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TABLE OF CONTENTS
1. Acknowledgement
2. Preface
3. Abstract
4. Objective
5. Methodology
6. Introduction to Indiabulls Securities Ltd.7.Functional Areas of Indiabulls Securities Ltd.8.SWOT Analysis of INDIABULLS Securities Ltd9. OtherPlayers10. Comparative Analysis
11. Findings
12. Conclusion
13. Recommendation
16.Annexure
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ACKNOWLEDGEMENT
The limited vocabulary will not fail me to express my loyal and vulnerable
thanks and gratitude to for her encouragement; moral support and help
during the course of study.
I HARMANJIT SINGH HERO emphatically express the regards and
gratitude towards my speculative and dignified guide for her expert
invaluable and tireless guidance; constant encouragement; Painstaking and
constructive criticism to accomplish such laborious and exhaustive work
timely and perfectly.
I avail the opportunity to thanks LECT .FAHAD BEG who helped to ease
my burden of works and extended his help without any hesitation during my
study. His blessings and inspiration were the guidance force through my
academic career.
All the words in lexicon futile and meaningless if I fail to express my sense
of regard to my parents for their scarifies, blessings and prayers; everlastinglove and pain and belief in me.
I solely claim all the responsibility for any shortcoming and limitation in this
work.
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PREFACE
To maintain and cope up with the growing competition from the various
online trading providers, Indiabulls needs to find potential clients , also the
new investors and satisfy their needs .
The Broad objective of the project is to equipped the trainees with all the
quality which is essential to face any circumstances which can arise while
providing service to the clients.
This project will accomplish to understand how the people interact with
technology savvy products and if they are ready for doing all the trading
through internet. The project also helps in understanding the trend of the
scripts of the particular sector ( banking sector ) in different market
condition.
All these steps help me to understand how to cope with different types of
people and there diversified need and satisfaction level.
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ABSTRACT
To maintain and cope with the growing competition from the various online
trading providers, Indiabulls needs to find potential customer and also target
the new investors.
The project is being done to train the people about the whole procedure
essential to open an online trading account couple with demat account. The
project will help in exploring the area where there is the feasibility of
acquiring more new investors. It would also help in knowing the various
competitors of the industry and exploring the areas through which
competitive advantage could be obtained.
The report is divided into various sections
1. Company Profile:
This part describes the company profile. This part recognizes the
achievements and rewards the company has achieved, it also gives little
insights into what company offers to the Corporates and the Consumers.
This section also describes the kind of technology used.
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2. About Online trading account
Since the project leads to opening of online trading account, this section
gives the details of what all services Indiabulls offers to the consumer. This
section gives the detail of how different services provided by the others
online trading account and how is Indiabulls superior from them.
3. Procedures and requirement for opening Trading cum demat
account.
This section gives the detail of the different conditions that have to be met
for opening trading cum demat account. The section contains the documents
which is required to open an account.
4. Different competitors in online trading.
This section gives the detail of the different competitors and different
services provided by them. Then we have compared these services with our
services.
5. Different formalities for opening demat account
This section throws some light over different document as well as hardware
and software requirement for opening of online trading cum demat account.
6. Learning about Dematerialization
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This section tells you about different concepts regarding dematerialization.
How you can get your security dematerialized? Growth rate of
dematerialization etc.
7. Future of online trading in India
This section tells you about the different things that will affect online
trading.
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OBJECTIVES
The objectives of this study are:-
The Broad objective of the project is to make clients and let them know
about the different services offered by the Indiabulls. Also to convince them
about how Indiabulls services out score there rivals. And how in future they
will be benefited from the services offered by Indiabulls.
This project will accomplish to understand the problem faced by the existing
client and find ways to solve these queries at your level otherwise let the
above level know about these problems. We have to be in regular contacts
with our clients so that we come to know about the problem they are facing.
This also helps us to multiply our clients by getting the further references.
By this we are able to make a chain of the customers which expands as we
satisfy there needs.
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1) Overall Objective:
Comparative Study of Indiabulls Securities Market with other competitive
players
2) Module Objective:
To understand the various types of Investors
To do a market survey
To find about Investors satisfaction level
To give recommendation either to retain or to modify the existing
target in order to maintain position
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METHODOLOGY
Methodology of the project starts with:
In the first phase we came to know about different things about
market & products offered by Indiabulls.
Then I made Database of customers who can be converted into clients
through internet and survey through questionnaire.
After that I conducted a mock viva, in order to know about the various
problem that can be faced by the customers. So that I can solve their
queries if they have during convincing them.
Then calls were made to the people who have filled questionnaire and
details of products and services were given to them in order to
convince them.
Then I had to fix meeting with them and got the D-Mat A/C form
filled from them.
Maintaining dairy of clients and contacting them at regular basis.
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The next part knows the pattern of the scripts movement. How they move
with the correspondence to the market movement and also the economy
A very semantic methodology is proposed for the project which shall cover
the aspects of primary and secondary data analysis. The research work being
done here is exploratory in nature hence more of a field work is demanded.
Also I have used Secondary sources like Stock market magazines, ICMA
journals, ICMR books, NCFM books, stock market websites, annual reportsand publications of financial institution.
