A

PROJECT REPORT
ON

“Comparative Analysis of Stock

Brokers in Bangalore City”
At
SHAREKHAN PVT. LTD.
Submitted to

Bangalore University
In partial fulfillment for the degree of
Bachelor of Business management
Submitted By
Suman Sinha
Reg.No.07A6C8014

DECLARATION

1
I’m Suman Sinha, a student of Radiance College,bangalore
Which is approved by Bangalore university, hereby declare
that the project entitled “Comparative Analysis Of Stock
Brokers In Bangalore Region” at SHAREKHAN Ltd., is the
original work done by me and the information provided in the
study is authentic to the best of my knowledge. This study report
has not been submitted to any other institution or university for
the award or any other degree.

This report is based on my personal opinion hence cannot be

referred to legal purpose.

(Suman Sinha)

Date: -

2
 CONTENTS
ACKNOWLEDGEMENT
7
2. INTRODUCTION
10
 Introduction to stock exchange
 Introduction of the company
3. COMPANY PROFILE
18
4. REVIEW OF LITERATURE
37
5. RESEARCH METHODOLOGY
40
 Objective of study
 Type of research
 Sample design
 Size of sample
 Sources of data collection
6. COMPARATIVE ANALYSIS
46
7. FINDING & ANALYSIS
50

3
 8. SUGGESTIONS
60
9. LIMITATIONS
61
10. CONCLUSION 62

11. APPENDIX(Questionnaire)

63
12. BIBLIOGRAPHY

67
PREFACE
“A good broker system must be able to cope with an
extremely complex and dynamic environment.”

The microstructure of the stock market in which brokers work is

highly dynamic and volatile. Many stocks are available to be
bought and sold, each exhibiting its own patterns and
characteristics that are highly unpredictable. With so many
options and considerations that need to be taken into account, it
is an extremely arduous task for a broker to investigate aspects
of the stock market and consistently provide effective advice to
their clients.

4
Thus, brokers perform their day-to-day tasks with the aid of a
broker system. Such a system should provide tools for
interacting with exchanges and performing analysis. As a
consequence, these broker systems are quite large and
complicated by themselves.

This research aims is to analysis Stock broker on the basis of

their services, products, growth, and their subsidiaries. Because
Stockbrokers are one of the main participants in stock exchanges
worldwide, they often act as an agent for their clients, making
trades on their behalf. They also act as advisors, providing
suggestions to their clients on what stocks to buy and sell.

5
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 suggest 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

6
awareness. The major findings of this study are that people are
interested to invest in stock market but they lack knowledge.
Through this report we were also able to understand, what are
our Company’s (Sharekhan 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.

7
 INTRODUCTION

Introduction

8
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
Bangalore, . My research is based on the residents of Bangalore
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

9
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.

10
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

11
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 9th 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.

As a meeting held in the broker’ Hall on the 5th 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,

12
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.

13
1.) Stockbrokers

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

brokers as on 31.01.2010 as on 31.01.2010

12000 28,000

14
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.

15
4.) Portfolio consultants

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 B.B.M programmed, we

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

16
 INTRODUCTION OF THE COMPANY
Sharekhan 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. 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.
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.
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

17
make informed decisions and to simplify the process of
investing in stocks.

WORK STRUCTURE OF SHAREKHAN

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 Citi Venture
holds a majority stake in the company. HSBC, Intel & Carlyle
are the other investors.

On April 17, 2002 Sharekhan 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 SpeedTrade has become a de facto standard for
the Day Trading community over the net.
Sharekhan’s ground network includes over 700+ Shareshops in
130+ cities in India.

18
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 Lacs customers. The number of
trading members currently stands at over 7 Lacs. While online
trading currently accounts for just over 5 per cent of the daily
trading in stocks in India, Sharekhan 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, Sharekhan shifted hands and Citi venture get holds on it.

19
PRODUCTS OFFERED BY SHAREKHAN

1- Equity Trading Platform (Online/Offline).

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

20
21
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 Sharekhan as its retail broking
division in February 2000, it has been providing institutional-
level research and broking services to individual investors.
Technology
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
Sharekhan 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.

