Chapter 1 – Introduction

Sharekhan is third largest rertail brokerage in terms of customer base after ICICI

Direct and HDFC Securities. Sharekhan is one of the pioneers of online trading in India. It

offers a broad range of financial products and services including securities brokerage, mutual

fund distribution, loan against shares, ESOP financing, IPO financing and wealth

management.

Sharekhan was founded by Mumbai-based entrepreneur Shripal Morakhia in

2000.[2] Sharekhan pioneered the online retail broking industry and leveraged on the first

wave of digitization, when dematerialization (demat) of securities came into effect and

electronic trading was introduced in the stock exchanges.

Founded in 2000 and a subsidiary of BNP Paribas since November 2016, Sharekhan was one

of the first brokers to offer online trading in India. With 16 lakh customers, 153 branches and

more than 2400 business partners spread across over 575 locations, Sharekhan is one of the

largest brokers in India. Sharekhan offers a wide range of savings & investment solutions

including equities, futures and options. currency trading, portfolio management, research and

mutual funds and investor education. On an average, Sharekhan executes more than 400,000

trades daily.

Acquisition of Sharekhan by BNP Paribas

Sharekhan is now a fully owned subsidiary of BNP Paribas, it was rebranded as Sharekhan by

BNP Paribas.

1
 Guiding India's retail stock investors for 16 years

 Registered with NSE and BSE for capital market, futures and options and currency segments

and CDSL and NSDL for depository services.

 A full-service stock broking firm providing online services right from online account opening

to trading and investments.

 Created India’s best online trading platforms: Website (www.sharekhan.com), TradeTiger

(the ultimate desktop trading software), Sharekhan App (available for Android and iOS

devices) and Sharekhan Mini (a low bandwidth website especially for mobile browsers)

 A strong brick-and-mortar network with over 2600 outlets in 575+ cities

 Research-based financial advice on all asset classes to suit all investing and trading styles

 Dedicated Education and training courses for investors and traders in association with Online

Trading Academy.

2
 CHAPTER-2
PART -I ORGANISATION PROFILE

INTRODUCTION TO THE INDUSTRY

A stock market or equity market is a public (a loose network of economic transactions, not a
physical facility or discrete) entity for the trading of company stock (shares) and derivatives
at an agreed price; these are securities listed on a stock exchange as well as those only traded
privately.

The size of the world stock market was estimated at about $36.6 trillion at the start of
October 2008. The total world derivatives market has been estimated at about $791 trillion
face or nominal value, 11 times the size of the entire world economy.

About the Indian stock market

In India there are total of 23 stock exchanges of which the major ones are:

 Bombay stock exchange(BSE)

 National Stock Exchange(NSE)

BSE:-

At the end of the American civil war, the brokers who thrived out of this war in 1874, found a
place in a street, where they would easily assemble and transact business. This street is
nowadays, popularly known as DALAL STREET. In 1887, they formally established in
Bombay, and were known as “Native Shares and Stock Brokers Association”. In 1895, it
acquired a premise in the same street and finally was inaugurated in 1899 with the name
Bombay Stock Exchange (BSE). India's premier stock exchange Bombay Stock Exchange
(BSE) can also trace back its origin to as far as 125 years when it started as a voluntary non-
profit making association. You hear about it any time it reaches a new high or a new low, and
you also hear about it daily in statements like 'The BSE Sensitive Index rose 5% today'.
Obviously, stocks and stock markets are important. Stocks of public limited companies are
bought and sold at a stock exchange. But what really are stock exchanges? Known also as
News on the stock market appears in different media every day. The stock market , a stock
exchange is an organized marketplace for securities (like stocks, bonds, options) featured by
the centralization of supply and demand for the transaction of orders by member brokers, for
institutional and individual investors. The exchange makes buying and selling easy. The need
for stock exchanges developed out of early trading activities in agricultural and other
commodities. During the middle Ages, traders found it easier to use credit that required
supporting documentation of drafts, notes and bills of exchange.

