View
160
Download
0
Category
Tags:
Preview:
Citation preview
ADVENT INSTITUTE OF MANAGEMENT SCIENCE
AND TECHNOLOGY (UG) UDAIPUR
PROJECT REPORT ON
ldquoCUSTOMER RELATIONSHIP MANAGEMENT IN
KOTAK SECURITIES LTDrdquo
BACHELOR OF MANAGEMENT STUDIES(2008-2012)
SEMESTER- IV
PROJECT GUIDE SUBMITTED BY
Miss Ankita Lakhani Mem Mahendra Singh Rajput
(Assistant Professor)
ACKNOWLEDGEMENT
The last few days have been full of learning and sense of contribution towards the
organization I would like to thank Advent Institute of Management Science and
Technology for giving me an opportunity of learning and contributing through this project
I would like to thanks all the people who knowingly and unknowingly supported me in the
Endeavour
It is said the most important single word is ldquoWErdquo and the zero important single word is
ldquoIrdquo This true even in todayrsquos modern era It is absolutely impossible for a single individual
to complete the assigned job without help and assistance from others
It is my greatest pleasure to acknowledge sincere gratitude towards MR Rajan
Baya(Manager ) Kotak Securities ltd Udaipur for the Completion of the project work
I would also like to acknowledge to my sincere gratitude to our Principal Mrs Amita
Singhvi Mem and my project guide Miss Ankita Lakhani Mem for helping me in this project
work
I am thankful to all of my friends and batch mates for their help in completing this project
work Finally I am thankful to my entire family members for their great support
and encouragement
Mahendra Singh Rajput
BMS-IV SEMESTER
Executive Summary
This project has been a great experience for me and at the same time it gave me
enough scope to implement my analytical ability Stock Broking leading industry
which is my concern industry around which my project has to be revolved is really a
very complex industry The growth of any company whether it is working in stock
market or retail sector desire to capture a large share of the existing and future
market They need to create relationship with customer and maintain it for lifetime is
the success tools This project report on ldquocustomer relationship management at Kotak
Securities ltdrdquo is based on understanding customer relationship management that is
taking place at Kotak securities ltd Kotak being the market leader in PMS which is
having corpus 3200 crore out of 6200 crore total market corpus Kotak securities
limited are a subsidiary of Kotak Mahindra Bank Limited is one of largest private
brokerage and distribution house Set up in 1994 by Mr Uday Kotak Kotak securities
have 25 equity participation from Goldman Sachs Kotak securities have been the
largest in IPO distribution and were ranked no1 in the year 2003-2004 as book
running lead managers in I POrsquos by prime database The biggest management
challenge in the new millennium of liberalization and globalization for a business is to
serve and maintain good relationship with the king ndash the customer The objective of
the project ldquocustomer relationship management at Kotak Securities ltdrdquo was to find
out the strategies required for good customer relationship how to achieve customer
how we can handle customer problem how we can build customer loyalty how we
can increase customer satisfaction How we can reduce customers defection How we
can attract customer Such knowledge will assist managers to better understand and
segment their Markets and design appropriate marketing communication strategies
Table of Contents
S No
Index Page No
1 Chapter one
11 Evolution of CRM
12 In the beginning
13 Advances in the 1990rsquos
14 Introduction to CRM
1 5 Customer Relationship Management Techniques
16 Why- Customer Relationship Management
17 How to introduce CRM in the company
2 Chapter two
21 Industry Overview
Industry Profile
Industry Evolution
Salient Features of the Industry in India
Recent Trends
Performance Growth Scenario
Top five companies of the industry
22 COMPANY OVERVIEW
221 Overview of the organization
Brief history
Nature of the organization
Business volume
Number of employees
Product lines
Main office amp Branch Offices
Organizational Structure
3 Chapter three
31 Project Profile
4 Chapter four
40 Research Methodology
41 Research Design
42 Sampling Plan
43 Collection of Data
44 Data collection
45 Limitations
46 Questionnaire Design
5 Chapter Five
51 Data Analysis and Interpretations
52 Observation
53 Findings
54 Recommendation
55 Conclusion
56 Learning Outcome
7 Reference and Bibliography
8 Annexure
Chapter1
INTRODUCTION TO CRM
12 Evolution of CRM
Customer Relationship Management (CRM) is one of those magnificent concepts that swept the business world in the 1990rsquos with the promise of forever changing the way businesses small and large interacted with their customer bases In the short term however it proved to be an unwieldy process that was better in theory than in practice for a variety of reasons First among these was that it was simply so difficult and expensive to track and keep the high volume of records needed accurately and constantly update them In the last several years however newer software systems and advanced tracking features have vastly improved CRM capabilities and the real promise of CRM is becoming a reality As the price of newer more customizable Internet solutions have hit the market place competition has driven the prices down so that even relatively small businesses are reaping the benefits of some custom CRM programs
12 In the beginninghellip
The 1980rsquos saw the emergence of database marketing which was simply a catch phrase to define the practice of setting up customer service groups to speak individually to all of a companyrsquos customers In the case of larger key client sit was a valuable tool for keeping the lines of communication open and tailoring service to the clients needs In the case of smaller clients however it tended to provide repetitive survey-like information that cluttered databases and didnrsquot provide much insight As companies began tracking database information they realized that the bare bones were all that was needed in most cases what they buy regularly what they spend what they do
13 Advances in the 1990rsquos
In the 1990rsquos companies began to improve on Customer Relationship Management by making it more of a two-way street Instead of simply gathering data for their own use they began giving back to their customers not only in terms of the obvious goal of improved customer service but in incentives gifts and other perks for customer loyalty This was the beginning of the now familiar frequent flyer programs bonus points on credit cards and a host of other resources that are based on CRM tracking of customer activity and spending patterns CRM was now being used as a way to increase sales passively as well as through active improvement of customer service 1
1 Source- httpwwwcrm-software-guidecomhistory-of-crmhtm
14 Customer Relationship Management Introduction
The biggest management challenge in the new millennium of liberalization and globalization for a business is to serve and maintain good relationship with the king ndash the customer In the past producers took their customers for granted because at that time the customers were not demanding nor had alternative source of supply or suppliers But today there is a radical transformation The changing business environment is characterized by economic liberalization increasing competition high consumer choice demanding customer more emphasis on quality and value of purchase etc2
A CRM is a collection of people processes software and internet capabilities that helps an enterprise manage customer relationship effectively and systematically The goal of CRM is to understand and anticipate the needs of current and potential customer to increase customer retention and loyalty while optimizing the way product and services are sold
