. 15% population
sees future prospects of the company in which they are investing. An interesting fact to
note is that 11% of the populations just go by the name of the company to take their
investment decision.

60
What is your preferred mode of trading ?

60 57

50

40

Number of 30
respondents 24
19
20
10
10

0
Oneself Brokers Trading Others
House

Prefential Mode of Trading Number of Respondents

Securities
Oneself 19
Brokers 57
Trading House 24
Others 10

Interpretation
Till date brokers are still the preferred mode of investing as the above channel sources
57% of investment made by the investors into the capital market. Then comes the trading
houses with 24% of market holding after that some investors directly approach the capital
market for investment with 19% of market holding, last but not the least 10% of capital
market investor approach through other Chan.

61
If you trade through a broker,which associating house you are associated
with ?

Others 4
HDFC secrities 12
karvy 6
India Infoline 2
ICICI Direct 20
Kotak securities 24
Indiabulls 18
Sharekhan 14

0 5 10 15 20 25 30

Broking House No. of Respondents

Share Khan 14
Indiabulls 18
Kotak Securities 24
ICICI Direct 20
India Infoline 2
Karvy 6
HDFC Securities 12
Others 4

Interpretation
Kotak Securities still rule the charts with 24% of investors associated to it, next down the
association list comes the number of ICICI Direct with 20% of Capital Markets Investors
associated to it, then comes the turn of India bulls with 18% of Investors associated to it.
Share Khan having 14% investor association ranks just after that. Then down south are
companies like HDFC Securities, Karvy, India infoline and other small Broking Houses
having 12%, 6%, 2% and 4% respectively.

62
Are you satisfied with the preffered broking house ?

37
40
25
30 20
Number of 15
respondents 20

10
3
Series1
0
very SatisfiedSatisfied UncertainNot satisfied
Dissatisfied

Satisfaction Level No. of Respondents

Very Satisfied 37
Satisfied 20
Uncertain 3
Not Satisfied 25
Dissatisfied 15

Interpretation
Most of the customers of Broking Houses are very much satisfied with the kind of
services they are offered through these broking houses with the satisfaction levels going
as high as 37%. However some of the investors (20%) are although satisfied but not very
satisfied with the kind of services being offered by the broking houses, A large chunk of
the people are also of the opinion that broking houses are not able to satisfy them as per
there wants which constitute about 25% of the investors investing in capital markets
through them. Few others are rather dissatisfied by the services being offered which
constitute about 15% of the total population investing. A small number are rather
uncertain to answer.

63
5.2) Summary of Findings.
1.The awareness about Equities and the secondary market operations as a long-term
capital investment needs to be enhanced. This may include creating awareness amongst
people about risks factors involved with investment in primary and secondary market and
the allied instruments to nullify the effect.
2. Since the credibility of market call still remains the number one attraction for a novice
investor, appropriate steps needs to be taken to build up and sustain the level of
credibility that is expected from the organization.
3. A few sectors have been found to be preferred over the others. Novice investor may be
bogged down with dreams of lucrative returns and then suffer losses because of this.
Proper awareness about risk mitigation instruments, hence, becomes a very important
factor. Diversification is one of the key elements
4. A comparative study shows that despite the fact that 62% of the investors are aware of
online trading, 57 still approach a ingenious broker rather than going for online trade.
This huge gap is the potential, which all trading houses are trying to tap so that their
market share increases

5. Ingenious broker provides unstreamlined services to the customer whereas the research
and customer satisfaction oriented approach from a trading house can make a huge
difference between the resource and the potential.

6. With only 57% investors that can be said satisfied for sure, there remains an
unexplainable gap as to why an organization in its growing phase cannot sustain its
commitments to half its people and has been able to satisfy only about 12% of the total
retail investor.

64
 CHAPTER : 6
SUMMARY AND CONCLUSIONS

65
6.1) Summary of learning Experience
Learning is semi-structured and occurs in a variety of places, such
as learning at home, work, and through daily interactions and shared relationships among
members of society. For many learners this includes language acquisition, cultural
norms and manners. Informal learning for young people is an ongoing process that also
occurs in a variety of places, such as out of school time, as well as in youth
programs at community centers and media labs.

In the context of corporate training and education, the term informal learning is widely
used to describe the many forms of learning that takes place independently from
instructor-led programs: books, self-study programs, performance support materials and
systems, coaching, communities of practice, and expert directories.