22
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 Sharekhan’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, demat and other
queries. Their customer service can be contacted via a toll-free
number, email or live chat on www.sharekhan.com.
Investment Advice
Sharekhan 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.

23
Benefits
• Free Depository A/c
• Instant Cash Tranfer
• 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 acess to your trading account.
• Personalised 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.

24
Sharekhan 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
• 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 Demat
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.

25
• Provision to enter price trigger and view the same online in
market watch.
SPEEDTRADE
SPEEDTRADE 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.
• 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.

26
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 sharekhan’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
Sharekhan had introduced ShareMobile, A mobile based
software where one can watch Stock Prices, Intra Day Charts,
Reasearch & 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.
Prepaid Classic Account : - Rs. 2000
Prepaid Speed trade Account : - Rs. 6000

27
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
Sharekhan.

Zero Balance ICICI Saving Account

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

28
CHARGE STRUCTURE
Fee Structure for General Individuals: -

Speed Trade
Charge Classic Account
Account
Account Opening Rs. NIL Rs. NIL
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

EXPOSURE: 4 TO 6.7 TIMES (ON MARGIN MONEY)

29
 MAJOR PLAYERS IN THE REGION

1. Karvy

2. Indiainfoline

3. ICICI direct

4. HDFC security

5. Indiabulls

KARVY

is a premier integrated financial services provider, and ranked

among the top five in the country in all its business segments,
services over 16 million individual investors in various
capacities, and provides investor services to over 300 corporate,
comprising the who is who of Corporate India. Karvy has a
professional management team and ranks among the best in
technology, operations and research of various industrial
segments.

30
History of Karvy :-

The birth of Karvy was on a modest scale in 1981. It began with

the vision and enterprise of a small group of practicing
Chartered Accountants who founded the flagship company,
Karvy Consultants Limited. They started with consulting and
financial accounting automation and carved inroads into the
field of registry and share accounting by 1985. Since then, karvy
utilized its experience and superlative expertise to go from
strength to strength, to better their services, to innovate,
diversify and in the process, evolved as one of India’s premier
integrated financial service enterprise.

PRODUCT AND SERVICES OF KARVY GROUP

1. Karvy comtrade.

2. Karvy consultant ltd.

3. Karvy merchant banking.

4. Karvy global services ltd.

31
ICICI DIRECT

ICICI Web Trade Limited (IWTL) maintains

www.icicidirect.com (herein after referred to as the "Website")
whereas IWTL is an affiliate of ICICI Bank Limited and the
Website is owned by ICICI Bank Limited. IWTL has launched
and established an online trading service on the Website.

PRODUCTS AND SERVICES OF ICICI DIRECT

1. Investing in Mutual funds

2. Personal Finance

3. Customer Service Features

4. IPO’s

5. Margin Trading

6. Margin PLUS Trading

7. Call Trade

8. Trading on NSE/BSE

9. Trade in derivatives

32
INDIAINFOLINE SECURITY PRIVATE LTD

India Infoline.com Securities Pvt. Ltd. is a wholly owned

subsidiary of India Infoline.com Ltd and is the stock broking
arm of India Infoline.com. The subsidiary was formed to comply
with regulatory guidelines. www.5paisa.com is a focused
website for online stock market trading. 5paisa.com is a trade
name owned by the India Infoline.com group. IILSPL has
applied for trading membership of the BSE under Securities and
Exchange Board of India (Stock Brokers and Sub-Brokers)
Rules 1992.

IILSPL is in the business of providing broking services online

via the Internet ("E-broking Services") and has been permitted
by the NSE by way of registration permission no:
NSEIL/CMO/INET/1103/2000 dated 03/July/2000, and will be
applying for permission to the BSE, to provide E-broking
Services to its clients. IILSPL is a TRADING MEMBER of the
National Stock Exchange of India.

33
 PRODUCT OFFERED BY IILSPL

Stock market:-IILSPL deals in stock market by trading in

equity and derivatives.

Personal finance:- It Deals In Mutual Fund And Insurance.

Online Trading :- It provides services in stock and commodity

trading (through Internet).