CRM stands for Customer Relationship Management It is a strategy used to learn more about customers needs and behaviors in order to develop stronger relationships with them After all good customer relationships are at the heart of business success There are many technological components to CRM but thinking about CRM in primarily technological terms is a mistake The more useful way to think about CRM is as a process that will help bring together lots of pieces of information about customers sales marketing effectiveness responsiveness and market trends3
The objective is to capture data about every contact a company a company has with a customer through every channel and store it in the CRM system to enable the company to truly understand customer action CRM software helps an organization build a database about its customer that management sales people customer service provider and even customer can access information to access customer needs with product and offering
All these changes have made todayrsquos producer shift from traditional marketing to modern marketing Modern marketing calls for more than developing a product pricing it promoting it and making it accessible to target customer It demands building trust a binding force and value added relationship with the customers
15 Customer Relationship Management CRM Techniques
The CRM is a new technique in marketing where the marketer tries to develop long-term relationship with the customers to develop them as lifetime customers CRM aims to make the customer climb up the ladder of loyalty
2 Source-httpwwwezinarticlescomEmerging-Trends-In-Customer-Relationship-Managementampid=10926073 Source-httpwwwscribddocumentswordpresscom20090917crm-project-report
The company first tries to determine that who are likely prospects ie the people who have a strong potential interest in the product and ability to pay for it The company hopes to convert many of its qualified prospect into first time customers and then to convert those first time customers into repeat customers Then the company tries to convert these repeat customers into clients ndash they are those people who buy only from the company in the relevant product categories The next challenge for the company is to convert this client into advocates Advocates are those clients who praise the company and encourage others to buy from it
The ultimate challenge is to convert these advocates into partners where the customers and the clients work actively together to discover ways of getting mutual benefit
Thus in CRM the key performance figure is not just current market share but share of lifetime value by converting customers into partners
In CRM the company tries to identify that small percentage (20) of key account holders whose contribution to the company revenues is high (80) So from this point of view CRM is also known as KEY ACCOUNT MANAGEMENT
16 Why ndash Customer Relationship Management
Satisfied customers in 10 years will bring100 more customers to the company It costs 7 times more to attract a new customer than to serve an old one 20 of the companyrsquos loyal customers account for 80 of its revenues (Paretorsquosprinciple) The chances of selling to an existing customer are 1 in 2 the chances of selling to a new customer are 1 in 16
Eight ways to keep customers for life
1 Every part of the companyrsquos marketing effort should be geared towards building lifetime relationships
2 People want to do business with friendly people To have effective relations a friendly attitude must permeate in the organization
3 Information technology developments should be positively used to serve the customers
4 The company should always be flexible to bend its rules and procedures in the clientrsquos favor
5 The company should communicate with its customers even when it is not trying to sell something
6 The company can communicate and develop stronger customer bonding by providing financial and social benefits
7 The company should try to know all its customers including their lifestyles hobbies likes or dislikes etc
8 The company should make it a point to deliver more than what is promised
17 How to introduce CRM in the company
There are four key steps for putting one tone marketing program to work ndash
Step 1 Identify your customers
To launch a one to one initiative the company must be able to locate and contact a fair
number of customers or at least a substantial portion of its valuable customers It is
crucial to know the customer details as much as possible not just their names or
address but their habits preferences and so forth
Step 2 Differentiating your customers
Customers are different in two principal ways they represent different levels of value
and have different needs Once the company identifies its customers differentiating
them will help the company to focus its efforts to gain the most advantage with the
most valuable customers
Step 3 Interacting with the customer
Interaction is also a crucial component of successful CRM initiative It is important to
remember that interaction just not occur through marketing and sales channels
customer interact in many different ways with many different areas of the organization
so to foster relationship all the areas of the organization must be accessible to the
customer
Step 4 Customize your enterprisersquos behavior
Ultimately to lock a customer into a relationship a company must adapt some aspect
of its behavior to meet customerrsquos individually expressed needs this might mean mass
customizing a manufactured product or it might involve tailoring some aspect of the
service surrounding the product
Chapter2
INDUSTRY OVERVIEW amp COMPANY OVERVIEW
21 Industry Overview
211 Industry Profile
A stockbroker is nothing but a registered and qualified working professional who buys
stocks and derivatives for other people The stockbroker thus performs all the
transactions for people on the stock exchange The stockbroker maintains information of
the people for whom he is buying or selling stocks This information includes name
address PAN no and other relevant information No transaction can take place in the
stock market with out a stockbroker
The stockbroker cannot give inputs advice to people buying or selling stocks unless he is
registered with the Securities and exchange board of India as a portfolio manager The
stockbroker takes a certain brokerage for the transactions he does for his clients on the
stock exchange The brokers are expected to issue contract notes to the clients after a
particular transaction has been done They are also expected to issue periodic reports to
their clients with respect to the transactions that have been done by them in that periodic
interval If you are looking to become a portfolio manager then there is a different policy
and procedure that you need to follow for it
Stockbrokers can be individual stockbrokers or form a company or an organization there
by making a brokerage All brokerages have to pay a certain sales tax for the transactions
that are done with the brokerage by other clients wither through selling or buying a
certain stock Thus any person who wants to buy or sell any stock with a particular stock
exchange has to do that with a particular stockbroker affiliated with that stock exchange4
Securities Markets is a place where buyers and sellers of securities can enter into
transactions to purchase and sell shares bonds debentures etc
Further it performs an important role of enabling corporate entrepreneurs to raise
resources for their companies and business ventures through public issues Transfer of
resources from those having idle resources (investors) to others who have a need for
them (corporate) is most efficiently achieved through the securities market Stated
4 Source- httpwwwstockbrokingcoinwhat-is-stockbrokinghtml
formally securities markets provide channels for reallocation of savings to investments
and entrepreneurship Savings are linked to investments by a variety of intermediaries
through a range of financial products called lsquoSecuritiesrsquo5
The Securities Contract (Regulation) Act 1956 [SCRA] defines lsquoStock Exchangersquo as any
body of individuals whether incorporated or not constituted for the purpose of assisting
regulating or controlling the business of buying selling or dealing in securities Stock