Mode of analysis:-
Effort will be made to ensure the internal validity of data collected from
different sources by way of triangulation, to draw purposeful conclusion.
The analysis is proposed to be qualitative rather than quantitative
inconsideration of this specific subject of the project.
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LIMITATIONS
The various Limitations are:--
Lack of awareness of Stock market:-- Since the area is not known
before it takes lot of time in convincing people to start investing in
shares primarily in IPOs.
Mostly people comfortable with traditional brokers: -- As people aredoing trading from there respective brokers, they are quite
comfortable to trade via phone.
Lack of Techno Savy people and poor internet penetration: -- Since
most of the people are quite experienced and also they are not techno
savy. 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.
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Inaccurate Leads :-- Sometimes leads are provided which had error
in it which varies from only 5 digit phone number to wrong phone
number.
Misleading concepts:-- Some people think that shares are too risky
and just another name of gamble but they dont know its not at all that
risky for long investors.
INTRODUCTION TO INDIABULLS
Indiabulls is India's leading retail financial services company with over 300
locations in more than 110 cities. While our size and strong balance sheet
allow us to provide you with varied products and services at very attractive
prices, our over 4400 Client Relationship Managers are dedicated to serving
your unique needs.
Indiabulls is lead by a highly regarded management team that has invested
crores of rupees into a world class Infrastructure that provides our clients
with real-time service & 24/7 access to all information and products. Our
flagship Indiabulls Professional Network offers real-time prices, detailed
data and news, intelligent analytics, and electronic trading capabilities, rightat your finger-tips. This powerful technology is complemented by our
knowledgeable and customer focused Relationship Managers.
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Indiabulls offers a full range of financial services and products ranging from
Equities to Insurance to enhance your wealth and hence, achieve your
financial goals.
Indiabulls Client Relationship Managers are available to you to help with
your financial planning and investment needs. To provide the highest
possible quality of service, Indiabulls provides full access to all our products
and services through multi-channels.
In Indiabulls, Making your investment easy!
Indiabulls to you as a Technology Oriented Financial Services Company
offering Integrated Equity analysis, Stock Trading, Depositary services,
Margin Trading facilities backed by real time risk management systems and
fast trade execution. Indiabulls also provides its clients with valuable real-
time information, access to breaking news and market happenings, along
with in-depth and insightful analysis.
The organization has an established presence in 110 cities through its 300
branch offices and has a base of over 35000 clients. Ranked amongst the top
5 retail brokers in the country with average daily trading volumes of over
Rs. 600 crores in the current markets and holds over Rs. 150 crores of assets
in its own depository services.
Some of the unique features are:
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Trading via branch network, telephones and Internet account. That is
Both online and offline (by telephone).
Customized products for lending against shares
Automated Extended Margin Trading Facility
Integrated Trading and Depositary Account
Technology transforming desktop into NEAT like terminal for
Internet trading
One Screen for both Cash and Derivatives Trading.
Facility to Buy Today & Sell Tomorrow itself
Equity Research Department which studies the market and provides
information.
Up-to-date news, data and analysis via Indiabulls.com
Equity Analysis Report to support your investment decisions.
FUNCTIONAL AREAS OF INDIABULLS
The product range offered by Indiabulls includes
1. Equity Analysis
2. Equities & Derivatives
3. Depository Services
4. Commodities
5. Loans
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TYPES OF ACCOUNTS
Indiabulls Signature Account - Comprehensive services including
research and investing guidance for independent investors.
Power Indiabulls - Indiabulls is dedicated to empower Active
Traders through personal service and advanced trading technology.
Non-Resident Indian (NRI) Investor Services - With an extensive
range of investment products, you will discover an unwavering
commitment to helping you invest in India.
All of this comes to you backed by your Relationship Manager available to
you 24x7.
Indiabulls is India's leading retail financial services company with 41
locations spread across 37 cities.
Over 450 Client Relationship Managers are dedicated to serving your
unique needs.
Is complemented by our knowledgeable and customer focused
Relationship Managers.
Provides our clients with real-time service & 24/7 access to all
information and products.
Indiabulls offers a full range of financial services and products
ranging from Equities to Insurance to enhance your wealth and hence,
achieve your financial goals.
Post Registration Services:
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Deliver and receive cheques and securities
Obtain market information
Place orders
Get access to IPOs via the Book Building route as well as to all the
fixed price issues.
Documents required for trading account and D-Mat A/C
2-passport size photograph.
Photocopy of Income Tax Permanent Account Number (PAN) Card -
If you do not have a PAN, then you would be required to give a
declaration to that effect and fill form 60.
Identity Proof - Photocopy of any of the following:
Passport
PAN Card
Voter ID
Driving License
Ration Card
Address Proof - Photocopy of any one of Driving License /
Passport/Ration Card/Voter Card/ Bank Statement.
FEATURES OF POWER INDIABULLS
(It is a unique offering by the company which helps an investor to trade
online).
An investor can avail this feature by paying a fee of Rs. 750; with this he
can track all the listed scripts at NSE.
