A

SUMMER TRAINING REPORT

ON
“Comparative Analysis of SHAREKHAN and other
Stock Broker House”
At
SHARE KHAN PVT.LTD.

In partial fulfillment for the degree of

Master of Business Administration

(Session 2012-2014)
Submitted to

“RANCHI UNIVERSITY, RANCHI”

UNDER THE GUIDANCE OF: Submitted by:

Mr. RAVI VERMA NAME - AJAY KUAR MAHTO

(ASST. MANAGER) R0LL NO –

12MBA01020

Share khan Ltd. SPECIALIZATION-

MARKETING MANAGEMENT

DELHI. COLLEGE – S.N.

SINHA INSTITUE OF BUSINESS

MANAGAMENT, RANCHI.

1
 DECLARATION

I hereby declare that this project work titled “COMPARATIVE ANALYSIS OF

SHARE BROKER AT SHAREKHAN PVT. LTD” is a record of Original work done
by me under the guidance of MR. RAVI VERMA and that this project work has
not formed the basis for the award of any Degree/Diploma/Associate
ship/Fellowship or similar title to any candidate of any University.

Name:-AJAY KUMAR MAHTO

SPECIALIZATION:-MBA

(MARKETING)

2
ROLL NO: - 12MBA01020

PLACE- RANCHI

ACKNOWLEDGEMENT

A project report is never the sole product of a person whose name appears
on the cover. I deem it a time bound privilege and function to dedicate this
page of mine to helping hands for their cooperation & guidance that enabled
me to dedicate time and effort in framing analysis in conceivable system.

I would like to take this opportunity to thanks and acknowledge my deep

sense of gratitude to MR. RAVI VERMA, Assistant manager of SHAREKHAN
LTD. for his guidance and pain taking supervision during course of my project
work. His valuable advice, constructive criticism and suggestion for assigning
my study really helping me out in the project. I also thanks him for providing
full facilities required in submitting our report within a limited time span.

I also wish to place on record my gratitude to my faculty guide, col. S.K.

Sinha and to my mentor Mrs. K.K. Banerjee whose keen interest, timely and
constant encouragement and generous cooperation gave me confidence and
strength to progress this report. I would be failing my duty if I don’t mention
my friends and classmates who helped me at various moments during my
project

3
SUBMITED BY:-

AJAY KUMAR MAHTO

EXECUTIVE SUMMARY

There is growing competition between brokerage firms in post reform India.

For investor it is always difficult to decide which brokerage firm to choose.
Research was carried out to find which brokerage house people prefer and to
figure out what people prefer while investing in stock market.

This study suggests that people are reluctant while investing in stock and
commodity market due to lack of knowledge.

Main purpose of investment is returns and liquidity, commodity market is

less preferred by investors due to lack of awareness. The major findings of
this study are that people are interested to invest in stock market but they
lack knowledge.

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Through this report we were also able to understand, what are our
Company’s (Share khan Ltd). Positive and strong points, on the basis of
which we come to know what, can be the basis of pitching to a potential
client.

We also gave suggestions to the company, what improvement can be done

to our product.

TABLE OF CONTENT

Chapter 1: Introduction
……………………………………………………………………….7-18

 Introduction…………………….……………………………………………7
 Back ground of stock exchange in India……………………....8-10
 Basics of stock market……..……………………….……………....11-14
 Securities available for trading…………………………………...15-18

Chapter 2: Company profile………………………………………………………….……

19-32

 Introduction to company…………………………………………..19
 Work structure of share khan ltd………………………………20-28
 Market strategies………………………..……………...............28-30

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  SWOT Analysis……………………..………………………………….31-32

Chapter 3: On line share trading and competitors…………………………….33-48

 Online share trading………………………………………………..33

 Share khan Trade Tiger account …………………….………34-35
 Process on account opening……………………………….….36-37
 Competitors information…………………….…….............38-47
 Comparative analysis…………………………….................48

Chapter 4: Research Methodology………………………………………………49-52

 Research methodology……………………………………….49-50
 Method of data collection………………………………….50-52

Chapter 5: DATA Analysis and Interpretation………………………………53-62

Chapter 6: Observation and Finding……………………………………………63-65

 Observation ………………………………………………………63
 Finding …………………………………...……………………..…64
 Suggestion……………………………….………………………..65

Chapter 7: Advantages and Limitation………………………………………..66-67

Chapter 8: Conclusion…………………………………………………………………68-

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Chapter 9: Bibliography………………………………………………………………69

Chapter 10: Annexure…………………………………………………………………70-71

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 CHAPTER-1

INTRODUCTION

In most industrialized countries, a substantial part of financial wealth is not

managed directly by savers, but through a financial intermediary, which
implies the existence of an agency contract between the investor (the
principal) and a broker or portfolio manager (the agent). Therefore,
delegated brokerage management is arguably one of the most important
agency relationships intervening in the economy, with a possible impact on
financial market and economic developments at a macro level.

In most of the metros, people like to put their money in stock options
instead of dumping it in the bank-lockers. Now, this trend pick pace in small
but fast developing cities like Delhi, Chandigarh, Gorgon, etc. My research is
based on the residents of Delhi and its nearby areas.

As the per-capita-income of the city is on the higher side, so it is quite

obvious that they want to invest their money in profitable ventures. On the
other hand, a number of brokerage houses make sure the hassle free
investment in stocks. Asset management firms allow investors to estimate
both the expected risks and returns, as measured statistically. There are
mainly two types of Portfolio management strategies.

1. Passive Portfolio Strategy

2. Active Portfolio Strategy

1. Passive Portfolio Strategy: A strategy that involves minimal

expectation input, and instead relies on diversification to match the
performance of some market index. A passive strategy assumes that
the marketplace will reflect all available information in the price paid
for securities.
2. Active Portfolio Strategy: A strategy that uses available
information and forecasting techniques to seek a better performance
than a portfolio that is simply diversified broadly.

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 BACKGROUND OF STOCK EXCHANGE IN INDIA

The emergence of stock market can be traced back to 1830. In Bombay,

business passed in the shares of banks like the commercial bank, the
chartered mercantile bank, the chartered bank, the oriental bank and the old
bank of Bombay and shares of cotton presses. In Calcutta, Englishman
reported the quotations of 4%, 5%, and 6% loans of East India Company as
well as the shares of the bank of Bengal in 1836. This list was a further
broadened in 1839 when the Calcutta newspaper printed the quotations of
banks like union bank and Agra bank. It also quoted the prices of business
ventures like the Bengal bonded warehouse, the Docking Company and the
storm tug company.