exchange could be a regional stock exchange whose area of operationjurisdiction is
specified at the time of its recognition or national exchanges which are permitted to have
nationwide trading since inception NSE was incorporated as a national stock exchange6
222 Industry Evolution
The history of stockbrokers can be traced back to the origins of the first stock exchange in
1602 at Amsterdam Even before that brokers are said to have existed in France dealing
with government securities The Amsterdam Stock Exchange was involved in buying and
selling of shares for the Dutch East India Company However the first real stock exchange
came up in Philadelphia in the United States during the late 18th century Later it was the
New York stock exchange which saw a rise in its popularity Wall Street as it was called
became the hub of brokerage activities Earlier stockbrokers were largely unorganized
but later most of them joined hands to form institutes and organizations Until the 1980rsquos
stock broking services were used only by the wealthy class who could afford them Later
with the advent of the Internet stock broking became very easy Thus the price tag on
stockbrokers lowered considerably and their services became available even to the
common man The stock broking duties are now mostly taken up by major organizations
with the smaller companies being absorbed by them In India too with increasing
globalization the major corporations are penetrating deeper into the society7
A Stockbroker is nothing but a person who buys and sells securities from the stock market
on behalf of other investors Stock broking began in the United States of America
Philadelphia was the first city in America to have a stock exchange After which New York
became the heart of all stock transactions and Wall Street became synonymous with
investing and trading
5 Source-httpwwwgascicomfaqhtm6 Source-httpwwwaumassociatecoinsharebazaraspx7 Source-httpwwwindiacomcomyellowpagecategory-gyanarticlesStock-BrokersStock-Broker-Introductionasp
Since the early part of the 1980s stock broking was allowed in America In addition in the
late part of 1990s stock broking went online and now there are several online stock
brokerages on the internet and hence online transactions happen in a jiffy these days A
stockbroker may also be a financial advisor or an investment consultant these days but in
India you need to be registered with the Securities and exchange board of India in order
to act as a financial advisor As the name suggests a stockbroker mainly deals in stocks
that is the shares of a company Other professionals such as foreign exchange brokers
deal with currencies where as commodity brokers deal with commodities
All stock market transactions that is buying or selling of shares have to take place through
a broker or a brokerage Even if you make online transactions you need to do it through
an online stockbroker For performing the transaction online stockbrokers charge a small
brokerage fee or commission fee for the transactions that they do for other companies or
retail investors The brokerages that a stockbroker may charge are different for various
brokerages as they might have a different business model for the same8
The history of stock broking in the United States parallels the growth of the nations
economy since colonial times The industry has tended to be cyclical in nature and has
survived several downturns including a major economic depression in the 1930s
Government regulations have been introduced at times in an effort to place controls on
what were viewed as harmful trading practices
Origin
The first stock brokerage house in the United States started in Philadelphia in 1800 While
the practice had been around since the early 1700s the Philadelphia Stock Exchange was
the first organized body that brought brokers together and served to codify the rules and
regulations under which business had been conducted The profession continued to
expand with the growth of corporations and the dawning of the Industrial Revolution
Crash
The first major negative event in the industry occurred when the stock market crashed in
1929 which was followed by the Great Depression The result of the crash was due to
8 Source- httpwwwstockbrokingcoinorigin-of-stockbrokinghtml
investors who had borrowed heavily to purchase stocks and began to realize that they
were hugely overvalued and attempted to sell them off resulting in a panic
Securities Act
In an effort to prevent the recurrence of the 1929 crash the Securities Act was
implemented in 1933 as a way to regulate the industry Eventually the stock market
began to rebound and continued a general pattern of steady growth over the next several
decades
Change
In the early 1970s the growth of technology led to reforms in the United States that
helped to reopen the markets to more liberalized trading In the late 1980s another crash
in the market occurred due to the dropping of prices of stock index futures Much like the
Great Depression this led to a mass selling of these securities causing the stock market to
plummet
Rebound
Stock broking again saw a boom as tighter regulations were put in place following the
1987 crash The markets reached new heights in the late 1990s The terrorist attacks of
September 11 2001 slowed the pattern of growth
Another Crash
In 2008 the largest single-day drop since 1987 occurred as the market lost $12 trillion of
its value on September 29 The drop occurred because of several factors including the
collapse of the mortgage industry and a worsening credit crisis The market has
rebounded only slightly as of mid-20099
223 Salient Features of the Industry in India
On the basis of geographical concentration the west region has the maximum
representation of 52 around 24 firms are located in the North 13 in the South and
10 in the East
9 Source-httpwwweHowcommabout_5208105_history-stockbrokinghtml
3 firms are started broking operations before 1950 65 between 1950-1995 and
32 Post1995
On the basis of terminals 40 are located at Mumbai 12 in Delhi 8 in
Ahmadabad 7 in Kolkata 4 in Chennai and 29 are from other cities
From the study we find that almost 36 firms trade in cash derivatives and
commodities
In the cash market around 34 firms trade at NSE 14 at BSE and 52 trade at
both exchanges In the derivative segment 48 trade at NSE 7 at BSE and 45 at both
whereas in the debt market 31 trade at NSE 26 at BSE and 43 at both Exchanges
Majority of branches are located in the North ie around 40 West has 31 24
are located in South and 5 in East
In terms of Sub brokers around 55 are located in the South 29 in West 11 in
North and 4 in East
Trading IPOs and Mutual funds are the top three products offered with 90 firms
offering trading 67 IPOs and 53 firms offering mutual fund transactions
In terms of various areas of growth 84 firms have expressed interest in
expanding their institutional clients 6 firms intend to increase FII clients and 43 are
interested in setting up JV in India and abroad
In terms of IT penetration 62 firms have provided their website and around 94
firms have E-mail facility10
224 Recent Trends
Equity brokerage industry in India is experiencing rapid growth and diversity Following
the wide range of stock market reforms in the early 2000rsquos brokerage industry underwent
major transformations from being engaged in only brokerage business to offering a wide
range of financial services A modern broking house in India may well be a corporate
entity that offers a wide range of products relies on research for advice uses modern
technology has large distribution network connecting the country provides investor
education and awareness and is compliance focused These developments have resulted
in a huge spurt in business as also growing market share of the large sized brokerage
houses that led to surge in enterprise value thus becoming objects of interest for global
investing In the recent period global and domestic private equity firms have taken stake
10 Source- httpwwwdnbcoinequitybrokingindustry20insightsasp
in brokerage firms such as Anand Rathi (Citigroup) Edelweiss (Lehman Brothers) Geojit