The features include:
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Live Streaming Quotes
Fast Order Entry
Tic by Tic Live Charts
Technical Analysis
Live News and Alerts
Extensive Reports for Real-time Accounting
Benefits of trading with Indiabulls:
Personal relationship Manager - 24/7.
Most competitive brokerage and DP charges.
Only one time account opening charges and no annual maintenance
charges.
Margin trading of 3 times the cash deposited for delivery based trade.
Margin trading of 6 times the cash deposited for intra-day based trade.
Margin trading of 2 times the approved category based shares
deposited for delivery based trade.
Margin trading of 4 times the approved category based shares
deposited for delivery based trade.
Buy today Sell tomorrow for all securities facility.
OTHER PLAYERS
Sherkhan
Religare
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Kotak Mahindera
SHAREKHAN
They have dedicated teams for fundamental and technical research so that
you get all the information you need to take the right investment decisions.
Sharekhan is the retail broking arm of SSKI, an organization with more than
80 years of trust and credibility in stock market. Sharekhan is India's leading
retail financial services company with. They have over 250 share shops
across 115 cities in India. While size and strong balance sheet allows them
to provide you with varied products and services at very attractive prices,
our over 750 Client Relationship Managers are dedicated to serving your
unique needs.
Sharekhan is lead by a highly regarded management team that has invested
crores of rupees into a world class Infrastructure that provides our clients
with real-time service & 24/7 access to all information and products. Our
flagship Sharekhan Professional Network offers real-time prices, detailed
data and news, intelligent analytics, and electronic trading capabilities, right
at your finger-tips. This powerful technology complemented by our
knowledgeable and customer focused Relationship Managers.
Sharekhan offers a full range of financial services and products ranging
from Equities to Derivatives enhance your wealth and hence, achieve your
financial goals.
Sharekhan' Client Relationship Managers are available to you to help with
your financial planning and investment needs. To provide the highest
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possible quality of service, Sharekhan provides full access to all our
products and services through multi-channels .
We have a talent pool of experienced professionals specially designated
guide you when you need assistance, which is why investing with us is bond
to be hassle-free experience for you.
Sharekhan unveiled an all-new, world-class online investing facility from
the convenience at your home/office, you could invest in the equity market
with expert advice.
Accessibility
Sharekhan provides ADVICE, EDUCATION, TOOLS AND EXECUTION
services for investors. These services are accessible through our centers
across the country (Over 250 locations in 123 cities), over the internet as
well as over the Voice Tool.
We offer you the following products:-
CLASSIC ACCOUNT
This account allows you to trade through our website www.sharekhan.com
and is suitable for the retail investor 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
Integration of On-line trading , Saving Bank and Demat Account.
Instant cash transfer facility against purchase & sale of shares.
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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
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 days
session to capitalize on intra-day price movement.
Features:-
Instant order Execution and Confirmation.
Single screen trading terminal.(NSE)
Real-time streaming quotes, tic-by-tic charts.
Market summary (Cost traded scrip, highest calue etc.)
Hot keys similar to brokers terminal.
Alerts and reminders.
Back-up facility to place trades on Direct Phone lines.
IPO On-line
RELIGARE
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Religare is driven by ethical and dynamic process for wealth creation.
Based on this, the company started its endeavour in the financial market. A
company promoted, controlled and managed by the promoters of Ranbaxy,
Religare was founded with the vision of providing integrated financial care
driven by the relationship of trust.
Religare Enterprises Limited through Religare Securities Limited, Religare
Finvest Limited, Religare Commodities Limited and Religare Insurance
Advisory Services Limited provides integrated financial various financial
services which include Investment Banking, Corporate solutions to its
corporate, retail and wealth management clients. Today, we provide Finance,
Portfolio Management Services, Equity & Commodity Broking, Insurance
and Mutual Funds. Plus, theres a lot more to come your way.
Religare is proud of being a truly professional financial service provider
managed by a highly skilled team, who have proven track record in their
respective domains. Religare operations are managed by more than 2000
highly skilled professionals who subscribe to Religare philosophy and are
spread across its country wide branches.
Today, we have a growing network of more than 150 branches and more
than 300 business partners spread across more than 180 cities in India and a
fully operational international office at London. However, our target is to
have 350 branches and 1000 business partners in 300 cities of India and
more than 7 International offices by the end of 2006.
Unlike a traditional broking firm, Religare group works on the philosophy of
partnering for wealth creation. We not only execute trades for our clients but
also provide them critical and timely investment advice. The growing list of
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financial institutions with which Religare is empanelled as an approved
broker is a reflection of the high level service standard maintained by the
company.
Religare is one of the heavyweight equity players in India with membership
of National Stock Exchange of India and Bombay Stock Exchange both
major exchanges of India. We believe in innovative services that could cater
a range of customers according to their requirements. Religare equity and
derivative trading is offered in two unique ways:
Religare - ALLY
Religare - Advance Client Engine
R-ACE & R-ALLY accounts are designed for different classes of
customers keeping in mind their needs and requirements. This helps to bring
about a change in :
Conventional investments with a world class touch.
Expertise to investors while trading on Indian Exchanges.