3
India's other major stock exchange National Stock Exchange (NSE), promoted by leading
financial institutions, was established in April 1993. Over the years, several stock exchanges
have been established in the major cities of India. Over the years, several stock exchanges
have been established in the major cities of India. There are now 23 recognised stock
exchanges — Mumbai (BSE, NSE and OTC), Calcutta, Delhi, Chennai, Ahmedabad,
Bangalore, Bhubhaneswar, Coimbatore, Guwahati, Hyderabad, Jaipur, Kochi, Kanpur,
Ludhiana, Mangalore, Patna, Pune, Rajkot, Vadodara, Indore and Meerut.

NSE: -

India's other major stock exchange National Stock Exchange (NSE), promoted by leading
financial institutions, was established in April 1993. With the liberalization of Indian
economy it was found necessary to lift the Indian stock markets on par with the international
standards. The NSE was incorporated in 1992 by industrial development bank of India,
industrial credit and Investment Corporation of India, industrial finance corporation of India,
all insurance corporations, selected commercial banks and others. NSE is India’s leading
stock exchange covering more than 160 cities and towns across the country. It provides the
modern fully computerized trading system designed to offer investors across the country a
safe and easy way to invest to liquidate investment and securities. Investors in many areas of
country did not have the same access and opportunity to trade so there arise the need for
setting up the national stock exchange. The NSE network has been designed to provide equal
access to investors from anywhere in India and to be responsive to their needs.

On its recognition as a stock exchange under the Securities Contract Act, 1956 in April 1993,
NSE started operations in the Wholesale Debt Market (WDM) segment in June 1994. Capital
market (equities) segment commenced operations in November 1994, and operations in
derivative segment started in June 2000.NSE started trading in the capital market segment on
November3, 1994 and within one year became the largest exchange in India, in terms of
volumes transacted. During the year 2005-06 NSE reported, a turnover of Rs 1,569,556
crores in the equity segment. The Indian retail brokerage market, which is going through a
wonderful phase with high growth rate. The total trading volume of the Indian brokerage
companies stood at US$ 1239.1 billion in the year 2004, which increased to US$ 1492.1
billion in 2005. It is further expected to reach US$ 6535.7 billion by the year 2015.

4
INTRODUCTION OF SHAREKHAN LTD :

Sharekhan Ltd is one of the leading retail stock broking house 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.
Sharekhan 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 one lakh customers. 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 netbased 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 640 centers in 280 cities in India which provide a
host of trading related services.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 Morakhiya 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 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.

5
INTRODUCTION OF SHAREKHAN LTD :

Sharekhan Ltd is one of the leading retail stock broking house 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. Sharekhan 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 one
lakh customers. 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 netbased 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 640 centers in 280 cities in India which provide a host of
trading related services.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, Spider Software Pvt Ltd. to build its
trading engine and content. The Morakhiya 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. 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.

6
PROFILE OF SHAREKHAN
Name of the company: Sharekhan ltd.

Year of Establishment: 1925

Headquarter : ShareKhan SSKI Mumbai - Maharashtra, INDIA

Nature of Business : Service Provider

Services : Depository Services, Online Services and Technical

Number of Employees : Over 3500

Revenue : Data Not Available

Website : www.sharekhan.com

Slogan : Your Guide to The Financial Jungle.

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. Sharekhan is infact-

• Among the top 3 branded retail service providers

• No. 1 player in online business

• Largest network of branded broking outlets in the country serving more than 7,00,000
clients.

7
OWNERSHIP PATTERN AT SHAREKHAN
Major shareholders

Citi Venture Capital And Other Private Equity Firms 60%

Barings Pvt. Equity Asia 23%
IDFC 6%
Employees 11%

Management Team

Mr. Tarun P. Shah . CEO.

Mr. Shankar Vailaya. Director-Operations.

Mr. JaideepArora. Director-Product and Technology.