(BNP Paribas) SMC (Millennium India) Motilal Oswal (New Vernon) Marwari Shares
(India Capital Growth Fund) J R G Securities (Barings Pvt Equity) and Network Broking
(Amas Bank of Hindujas) India Infoline (Orient Global) etc Initial Public Offerings of large
firms in2007 such as Motilal Oswal Edelweiss and Religare received huge response from
the markets (over subscription going more than 100) and also high premiums Large
issues of these brokerage firms debuted in the stock exchange with premiums ranging
from 20 to 75 With the stock market momentum likely to continue broking firms
could look forward to scaling up their resource mobilization to fund growing operations
and expansion Brokerages mopping up huge resources from the market are not unusual
even in the emerging markets For instance Citic Securities a Chinese securities firm is
reported to have raised US $ 33 bn last year and other firms such as Haitong and Gold
state are planning to come out with IPOs of US $ 4-5 bn in 2008
In India about 45 equity brokerage houses are at present listed on the stock exchanges
that together reported Rs 35 bn of equity total income of Rs 47 bn and net profit of Rs 3
bn for the second quarter of FY08
Prospects and Outlook
Indian broking houses could look forward to a period of growth and consolidation Indiarsquos
economic growth and deepening of the financial system will present the broking firms
with numerous opportunities for growth and expansion Integration of the financial
markets will enhance the scope of their business and scalability Access to public equity
markets will enable them to raise resources to fund expansion and growths as pursue
useful business acquisitions Growing international investor interest in India will add
newer opportunities to scale up the business as also harmonsing with global standard and
practices Introduction of new products such as mini contracts in the derivatives and other
futures and options products will add new opportunities for creating new business
segments
While opportunities abound there is a great need for reform and restructuring of the
equity broking industry There are about 9000 brokers registered with SEBI but 80
percent of the turnover in NSE and BSE is accounted for by about 100 brokers
Consolidation thus becomes relevant to forge a stronger industry Similarly capital levels
too need to be strengthened The 45 odd listed broking firms in India together have a
meager Rs 35 bn of capital which is far less than what one top broking firm in China
could raise from the capital markets Better performance and practices will enable broking
firms to increase capital levels that will be essential for funding expansion
Investor education and awareness is another aspect broking industry should promote in
the long-term interest of the market As the product mix and risk matrix in financial
markets are continuously changing it becomes imperative for the intermediaries to
educate and create awareness in the clients that would be mutually beneficial Better
understanding of the financial products and associated risks by the investors will be in the
interest of the growth and stability of the markets
The Indian broking industry is coming of age It has enormous opportunities for growth
and diversity As markets expand and get globalised these firms will have increased
opportunity to cater to a large and diverse range of clientele with a wide mix of products
and services Expanding markets offer enhanced opportunities Those who are well
prepared will be in a better position to garner the benefits11
225 Performance Growth Scenario
Some of the major recent developments in the global securities markets have been
summarized below
Equalization
Equity markets have expanded significantly in a large number of countries across the
world The market capitalization of the worldrsquos leading stock exchanges rose from about
USD11 trillion in 1991 to USD35 trillion in 1999 to about USD51 trillion in 2006 The
growth of market capitalization is evident across regions Market capitalization in Asia
nearly doubled from USD68 trillion in 1999 to USD118 trillion in2006 where as in
America it grew from USD179 trillion to USD226 trillion and in EuropeAfricaMiddle
East it rose from USD102 trillion to USD161 trillion Market capitalization as a percent of
GDP witnessed steep growth in several countries during this period
Similarly trading volumes in stock exchanges too has shown rapid growth Value of share
trading in stock exchanges rose from about USD54 trillion in 1991 to USD33 trillion in
1999 to about USD70 trillion in 2006 During the period 1999 and 2006 value of share
trading in Asia Pacific rose from USD42 trillion to USD12 trillion in EuropeAfricaMiddle
11 Source- httpwwwdnbcoinequitybroking2008Emergingtrenasp
East from USD83 trillion to USD218 trillion and in Americas from USD20 trillion to USD35
trillion
Institutional investment
The rapid growth of stock markets in the world to a significant extent could be explained
by the surge in the institutional investors consisting of pension funds insurance
companies and mutual funds During the period 1995 and 2005 the assets under
management of the institutional investors doubled from USD21trillion to USD53 trillion A
large number of institutional investors are moving away from the home bias investing in
outside world Emerging markets with higher economic growth and rapidly growing
financial markets became major centers of destination for the investments of institutional
investors For instance in the US in 1994 pension funds invested 41 of their portfolio in
domestic equity and 7 in international equities where as by 2005 that share rose to 48
in domestic equities and 15 in international equities The portfolio allocation to bond
markets during the same period reduced from 42 to 32 Emerging markets received
sizeable portion of the investments In the US the dedicated emerging markets mutual
funds rose from about USD27 bn in2000 to USD 230 bn in 2006
International listings
On the back of the liberalization of cross border financial flows companies in several
countries are seeking listing in international exchanges to garner benefits from
international investors as also widen their investor base The number of foreign
companies listed in the London Stock Exchange rose from 387 in 1970 to 553 in 1990 to
636 in 2006 The number of foreign companies listed on the NYSE has also risen rapidly in
the 1990s There is a keen competition across the worldrsquos leading stock exchanges to
promote international listing and gain greater influence In the recent period the US
experienced a slowdown in the listing of foreign companies The decline is attributed to
stringent corporate governance norms that were applied following the corporate abuses
found in the beginning of the decade The US is now examining in greater detail measures
to gain the prominence once it enjoyed in the international listings The Alternative
Investment Market of London Stock Exchange attracted huge interest from SMEs from a
large number of countries
Emerging markets as an investment destination
Liberalization of capital flows led to surge in international investment into emerging
economies finding value on the back of huge prospects for growth The flow of net
Foreign Direct Investment (FDI) into developing countries increased from USD170 bn in
1998 to USD325 bn in 2006 and net portfolio equity flows increased from USD6 bn to
USD94 bn during the same period Net debt flows during this period are rather subdued
with net debt flows from official creditors turning negative Net portfolio equity flows to
China between the year 2000 and 2006 rose from USD69 bn to USD32 bn and in India
from USD23 bn to USD87 bn Other emerging markets such as Brazil Mexico South
Africa Thailand and Russia too showed surge in the net portfolio equity flows Emerging
markets showed significant growth in stock prices making them attractive investment
destinations though issues of valuations are beginning to become a concern now
Growing correlation of returns