Between 1840 and 1850, only half a dozen brokers existed for the limited
business. But during the share mania of 1860-65, the number of brokers
increased considerably. By 1860, the number of brokers was about 60 and
during the exciting period of the American Civil war, their number increased
to about 200 to 250. The end of American Civil war brought disillusionment
and many failures and the brokers decreased in number and prosperity. It
was in those troublesome times between 1868 and 1875 that brokers
organized an informal association and finally as recited in the Indenture
constituting the “Articles of Association of the Exchange”. On or about 9 th day
of July,1875, a few native brokers doing brokerage business in shares and
stocks resolved upon forming in Bombay an association for protecting the
character, status and interest of native share and stock brokers and
providing a hall or building for the use of the members of such association.

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As a meeting held in the broker’ Hall on the 5 th day of February, 1887, it was
resolved to execute a formal deal of association and to constitute the first
managing committee and to appoint the first trustees. Accordingly, the
Articles of Association of the Exchange and the Stock Exchange was formally
established in Bombay on 3rd day of December, 1887. The Association is now
known as “The Stock Exchange

The entrance fee for new member was Re.1 and there were 318 members on
the list, when the exchange was constituted. The numbers of members
increased to 333 in 1896, 362 in 1916and 478 in 1920 and the entrance fee
was raised to Rs.5 in 1877, Rs.1000 in 1896, Rs.2500 in 1916 and Rs. 48,000
in 1920. At present there are 23 recognized stock exchanges with about
6000 stock brokers. Organization structure of stock exchange varies.

14 stock exchanges are organized as public limited companies, 6 as

companies limited by guarantee and 3 are non-profit voluntary organization.
Of the total of 23, only 9 stock exchanges have been permanent recognition.
Others have to seek recognition on annual basis.

These exchange do not work of its own, rather, these are run by some
persons and with the help of some persons and institution. All these are
down as functionaries on stock exchange. These are

1. Stockbrokers
2. sub-broker
3. market makers
4. Portfolio consultants etc.

1.) Stockbrokers

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 Stock brokers are the members of stock exchanges.
These are the persons who buy, sell or deal in securities. A certificate of
registration from SEBI is mandatory to act as a broker. SEBI can impose
certain conditions while granting the certificate of registrations. It is
obligatory for the person to abide by the rules, regulations and the buy-law.
Stock brokers are commission broker, floor broker, arbitrageur etc.

Detail of registered brokers

Total no. of registered Total no. of sub-brokers as

brokers as on on 31.03.2008
31.03.2008

9000 24,000

2.) Sub-broker

A sub-broker acts as agent of stock broker. He is not a

member of a stock exchange. He assists the investors in buying, selling or
dealing in securities through stockbroker. The broker and sub-broker should
enter into an agreement in which obligations of both should be specified.
Sub-broker must be registered SEBI for a dealing in securities. For getting
registered with SEBI, he must fulfill certain rules and regulation.

3.) Market Makers

Market maker is a designated specialist in the specified

securities. They make both bid and offer at the same time. A market maker
has to abide by bye-laws, rules regulations of the concerned stock exchange.
He is exempt from the margin requirements. As per the listing requirements,
a company where the paid-up capital is Rs. 3 crore but not more than Rs. 5
crore and having a commercial operation for less than 2 years should appoint
a market maker at the time of issue of securities.

4.) Portfolio consultants

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 A combination of securities such as stocks, bonds and
money market instruments is collectively called as portfolio. Whereas the
portfolio consultants are the persons, firms or companies who advise, direct
or undertake the management or administration of securities or funds on
behalf of their clients.

Partial fulfillment for degree of M.B.A. programmed, we received the

opportunity from Share khan Ltd. for our summer training project report. It is
basically stock brokering company which deals in security and derivative
market, Commodity market, mutual funds and Insurance etc.

INTRODUCTION OF STOCK MARKET

Before getting familiar with share market, the first and foremost things we
should know is to know are the basic of share market.

1. WHAT IS SHARES?

A Share or stock is a document issued by a company which entitles its holder

to be one of the owners of the company. A share is directly issued by a
company through IPO or can be purchased from the stock market. By owning
a share you can earn a portion of the company's profit called dividend.

Also, by buying and selling the shares you get capital gain. So, your return is
the dividend plus the capital gain. However, you also run a risk of making a
capital loss if you have sold the share at a price below your buying price.

2. WHAT ARE STOCK MARKETS?

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Stock Market is an organized set-up with a regulatory body and the members
who trade in shares are registered with the stock market and regulatory body
SEBI.

A stock market is a market for the trading of company stocks, share and
derivatives.

Thus, the shares listed in the Bombay Stock Exchange (BSE) will be different
from those in the Delhi Stock Exchange (DSE), because a company may not
want to be listed in a particular stock exchange or may not fit the eligibility
requirements of the particular exchange.

The stock market is also called the secondary market as it involves trading
between two investors.

 Primary markets

The primary markets is that part of the capital markets that deals with the
issuance of new securities are bought by way of the public issue directly
from the company.

 Secondary markets

The secondary marking is the financial market for trading of securities that
have already been issued in an initial private or public offering. In
the secondary market, securities are sold by and transferred from one
investor or speculator to another.

3. WHAT IS A STOCK EXCHANGE?

A stock exchange, share market or bourse is a corporation or mutual

organization which provides facilities for stock brokers and traders, to trade
company stock and other securities.

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The Bombay stock exchange limited or BSE has a nation-wide reach with a
presence in 417 cities and towns of India. Its index or market indicator is
known as the sensex.

The S&P CNX NIFTY or simply NIFTY is the leading for large companies on
the National Stock Exchange of India. It consists of 50 companies
representing 24 sectors of the economy, and representing approximately
47% of the traded value of all stocks on the National Stock Exchange of
India.

4. WHO IS A BROKER?

A stockbroker is person who is licensed to trade in share in shares. Broker

also have direct access to the share market and can act as your agent in
share transactions. For this service they charge a fee. They can also offer
additional serves like advice on debentures, government bonds and listed
property trusts and non-listed investment options (cash management trusts,
property and equity trusts.

5. WHAT IS ADEMAT A/C?

Investor who wish to trade in the market need to have a dematerialized, or

de-mat account. In India, the government has mandated two entities-

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National Securities Depository, or NSDL and Central Depository Services
(India), or CDSL –to be the custodian of dematerialized securities.

6. BUYING AND SELLING OF DEMARTERIALISED SECURITIE

 What is the procedure for selling dematerialized securities?

The procedure for selling dematerialized securities is very simple. After you
have sold the securities, you would instruct your DP to debit your account
with the number of securities sold by you and credit your broker’s clearing
account. This delivery instruction has to be given to your DP using the
delivery instruction slips given to you by your DP at the time of opening the
account.

 How can I purchase dematerialized securities?