HDFC SECURITY

HDFC security is the subsidiary of HDFC (Housing

Development Financial Corporation). www.hdfcsec.com would
have an exclusive discretion to decide the customers who would
be entitled to its online investing services. www.hdfcsec.com
also reserves the right to decide on the criteria based on which
customers would be chosen to participate in these services .The
present web site (www.hdfcsec.com) contains features of
services that they offer/propose to offer in due course. The
launch of new services is subject to the clearance of the
regulators. i.e. SEBI, NSE and BSE.

34
PRODUCT OFFERED BY HDFC SECURITY

• Online trading for Resident & Non Resident Indians.

• Cash-n-Carry on both NSE and BSE.
• Day trading on both NSE and BSE.
• Trade on Futures & Options on the NSE.
• Online IPO's.
• Telephone-based Broking (Equity & Derivatives).

INDIABULLS SECURITIES LIMITED

Indiabulls Securities Limited was incorporated as GPF

Securities Private Limited on June 9, 1995. The name of the
company was changed to Orbis Securities Private Limited on
December 15, 1995 to change the profile of the company and
subsequently due to the conversion of the company into a public
limited company; the name was further changed to Orbis
Securities Limited on January 5, 2004. The name of the
company was again changed to Indiabulls Securities Limited on
February 16, 2004 so as to capitalize on the brand image of the
term “Indiabulls” in the company name. ISL is a corporate
member of capital market & derivative segment of The National
Stock Exchange of India Ltd. At present, ISL accounts for

35
approximately 3% of the total daily turnover of the Exchange
with 32,359 client relationships and 70 branches spread across
the country as of April 30, 2004.

INDIABULLS CREDIT SERVICES LIMITED:-

Indiabulls Credit Services has been valued at Rs. 263 crore with
the Rs. 87.6-crore infusion. Indiabulls Credit Services Ltd, the
recently formed subsidiary of broking firm, Indiabulls Financial
Services Ltd. Faralon Capital, a San Francisco-based private
equity fund, and its affiliates have acquired 33.3 per cent stake
for Rs 87.6 crore.

INDIABULLS REAL ESTATE:-

Indiabulls through its group companies has entered Indian Real
Estate business in 2005. It is currently evaluating several large-
scale projects worth several hundred million dollars. Indiabulls
became the first company to bring FDI in Indian Real Estate
through a JV with Farallon Capital Management, a respected US
based investment firm.

36
PRODUCT OFFERED BY INDIA BULLS
Equity & Debt Stock Broking

Insurance

Commodity trading

Depository Services

Derivatives Broking Services

Equity Research Services

Mutual Fund Distribution

IPO Distribution

37
REVIEW OF LITERATURE

38
According to SEBI, Professional Rating of market
intermediaries, as a concept, is a matter of debate and
discussions. The need for rating is felt not only from the point of
view of greater disclosure requirements for investor’s interests,
considering the important role such intermediaries play, being
an interface between investors and exchanges but also from the
point of view of measuring the adequacy of systems and controls
to meet internal as well as external compliance requirements.

So that need for Intermediaries Rating services (Brokers), In

view of the developments that are taking place in the capital
markets, the need to constantly upgrade and improve systems
and procedures in operation as well as skill sets has gained
considerable importance. Besides compliance with regulatory
requirements both in letter and spirit has assumed significance
so as to mitigate risk and ensure adequate protection of
investors’ interest.

And Rating objectives / benefits are rated entity would be in a

position to brand its image and capitalize the same for
generating more business. In a nutshell, the product may accrue
significant benefits to all stakeholders including the investors,

39
stock brokers themselves, the regulator and others who will
benefit from the transparency and the consequential focus on
efficiency.

According to SEBI and Intermediaries Regulation and

Supervision Department, different factors are consider for rating
process Organization structure, Policy on Investors interest, Risk
Management Policy and System, Organization process and
procedures, Management policy on compliance, Financials,
History/Background, Firm’s positioning.

According to Michal Parness, Founder & CEO

Investors don’t Make Money in the Stock Market. One

reason the institutions make so much money is that they are
trading. They make money every time you buy or sell. They
make money whether you win or lose. That means that when
you’re investing, you’re basically just sitting there. You’re
not going anywhere. You’re not making money as an
investor.