To realize its vision, the company provides both, fund-based and non-fund
based financial services to its clients. These services include Broking
(Stocks), Depository Participant Service and Portfolio Management
Services. The company is also entering into the advisory services on
Offshore Investment as allowed by Reserve Bank of India through it's
International Equity desk.
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Besides servicing Institutional clients, Religare also pioneered the concept of
partnership to reach multiple locations in order to effectively service it's
large base of Individual Clients. The clients of the company greatly benefit
by its strong research capability, which encompasses fundamentals as well
as technicals.
The exciting features that Religare provide are :
Features:
FREE TRADING AND DEMAT ACCOUNTS.
Lowest brokerage in the industry starting with 0.2% in delivery and
0.02% in intraday.
Exposure: 10 times (Intra-Day) & 2 Times (Delivery & F&O).
Margin Funding available.
Online trading.
Exact carry forward on span margin as on NSE.
16% rate of simple interest per annum on margin funding.
KOTAK SECURITIES
Kotak Mahindra is one of India's leading financial institutions, offering
complete financial solutions that encompass every sphere of life. From
commercial banking, to stock broking, to mutual funds, to life insurance, toinvestment banking, the group cater to the financial needs of individuals and
corporates.
The group a net worth of over Rs.1,550 crore and employs over 3,000
employees in its various businesses. With a presence in 59 cities in India and
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offices in New York, London, Dubai and Mauritius, it services a customer
base of over 5,00,000. Kotak Securities Limited, a subsidiary of Kotak
Mahindra Bank, is the stock broking and distribution arm of the Kotak
Mahindra Group. The company was set up in 1994. Kotak Securities is a
corporate member of both The Bombay Stock Exchange and The National
Stock Exchange of India
Limited. Its operations include stock broking and distribution of various
financial products - including private and secondary placement of debt and
equity and mutual funds. Currently, Kotak Securities is one of the largest
broking houses in India with wide geographical reach. The company hasfour main areas of business: (1) Institutional Equities, (2) Retail (equities
and other financial products), (3) Portfolio Management and (4) Depository
Services.
Institutional Business
This division primarily covers secondary market broking. It caters to the
needs of foreign and Indian institutional investors in Indian equities (both
local shares and GDRs). The division also incorporates a comprehensive
research cell with sectoral analysts who cover all the major areas of the
Indian economy.
Client money Management
This division provides professional portfolio management services to
high net-worth individuals and corporates. Its expertise in research and
stock broking gives the company the right perspective from which to
provide its clients with investment advisory services.
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Retail distribution of financial products
Kotak Securities has a comprehensive retail distribution network,
comprising approximately 7000 agents, 13 branches and over 20franchisees across India. This network is used for the distribution and
placement of a range of financial products that includes company fixed
deposits, mutual funds, Initial Public Offerings, secondary debt and
equity and small savings schemes.
Depository Servicies
Kotak Securities is a depository participant with the National Securities
Depository Limited and Central Depository Services (India) Limited for
trading and settlement of dematerialised shares. Since it is also in the
broking business, investors who use its depository services get a dual
benefit. They are able to use its brokerage services to execute
transactions and its depository services to settle these.
Kotak Securities' width, volume and quality of offerings regularly earn it
accolades from industry monitors. In recent times, these have included:
Euromoney Award (2005): Best Equities House In India
Finance Asia Award (2005): Best Broker In India Asia Money (2004): Best Equity House in India
Finance Asia Award (2004): India's Best Equity House
Euromoney (2004): Best Equity House in India
Prime Ranking Award (2003-04): Largest Distributor of IPOs
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Kotak Institutional Equities
Kotak Institutional Equities, among the top institutional brokers in India. It
mainly covers secondary market broking and the marketing of equityofferings, including IPOs, to domestic and foreign institutional investors. Its
full-fledged research division comprises 18 analysts engaged in macro-
economic studies, industry- and company-specific equity research.
Kotak Institutional Equities has full financial service capability, which
includes derivatives, facilitating market access through affiliates and the
distinctive offering of corporate access to investors. The division services
over 250 clients including FIIs, pension and mutual funds. The division has
sales desks in Mumbai, London and New York, with the India desk also
servicing clients in Hong Kong, Singapore, Japan and Australia.
COMPETITIVE STRENGTHS TO BE THE
MARKET LEADER
What keeps Indiabulls ahead of the competition is the competitive edge that
it has over other players in the market.
Diverse Branch Network
Bouquet of financial products and services
Advanced technology team that delivers market leading product
innovation
Strong sales and marketing teams with continuous reinvestment and
training
Strong cross selling opportunities
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Strong and experienced promoters
Leading product innovation and marketing strategies
Well capitalized player, with strong banking relationships and credit
ratings
Ability to combine people and technology in unique ways
Strong market presence and increased market share leading to a virtuous
cycle of growth and profitability.
ETHICAL VALUES
Indiabulls has a performance driven culture where the core value, which
drives the organization, is its profitability-oriented culture. Every employee
is an entrepreneur in his own right, trying to make profits for himself as well
as the Company.