Mr. Ketan Parekh. Chief Technology Officer.

AREA OF OPERATION OF SHAREKHAN:

The area of operations of SHAREKHAN is spread over two countries. They are:

1. INDIA 2. UAE

The services are available through a network of 1437 Share shops spanning 170 major towns
and cities in the country along with an international branch in Dubai (UAE)

Growing retail network across

 1120 franchisees
 168 branches
 325 cities

AWARDS AND ACHIEVEMENTS :

 Share khan is amongst the top 2 online trading websites from India.

 Share khan is the most preferred financial destination amongst the online banking
customers.

 Share khan is the winner of “Best Financial Website Award”.

 Share khan is awarded at the Awaaz“Consumer Awards 2005” in the India’s stock broking
firm.

8
PRODUCTS AND SERVICES OF SHAREKHAN LIMITED
The different types of products and services offered by Sharekhan Ltd. are as follows:

 Equity and derivatives trading

 Depository services

 Online services

 Commodities trading

 Dial-n-trade

 Portfolio management

 Share shops

 Fundamental research

 Technical research

9
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 1800-22-7500,3970-7500. Beside this, Relationship Managers are always available on
Office Phone and Mobile to resolve customer queries.

SHAREMOBILE

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

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

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, Sundaram, 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
demat account creation with Share khan.

TYPES OF ACCOUNT IN SHAREKHAN LIMITED

Sharekhan offers two types of trading account for its clints

Classic Account (which include a feature known as Fast Trade Advanced Classi

Account for the online users) and

Speed Trade Account

10
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 investor who is risk-averse and hence
prefers to invest in stocks or who does not trade too frequently. This account allows investors
to buy and sell stocks online along with the following features like multiple watch lists,
Integrated Banking, Demat and digital contracts, Real-time portfolio tracking with price
alerts and Instant credit & transfer.

This account comes with the following features:

a. Online trading account for investing in Equities and Derivatives

b. Free trading through Phone (Dial-n-Trade)

I. Two dedicated numbers(1800-22-7500 and 39707500) for placing the orders using
cell phones or landline phones

II. Automatic funds transfer with phone banking facilities (for Citibank and HDFC
bank customers)

III. Simple and Secure Interactive Voice Response based system for authentication

IV. get the trusted, professional advice of Sharekhan limited’s Tele Brokers

V. After hours order placement facility between 8.00 am and

9.30 am

c. Integration of: Online Trading +Saving Bank + Demat Account.

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

e. IPO investments.

f. Instant order and trade confirmations by e-mail.

g. Single screen interface for cash and derivatives.

11
SPEED TRADE ACCOUNT

This is an internet-based software application, which enables one 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.

This account comes with the following features:

a. Instant order Execution and Confirmation.

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

c. Technical Studies.

d. Multiple Charting.

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

f. Market summary (Cost traded scrip, highest value etc.)

g. Hot keys similar to broker’s terminal.

h. Alerts and reminders.

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

j. Live market debts.

CHARGE STRUCTURE

Fee structure for General Individual:

Charge Classic Account Speed Trade Account

Account Opening Rs. 750/= Rs. 1000/=

Brokerage Intra-day – 0.10 % Intra-day - 0.10%

Delivery - 0.50 % Delivery - 0.50%

12
Depository Charges:

Account Opening Charges Rs. NIL

Annual Maintenance Charges Rs. NIL first year Rs. 300/= p.a.
from second calendar year onward

BROKERAGE STRUCTURE OF SHAREKHAN

BROKERAGE:

INTRADAY DELIVERY

CASH- EQUITIES 0.05% 0.5%

PREPAID SCHEME 0.025% 0.25%

HOW TO OPEN AN ACCOUNT WITH SHARE KHAN LIMITED?