Greater harmonization of stock markets in mature and emerging markets is in evidence by
the increasing correlation in market returns across different markets The higher
correlation in the stock price movements gained momentum in the late 1990s due to
growing foreign institutional investment in several markets and growth of the technology
sector that pervaded many markets and has driven stock price momentum in the late
1990s
Emerging markets in the new issuance market
Emerging markets also became very active in the new issuance market In 2006 all the ten
largest cross border new capital issues were from the emerging markets These ten issues
were from China Russia Mexico Thailand and Kazakhstan Of these ten issues four each
were listed in London and Hong Kong and only one in the US The value of the new listings
by emerging market companies in the US exchanges declined from USD29 bn in 2004 to
USD27 bn in 2006 where as that of London rose from USD07 bn to USD96 bn and in
Hong Kong from USD72 bn to USD304 bn Emerging markets in the first five months of
2007 have raised USD537 bn in global financial markets which is reported to be the
highest ever amount raised for a year Some of the leading issues during this period
include the USD8 bn IPO by VTB second largest Russian bank USD185 bn by Turkish
financial institution Halk bank and USD14 bn by a Russian real estate company AFI
Development Some of the largest issues from the emerging markets in the recent period
include USD219 bn issue of Chinarsquos ICBC Bank (Oct 2006) USD112 bn issue of Bank of
China (May 06) USD107 bn issue of Russian energy company Ros neft (Jul 06) USD59 bn
pubic issue of Chinarsquos Citic Bank
Alternative markets
In view of the limitations on listing of small and medium scale companies in the big boards
of the main exchanges several stock exchanges have developed alternative markets for
encouraging listing of small and midcap stocks Almost every major exchange has an
alternative platform for listing and trading of small and midcap stocks and new generation
companies without much listing history The market capitalization of the alternative
markets in the year 2006 has grown at an impressive rate of 30 More than 12000
companies are listed in these alternative markets and the value of share trading of these
for SMEs markets rose 15 in 2006 from USD802 bn to USD919 bn New capital (IPOs)
rose in the alternative markets rose 59 in 2006 from USD136 bn to USD216 bn
Growth of Derivatives
The growth of derivatives picked up on the need for risk transfer products The size of
global derivatives industry in 2006 USD370 trillion of notional value and USD10 trillion of
market value in the Over the Counter (OTC) derivative markets and USD84 trillion of
notional value and USD10 trillion market value in the Exchange traded derivative markets
According to the International Swaps and Derivatives Association more than 90 percent
of the global 500 corporations use derivatives for hedging risks in interest rates foreign
exchange and equities In the OTC markets derivative products accounting for large share
of market value include interest rate (785) and Foreign Exchange (114) where as in
the Exchange Traded segment derivative products on interest rate government debt and
equities form the major part of the volumes
Dark Pools and Private Markets
In the third week of May 2007 Goldman Sachs launched GSTrue which is a platform
developed to allow exclusive club of big investors to trade unregistered privately placed
securities which is considered to be a major challenge for the public equity capital
markets in the US Goldman Sachs in that deal helped underwrite the private sale of 15
of hedge fund manager Oak tree Capital Management for USD800 mn The investors in
this sale would be able to buy and sell Oak tree shares through the new Goldman Sachs
Tradable Unregistered Equity System which has its acronym GSTRue
Under the rules of the Securities and Exchange Commission of the US companies can sell
securities without registering them as long as the issues are limited to qualified
institutional buyers which are investors with at least USD100 mn of assets and there are
no more than 500 stockholders Private pools of capital are growing in size and
significance in international markets to overcome the costs and pressures from stringent
regulation According to an estimate of NASDAQ in 2006 companies in the US raised
USD162 bn of capital through unregistered private placements (also known as 144A
private placements) compared with USD154 bn through IPOs which are registered with
the regulator A group of worldrsquos largest banks are developing ldquoProject Turquoiserdquo which
is a hybrid share trading system that allows transactions both on exchange and outside it
(called as dark liquidity pools) where firms with large asset base can buy and sell large
blocks of shares away from the regulatory oversight
Private Equity
Private equity is growing in size and significance In view of the regulatory standards
prevalent in the public equity capital markets several firms seek the private equity option
to raise resources According to Dialogic the top 50 private equity firms raised USD551 bn
out of the USD800 bn estimated to have been raised by the total private equity since Jan
2002 Of the top 50 private equity firms more than 30 are from the US 11 from the UK
five from Western Europe and one from Asia Pacific Private equity is now involved in high
value deals and recent transactions include USD35 bn HCA buyout in the healthcare
industry and bids of USD39 bn and USD41 bn for Equity Office Property Trust a
commercial office real estate trust in the United Trust It is expected that the transaction
values of the private equity may go up to USD50-100 bn in the near future Private equity
market in India raised USD22 bn in 2005 about USD4 bn in 2006 and is expected to raise
about USD10 bn by 2010 according to a recent study
Hedge Funds
Hedge Funds emerged from the need of investors seeking alpha to earn an excess return
and beat the market and the returns from the conventional investments Alpha is a
common measure of assessing an active managerrsquos performance as it is the return in
excess of a benchmark index or ldquorisk-freerdquo investment The difference between the fair
and actually expected rates of return on a stock is called the stockrsquos alpha In view of rapid
growth of hedge funds and their complex nature of operations and lack of adequate
regulatory control these funds became a major concern of global financial regulation
Notwithstanding these concerns hedge funds continue to grow with the size of the
market growing from about USD30 bn in 1990 to more than USD14 trillion in 2005 and
the number of funds rising from about 530 to about 7000 during this period An
interesting development in the recent period is the growing institutional investment in the
hedge funds which is estimated at USD360 bn in 2005 and the rising allocations to these
funds that was evident in the US and XXVII the European markets The investor base of
the hedge funds consists of individualsfamilies fund of funds corporations and
institutions public and private pensions and endowments and foundations in that order
Investor Protection
With democratization of markets leading to greater participation of individuals and
investments and wide choices of asset classes now available issues of investor interest
and protection have assumed centre stage Following the corporate crises in the US that
adversely affected the investor interests extensive federal investigations were launched
that led to imposition of huge penalties and punitive damages leading to billions of
dollars Such actions were taken against a wide spectrum of global investment banks
brokerage firms and other related entities Simultaneously growth of litigation and class
action suits showed significant rise when the market intermediaries failed to meet their
obligations or did not provide all the material facts to the investors that were crucial for
an investment decision
Securities regulators imposed penalties on market participants who were found to have