CORE COMPETENCY
The companys core competency is its unique business model the model of
relationship managers by which those who trade through the internet also
gets the human touch. The aggressive profit sharing model (with the
employees) that it pursues is another major high of the core competency.
KEY BUSINESS STRATEGIES
Their focus on the client has allowed the company to offer a range of
services that have changed the investing landscape and created a new model
of financial services that melds people and technology to provide an
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integrated human assisted technology interface service for investors who
range from self-directed full-time active investor to those who prefer to deal
with through a marketing associate in smaller towns and cities.
Their key strategies include:
Defend and maintain our differentiation as the firm that delivers
ethical and useful services
Build and expand our investing insight through our product
offerings such as Equity Analysis which is objective, uncomplicated
and not driven by commission
Give clients new levels of choice tailored to their desire for
help, tools for investing their assets, their willingness to pay for
additional services and the level of business they can do with us
Provide clients with tools, relationship managers and choices
that support their desired investment outcomes
They have developed a client specific approach as a core element of their
business strategy and are constantly focusing on acquiring new clients and
expanding their customer base. They believe that the strong secular growth
of the Indian financial markets, due to increased household penetration of
financial assets; increasing liquidity and market capitalization of Indian
markets, led by the listing of many public sector entities; and the increasing
affluence of Indian households and savers provides an impetus to our growth
perspective.
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The company believes that this diversification and growth strategy will
continue to produce results and allow the Company and its subsidiaries to
grow the business at a rapid pace irrespective of market conditions. In
addition, management believes that the growth of the Indian financial
markets, due to increased household penetration of financial assets;
increasing liquidity and market capitalization of Indian markets, led by the
listing of many public sector entities; and the increasing affluence of Indian
households and savers, favors their long-term growth outlook.
SOCIAL INITIATIVES
Does the business house think of the society and the nation or are they
basically concerned about profit generation only.
The company as such has not undertaken any major social initiative - they
did contribute to the Tsunami Relief Fund (2 days salary of every
employee). The company as such does not believe in doing somethingdifferent from their business; they believe that they could contribute to the
society by doing what they are best at making profits for the stakeholders
and also employing more people.
SWOT ANALSIS FRAMEWORK
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STRENGTHS:
A firms strengths are its resources and capabilities that can be used as a
basis for developing a competitive advantage. Examples of such strengths
include:
Patents.
Strong brand names.
Good reputation among customers as Indiabulls provide a relationship
manager to every client.
Cost advantages from proprietary know how.
Exclusive access to high-grade natural resources.
Favorable access to distribution networks.
ENVIRONMENTAL
INTERNAL EXTERNAL
WEAKNESSTRENGTH OPPURTUNITI THREA
SWOT MATRIX
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WEAKNESS:
The absence of certain strengths may be viewed as a weakness. For example,
each of the following maybe considered as a weakness:
Lack of patent protection.
A weak brand name.
Poor reputation among customers as each client is not been attended
well.
High cost structure..
Lack of access to key distribution channels.
In some cases, a weakness maybe the flip side of a strength. Take the case
in which a firm has a large amount of manufacturing capacity. While this
capacity may be considered as strength that competitors do not share, it also
may be considered a weakness if the large investment in manufacturing
capacity prevents the firm from reacting quickly to changes in the strategic
environment.
OPPURTUNITIES:
The external environmental analysis may reveal certain new opportunities
for profit and growth some examples of such opportunities include:
An unfulfilled customer need.
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Arrival of new technologies.
Loosening of regulations.
Removal of international trade barriers.
THREATS:
Changes in the external environmental also may present threats to the firm.
Some of the examples include:
Shifts in consumer tastes away from firms products.
Emergence of substitute product.
New regulation.
Increased trade barriers.
THE SWOT MATRIX
A firm should not necessarily pursue the most lucrative opportunities.
Rather, it may have a better chance at developing a competitive advantage
by identifying a fit between the firms strengths and upcoming opportunities.
In some cases, the firms can overcome a weakness in order to prepare it to
pursue a compelling opportunity.
To develop strategies that take into account the SWOT profile, a matrix of
these factors can be constructed. The SWOT matrix (also known as a TOWS
MATRIX) is shown below:
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SWOT/ROWS MATRIX
WEAKNESSES STRENGTHS
OPPURTUNITIE
S
S-O STRATEGIES W-O
STRATEGIES
THREATS S-T STRATEGIES W-T
STRATEGIES
S-O STRATEGIES pursue opportunities that are a good fit to the
companys strengths
W-O STRATEGIES overcome weaknesses to pursueopportunities.
S-T STRATEGIES identify ways that the firm can use its strengths
to reduce its vulnerability to external threats.
W-T STRATEGIES establish a defensive plan to prevent the firms
weaknesses from making it highly susceptible to external threats.
Strengths of Indiabulls What makes Indiabulls better than its
competitors?
Online trading platform
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Diverse Branch Network provides ample opportunities to penetrate
deep into the existing & untapped market. Since its inception in FY
2000 the company and its subsidiaries have grown from a single
location to a nationwide network spread over 135 offices in 95 cities.