For online trading with Sharekhan Ltd., investor has to open an account.
Following are the ways to open an account with Sharekhan Ltd.:

One need to call them at phone number provided below and asks that
he want to open an account with them.

a. One can call on the Toll Free Number: 1-800-22-7500 to speak to a Customer Service
executive.

b. Or If one stays in Mumbai, he can call on 022-66621111

One can visit any one of Sharekhan Limited’s nearest branches. Sharekhan has a huge
network all over India (640 centers in 280 cities). One can also log on to
http://sharekhan.com/Locateus.aspx link to find out the nearest branch.

One can send them an email at info @sharekhan.com to know about their products and
services.

One can also visit the site www.sharekhan.com and click on the option “Open an Account”
to fill a small query form which will ask the individual to give details regarding his name,
city he lives in, his email address, phone number, pin code of the city, his nearest Sharekhan
Ltd. shop and his preferences regarding the type of account he wants.

These information are compiled in the headquarter of the company that is in Mumbai from
where it is distributed through out the country’s branches in the form of leads on the basis of

13
cities and nearest share shops. After that the executives of the respective branches contact the
prospective clients over phone or through email and give them information regarding the
various types of accounts and the documents they need to open an account and then fix
appointment with the prospective clients to give them demonstration and making them
undergo the formalities to open the account. After that the forms that
has collected from the clients, is scrutinized in the branch and then it is sent to Mumbai for
further processing where after a few days the clients’ account are generated and activated.
After the accounts are activated, a Welcome Kit is dispatched from Mumbai to the clients’
address mentioned in the documents provided by them. As soon as the clients receive the
Welcome Kit, which contains the clients’ Trading ID and Trading Password, they can start
trading and investing in shares.

Generally the process of opening an account follows the following steps:

LEAD MANAGEMENT SYSTEM (LMS) / REFERENCES

CONTACT THE PERSON OVER PHONE OR THROUGH EMAIL

FIXING AN APPOINTMENT WITH THE PERSON

GIVING
DEMONSTRATION

YES NO

DOCUMENTATION

FILLING UP THE FORM

SUBMISSION OF THE FORM

14
 LOGIN OF THE FORM

SENDING ACCOUNT OPENING KIT TO THE CLIENT

TRADING

Apart from two passport size photographs, one needs to provide with the following
documents in order to open an account with Sharekhan Limited.:

Photocopy of the clients’ PAN Card which should be duly attached

Photo copy of any of the following documents duly attached which will serve as
correspondence address proof:

a. Passport (valid)

b. Voter’s ID Card

c. Ration Card

d. Driving License (valid)

e. Electricity Bill (should be latest and should be in the name of the client)

f. Telephone Bill (should be latest and should be in the name of the client)

g. Flat Maintenance Bill (should be latest and should be in the name of the client)

h. Insurance Policy (should be latest and should be in the name of the client)

i. Lease or Rent Agreement.

j. Saving Bank Statement** (should be latest)

Two cheques drawn in favour of Sharkhan Limited, one for the Account Opening Fees and
the other for the Margin Money (the minimum margin money is Rs. 5000).

** A cancelled cheque should be given by the client if he provides Saving

Bank Statement as a proof for correspondence address.

NOTE: Only Saving Bank Account cheques are accepted for the purpose of Opening
Account.

15
RESEARCH SECTION IN SHAREKHAN LIMITED

Sharekhan Limited has its own in-house Research Organisation which is known as Valueline.
It comprises a team of experts who constantly keep an eye on the share market and do
research on the various aspects of the share market. Generally the research is based on the
Fundamentals and Technical analysis of different companies and also taking into account
various factors relating to the economy.

Sharekhan Limited’s research on the volatile market has been found accurate most of the
time. Sharekhan's trading calls in the month of November 2007 has given 89% strike rate.

Out of 37 trading calls given by Sharekhan in the month of November 2007, 33 hit the profit
target. These exclusive trading picks come only to Sharekhan Online Trading Customer and
are based on in-depth technical analysis.