indulged in market abuses In India disgorgement orders were passed on certain entities
that were found to making money by unfair means and for violating regulatory norms and
procedures Top institutional investors in several countries devised their own review
process for investing in countries and companies that brought into light greater need for
higher standards in corporate governance disclosure and transparency standards and in
some cases concern towards issues such as democracy and social equity environment
economic and political reforms
Surge in Chinese capital markets
A major change in the year 2007 is the sudden leap of China into big league of global stock
markets On 9 May 07 Shanghai Stock Exchange Chinarsquos top stock market recorded
turnover of USD332 bn and Shenzhen Stock Exchange a stock market for SMEs an
equally powerful USD158 bn taking the combined turnover of both these stock
exchanges on that day to USD495 bn In the first three months of the year 2007 value of
share trading in both these Chinese stock markets reached 89 of the whole turnover of
the year 2006 Value of share trading in Shanghai Stock Exchange rose from USD256 bn in
2003 to USD736 bn in 2006 and in the first three months of the year 2007 it already
recorded USD652 bn Market capitalization in China between Apr 2006 and 2007 rose by
almost 4 times pushing it to a position among the top 10 exchanges in the world and
value of share turnover rose 6 times making Shanghai 6 the biggest Main indexes of
Shanghai Stock Exchange and Shenzhen Stock Exchange posted returns of 194 and 204
respectively in the 12 months proceeding Apr 2007
Rise of smaller markets
The growth and momentum of the stock markets is spreading across a large number of
markets big and small Recent evidence of big surge in stock markets include countries in
the Middle East which witnessed exceptional growth in 20052006 China in 2007 and
several smaller European and Latin American countries in the last one year As
international investing is spreading its presence domestic financial institutions and
investors are finding stocks as an important asset class and stock markets all over the
world have experienced rapid growth in the last five years
Stock exchange consolidation
A big wave of stock exchange consolidation is taking place across the global financial
markets The most notable merger in the recent period is that of the New York Stock
Exchange with Archipelago that led to the demutualization of the former which
subsequently acquired Euro next to form NYSE Group that makes it a formidable force in
the North America and the Euro region Another American exchange NASDAQ after the
merger with Instinet announced plans to acquire OMX which is Europersquos leading
exchange as also provider of cutting edge technology solutions for stock exchanges
worldwide Deutsche Borsersquos recent acquisition of International Securities Exchange gives
the former a powerful position in the derivatives markets in Europe and America There
was also sizeable consolidation within the domestic securities markets in several countries
with the merger of equities and derivatives markets in countries such as Korea Malaysia
and Hong Kong In India the issue of appropriate solutions for the 20 odd stock exchanges
that currently lack proper liquidity is engaging the attention of policy and regulation
RECENT DEVELOPMENTS GOVERNING REGULATION OF STOCK MARKETS
Systematic and streamlined regulation is the key strength and sustainability of the
securities markets Though formal regulation of the securities markets is about 70 years
old some of the recent developments in the financial markets are reshaping the scope
and focus of the regulation These include ndash
There is growing harmonization of regulation across different markets Organizations
such as International Organization for Securities Commissions (IOSCO) are playing a very
important role in adoption of uniform principles and guidelines across the markets
The size and scope of the securities markets is rapidly changing from being one or
two product markets to multi product markets with diverse features and different
investor base
Markets have become more democratized with more people and institutions
participating in the market related activities
Rapid increase in the size of the institutional participation in the financial markets
For instance equity markets which in the past were retail investor driven are now
increasingly become institutional induced
Securities markets are transforming from being membership driven to public
corporation following demutualization and corporatization of stock exchanges in mature
and emerging markets
Two most important pieces of regulation that came into being in the recent period are in
the form of market structure reforms in the US known more popularly as regulation NMS
which underlines the promotion of competition across the markets under three major
principles best price open access and transparency Under the new trade-through role in
whichever market a customer placed his order it should be able to access the best price
that is immediately and automatically available anywhere in the national market system
The trade-through rule will not allow markets to ignore better-priced automated quotes
displayed by the competitors Similarly open access to displayed prices will be a major
feature governing the competition of the markets The regulation also stipulates that all
significant markets must display their quotations and trade reports should be available to
all interested parties on fair terms and non-discriminatory manner Another equally
important development is the Markets in Financial Industry Directive (MiFiD) that will
come into force from 1 Nov 2007 and stipulates wide-ranging norms for financial
institutions in the European Union Major features of the MiFiD include wider scope of
coverage of the financial institutions and the related business activities greater degree of
harmonization across the European markets and facilitate cross border business and
stipulated capital requirements
MiFiD is envisaged to bring major changes in the manner financial institutions in the
European Union will be monitored Simultaneous with stringent norms of regulation the
scope of regulation is considerably delegated to the markets and institutions in the form
of self-regulation Self-regulation brings a number of benefits to the business Institutions
such as National Association of Securities Dealers (NASD) have played an important role in
promoting self-regulation However self-regulation has certain limitations it needs to
overcome before it becomes widely accepted across the markets12
225 Top five companies of the industry
Many time new investor or trader gets confusion for open a D Mat and trading account in
broking House Many of broking House promises to you for better service but clients get
problem due to trading session in theirs Broker house firm Here is the list of Indiarsquos top 5
broking House on base of survey of investors and traders of many cities In their views
following Broking Houses gives best and reliable services13
1 ICICI directcom
ICICI Securities empowers over 2 million Indians to seamlessly access the capital market
with ICICIdirectcom an award winning and pioneering online broking platform The
platform not only offers convenient ways to invest in Equity Derivatives Currency
Futures Mutual Funds but also other services Fixed Deposits Loans Tax Services New
Pension Systems and Insurance are available ICICIdirectcom offers a convenient and easy
to use platform to invest in equity and various other financial products using its unique 3-
in-1 account which integrates customerrsquos saving trading and demat accounts
Apart from convenience ICICIdirectcom also offers access to comprehensive research
information stock picks and mutual fund recommendations among other offerings
Tailored services and trading strategies are available to different types of customers long
term investors day traders high-volume traders and derivatives traders to name some