Personal relationship manager who will help assist the clients in share
trading
Indiabulls offers its clients a pool of financial services and products:
Equities & Derivatives
Depository Services
Commodities
Insurance
Mutual Funds
Indiabulls Equity Analysis
IPOs
Loans
No annual maintenance charges
No custodial charge
It does not keep any condition as to collect minimum amount of
brokerage from its clients
Most competitive BROKERAGE and DP charges (on delivery 0.5%
and on intraday 0.1%)
Equity analysis report to support the investment decision of its clients
Trading via branch network, telephones and internet account i.e. both
online and offline
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Strong market presence and increased market share leading to a
virtuous cycle of growth and profitability.
The incentive model is created such that it leads to generation of
higher revenue for the organization. This acts as a motivating factor
for the employees to perform well.
Induction of new employees through an extensive computer based
training module that equips them to service their clients efficiently.
An added advantage of Indiabulls is its strong brand name, which
helps its sales force to sell the products.
Technology transforming desktop into NEAT like terminal for
internet trading
Real time online transfer fund and exposure updating facility with
HDFC, CITIBANK, ICICI
Weakness of Indiabulls:
It should have its own mutual funds i.e. Indiabulls as of now does not
have its own mutual funds, instead of providing advises in mutual
funds it should have its own mutual funds.
It should provide tips via SMS.
Too many people try to eat the same piece of pie i.e. people employed
in Indiabulls hit the same area to target their customers. There should be a separate set of staff working in fields and trading on
behalf of their clients: India bulls has same set of staff who are
making clients and also trading on behalf of clients this hinders the
relationship manager to provide adequate and necessary tips to the
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clients and at times the managers are not in the position to answer the
questions of their clients relating to the current market position as they
are on fields.
It does not display the scripts in BSE on its terminal i.e. POWER
INDIABULLS. To trade in scripts in BSE the customer has to open
the website www.bseindia.com.
Commodities are not traded online (MCX-multi commodity exchange,
NCDEX-national commodity derivative exchange of India ltd.)
It does not provide with the indices of major world markets, ADR
prices of Indian scripts.
Unlike some of its competitors like ICICI and Kodak, Indiabulls does
not provide a complete catalogue of financial services (e.g. Banking
facility).
Due to the continuous need to meet the targets, some of the
Relationship managers crack under pressure and thus leave the
organization. There is no limit to the maximum number of clients that a
Relationship manager can handle. This affects the level of service
provided to the clients who are not volume traders.
OPPURTUNITIES TO INDIABULLS:
Financial services like banking
Market expansion i.e. opening branches at untapped areas
ADR & GDR have issued to trade in foreign markets.
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Indiabulls is registered with Luxembourg stock exchange and so can
target other stock exchanges.
ATM facility should be provided for easy withdrawals.
The Capital market in the last few years has turned out to be one of
the favorable avenues for the retail investors. This is due to the
performance of the Indian Industry in various sectors and the
Economy in general. Even the future outlook looks promising.
Scope of online trading on BSE.
Indiabulls has tied up with other third party companies to sell their
products. Due to the high client base of Indiabulls, there exists an
opportunity to cross sell these products in the market.
Market seems favorable for commodities trading. Should Indiabulls
choose to enter this segment it may prove to be a profitable venture.
THREATS TO INDIABULLS:
Companies like Sharekhan, ICICI Direct, Kotak, and Private Brokers
are major threats to Indiabulls.
Banks with demat facility jockeying for position
Local brokers capable of charging lower brokerage
Industry competitors vying for the same target segment.
Changes in SEBI guidelines & other tax implications.
Government Regulations
DATA COLLECTION
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Primary data: A comprehensive questionnaire has been designed for the
purpose of the study and the respondents were interviewed to collect
feedback on the subject. This is the main source for the primary data. Also,
discussions among peers and colleagues were carried out on the subject to
understand the perceptions that people hold about the equities market.
Secondary data: The secondary data was collected from books and
journals relevant to the subject and also from the Internet. This was mainly
to get an understanding of the operational side of the market.
Sample Size
The method of Random Sampling was followed for the purpose of data
collection and a sample of 100 was interviewed.
The questionnaire was randomly circulated and the respondents were
interviewed for their thoughts on the subject matter.
COMPARATIVE ANALYSIS BETWEEN
INDIABULLS AND OTHERS
The Indiabulls is the fastest growing securities company in India .With in
span of 5years time it is the number 1 company having a brandname . We
have already studied the various services provided by other brokerage
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houses ,so now have look at the areas where Indiabulls is having merit over
the others.
Indiabulls is providing many multi facility to its clients so that they may not
face any problem like,
They provide Relationship Manager who can guide their client
about the right investment in secondary market which
comparatively not provided in other securities ltd.
They do not charge any annual maintenance charge as all the
companies charge other than brokerage.
They provide exposure to both intraday as well as delivery based
trading which is not provided to others.