For receiving de-mat securities you may give a one-time standing instruction
to your DP. This standing instruction can be given at the time of account
opening or later, alternatively, you may choose to give separate receipt
instruction every time some securities are to be received.

7. HOW TO RECEIVE INCOME FROM SHARE?

We invest in share to make money- either through a share’s capital growth,

i.e the amount by which the share price increase in value over time, or
through the dividend it pays to its share holders. Dividends are payments
made by companies to share holders from their profits.

8. HOW TO MAKE INVESTMENT DECISIONS?

The stock market has, perhaps, the most exciting investment opportunities
for the investor community. At the same time, it could be unnerving and
scary. In fact, equity investment has always remained a big challenge, not
only for retail but institutional investors too.

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 In short, investing in equities can be a difficult proposition for retail
investors. However, equity must from a part of every investor’s age,
monetary requirement, risk appetite etc.

To cope with volatility, it is important to have a disciplined and systematic

approach to equity investment. Set your own rules and more importantly,
follow them religiously, indeed, the mantra for successful equity investment
is a well thought-out, disciplined investment and decisions based on
company fundamental are essential ingredients for successful investment.

SECURITIES AVAILABLE FOR TRADING

The capital market (equities) segment of NSE facilities trading in the

following instruments:

1. Share
o Equity share
o Preference share

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 2. Debentures
o Partly convertible debentures
o Fully convertible debentures
o Non convertible debentures
o Warrants/coupons/secured premium notes/other hybrid
o Bonds

3. Units of mutual funds

o open ended
o close ended

STOCK EXACHAGE

The stock exchange in India, under the overall supervision of the regulatory
authority, the securities and exchange Broad of India (SEBI), provide a
trading platform, where buyers and sellers can meet to transact in securities.

ROLE OF STOCK EXCHANGE

 Facilities listing of securities

 Register members stock brokers, and sub brokers
 Make and enforce bylaws
 Provides trading platform to investors
 Manage risk in securities transactions
 Provide indices

VARIOUS EXCHANGE IN INDIA

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  Ahmadabad Stock Exchange
 Bangalore Stock Exchange
 Bombay Stock Exchange
 Calcutta Stock Exchange
 Delhi Stock Exchange Association
 Hyderabad stock exchange
 Inter-connected stock exchange of India
 Jaipur stock exchange
 Ludhiana stock exchange association
 Mumbai stock exchange
 National stock exchange of India (NSE)
 OTC exchange of India

SOME FOREIGN STOCK EXCHANGE

 NASDAQ
 HANG SANG
 S&P 500
 DOWJONES

Leading stock exchange in India

NATIONAL STOCK EXCHANGE

 NSE, promoted by leading financial institution, was incorporated in

1992 as a corporate entity
 Trading in equity and debt market commenced in 1994.
 It’s largest exchange in the country in terms of trading volumes.
 The stock exchange, Mumbai, popularly known as “BSE” was
established in 1875 as the “Native Share and Stock Brokers
Association”.

NIFTY

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  Nifty is an indicator of all the major companies of NSE.
 The Nifty index is a composite of the top 50stocks listed on the
National stock exchange. It is a simplified tool which helps investors &
ordinary people alike, understand what happen in the stock market by
extension, the economy.

BOMBAY EXCHANGE STOCK

 The BSE or Bombay stock exchange sensitive

 Index is a value weighted index.
 It consists of the 30largest and most actively traded stocks,
representative of various sectors, on the BSE.
 These companies account for around one fifth of the market
capitalization of the BSE.

SENEX

 Sensex is an index, an index is basically indicator. It gives you a

general idea about whether most of the stock share gone up or
most of the stocks have gone down. The sensex is an indicator of
all the prices of the major companies of the BSE(Bombay stock
exchange)

MARKETING TIMINGS

Trading on the equities segment takes place on all days of the week (except
Saturday and Sunday holiday declared by the exchange in advance).

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The market timing of the equities segment is:-

 Normal market timings ( NSE & BSE): 09.55pm to 03.30pm

 Post closing timings (NSE)-03.50pm to 04.00pm
 Post closing timing (BSE)- 03.40pm to 04.00pm

After market close, NSE and BSE both have introduction

CHAPTER-2

INTRODUCTION OF THE COMPANY

Share khan is one of the leading retail brokerage of City Venture which is
running successfully since 1922 in the country. Earlier it was 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.

Earlier 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.
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.

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 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.

VISION

To be the best retail brokering Brand in the retail business of stock market.

MISSION
To educate and empower the individual investor to make better investment
decisions through quality advice and superior service.
WORK STRUCTURE OF SHAREKHAN

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 engine and content. The City Venture holds a
majority stake in the company. HSBC, Intel & Carlyle are the other investors.

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.

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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 3 Lacks customers. The number of trading
members currently stands at over 7 Lacks. While online trading currently
accounts for just over 5 per cent of the daily trading in stocks in India, Share
khan alone accounts for 27 per cent of the volumes traded online.

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.

Finally, Share khan shifted hands and City venture get holds on it.

SERVICES PROVIDED BY SHAREKHAN

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BENEFITS OF SHARE KHAN

· Free Depository A/c

· Instant Cash Transfer

· Multiple Bank Option.

· Secure Order by Voice Tool Dial-n-Trade.

· Automated Portfolio to keep track of the value of your actual purchases.

· 24x7 Voice Tool access to your trading account.

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· Personalized Price and Account Alerts delivered instantly to your Mobile
Phone & E-mail address.

· Live Chat facility with Relationship Manager on Yahoo Messenger

· Special Personal Inbox for order and trade confirmations.

· On-line Customer Service via Web Chat.

· Enjoy Automated Portfolio.

· Buy or sell even single share

· Anytime Ordering.

Share khan offers the following products:-

CLASSIC ACCOUNT

This is a User Friendly Product which allows the client to trade through
website www.sharekhan.com and is suitable for the retail investors who is
risk-averse and hence prefers to invest in stocks or who do not trade too
frequently.

Features

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· Online trading account for investing in Equity and Derivatives via
www.sharekhan.com

· Live Terminal and Single terminal for NSE Cash, NSE F&O & BSE.

· Integration of On-line trading, Saving Bank and De-mat Account.

· Instant cash transfer facility against purchase & sale of shares.

· Competitive transaction charges.

· Instant order and trade confirmation by E-mail.

· Streaming Quotes (Cash & Derivatives).

· Personalized market watch.

· Single screen interface for Cash and derivatives and more.

· Provision to enter price trigger and view the same online in market watch.

SPEEDTRADE

Speed trade is an internet-based software application that enables you to

buy and sell in an instant.

It is ideal for active traders and jobbers who transact frequently during
day’s session to capitalize on intra-day price movement.