ICICIdirectcom uses the most advanced commercially available 128-bit encryption
technology enabled Secure Socket Layer (SSL) to ensure that the information transmitted
between the client and ICICIdirectcom across the internet is safe and cannot be accessed
by any third party14
2 India Infoline
India Infoline Ltd (India Infoline) established in 1995 is the holding company of the
India Infoline Group It has membership in the cash and derivative segments of both 12 Source- httpwwwdnbcoinequitybrokingglobal20scenarioasp13 Source- Httpwwwindianstockmarketorgindias-top-10-stock-broking-house14 Source-httpwwwicicisecuritiescomOurBusinessSubSubReportID=10223ampshortCode=INST
the NSE and BSE India Infoline is also registered as a DP with NSDL and CDSL India
Infoline through its subsidiary India Infoline Commodities Limited also offers commodity-
trading services which is a registered member with DGCX since 2006 It also operates in
the currency futures market segment India Infoline offers a wide range of products
and services which include investment banking distribution of financial products
demat services private equity PMS institutional broking WMS insurance broking
among others In addition it also offers research services in areas of economy
derivative strategies mutual funds IPO credit policy and various others The company
has 15 domestic subsidiaries and five foreign subsidiaries The company has global
presence through its subsidiaries in New York Singapore and Dubai India Infoline caters
majorly to retail clients During CY09 the company added 303480 client accounts
Address 75 Nirlon Complex Off Western Express Highway Goregaon (East) Mumbai -
400063 Maharashtra
Telephone 91 22 42499000 Fax 91 22 26850451
Email mailindiainfolinecom Website wwwindiainfolinecom
Registration Number NSE - INBINF231097537 BSE - INBINF01109753315
3 Kotak Securities Ltd
Kotak Securities Ltd (Kotak Securities) is the stock-broking and distribution arm of the
Kotak Mahindra Group and a subsidiary of Kotak Mahindra Bank Kotak Securities was
established in 1994 It has memberships in the cash derivatives and currency futures
segments of NSE and BSE Kotak Securities is also a DP with NSDL and CDSL Apart from
stock broking the company is engaged in offering depository services asset management
margin financing PMS and distribution of financial products like IPOrsquos mutual funds and
insurance The company has a full-fledged research division which offers macro
economic sectoral research and company specific equity research Its domestic network
spans over 383 cities and 1048 offices Trading in equities and derivatives contributes to
major part of the companyrsquos revenue During CY09 Kotak Securities added around 62194
accounts of which around 27 are e-broking accounts The companyrsquos overseas
operations include one subsidiary and two associate firms operating in two foreign
locations
15 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndia+Infoline+Limited2Epdf
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF01113323016
4 Share Khan
Sharekhan Ltd (Sharekhan) is one a leading brokerage houses established in 2000
Sharekhan has membership in the cash and derivative segments of both BSE and NSE It
also operates in the debt and currency futures segment The company is registered as a
DP with CDSL and NSDL Besides trading the company also offers PMS demat services and
mutual funds Share khan provides a comprehensive set of research reports relating
to IPO and mutual funds Other value added facilities offered to clients include
online trading dial-n-trade share shops fundamental and technical research The
company serves large number of retail clients with a client network of more than 100000
clients which includes HNIrsquos corporate and other retail customers The company
through its subsidiary Share khan Commodities Ltd provides commodity-trading services
Address A - 206 Phoenix House 2nd Floor Senapati Bapat Marg Lower Parel
Mumbai - 400013 Maharashtra
Telephone 91 22 67482000 Fax 91 22 66104533
Email compliancelpsharekhancom Website wwwsharekhancom
Registration Number NSE - INBINF231073330 BSE - INBINF01107335117
5 Indiabulls
Indiabulls Securities Ltd (Indiabulls) part of Indiabulls Group was established in 1995 The
company is in the business of providing securities and advisory services It is a corporate
member of capital market wholesale debt market and derivative segments of NSE and of
capital market and derivative segments of BSE
Indiabulls also operates in currency futures and is a DP of CDSL and NSDL It provides a
wide range of products and services which include internet trading NRI trading demat
16 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CKotak+Securities+Limited2Epdf17 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CSharekhan+ Limited2Epdf
services margin financing and distribution of financial products like IPO online
mutual funds etc Power Indiabulls (PIB) is the advanced online trading platform offered
by the company Indiabulls also offers research services in the areas of economic equity
mutual fund IPO and others The company operates in commodity segment through its
subsidiary India bulls Commodities Pvt Ltd which is a member of MCX and NCDEX It
is listed on both NSE and BSE
Address F-60 Malhotra Building 2nd Floor Connaught Place New Delhi - 110001 Delhi
Telephone 91 11 41523700 Fax 91 11 41529071
Email helpdeskindiabullscom Website wwwindiabullscom
Registration Number NSE - INBINF230875632 BSE - INBINF01087563218
18 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndiabulls+Securities+Limited2Epdf
22 Company Overview
221 Overview of the Organizations
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited Uday Kotak Sidney A A Pinto and Kotak amp Company promoted this company Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and thats when the company changed its name to Kotak Mahindra Finance Limited Since then its been a steady and confident journey to growth and success
Kotak Securities Ltd is one of Indias largest brokerage and securities distribution house in India Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-ordinates Kotak Securities Ltd offers online (through wwwkotaksecuritiescom) and offline services based on well-researched expertise and financial products to the non-institutional investors Kotak Securities Limited is the world of Capital Markets where everything newsworthy exists only in the present moment and where knowing the importance of timing sentiments and strategic forecasting makes the difference between profit and loss Kotak Securities Limited a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25 - one of the worldrsquos leading investment banks and brokerage firms) is Indiarsquos leading stock broking house with a market share of 7 - 8
Kotak Securities Limited is one of the larger players in distribution of IPOs - it was ranked number One in 2003-04 as Book Running Lead Manager in public equity offerings by PRIME Database It has also won the ldquoBest Equity Houserdquo Award from Finance Asia -April 2004 The Company has a full-fledged Research division involved in macro economic studies Sectoral research and Company specific equity research combined with a strong and well Networked sales force which helps deliver current and up-to-date market information and news
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them Kotak securities provide portfolio Management Services catering to the high end of the market Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market with the backing of an expert Kotak Securities Limited manages assets over Rs 1700 crores through itrsquos Portfolio Management Services (PMS) servicing high net worth clients with a large
investible surplus through its preferred client services in the mass affluent and wealth management segments The company has a full-fledged research division involved in Macro Economic studies Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news
222 MARKET SHARE
Kotak Securities Ltd is Indiarsquos leading stock broking house with a market share of around
85 percent as of March 31 2006 It handles more IPOs than any other brokerage The