As a customer of Sharekhan Limited, one receives daily 5-6 Research Reports on their emails
which they can use as tips for investing in the market. These reports are named as Pre-Market
Report, Eagle Eye, High Noon, Investors Eye, Daring Derivatives and Post-Market Report.
Apart from these, Sharekhan Limited issues a monthly subscription by the name of Valueline
which is easily available in the market.

Sharekhan has tie up with the following banks:

HDFC

Axis Bank

IDBI

Citi Bank

IndusInd Bank

Union Bank

ICICI Bank

Customer.

Business class people (high class)

High Net worth Individuals

Service class people

Government Employees

Young Adults (19-30 yrs.)

Adults (35-50 yrs.)

16
 HUF (Hindu Undivided Family)

Women (literate and working)

Baroda branch of Sharekhan have around 3000 customers.

Types of customers in Share khan:

INTRADAY : 25% of the customers are trading on intraday basis.

DELIVERY : 50% of the customers are trading on delivery basis.

F&O : 12% of the customers are investing in futures and options.

COMMODITY : 5% Customers are investing in commodities.

HNI (initial investment > 2,00,000) : 8% of the customers are Investing.

CORE ACTIVITIES

Sharekhan is India’s leading broking houses providing a complete life cycle of investment
solution in:

Equities and Derivatives Trading

Commodity Trading

Depository Service

Portfolio Management Services

Mutual Fund

IPO Services

Fundamental and Technical Research

Online Trading

17
BUSINESS OF THE COMPANY

Business is categorized into SIX areas :

1. Equity

2. Derivatives

3. PMS

4. Commodities

5. Mutual Funds

6. IPO’s

TRADER’S are having two options for trading:

(1) Online

(2) Offline

18
 FUNCATIONAL AREA :

MARKET AND MARKETING

TYPES OF MARKETS
(A) Primarymarket (IPO’s):

In financial markets, an Initial Public Offering (IPO) is the first sale of a company's
common shares to public investors. The company will usually issue only primary shares,
but may also sell secondary shares. Typically, a company will hire an investment banker
to underwrite the offering and a corporate lawyer to assist in the drafting of the prospectus.
The sale of stock is regulated by authorities of financial supervision and where relevant by a
stock exchange.

It is usually a requirement that disclosure of the financial situation and prospects of a

company be made to prospective investors. The Federal Securities and Exchange
Commission (SEC) regulates the securities markets of the United States and, by extension,
the legal procedures governing IPOs. The law governing IPOs in the United States includes
primarily the Securities Act of 1933, the regulations issued by the SEC, and the various state
"Blue Sky Laws".

(B) Secondary market:

The secondary market (also called "aftermarket") is the financial market for trading of
securities that have already been issued in its initial private or public offering. Stock
exchanges are examples of secondary markets. Alternatively, secondary market can refer to
the market for any kind of used goods.

Function of the secondary market:

In the secondary market, securities are sold by and transferred from one speculator to
another. It is therefore important that the secondary market be highly liquid and transparent.
The eligibility of stocks and bonds for trading in the secondary market is regulated through
financial supervisory authorities and the rules of the market place in question, which could be
a stock exchange.

19
 SALES & MARKETING DEPARTMENT

The Marketing Department is one of the most important departments in every concern.
The effectiveness of this department is the most important factor in the progress of the
firm. The whole performance of the company depends on marketing and without the
knowledge of this department; the company cannot sell its goods. The sales manager has the
right to perform these functions. He has many functions like he has to organize promotional
activities and sales events like “First Step”. The department has a Sales manager,
Assistant sales manager, Sales executives and trainees. The department gets databases
from various sources but the main source for leads is internet registration by the clients.

LEAD MANAGEMENT SYSTEM:

Lead management system is the software used by the sales department to manage the
leads. Every employee of sales department will have unique user id and password to
access this software. Every morning the sales manager will be provided with some leads
from the head office. The sales manager will split this work and assign the leads for assistant
sales manger and executives. Assistant sales manger will assign some leads to the trainees of
the company and he also assign some personal references to the trainees. Then the
employees will work on the leads and they will update the response in the lead management
system.