Features

· Instant order Execution and Confirmation.

· Single screen trading terminal for NSE Cash, NSE F&O & BSE.

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· Technical Studies.

· Multiple Charting.

· Real-time streaming quotes, tic-by-tic charts.

· Market summary (Cost traded scrip, highest clue etc.)

· Hot keys similar to broker’s terminal.

· Alerts and reminders.

· Back-up facility to place trades on Direct Phone lines.

· Live market debts.

DIAL-N-TRADE

Along with enabling access for trade online, the CLASSIC and SPEEDTRADE
ACCOUNT also gives Dial-n-trade services. With this service, one can dial
share khan’s dedicated phone lines 1-800-22-7500, 3970-7500.

Beside this, Relationship Managers are always available on Office

Phone and Mobile to resolve customer queries.

SHAREMOBILE

Share khan had introduced Share mobile, A mobile based software where
one can watch Stock Prices, Intra Day Charts, Research & Advice and Trading
Calls live on the Mobile.

(As per SEBI regulations, buying-selling shares through a

mobile phone are not yet permitted.)

PREPAID ACCOUNT

Customers pay Advance Brokerage on trading Account and enjoy

uninterrupted trading in their Account. Beside this, great discount are also
available (up to 50%) on brokerage.

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Prepaid Classic Account : - Rs. 2000

Prepaid Speed trade Account : - Rs. 6000

IPO ON-LINE

Customers can apply to all the forthcoming IPOs online. This is quite hassle-
free, paperless and time saving. Simply allocate fund to IPO Account, Apply
for the IPO and Sit Back & Relax.

MUTUAL FUND ONLINE

Investors can apply to Mutual Funds of Reliance, Franklin Templeton

Investments, ICICI Prudential, SBI, Birla, HDFC, DSP Merrill Lynch, PRINCIPAL
and TATA with Share khan.

ZERO BALANCE ICICI SAVING ACCOUNT

Share khan had tied-up with ICICI bank for Zero Balance Account for Share
khan’s Clients. Now their customers can have a Zero Balance Saving Account
with ICICI Bank after your de-mat Account creation with Share khan.

CHARGE STRUCTURE

Fee Structure for General Individuals: -

Charge Classic Account Speed Trade Account

Account Opening Rs. NIL Rs. NIL

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Monthly Rs. NIL Rs. NIL

Commitment

Brokerage Intra-day – 0.05 % Intra-day - 0.05%

Delivery - 0.50 % Delivery - 0.50%

* Taxes as per govt.

Depository Charges

Account Opening Charges Rs. NIL

Annual Maintenance Charges Rs. NIL first year.

Rs. 300/= p.a. from second

calendar year onward

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 their online trading account one can buy and sell shares in an instant
from any PC with an internet connection. Customers get access to the
powerful online trading tools that will help them to take complete control
over their investment in shares.

Accessibility

Share khan provides ADVICE, EDUCATION, TOOLS AND EXECUTION services

for investors. These services are accessible through many 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, investors get access to a wide range of information on the
content-rich portal, www.sharekhan.com. Investors will also get a useful set
of knowledge-based tools that will empower them to take informed decisions.

Convenience

One can call Share khan’s Dial-N-Trade number to get investment advice and
execute his/her transactions. They have a dedicated call-center to provide
this service via a Toll Free Number 1800-22-7500 & 39707500 from anywhere
in India.

Customer Service

Its customer service team assist their customer for any help that they need
relating to transactions, billing, de-mat and other queries. Their customer
service can be contacted via a toll-free number, email or live chat on
www.sharekhan.com.

Investment Advice

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Share khan has dedicated research teams of more than 30 people for
fundamental and technical research. Their analysts constantly track the
pulse of the market and provide timely investment advice to customer in the
form of daily research emails, online chat, printed reports etc.

MARKETING STRATEGIES OF THE COMPANY

 Tele calling:-The Company uses the Telecalling/ phone calling to reach

the customers, which are interested. This is the most important
technique to save time and giving demo of the company’s product
through making call in order to know the customer interest towards the
product. This is the strategy with which one can motivate customer to
go for the product and etc.
 LMS: It is leads management system which means leads are
generated by the customer who wants to purchase the product of the
company. Company provides facility to the customer on online to fill
the registration form through which the companies’ executives can
provide more information to the customer.
 Yellow Pages: Yellow pages are used to gather data for making calls
so that customer who did not fine time and are unaware of the product
can know about the product. Customers are given freedom to ask
question related to the products this is the technique used to increase
the awareness of the company.
 Canopy’s: This is the most important technique used by share khan
securities to market its product in different areas of the city, company
put their canopies and customer who are willing to know about the
product come forward and provide best of their knowledge. Besides
this company executives ask customer to fill the questionnaire that
tells the company about the levels of brand awareness. It also
increases the product awareness because it is generally put at the
crowdies places like near main

30
 Markets, cinemas, hotels, atm or etc where people come in good
numbers.
 Direct Marketing: Share khan executive’s reaches to the does of the
customer by fixing appointments with the interested customer, they
describe the details of the product. Executive give demonstration of
the products so that customer can understand better.
 Advertising: Advertising is the most important tool of increasing
awareness of the product and this is the most widely used technique
by the company to tell about the new features and new lunch by giving
briefing of the product. Share khan use banners, distribution of
pamphlets, and advertisement in newspapers, magazines.
 References: Share khan strategy is to satisfy the customer in terms of
their need by providing them timely services and knowledge about the
trade in equities, mutual funs by giving tips for investment advises
through e-mails or toll free calls for this purpose customers are
provided relationship manager who give investment advice and also
make transaction on their behalf on demand. B satisfying customer
executives ask their references that not only increase the awareness
but also increase the good will of the company.
 Competitiveness: The Company is innovative and uses the latest
technology to improve the product to fulfill the demands of the
customers. Share khan makes it easy for the customer to make online
transaction of shares. The company is competitive in terms of the
product price and facilities it offers to the customer.
 Internet: Company provides detailed information about the products
on Internet so that customer can know about the product easily and
completely

31
 SHAREKHAN BUSINESS

1. Brokering business

2. White feathering house production.

32
 BRANCHES ALL OVER INDIA

SWOT ANALYSIS
Strengths:

 It is a pioneer in online trading with a turnover of Rs.400crores and

more than 800 peoples working in the organization.

33
  SSKI the parent company of Share Khan has more than eight decades
of trust and credibility in the Indian stock market. In the Asian Money
Broker’s poll SSKI won the “India’s best broking house for 2004” award.