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CAMPARISON CHART
QUESTIONNAIRE
Sharekhan Kotak Indiabulls Religare
Account Opening
ChargesRs. 375/ Rs 750 Rs. 500 Rs 500 Free
Brokerage (%)Delivery Intraday Delivery Intraday Delivery Intraday Intraday Delive
0.20 0.05 0.50 0.15 0.50 0.05 0.02 0.20
Exposure on Cash NIL 4 times 4 times 4 times 4times 10 times 10 times 2 time
Exposure on
SecuritiesNIL NIL
2 times of the
market valueNIL
Annual
Maintenance
Charges
Rs 300 Rs. 260 NIL NIL
Trading with other
Demat AccountN.A. N.A. Possible Possible
Banking facility
IDBI Bank/City
Bank/ OBC/UTI/
HDFC bank
Kotak/HDFC/CITI All private Banks
Net Banking
facility
IDBIBank/City
Bank/OBC/UTI/H
DFC
Kotak/HDFC/CITIHDFC/ICICI/Citiba
nk
Off-line Trading N.A. N.A.
Through Phone &
SMS& messengerN.A
Relationship
ManagerN.A. N.A.
Assigned to every
client
Assigned to ev
client
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1) Would you like to invest in the stock market?
(a) Yes
(b) No
2) If not why?
(a) Lack of Knowledge
(b) Feel Its Risky(c) No time
(d) Dont have money
3) Does you have Dmat & Trading A/C?
(a) Yes
(b) No
4) In which Brokerage house you have your Dmat a/c?
(a)Kotak
(b)Indiabulls
(c) Religare
(d)ShareKhan
5) What are the a/c opening charges you expect from your Broker?
(a) 500
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(b)700
(c) 750
(d)800
6) What the brokerage should be charged by your broker on Delivery
trading?
(a) 0.2-0.5
(b)0.5-0.7
(c) 0.7-1.0
7) What the brokerage should be charged by your broker on Intraday
trading?
(a) .02-.05
(b).05-.07
(c) .07-0.1
8) Would you like to have the facility of exposure on Cash?
(a) Yes
(b) No
9) Would you like to have the facility of exposure on Security?
(a) Yes
(b) No
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10) What are the Annual maintenance charges you expect from
your Broker?
(a) NIL
(b) 100-200
(C) 200-300
11) Would you like to have a facility to trade with other Dmat a/c?
(a) Yes
(b) No
12) Would you like to have a facility of net Banking?
(a) Yes
(b) No
13) Would you like to have a facility of Relationship Manager?
(a) Yes
(b) No
14) Are you satisfy with your Broker?
(a) Yes
(b) No
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FINDINGS
People interested in stock market investment
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People having D-Mat & Trading A/C
People interested in stock
market investment
Percent
age
Yes
40%No
60%
% Of People having D-Mat & Trading a/c
Percentage
Yes
80%
No
20%
% Of people interested in stock market
40%
60%
yes
no
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PERCENTAGE OF ACCOUNT OPENED IN
VARIOUS HOUSES
Investors having their D-Mat A/C
in various brokerage house
Percentage
Indiabulls 40
Kotak 15
Religare 15
Sharekhan 20
% Of People having Dmat & Trading a/c
Yes
80%
No
20%
Yes
No
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% of opening of D-Mat A/C
40
15 1520
0
10
20
30
40
50
IndiaBulls Kotak Religare Sharekhan
Brokerage House
Percentage
Expected Brokerage on
Delivery
Percentage
0.2-0.5 90%
0.05-0.7 10%
0.7-1.0 0%
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BROKERAGE ON DELIVERY
0%
20%
40%
60%80%
100%
0.2-0.5 0.05-0.7 0.7-1.0
Percentage of Brokerage
Percentage
ACCOUNT OPENING CHARGES
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Expected a/c opening charges
500
700
750
800
80%
10%
10%
0%
0 500 1000
1
2
3
4
Expected a/c
opening charges
Percentage
BROKERAGE ON INTRADAY
Expected Brokerage on
Intraday
Percentage
.01-.05 % 75%
.05-.07 % 20%
.07-.10 % 5%
Expected a/c opening
charges
Percentage
500 80 %
700 10%
750 10%800 0%
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75%
20%
5%
0%
20%
40%
60%
80%
.01-.05
%
.05-.07
%
.07-.10
%
Expected brokerage on intraday
Percentage
EXPOSURE ON CASH
Investors expect exposure
on Cash
Percentage
Yes 70%
No 30%
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Percentage
Yes
70%
No
30%
RECOMMENDATION
Analysis of Client Interaction (Already existing clients)
Client interaction and after sales services are the most crucial aspects for any
business. We carried out a study to gauge the level of satisfaction of the
clients with the services of Indiabulls. This helped us in understanding why
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Indiabulls has become one of the most trusted brands within a span of five
years.
1. The Relationship Managers(RM) should be made responsible to ensure
that the clients are well catered, thus, reducing switching over of routing,
thereby reducing loss of business to the firm.
2. A lot of time lag is there between the follow up and the change of RM, as
a result, the calls could not leave a positive impact on the clients, so
contacted. Therefore, follow up should be done fast without any time lag.
3. Many clients did not know about the change of RM. This leaves a bad
impression on the concerned client, damaging the reputation of the firm.So, heed is taken in this regard.
4. The customers, who were satisfied with the services, appreciated this
kind of follow up. Therefore, such follow-ups are done from time to time,
to gain customer confidence.