STRATEGY ADOPTED BY SALES DEPARTMENT

MARKETING STRATEGIES

The marketing strategy was mainly focused on reaching to every segment of people

SEGMENTATION:

Sharekhan segmented the whole market in to three types of clients which are as follows,

Retail investors

High net worth investors

Day traders (or) speculators

Most of the retail investors are salaried persons and middle income class people. They enter
with initial capital around Rs.5000-25000. High net worth investors are clients who invest
more than Rs.5 lakhs . They are mostly high income group. Day traders are clients who are
professional speculators and day traders.

20
TARGETING:

As most of clients are middle income people, Sharekhan targets mainly on retail investors
such as salaried people and middle income people.

POSITIONING:

Positioning strategy adopted by Sharekhan is they associated themselves with technology.

Standardized procedures are the first thing that comes to mind of a client when he thinks of
Sharekhan.

PROMOTIONAL STRATEGIES:

Telemarketing:

In the organization, database of contact numbers of various category of people are

maintained who may or may not know about the services. Sales executives and assistant
managers make phone calls to these people and if they are interested, give various details
about the services and products. This will make people to opt for Sharekhan in future even if
they are not interested to enter stock market currently.

Seminars:

The sales personnel of Sharekhan prepare seminars depending upon the type of people
they are going to meet ie students or corporate people. They go to respective institutions and
take seminars giving various details suiting that category people and the contact numbers of
Sharekhan sales personnel to contact further if interested.

Door steps:

The sales personnel also go to domestic homes of people and various institutions(meet
every person in person, not like seminars).They explain to them in detail, various schemes,
products and services. They also explain about the documents required to open an account
with Sharekhan. If the person is interested the sales personnel will acquire the documents and
will proceed further.

KIOSKS:

The sales team puts up stalls in various locations and provide pamphlets containing
details about various products and services of Sharekhan. They also explain orally to people
who are interested.

Online advertising:

Sharekhan has links to various websites through which they market their products and
services ie through pop up windows and flash texts which when clicked directly leads to
Share khan’s website.

Media: Sharekhan also uses advertisements in TV channels like CNBC.

21
Operations Department

Inputs :

There are many inputs to the production & operations viz., land & buildings,
machinery & equipments, furniture & fixtures, employees, technology, capital (invested by
promoters & deposited by the customers) and the most important input, i.e., management
functions carried out at national, regional and branch level in Sharekhan.

Conversion Process :

The main aim of it is to make profit with customer satisfaction. The conversion of
inputs works as the Sharekhan earn brokerage from the customers. The profits are
generated from getting a higher return on the invested amount of money than the amount
payable to the customers. The process is facilitated by a centralized computer system in
which the data is stored and recovered for the whole INDIA and it is having the CPU at the
H/O in Mumbai, Sharekhan is regulating the brokerage rates all over India by keep watch
on each transaction done from the branch office. The data of a customer will be stored in
the central computer and all facilities such as bills, credit/debit reports etc. are provided by
that computer to all customers on-line on the internet.

The conversion process is also facilitated by some adjustments to the inputs and
then the random fluctuations are also handled in the process and lastly the monitoring of
the process is done and a feedback is given to do the adjustments for the process as
indicated in the figure given.

Outputs :

Outputs are those services generated by Sharekhan with the help of the inputs and
using the conversion process. These services are as listed in the figure above.

SharekhanTable

Consumer Retail brokering Channels Financial Complain

Services advisory resolvance
Services
Corporate Broker Capital markets Nationwide Depository Others
advisor electronic data participant
transfer

22
Operations Strategy at Sharekhan

Operations strategies are implemented in Sharekhan as shown in the chart given above and
the main points of consideration are Efficiency, Dependability, Quality and Flexibility.