 Share Khan provides multi-channel access to all its customers through

a strong online presence with www.sharekhan.com, 250 share shops in
130 cities and a call-center based Dial-n-Trade facility

 Share Khan has dedicated research teams for fundamental and

technical research. Which constantly track the pulse of the market and
provide timely investment advice free of cost to its clients which has a
strike rate of 70-80%

Weakness:

 Localized presence due to insufficient investments for country wide

expansion.

 Lack of awareness among customers because of non-aggressive

promotional strategies (print media, newspapers, etc).

 Lesser emphasis on customer retention.

 Focuses more on HNIs than retail investors which results in meager

market-share as compared to close competitors.

Opportunities:

 With the booming capital market it can successfully launch new

services and raise its client’s base.
 It can easily tap the retail investors with small saving through
promotional channels like print media, electronic media, etc.
 As interest on fixed deposits with post office and banks are all time
low, more and more small investors are entering into stock market.

34
  Abolition of long term capital gain tax on shares and reduction in short
term capital gain is making stock market as hot destination for
investment among small investors.
 Increasing usage of internet through broadband connectivity may
boost a whole new breed of investors for trading in securities.

Threats:

 Aggressive promotional strategies by close competitors may hamper

Share Khan’s acceptance by new clients.

 Lack of sufficient branch-offices for speedy delivery of services.

 Other players are providing margin funds to investors on easy terms

where as there is no such facility in share khan.

 More and more players are venturing into this domain which can
further reduce the earnings of Share Khan.

CHAPTER-3

ONLINE SHARE TRADING AND COMPETITORS

Online share trading

With a Share khan online trading account, you can buy and sell shares in an
instant! Anytime you like and from anywhere you like.

You can choose the online trading account that suits your trading habits and
preferences - the Classic Account for most investors and Trade tiger for active day

35
traders. Your Classic Account also comes with Dial- n-Trade completely free,
which is an exclusive service for trading shares by using your telephone.

KEY FEATURES OF ONLINE TRADING

 Freedom from paperwork

 Instant credit and money transfer

 Trade from any net enabled PC

 After hour orders

 Online orders on the phone

 Timely advice and research reports

 Real-time Portfolio tracking

 Information and Price alerts

When beginning your foray in investing in shares, we need a lot of things -

from the right tools and the right information at your disposal, to assistance
when we need it and advice on investing. SHAREKHAN has been in this
business for over 80 years now, and we can get a host of services and tools
that are difficult to find in one place anywhere else. The Share khan First
Step program, built specifically for new investors is testament to their
commitment to being our guide throughout our investing lifecycle.

SHAREKHAN TRADE TIGER ACCOUNT

36
These accounts for active traders who trade frequently during the day's
trading session .Following are few popular features of Speed Trade account.

Features of trade tiger account

 Real-time streaming quotes with Instant order Execution &

Confirmation

 Hot keys similar to a traditional broker terminal

 Alerts and reminders

 Back-up facility to place trade on Direct Phone lines

 A single platform for multiple exchange BSE & NSE (Cash & F&O), MCX,
NCDEX, Mutual Funds, IPOs

 Multiple Market Watch available on Single Screen

 Multiple Charts with Tick by Tick Intraday and End of Day Charting
powered with various Studies

 Graph Studies include Average, Band- Bollinger, Know Sure Thing,

MACD, RSI, etc

 Apply studies such as Vertical, Horizontal, Trend, Retracement & Free

lines

 User can save his own defined screen as well as graph template,
that is, saving the layout for future use

 User-defined alert settings on an input Stock Price trigger

37
  Tools available to gauge market such as Tick Query, Ticker, Market
Summary, Action Watch, Option Premium Calculator, Span Calculator

 Shortcut key for FAST access to order placements & reports

 Online fund transfer activated with 12 Banks

SAMPLE OF TRADE TIGER

38
39
 PROCESS ON ACCOUNT OPENING
LEAD MANAGEMENT SYSTEM (LMS)/ REFERENCES

CONTACT

TELEPHONE AND PERSONAL VISIT

APPOINMENT

DEMONSTRATION

AGREE DISAGREE N
o

DOCUMENTATION

FILLING THE FORM

SUBMISSION THE FORM

LOGIN OF THE FORM

SENDIND ACCOUNT OPNING KIT TO CUSTOMER

TRADING

How to open account with Share khan?

40
For online trading with Share khan, investor has to open an account.
Following are the ways to open an account with Share khan:

 Call them at phone number provided below and ask that you want to
open an account with them.

o Call on Toll free number: 1-800-22-7500 to speak to a Customer

Service executive

o If you are in Mumbai call on 022-66621111

 Visit one of their branches. Share khan has a huge network all over
India. Click on http://sharekhan.com/Locateus.aspx this link to find out your nearest
branch. Just select the place near you and you'll find a manager to
assist you there.

 You can send them an Email on info@sharekhan.com to know about

their products and services.

If you wish to chat with customer service representative, you can join the
chat session

41
 COMPETITORS INFORMATION

There are many competitors in the north region like KARVY, HDFC

SECURITIES, INDIABULL, ICICI DIRECT, 5PAISE.COM, INDIA

INFORLINE, AND KOTAK.

But i have selected above mention5 companies to compares with share

khan ltd.

The selected five companies are follows-

1. 5paisa.com
2. Kodak Street
3. India Bull
4. ICICI Direct
5. HDFC Security

5PAISE.COM

Company Background

India info line was founded in 1995 and was positioned as a research firm in
2000 e-broking was started under the brand name of 5paisa.com. 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

42
securities, Company Fixed Deposits, Insurance, Limited ground network,
present in 20 Cities.

Online account types

1. Investor terminal

Account opening: 500

De-mat 1st year 250

Initial margin: 2500(compulsory)

Min margin retainable: 1000

Brokerage:

Intraday- 0.10% + ST

Delivery – 0.50% + ST

2. Trader Terminal
A/c opening: 500
De-mat: 250

Initial Margin: 5000(compulsory)

Min margin retainable: 1000

Brokerage

Intraday- 0.10% + ST

Delivery - 0.50% + ST

43
Account access charges

Monthly: Rs. 800

Downtime
Recent past 5 paisa trader terminal is experiencing high frequency downtime
between 3:00 to 3:30 pm due to server load

Manual accounting

The 5 paisa accounting system is manual, online fund transfer through bank
is not credited unstably.

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

Min Rs.1000 is to be maintained in form of cash/securities to keep account

active. This can be withdrawn only on closure of account.

KOTAK STREET

Company Background
Kotak Street is the retail arm of kotak securities. Kotak Securities limited is a
joint venture between Kotak Mahindra Bank and Goldman Sachs.

44
Online account type

Twin advantage/ green signal: 2 DP’s, limit against shares.

Free way: flat Rs 999 cover charge p.m. 0.03% per transaction.