40
Trading the Trend: The Only Way to Make Money in the
Market

If you don’t know this already, “Trend Trading” means trading

trends based on human emotions. Not lagging indicators. Not
complex statistical analysis and not Ph.D. level mathematical
equations. With trend trading, you look for market movement.
That could mean stocks that are going to move up or down
during the course of a day (intraday). You’ll play the gaps up
and down, often several days a week.

The “Trend trading” means being aware and taking advantage of

trends like the run-ups that happen around earning sessions.
These are trends that have worked time and time again in the
market. They consistently yield results.

41
RESEARCH METHODOLOGY

42
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:-

PRIMARY OBJECTIVE: -How Sharekhan Ltd is best

services providers as a stock broker in the Tri-city region.

SECONDARY OBJECTIVE: -

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

market.
2. To study about the competitive position of Sharekhan Ltd in
Competitive Market.
3. To study about the effectiveness & efficiency of Sharekhan
Ltd in relation to its competitors
4. To study about whether people are satisfied with Sharekhan
Services & Management System or not
5. To study about the difficulties faced by persons while Trading
in Sharekhan.

43
 TYPES OF RESEARCH

On the basis of theoretical study a research has many types. All

of these are distributed on the nature of research. Some of these
are like

1. Descriptive and Analytical

2. Qualitative and Quantitative

3. Conceptual and empirical

4. Applied and fundamental

5. One time research

Our research is based on Descriptive, Qualitative and

Quantitative research.

Descriptive Research:-

Descriptive research includes surveys and fact finding enquires

of different kinds. The major purpose of descriptive research is
description of the state of affairs as it exists at present.
Researcher has no control over the variables of this type of
research.

44
Qualitative Research:

In our research we need comparison between different stock

brokers. So this based on all qualitative data. In short,
Qualitative research is especially important in the behavioral
sciences where the aim is to discover the underline motives of
human behavior. Through such research we can analyses various
factors which motivate to people to behave in a particular
manner or which make people like or dislike a particular thing.

Quantitative research:-

Quantitative research is based on the measurement of quantity

or amount. It is applicable to phenomena that can be expressed
in terms of quantity. So we can use it in our research for
collection of all the numerical data.

45
SAMPLE DESIGN

“A sample design is a definite plan for obtaining a sample from

a given population. It refers to the technique or the procedure the
researcher would adopt in selecting item for the sample”

Generally Sample designs are two types

1. PROBABILITY RESEARCH DESIGN

2. NON PROBABILITY RESEARCH DESIGN

We used the probability research design.

SAMPLING UNITS

Sampling unit may be a geographical one, such as state, district,

village etc. The researcher will have to decide one or more of
such units that he has to select for his study.

In my research study Bangalore as a sampling unit.

46
SIZE OF SAMPLE

“This refers to the number of items to be selected from the

universe to constitute a sample”

In our research sample size is 100.

But we also study the 5 stock broker companies related to

security & commodity market like India-infoline, ICICI direct,
HDFC securities, Karvy consultant ltd. for the appropriate
collection of the information.

SOURES 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

2. Secondary Data.

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.

47
Survey Method: -

Survey refers to the method of securing information concerning

phenomena under study from all or selected number of
respondents of the concerned area. In a survey the investigator
examines those phenomena which exist in the universe
independent of his action. We used the Scheduling Method.

Scheduling: -

In this method the enumerators along with schedules, go to

respondents, put to them the questions from the Performa in
the order the questions are listed and recorded the replies in
the space meant for the same in the Performa.

48
COMPARATIVE ANALYSIS

49
After the whole study, we find out the following results:

Results on the Basis of charges

There are the two type of the transaction:-

1. Intra-day based

2. Delivery based

All the figures are in paisa/100 rupees.

Comment:-

50
 According to the survey HDFC securities charge maximum
brokerage as compare to others whereas India Infoline Ltd.
charge only 0.20 paisa on maximum investment.

Results On the basis of Account opening charges

HDFC securities ltd:

Account opening charges w.e.f. April 2005 are as follows:-
Rs.749, if the customer has an existing relationship with HDFC

Sharekhan ltd:-

There is no ACCOUNT OPENING CHARGES but require

margin money of Rs 5000 for trading purposes.