Characterizations

Informal learning can be characterized as follows:

 It often takes place outside educational establishments standing out from normal life
and professional practice;
 It does not necessarily follow a specified curriculum and is not often professionally
organized but rather originates accidentally, sporadically, in association with certain
occasions, from changingpractical requirements;
 It is not necessarily planned pedagogically conscious, systematically according
to subjects, test and qualification-oriented, but rather unconsciously
incidental, holistically problem-related, and related to situation management and
fitness for life;
 It is experienced directly in its "natural" function of everyday life.

6.2) Conclusions and Recommendations.

CONCLUSION
After studying the project I would like to conclude that

66
  Company should focus on customer satisfaction at every levels of the account
opening procedure.

 Brokerage can be reduced with the attractive proposals for the HNI.

 Relationship manager should be given on the customer demand.

 Company should use the tool of advertising for marketing the brand and the
product.

 Reduction in brokerage would attract the customer of Indiabulls, 5 Paisa and other
competitor’s heaving less brokerage then us. It would increase the market share or
client acquisition.

 The account opening time should be reduce to maximum 5 days because customer
losses the opportunity of investments.

 The company shows the positive trend in growth but it can be increased more if it
focuses on building the brand equity.

Recommendations:
1. It must also tap the rural sector where penetration is poor, it can be made possible by
better offer with its product i.e. margin level, loan on low percentage.
2. It must also improve its brand awareness through shelling out more expenditure on
advertisement and other promotional tools.

3. Brand loyalty also needs to be strengthened by customer relationship model, keeping a

wide network of financial consultant and providing them with adequate training and
support so that the customers can be satisfied to the fullest and thereby making new
customers and pushing the existing ones for repurchase.
4. Improvement in distribution system it may be done by involving more middlemen with
a defined territory so that a systematic procedure and follow up can be done.

67
APPENDICES

68
 QUESTIONAIRE

Personal Details:
Name:
Address:
Phone Number:
E-mail:
Occupation:

1Are you aware of online share trading?

a) Yes[ ]

b) No[ ]

2 In which securities do you invest?

a) Equity[ ]

b) Mutual Fund[ ]

c) Fixed Deposits[ ]

d) Any Other (Please specify)[ ]

3.Your investment decisions are influenced by:

a) Oneself[ ]

b) Brokers[ ]

c) Economic Policies[ ]

d) Market Rumours[ ]

e) Friends/Relatives[ ]

f) Any Other (Please specify)[ ]

69
4.In which sectors you currently invest?

a) IT[ ]

b) FMCG[ ]

c) Automobile[ ]

d) Banking[ ]

e) Petrochemicals[ f) Any Other (Please specify)[ ]

5.What are the factors that you consider before investing in a particular company?

a) Financial Position[ ]

b) Current Market position[ ]

c) Goodwill/Brand name[ ]

d) Future prospects[ ]

e) Any other (Please specify)[ ]

6.What is your preferred mode of trading?

a) Oneself[ ]

b) Broker[ ]

c) Trading house[ ]

d) Any Other (Please specify)[ ]

7.If you Trade through a Broker, which Broking house you are associated with?

a) Sharekhan[ ]

b) India Bulls[ ]

c) Kotak Securities[ ]

d) ICICI Direct[ ]

f) Any Other (Please specify)[ ]

70
8.Are you satisfied with your preferred Broking house?

a) Very satisfied[ ]

b) Satisfied[ ]

c) Uncertain[ ]

d) Not satisfied[ ]

e) Dissatisfied[ ]
9. The behavior of staff is

Excellent Satisfactory Poor

10. What is your level of satisfaction with respect to response time for grievance
handling?

Highly satisfied Neutral

Dissatisfied Highly dissatisfied

71
 BIBLIOGRAPHY

Books

1. Project Report Writing- M.K.Rampal and S.L.Gupta

2. Marketing Management- Philip Kotler

3. NCFM- Capital Market Module.

Website:

1. www.nseindia.com

2. www.sharekhan.com

3. www.indiabulls.com

4. www.kotakstreet.com

5. www.5paise.com

6. www.icicidirect.com

7. www.hdfcsec.com

8. www.karvysec.com

9. www.google.com

72
BROCHURES

73
74