High traders: 6 times exposure cash and derivatives, auto sq off 2:55

Cash expressway: spot payment, additional 0.5% charges.

For kotak fast lane/ keatlite/ keat desktop are trading interfaces keat desktop
with advanced tools comes at a charge of Rs. 500 non refundable.

Pricing of kotak

A.O. 500, De-mat 22.5 per month, Initial margin: Rs 5000, Min margin
retainable: Rs. 100 Brokerage slab wise: - Higher the volume, lower the
brokerage. Even older customers (on 0.25% and 0.40%) have been moved to
the slab wise structure.

Slab structure of kotak

Delivery Brokerage Square volume Brokerage

volume off P.M
P.M
<1 lakh 0.65% <10 lakhs 0.10% each leg

1 lakh -5 lakhs 0.60% 10 lakh- 25 lakh 0.08% each leg

5 lakhs – 10 0.50% 25 lakhs – 2 cr. 0.06% each leg

lakhs
10 lakhs –20 0.40% 2 cr. – 5 cr. 0.05% each leg
lakhs
20 lakhs –60 0.30% >5 cr. 0.04% each leg
lakhs

45
60 lakhs – 2 cr. 0.25%

>2 cr. 0.20%

* DP charges extra

* Brokerage is inclusive of taxes

INDIABULLS

Company Background

India Bulls has retail financial Services Company present in 70 locations

Covering 62 cities. It offers a full range of financial services and Products
ranging from Equities to Insurance. 450 + Relationship Managers who act as
personal financial advisors

Online account type

Signature account: Plain vanilla account with focus on equity analysis. The
equity analysis is a paid service even for account holders.

Power India bulls: Account with sophisticated trading tools, low

commissions and priority access to R.M.

Pricing of India bulls accounts:

Signature account:

Account opening: 250/=

De-mat Rs. 200 if POA is signed, No AMC for this DP

Initial Margin Nil

Brokerage: negotiable

Power India bulls:

Account opening: 750/=

46
De-mat Rs. 200 if POA is signed, No AMC for this DP

Initial Margin Nil

Brokerage: negotiable

Paid Research

Scheme
Web based 1 month 500
Web based 1 year 6000
Print report 1 month 750
Print report 1 year 9000
Facility
View and print on website
View and print on website
View and print on website + 10 reports
delivered
View and print on website + 10 reports
delivered

Deal clinchers V/S India bulls.

POA for Clients DMAT

All shares held by client trading with IB are moved to IB Pool Account and the
same is shown as a reflection in client DP account. Charges are levied to
move shares from IB pool Account to client DP account

Paid research services

Access to a research even for and IB trading account hold is charges 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

47
Each RM is looked upon as revenue generator and he gets a % on business
generator from client. This can lead to over leveraged (interest) & high
frequency (brokerage) trading, which may no be in the best interest of the
client.

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.

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.

De-mat nil 1st year charges included in account opening plus a facility open
additional 4 DP’s

Without 1st year AMC.

Initial margin nil

Brokerage:

Delivery vol. per qtr. Brokerage

<10 lakhs 0.85%
10 lakhs- 25 lakhs 0.75%
25 lakhs – 50 lakhs 0.60%
50 lakhs – 1 cr. 0.40%
1 cr. – 2 cr. 0.35%
2 cr. – 5 cr. 0.30%

Poor online interface

48
Slow website interface with no real time quotes crates dissatisfaction among
high frequency traders.

Margin trading restriction

The margin trading system is available 1 up to 2:45 p.m. , with outstanding

net positions under margin segment automatically squared off at any time
between 2:45 – 3:30 pm. Thus no control of squared off price.

Morning trades issue

Being one of the websites with larger no. of after hour orders which are
pushed 1st thing in the morning, creates a choking of orders to the exchange,
causes delay of confirmation for new order placed during the early morning
trades

Restriction of BTST

Sale of shares purchased is restricted to T + 1 day and is not permitted on T

+ 2 day.

Deal clinchers V/S ICICI direct

No leverages for delivery trades

Delivery is restricted to the total money allotted into the trading account.

No flexibility on leverage on intraday trades.

The leverage of 4 times is available for intraday trades.

Restriction of bank account

The choice of bank is restricted to ICICI bank.

Higher brokerage rates with slabs

49
The delivery brokerage is pegged at 0.85% and trading at 0.15% each side,
this makes is very unviable for customers dealing in large volumes. Although
progressively the delivery and trading brokerage reduce as volume go up.

HDFC SECURITIES

Company Background

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

De-mat account with HDFC securities:-

 It is conversion of physical shares into electronic form.

 Dematerialization charges
 Rs. 3 per share certificate
 Rs. 35 per request.
 Folio charges are Rs.150 per annum.
 Buying and selling transaction through brokers –Charges are 0.05% of
transaction value
 Off market transactions charges - 0.04% of transaction value

Online account type

HDFC online trading A/C:- plain vanilla account with focus on 3 in 1
advantages.

HDFC securities pricing of HDFC account

50
Account opening: 750
De-mat: 1st year charges included in account opening
Initial margin: Rs. 5000 for non HDFC bank customers
AMC: first year nil and Rs. 450 per year from 2nd year onwards.

Brokerages
Trading 0.15%
Delivery 0.50%
Deal clinchers V/S HDFC securities

Poor online interface

A part from having no product to cater to day – traders the HDFC securities
online website is plagued with downtime. The same is currently being
revamped.

Lack of focus on broking

The core business of HDFC is housing finance. 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 intraday trades, effectively all

clients are on cash

And carry system.

51
No flexibility in commercial terms

The delivery brokerage is pegged at 0.5% and trading and 0.15% side, this
makes it unviable for customers dealing in large volume.

COMPARATIVE ANALYSIS

ICICI HDFC Kotak Share India 5

direc sec. stree khan bulls paisa
t t
A/C 750 700 550 750 500 675
opening
fee
Recurring 0 0 0 0 0 375
fee for
trading A/C
De-mat 500 500 360 300 0 375
AMC
Delivery 75p 50p 59p 50p 50p 60p
brokerage

Intraday 0.15 0.15 0.10 0.10 0.10 0.15

brokerage

Initial nil 5000 5000 nil nil 2500

margin (for non
required HDFC
custom
er)

52
Cash Y Y Y Y Y Y
BTST Y N Y Y Y Y
Funded Y Y N N Y N
margin
Margin Y Y Y Y Y Y
Derivatives Y Y N Y Y Y
Commoditi Y N N Y Y Y
es
IPO Y Y Y Y N Y
MF Y N Y N N Y
Small Y N N N N Y
Savings
Insurance Y N N N N Y

CHAPTER-4

RESEARCH METHODOLOGY

Research Methodology:

Research design is a basic frame work, which provides guidelines for the rest
of research process. It is a map or blue print according to which the research
is to be conducted.