The points demand a facility mission that is made up of process, capacity, facilities, vertical
integration, and infrastructure facilities provided to get the desired outputs as per the plan.

The main aim of the operations strategy at Sharekhan is that the efficiency of the
organization and high level of it is desired outputs with low costs, i.e., productivity with
effectiveness. Quality should be high and consistent in delivering services; Flexibility is
related with fast introduction of new services and providing a wide range to select an
option to the customer. This is facilitated by the process of operations, capacity/ability of
the organization, competitive advantages, vertical integration and the infrastructure created
by the firm.

Sharekhan plans the strategies to get a working plan from it and the planning is done from
top-to-bottom level, i.e., national level, regional level, divisional level and the branch level
planning is carried out by the managers.

In this way, the Operations are managed with the best efforts in a direction that is to facilitate
future plans by achieving success in time and create milestones in the industry by driving the
company with excellence.

Human Resource Department

Human resource is the crucial resource that a company can use to grow with the work of the
employees. HRM activities at Sharekhan start form induction to the specific job training and
are done by H/O at Mumbai. H/O takes a written test and selection interview for filling up
vacancies in branches but the recruitment is done by the branch itself and the selection is
performed by H/O from the screened applicants.

Any new recruit is firstly inducted to the company and sent to T & D department that is
covered under HRD and T & D programmes makes employees aware about all the
activities/jobs within the department he/she is to be recruited. Suppose if, I would be
recruited for finance department then the finance related employees are known to me wit their
work profiles, that is, what they really do?

Then the specific job training is provided at H/O and the person has to keep in touch with the
concerned department at H/O on internet because he/she has t solve many conflicts arising in
the investor’s mind and to have an up-to-date information regarding the procedures and any
new facilities or policies to resolve the problems of the clients. It is a must for each employee
because the employee is the people by whom the company gets its customers and retains
them.

HRP (Human Resource Planning), HRIS (Human Resource Information System),

Recruitment & Selection, Career planning and development, Assessment & development of

23
employees for Performance appraisal, etc. activities of managing the HR at Sharekhan is
maintained in a way to meet the requirements.

The corporate culture at Sharekhan is maintained in such a way that the people are helpful to
each other and eager to get the work done as soon as possible with a co-operative thinking.
An additional Rs.10000 is provided for each outlet of Sharekhan to motivate its employees by
performance appraisal and also the heads of each departments and branches has to go through
a 3606 performance appraisal for maintaining the consistency in growth of the company.

In the end we can say that the human resource of Sharekhan is a best managed and used for
the continuous growth and development of the company for its future plans to be achieved
time-to-time.

Finance Department

Like blood is the most important factor in our body, Finance is the blood of any business.
Finance is needed for all the activities like production or services as well as their distribution.
The finance department directly influences all the functions of the other departments. Also
finance has to give equal importance to all departments. Finance is that administrative area or
set of administrative function in an organization may have the means to carry out its objective
as satisfactorily as possible. Sharekhan has special accounts department for separate
calculation of pay-in and pay-out of funds according to the client’s Proft/Loss. Finance
management is done at Sharekhan is done by managing the stocks in the demat accounts and
funds in the margin & trading accounts

Finance

1) DP

2) Accounts

Finance is the lifeblood of an organization to continue its activities and the finance
management at Sharekhan can be divided into two major parts viz. DP (Depository
Participation) and Accounts management, which are shown in the figure given above. DP
means providing the facility to the clients for managing the stock bought/sold by them. DP
covers two major terminologies viz. settlements and the auctions which is a part of
managing demat account. Settlements as defined by SEBI are T+2, currently and it means
that the demat account of the clients are prone to be sufficient for selling a script with no
debit at all, i.e., the account must have the sold amount of stock to fulfill the settlement after
2 days from trade-day. Generally, the timings are 9:30 and 3:00 as a deadline for the client
and he must provide the stock for giving a delivery to the buyer. The chart show the total
transaction between two clients:

24
 C DP (Sharekhan) E DP (anyone) C
The chart shows the process that the request for selling and buying passes through the DPs of
the respective clients and finally the exchanges like SKSE (Saurashtra Kutch Stock
Exchange) becomes the controlling intermediary for the delivery of stocks and this process is
done in two days. Nowadays, as banks are becoming fast for E-Fund Transfer (EFT) and
Phone-banking is getting more popularity, SEBI is thinking to make the financial market of
India to have a maximum speed of transactions just like the other nations in the world and
proposing for T+1 settlement scheme but the system is not enough competent for that thing.
But soon or later we will have such a settlement system in India, as said by Mr. J. N. Bajpai,
chairman of SEBI.

The client, if not capable of providing the delivery of say, 1000 shares of SAIL then the
Auctions are initiated by the exchanges and the client has to pay for the price prevailing in
the market with 4-5% penalty. The penalty can go on maximum to 20% more than the market
price of the sold stock. Generally, it is known as a buying auction and a same kind of auction
is for selling the stock for which the buyer was proved unable to pay the price is carried out
by exchange, known as the selling auction. And a debit or credit note is provided in the
respective case of auction to the clients, i.e., for buying auction debit note is given on the T+4
basis and in case of selling auction the credit note is given on T+5 basis. There are two types
of auctions called as Internal auctions & Market auctions, the internal auctions are defines
as the auctions carried out between the other shops of Sharekhan and market auctions are
those as explained earlier, the auction carried out in the market.

This is all about settlements but now switch to funds management or accounts management at
Sharekhan. The accounts are different that is the margin a/c for deposits of the client and
trading a/c for which Profit/Loss are settled. The collection of funds from the clients who had
a debit balance or made a loss are made on the next day of trading and the payments to the
profiting traders are made after two days of trading because the cheques are received from
H/O and then pay-out is done and Pay-in is as explained that amounts to be taken from the
clients. In this way, accounts are managed but in case if the client is unable to pay, the
deposit from the margin a/c is cut down to the payments and in case if a client is having a
credit balance in F&O trading though he had a debit balance in cash-NSE & BSE trading, a
JV request is sent to H/O for totaling the three balances. The main aim for accounts
management is that the clients must have a credit or no debit on the next day.

The DP services provided by Sharekhan are falling under the regulation of NSDL (National
Securities Depository Limited) and CDSL (Central Depository Services Limited),
organizations governed by SEBI to regulate the depository services in the interest of the
investors. So, the financial market in India is governed by Ministry of finance under which
two major bodies viz. SEBI & RBI are covered and under RBI the banks and other financial
institutions are covered while SEBI covers the exchanges, NSDL & CDSL and the whole DP
service providers with the brokers to the investors.

In this way we have gained a meaningful knowledge about India’s financial market and its
structure from this training at Sharekan. In this way, the finance function is carried out at
Sharekhan by following the guidelines given by SEBI. And the company is a private limited one
with its own policies for disclosing its financial statement.

25
SWOT ANALYSIS OF SHAREKHAN :

(A) STRENGTH:

1) EMPLOYE MOTIVATION POLICY

2) RESEARCH TEAM

3) GOOD INFRASTRUCTURE

4) HELTHY FINACIAL MARKET

5) USER FRIENDLY WEB SITE

(B) WEAKNES

1) INSUFFICIENT ADVERTISEMENT POLICY

2) NO ACCESS TO THE RURAL MARKET

(C) OPPORTUNITY

1-Sharekhan having goog customer relation strategy so that it create good opportunity to create
goodwill and capture the market.

2-Growing initial public offer create opportunity to capture the new market.

3- Positive outlook of people towards financial product becouse most of investor more about
financial instrument and working strategy of stock brokers.

(D) THREATS
1) MARKET UNCERTAINTY

2) STIFF COMPETITION

3) NEW ENTRY IN TO MARKET

GOVERNMENT POLICY

26
27