ICICI direct:-

A one-time charge of Rs. 750 at the time of account opening

will be charged. You may later upgrade your Invest account to
an ICICI direct.com share trading account when you desire to
trade in equity.

India Infoline:-

51
There is a nominal charge of Rs. 500 only towards stamp duty,
legal and processing fees for opening the account. This includes
the registration and account opening charges. Bank and
Depository Participant (DP) account opening charges, if
applicable, are payable separately.

KARVY consultants ltd:-

Account Opening Charges Are 452 But now SEBI banned on

opening of new demat account of Karvy.

Indiabulls:-

Account opening charges are Rs. 900. There is no AMC and no

margin money is required.

Comment:-

India Bulls charge maximum account opening charges but there

are no such charges in Sharekhan pvt. Ltd.

Results on the basis of customer preferences

52
1. According to survey 70 % peoples are satisfied with
Sharekhan Ltd because of their RM’s facility and power of
Sharekhan Ltd software.

2. According to survey, Sharekhan Ltd open new branches for

individually handle to their customer, but in ICICI direct, HDFC
security there is no separate offices for this .So people prefer
Sharekhan Ltd.

Results On The Basis Of Facilities

Basis of Sharekha Karv India ICIC Indiabull HDF
difference n Ltd. y Infolin I s C
e direct
Share Yes Yes Yes Yes Yes Yes
trading
Commodit Yes Yes Yes Yes Yes Yes
y trading

d-mat Yes No Yes Yes Yes No

opening
rights

Karvy and HDFC securities are not providing complete range of trading
facilities.

53
 FINDINGS & ANALYSIS

1. Do you know about investment options

available?

54
KNOWLEDG %AGE
E
Yes 80%

No 20%

TOTAL 100

COMMENT

Only 80% people knows the exact meaning of investment.

Because of remaining 20% take his/her residential property as
an investment. According to law purpose this is not an
investment because of it is not create any profit for the owner.

2. Most preferable investment scenario.

55
INVESTMENT %AGE
SCENARIO
Banks 24%
Derivatives & 28%
securities market
Insurance 4%
Bonds 20%
Real estate 20%
Others 4%
TOTAL 100

56
COMMENT

Today scenario is changed so that most area covered by the

derivative and securities market. It is 28% of the total
population.

57
3.What is the basic purpose of your investment?

INVESTMENT PERCENTAGE
PURPOSE
Liquidity 30%
Returns 25%
Capital 10%
appreciation
Tax benefits 20%
Risk covering 5%
Others 10%
TOTAL 100

58
COMMENT:-

75% people are interested in liquidity, returns and tax benefits.

And remaining 25% are interested in capital appreciations, risk
covering, and others.

FACTOR AGE%
Risk 8%
Returns 17%
Both 75%
TOTAL 100
4. Most important things you take into your mind while making
investments?

59
60
COMMENT

75% people are considered the both factors risk as well as

returns but, only 25% considered the risk or returns factor.

5. Awareness related to security markets

KNOWLEDGE PERCENTAGE
Complete 8%
Partial 75%
Nil 17%
TOTAL 100

61
COMMENT

62
On that basis, we conclude that 17% people know nothing about
the securities investments and 75% people have partial
knowledge about it, so, some promotional activities are required
for increasing the awareness about security market.

6.Do you have any de-mat & trading account?

ACCOUNTS PERCENTAGE
Yes 60%
No 40%
TOTAL 100%

63
COMMENT

Only 75% respondents have de-mat and trading account

and remaining 25% says no because they don’t know why
COMPANY PERCENTAGE
SHAREKHAN 38%
INDIAINFOLINE 20%
ICICI DIRECT 14%
INDIA BULLS 12%
KARVY 9%
Others 7%
TOTAL 100
shares move up and down.

7.In which company you have d-mat and trading account?

64
COMMENT
In Sharekhan Ltd 38% respondents have de-mat & trading
account because of better services and no annual maintenance
and other charges.

65
8. Specify the reason of satisfaction with the current
broking house.