After getting Leads attention should be made on following points:
1. The calls made should be more informative and assertive.
2. The RM should provide an in depth demonstration of the software and
client should be assisted regularly.
3. Provision of a manual for online clients for ease of operation.
4. Time lag between the complaints put and follow up should be reduced.
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5. Database should be verified properly, so that repeated entries do not
occur. This will reduce inconvenience to the clients, who complained
about multiple calls received.
Working of Back Office
There should be a person solely responsible for checking the
Registration Kit to ensure that it is complete in all respects and there
are no rejections.
The policies related to Trading and DP should be consistent and in
congruence with each other.
The time lag between giving in the kits for registration and opening
the account should be reduced to ensure speedy and efficient service.
BIBLIOGRAPHY
LITERATURE
The Efficient Market Hypothesis and Its Critics by Burton G.
Malkiel, Princeton University April 2003
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A brief history of market efficiency Elroy Dimson and Massoud
Mussavian, London Business School, Published in European
Financial Management, Volume 4, Number 1, March 1998, pp 91-193
S.F. Nicholson Price-Earnings Ratios , Financial Analysts Journal,
July- Aug 1960.
J.D. MCwilliams Price, Earnings, and P/E Ratios. Financial
Analysts Journal May-June 1966.
P.F.Miller & E.R. Wildmann, Price Performance Outlook for High
and Low P/E Stocks, Commercial & Financial Chronicle, September
1966.
S.F. Nicholson, Price-Ratios in Relation to Investment Results,
Financial Analysts Journal, January-Feburary 1968.
W.Breen, Low Price-Earnings Ratio & Industry Relatives, Financial
Analysts Journal, July-Feburary 1968.
W.Breen & Savage J. Portfolio Distribution & Security Selection
Models, Journal of Finance, December 1968.
S.Basu, Investment Performance of Common Stocks in Relation to
Their Price-Earning Ratios: A Test of the Efficient Market
Hypothesis, Journal of Finance, June 1977.
Basu, Sanjoy, "The Relationship between Earnings Yield, Market
Value and Return for NYSE Common Stocks: Further Evidence,"
Journal of Financial Economics 12 (1983): 129-156.
M.Obaidullah, The Price Earning Ratio Anomaly in Indian Stock
Markets, Decision, July 1991.
Farna., "Efficient capital markets: II", Journal of Finance 46, 1575-
1617, 1991
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Farna, "Efficient capital markets: A review of theory and empirical
work," Journal of Finance 25, 383-417, 1970.
Seyhun, "Insiders profits, costs of trading, and market efficiency,"
Journal of Financial Economics 16, 189-212 , 1986.
Seyhun, Investment intelligence from insider trading, MIT Press.
Patell,J and M.Wolfson, "The intraday speed of adjustment of stock
prices to earnings and dividend announcements," Journal of Financial
Economics 13, 223-252.,1984.
Gosnell, T.F., A.J. Keown and J.M. Pinkerton, The intraday speed of
stock price adjustment to major dividend changes: Bid-ask bounce
and order flow imbalances," Journal of Banking and Finance 20, 247-
266, 1996.
Jaffe, Jeffrey, Donald B. Keim, and Randolph Westerfield, "Earnings
Yields, Market Values, and Stock Returns," Journal of Finance 44
(1989): 135-148.
DATA SOURCES
www.Indiabullsstreet.com
www.indiainfoline.com www.bseindia.com
www.nseindia.com
www.5paisa.com
www.sbi.com
http://www.kotakstreet.com/http://www.kotakstreet.com/http://www.indiainfolin.com/http://www.bseindia.com/http://www.nseindia.com/http://www.5paisa.com/http://www.sbi.com/http://www.kotakstreet.com/http://www.indiainfolin.com/http://www.bseindia.com/http://www.nseindia.com/http://www.5paisa.com/http://www.sbi.com/7/29/2019 89801790 Copy of India Bulls Compartive Study With Other Market Players 2
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www.sebi.com
www.Indiabulls.com
www.nseindia.com
www.icicidirect.com
www.rbi.org
Center for Monitoring Indian Economys Prowess Client Database.
www.westga.edu/~bquest/2002/market.htm - The Efficient Market
Hypothesis on Trial:
A Survey by Philip S. Russel and Violet M. Torbey
http://library.dfaus.com/articles/explaining_stock_returns -
Explaining Stock Returns: A Literature Survey By James L. Davis,
Vice President Dimensional Fund Advisors Inc. December 2001.
Indian Stock Market Theories and Evidence, M Obaidullah, ICFAI
Publications 1994.
http://www.sebi.com/http://www.indiabulls.com/http://www.indiabulls.com/http://www.icicidirect.com/http://www.rbi.org/http://www.westga.edu/~bquest/2002/market.htmhttp://library.dfaus.com/articles/explaining_stock_returnshttp://www.sebi.com/http://www.indiabulls.com/http://www.icicidirect.com/http://www.rbi.org/http://www.westga.edu/~bquest/2002/market.htmhttp://library.dfaus.com/articles/explaining_stock_returnsRecommended