Objective of Research

Each research study has its own specific purpose. It is like to discover to
Question through the application of scientific procedure. But the main aim of
our research to find out the truth that is hidden and which has not been
discovered as yet. Our research study has two objectives.

53
Primary objective: -How Share khan Ltd is best services providers as a
stock broker in the north region

Secondary objective: -

1. To know about the awareness towards stock brokers and share market.

2. To study about the competitive position of Share khan Ltd in Competitive

Market.

3. To study about the effectiveness & efficiency of Share khan Ltd in relation
to its customer

4. To study about whether people are satisfied with Share khan Services &
Management System or not

5. To study about the difficulties faced by persons while Trading in Share

khan.

6. To study about the need of improvement in existing Trading system.

Research Design

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.

54
 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.

METHODS OF DATA COLLECTION

While deciding about the method of data collection to be used for the study
the researcher should keep to types of data.

1. Primary Data

2. Secondary Data.

1. Primary data collection

The data collected by the researcher from the field.

Primary data can be collected by

 Experiment
 Survey
 Personal Interviews
 Questionnaire
 Tele-calling

55
2. Secondary sources of data

It is the data which has already been collected by some one or an

organization for some other purpose or research study. The data for my study
has been collected from various sources.

 Books
 Journals
 Internets
 News papers
 Pamphlets
 Broacher
 Magazines

We use in our research primary data, as well as secondary data. Primary

means collected a fresh, and the first time data and secondary means which
are already available like annual report, magazines etc.

RESEARCH METHODOLOGY ADOPTED

• Type of research: - Qualitative research

• Sampling Plan: 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

56
• Sample Size: - 30 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

CHAPTER-5

DATA INTERPETION AND ANALYSIS

1. Are you aware about share market and online trading?

Yes No

AWARE OF ONLINE SHARE %OF RESPONDENTS

TRADING
Yes 93.33%
No 6.67%

57
AWARNESS ABOUT SHARE MARKET AND ONLINE TRADING

YES 93.33
NO 6.67

Interpretation: - With the increase in cyber education the awareness

towards online share trading has increased by leaps and bounds. The
awareness is expected to increase further with the increase in internet
education

2. In which of these financial instruments do you invest?

FINANCIAL INSTRUMENTS % PERCENTAGE OF

INVESTMENT
Mutual fund 33.33%
Bonds 6.67%
Online trading 20%
Derivative 10%
Insurance 3.36%
Others 26.67%

58
PERCENTAGE OF INVESTMENT IN FINANCIAL INSTRUMENT

35

30

25

20

15

10

Interpretations: This shows that although the mutual funds is on the rise
yet , the most favored investment continues to be in the share market so
with a more transparent system . Investment in the stock market can
definitely be increased

3. What is the basic purpose of your investment?

PURPOSE OF PERCENTAGE OF
INVESTMENT INVESTMENT
Liquidity 10%
Returns 50%
Capitals 16.67%
Tax benefits 13.33%
Risk covering 10%

59
 PURPOSE OF INVESTMENT
60

50

40

30

20

10

0
LIQUIDITY RETURNS CAPITALS TAX BENEFITS RISK COVERING

Interpretation: - 73.33% people are interested in, returns, liquidity and tax
benefits. And remaining 26.67% are interested in capitals, risk covering.

4. Do you have a De mat and trading account?

Yes NO

HAVING A DE MAT AND TRADING PERCENTAGE OF DE MAT AND

A/C TRADING A/C
Yes 76.67%
No 23.33%

60
 PERRCENTAGE OF HAVING DEMAT AND TRADING A/C

Interpretations: - 76.67% people having de-mat and trading a/c, remaining

23.33% have no De-mat and trading a/c. This shows that maximum people
are interested in share trading.

5. How did you come to know about the broking firm?

 Newspaper
 Journal
 TV Advertisement
 Internet
 Friend
 Other

61
SOURCE OF NEWS OF PERCENTAGE OF
BROKING FIRM SOURCE
20
Newspaper
Journal 10
TV Advertisement 10
Internet 23.33
Friend 26.67
Other 10

SOURGE OF NEWS ABOUT BROKING FIRM

30
25
20
15
10
5
0

Interpretations:- 26.67% people know about broking firm through friend

recommendation, 23.33% through internet, 20% through newspaper and rest
through other source.

6. Which company provides you large no. of product and

services?

COMPANY NAME PERCENTAGE OF

RESPONDENT

Share khan 53.33%

62
 India bulls 13.33%

ICICI Direct 6.67%

HDFC Security 13.33%

KOTACK Street 3.33%

5paisa.com 0%

Other 10%

PERCENTAGE OF RESPONDENT

OTHER F; 10%
KOTACK SECURITY; 3%

HDFC SECURITY; 13%

SHRE KHAN; 53%

ICICI DIRECT; 7%

INDIA BULLS; 13%

Interpretations:- 53.33% have respondent of share khan ltd ,13.33% have

respondent of India bulls, 6.67% respondent of ICICI direct, 13.33%
respondent of HDFC security,3.33% respondent of KOTACK street, 0%
respondent of 5paisa.com, and 10% respondent of Other.

63
7. How important do you think these factors influence in
choosing a broking firm?
 Low brokerage :-( Not important) (Important) ( Extremely
important)
 Better customer service:- ( Not important) (Important )
(Extremely important)
 Brand loyalty:- ( Not important) ( Important) (Extremely
important)
 Good trading tips:- (Not important) (Important) (Extremely
important)
 Margin money:- ( Not important) (Important) (Extremely
important)
 Timely research report:- (Not important) ( Important) (Extremely
important)
 Friend recommendations:- (Not important) ( Important)
( Extremely important)

80
70
60
50
40
30
20
10
NOT IMPORTANT IMPORTANT EXTREMELY IMPORTANT
0

64
Interpretations:- 70% people thinks brandloyaty and friend
recommendations is extremely important. 50% people think low
brokerage and timely research report is extremely important. 47%
people think better customer service, good trading tips and margin
money is extremely important.

8. Best broking firm according to you?

HIERARCHY LEVEL OF % OF TRUSTING

BROKING COMPANY
Share khan 43.33%
India Bulls 16.67%
KOTAK street 3.33%
ICICI Security 6.67%
HDFC Direct 10%
Other 20%

65
 HIERACHY LEVEL OF BROKING COMPANY

OTHER

HDFC SECURITY

ICICI DIRECT

KOTAK STREET

INDIA BULLS

SHARE KHAN

0 5 10 15 20 25 30 35 40 45 50

Interpretations: - the chat shows that this brand image should further
leveraged by the company to increase in market share over its competitors

9. Are you interested to invest through SHAREKHAN LTD in future?

Yes No

FEATURE % TO INVEST % OF INTERESTED

THROUGH SHARE KHAN

66
Yes 43.33%

No 56.67%

FUTURE OF INVESTMENT THROUGH SHARE KHAN

60

50
Series 1
40

30

20

10

0
YES NO

Interpretations: - 43.33% respondent of share khan, 56.67% respondent of

other broking house.