SATISFACTION PERCENTAGE
Operating expenses 18%
Services 25%
Brokerage 57%
TOTAL 100

66
FINDINGS AND SUGGESTIONS

67
 FINDINGS
 According to the survey most of the customers of
“Sharekhan Ltd” says that it is pocket friendly.
 Coming to faith 70% say Sharekhan Ltd is better than
others stock brokers due to customers satisfaction.
 Lack of promotional activities undertaken by Sharekhan
securities Ltd. in Bangalore Region.
 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.

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 SUGGESTIONS

 Commitment should be equalized for every person.

 Provide the facility of free demonstrations for all.
 Improvement in the opening of De-mat & contract
notice procedure is required.
 There should be a limited number of clients under the
relationship manger. So that he can handle new as
well as old customer properly.
 Some promotional activities are required for the
awareness of the customer.
 People at young age should be encouraged to invest
in stock market.
 Seminars should be held for providing information to
prospective and present customers.

69
CONCLUSION AND LIMITATIONS

70
 CONCLUSION

On the basis of the study it is found that Sharekhan Ltd is

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

Study also concludes that people are not much aware of

commodity market and while it’s going to be biggest
market in India.

The company should also organize seminars and similar

activities to enhance the knowledge of prospective and
existing customers, so that they feel more comfortable
while investing in the stock market.

71
LIMITATIONS
 As only BANGALORE dealt in survey so it does not

represent the view of the total Indian market.

 Size of the research may not be substantial.

 There was lack of time on the part of respondents.

 The survey was carried through questionnaire and

the questions were based on perception.

 There may be biasness in information by market

participant.

 Complete data was not available due to company

privacy and secrecy.

72
 APPENDIX

QUESTIONNAIRE
DATE:

NAME
OCCUPATION
AGE
CONTACT NO.

1) Do you know about Investment options available?

a) Yes b) No

2) Do you know about the different types of investment

alternatives?

a) Insurance & mutual funds b) Banks

73
c) Real estate d) Share market

e) Commodity f) Others

3) What is the basic purpose of your investment?

a) Liquidity b) Returns

c) Capital appreciation d) Risk covering

e) Tax benefits

4) What are the most important things you take into account,
while making any investment?

a) Risk b) Returns c) Both

5) Do you have any knowledge of share markets?

a) Partial b) Complete c) Nil

6) Do you have any D-mat & Trading account?

74
 a) Yes b) No

7) In which company you have D-mat & Trading account?

a) Sharekhan Ltd b) Karvy

c) Indiainfoline d) ICICI direct

e) Indiabulls f) HDFC securities

g) Others

8) Are you satisfied with you present broking company?

a) Yes b) No

9) What is the reason? Please specify.

a) Services _______________________________________

b) Brokerage _____________________________________

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 c) Operating expenses ______________________________

d) Others ________________________________________

10) What is your trading exchange preference?

a) NSE b) BSE

c) MCX d) NCDEX

12) Do you know about Sharekhan Ltd?

a) Yes b) No

Suggestion:-

76
BIBLIOGRAPHY

77
Books:

BERI

G C. MARKETING RESEARCH

NEW DELHI, TATA Mc GRAW-HILL PUBLISHING

COMPANY LIMITED.

KOTHARI

RESEARCH METHODOLOGY

NEW DELHI, VIKAS PUBLISHING HOUSE PVT.LTD.1978.

GOYAL, DR.ALOK,

FINANCIAL MARKET OPERATION

NEW DELHI, V.K. (INDIA) ENTERPRISES .

78
Magazines:

VALUELINE (SHAREKHAN MONTHLY RESEARCH

MAGAZINE)

CAPITAL MARKET (5PASISA.COM), NEW DELHI.

THE FINAPOILS (YOUR PERSONAL FINANCE ADVISOR

FROM KARVY).

Internet:

http://WWW.MONEYCONTROL.COM

http://WWW.CAPITALINE.COM

http://WWW.SHAREKHAN LTD.COM

http://WWW.INDIAINFOLINE.COM

http://WWW.ICICIDIRECT.COM

79
http://WWW.HDFCSECURITY.COM

http://WWW.KARVY.COM

80