10. Most important things you take into your mind while making
investments?

 Risk

67
  Return
 Both

FACTOR %AGE
Risk 3.33%
Returns 40%
Both 56.67%

FACTOR OF INVESTMENT

60

50

40

30

20

10

0
RISK RETURNS BOTH

Interpretation: 96.67% people are considered the both factors risk as well
as returns but, only 43.33% considered the risk or returns factor.

68
 CHAPTER-6

OBSERVATION AND FINDINGS

To study the sales and distribution management and improve the Customer
Acquisition Process by analyzing the consumer behavior, response and
mindset towards the product and services the company offers.

1. Preference of Investment:

Consumers want to invest 75% in Mutual funds, 16% in Bonds, 7% in online

trading and 2% in Derivatives.

2. Awareness on Online Share Trading

72% consumers are aware of online share trading and 28% consumers are
not aware of online share trading.

3. Awareness of Share khan ltd.:

70% consumers are known about Share khan ltd. and 30% consumers are
not known about Share khan ltd.

4. Company have De-mat A/C

In Share khan Ltd 38% respondents have De-mat & trading account because
of better services and no annual maintenance and other charges.

5. Company provide large no. of product and services

22% respondent of Share khan ltd., 18% have respondent of HDFC,

Respondent of ICICI

69
 FINDINGS

 According to the survey most of the customers of “Share khan Ltd”

says that it is pocket friendly.

 Coming to faith 70% say Share khan Ltd is better than others stock
brokers due to Customer’s satisfaction.

 Main purposes of investments are returns & liquidity.

 Investors take risk as well as returns into their mind while making the
investment.

 Businessmen are more interested in the stock market than the others.

 Commodity market is less preferred by the investors.

 People want to invest their money in the security market but they
haven’t the proper knowledge.

 People are not aware of hedging in stock market.

 People pay more emphasis on brokerage than service provided by

brokerage houses.

SUGGESTION
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 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 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.

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 CHAPTER-7

ADVANTAGES AND LIMITATIONS

ADVANTAGES:-

Lower brokerage and fees (in almost all cases). Fees can be even lower if
you're a frequent trader.

More control on your transactions. You can decide exactly what price and
time you wish to buy, down to the fraction of a second, as well as change
your order whenever you feel like. No waiting on the phone or having to go in
person to a branch.

More flexibility in terms of being able to see what options are available to
you and scan the market.

With online trading, you often have access to lower-fee mutual fund products
since you are your own advisor and nobody gets a cut along the way.

.
Handy tools to model interest earned, yield, returns etc, as well as financial
screeners to research stocks and bonds.

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Good research tools and newsfeeds on each stock, which you can delve
deeper into in your own time. A conventional offline broker may not always
be able or willing to offer you all of these. You can also get many of these for
free from sites like Market watch, Fool.com etc.

LIMITATIONS:-

Lack of awareness of capital market:

Since the area is not known before it takes lot of time in convincing people to
start investing in shares primarily in IPO’s.

Some people are comfortable with traditional system:

AS people are doing trading from their respective brokers, they are quite
comfortable to trade via physical form of paper.

Lack of Techno Savvy people and poor internet penetration:

Since most of the people are quite experienced and also they are not techno
Savvy. Also Internet penetration is poor in India.

Some respondents are unwilling to talk:

Some respondents either do not have time or willing does not respond, as
they are quite annoyed with the phone call.

Inaccurate Leads:

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Sometimes leads are provided which had error in it, which varies from only 5-
Digit phone number to wrong phone number

CHAPTER-8

CONCLUSION

With the increases in cyber education awareness toward share market and
share trading has leaps and bounds; the awareness is expected to increases
future with the increase in internet education.

On the basis of the study it is found that share khan ltd is better services
provider than the other share brokers because of their study and research
and personalized advice on what stocks to buy and sell. Share khan ltd
provides TRADE TIGER as well as relationship manager the facility for
encouragement and protect the interest of the investors. It also provides the
information through the mail and mobile alerts that what IPOs are coming in
the market and it also provides its research on the future prospect of the
IPOs.

Share khan is looked upon revenue generated and he gets a 100 % on

business generated from client. This can lead to over leverage and high
frequency trading which may in best interest of the customer.

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

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

CHAPTER-9

BIBILIOGRAPHY

o Websites
www.bseindia.com
o
o www.google.com

www.nseindia.com

www.moneycontrol.com

www.sharekhan.com

www.icicidirect.com

www.5paisa.com
www.indiabulls.com

o Newspaper

 ECONOMIC TIMES
 TIMES OF INDIA

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 CHAPTER-10

ANNEXURE
Please tick your response whenever appropriate:

NAME:-

PROFESSION:-

ADDRESS:-

CONTACT NO:-

1. Are you aware about share market and online trading?

Yes No

2. In which of these financial instruments do you invest?

 Mutual fund
 Bonds
 Online trading
 Derivative
 Insurance
 Other
3. What is the basic purpose of your investment?
 Liquidity
 Returns
 Capitals
 Tax benefits
 Risk covering
4. Do you have a D-mat and Trading account?
5. Yes NO

5. How did you come to know about the broking firm?

 Newspaper
 Journal
 TV Advertisement
 Internet
 Friend
 Other

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 6. Which company provides you large no. of product and services?

 Share khan
 India bulls
 ICICI Direct
 HDFC Security
 KOTAK Street
 5Paisa.com
 Other

7. How important do you think these factors influence in choosing a

broking firm?

 Low brokerage :-( Not important) (Important) ( Extremely

important)
 Better customer service:- ( Not important) (Important )
(Extremely important)
 Brand loyalty:- ( Not important) ( Important) (Extremely
important)
 Good trading tips:- (Not important) (Important) (Extremely
important)
 Margin money:- ( Not important) (Important) (Extremely
important)
 Timely research report:- (Not important) ( Important) (Extremely
important)
 Friend recommendations:- (Not important) ( Important)
( Extremely important)

8. Best company according to you?

 Share khan
 India bulls
 KOTAK Street
 ICICI Direct
 HDFC Security
 Other

9. Are you interested to invest through SHAREKHAN LTD in feature?

Yes No

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 10. Most important things you take into your mind while making
investments?

 Risk
 Return
 Both

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