company has a full-fledged research division involved in macroeconomic studies sect oral
research and company-specific equity research combined with a strong and well-
networked sales force which helps deliver current market information and news
The firm has 195 branches servicing more than 2200000 customers across 231 cities
Kotaksecuritiescom the online division offers Internet brokerage services and also online
IPO and mutual fund investments Kotak Securities manages over 2500 crores of Assets
under Management (AUM)
223 AWARDS AND RECOGNIZATION
Kotak Securities Ltd 100 subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry The companyrsquos offerings include stock broking
through the branch and Internet Investments in IPO Mutual funds and Portfolio
management service Kotak Securities has a full-fledged research division involved in
Macro Economic studies Sect oral research and Company Specific Equity Research
combined with a strong and well-networked sales force which helps deliver current and
up to date market information and news Kotak Securitiesrsquo network spans over 321 cities
with 877 outlets with an employee workforce beyond 5100
The company is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can avail the companyrsquos brokerage services for executing the
transactions and the depository services for settling them Kotak Securities Ltd processes
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
ACKNOWLEDGEMENT
The last few days have been full of learning and sense of contribution towards the
organization I would like to thank Advent Institute of Management Science and
Technology for giving me an opportunity of learning and contributing through this project
I would like to thanks all the people who knowingly and unknowingly supported me in the
Endeavour
It is said the most important single word is ldquoWErdquo and the zero important single word is
ldquoIrdquo This true even in todayrsquos modern era It is absolutely impossible for a single individual
to complete the assigned job without help and assistance from others
It is my greatest pleasure to acknowledge sincere gratitude towards MR Rajan
Baya(Manager ) Kotak Securities ltd Udaipur for the Completion of the project work
I would also like to acknowledge to my sincere gratitude to our Principal Mrs Amita
Singhvi Mem and my project guide Miss Ankita Lakhani Mem for helping me in this project
work
I am thankful to all of my friends and batch mates for their help in completing this project
work Finally I am thankful to my entire family members for their great support
and encouragement
Mahendra Singh Rajput
BMS-IV SEMESTER
Executive Summary
This project has been a great experience for me and at the same time it gave me
enough scope to implement my analytical ability Stock Broking leading industry
which is my concern industry around which my project has to be revolved is really a
very complex industry The growth of any company whether it is working in stock
market or retail sector desire to capture a large share of the existing and future
market They need to create relationship with customer and maintain it for lifetime is
the success tools This project report on ldquocustomer relationship management at Kotak
Securities ltdrdquo is based on understanding customer relationship management that is
taking place at Kotak securities ltd Kotak being the market leader in PMS which is
having corpus 3200 crore out of 6200 crore total market corpus Kotak securities
limited are a subsidiary of Kotak Mahindra Bank Limited is one of largest private
brokerage and distribution house Set up in 1994 by Mr Uday Kotak Kotak securities
have 25 equity participation from Goldman Sachs Kotak securities have been the
largest in IPO distribution and were ranked no1 in the year 2003-2004 as book
running lead managers in I POrsquos by prime database The biggest management
challenge in the new millennium of liberalization and globalization for a business is to
serve and maintain good relationship with the king ndash the customer The objective of
the project ldquocustomer relationship management at Kotak Securities ltdrdquo was to find
out the strategies required for good customer relationship how to achieve customer
how we can handle customer problem how we can build customer loyalty how we
can increase customer satisfaction How we can reduce customers defection How we
can attract customer Such knowledge will assist managers to better understand and
segment their Markets and design appropriate marketing communication strategies
Table of Contents
S No
Index Page No
1 Chapter one
11 Evolution of CRM
12 In the beginning
13 Advances in the 1990rsquos
14 Introduction to CRM
1 5 Customer Relationship Management Techniques
16 Why- Customer Relationship Management
17 How to introduce CRM in the company
2 Chapter two
21 Industry Overview
Industry Profile
Industry Evolution
Salient Features of the Industry in India
Recent Trends
Performance Growth Scenario
Top five companies of the industry
22 COMPANY OVERVIEW
221 Overview of the organization
Brief history
Nature of the organization
Business volume
Number of employees
Product lines
Main office amp Branch Offices
Organizational Structure
3 Chapter three
31 Project Profile
4 Chapter four
40 Research Methodology
41 Research Design
42 Sampling Plan
43 Collection of Data
44 Data collection
45 Limitations
46 Questionnaire Design
5 Chapter Five
51 Data Analysis and Interpretations
52 Observation
53 Findings
54 Recommendation
55 Conclusion
56 Learning Outcome
7 Reference and Bibliography
8 Annexure
Chapter1
INTRODUCTION TO CRM
12 Evolution of CRM
Customer Relationship Management (CRM) is one of those magnificent concepts that swept the business world in the 1990rsquos with the promise of forever changing the way businesses small and large interacted with their customer bases In the short term however it proved to be an unwieldy process that was better in theory than in practice for a variety of reasons First among these was that it was simply so difficult and expensive to track and keep the high volume of records needed accurately and constantly update them In the last several years however newer software systems and advanced tracking features have vastly improved CRM capabilities and the real promise of CRM is becoming a reality As the price of newer more customizable Internet solutions have hit the market place competition has driven the prices down so that even relatively small businesses are reaping the benefits of some custom CRM programs
12 In the beginninghellip
The 1980rsquos saw the emergence of database marketing which was simply a catch phrase to define the practice of setting up customer service groups to speak individually to all of a companyrsquos customers In the case of larger key client sit was a valuable tool for keeping the lines of communication open and tailoring service to the clients needs In the case of smaller clients however it tended to provide repetitive survey-like information that cluttered databases and didnrsquot provide much insight As companies began tracking database information they realized that the bare bones were all that was needed in most cases what they buy regularly what they spend what they do
13 Advances in the 1990rsquos
In the 1990rsquos companies began to improve on Customer Relationship Management by making it more of a two-way street Instead of simply gathering data for their own use they began giving back to their customers not only in terms of the obvious goal of improved customer service but in incentives gifts and other perks for customer loyalty This was the beginning of the now familiar frequent flyer programs bonus points on credit cards and a host of other resources that are based on CRM tracking of customer activity and spending patterns CRM was now being used as a way to increase sales passively as well as through active improvement of customer service 1
1 Source- httpwwwcrm-software-guidecomhistory-of-crmhtm
14 Customer Relationship Management Introduction
The biggest management challenge in the new millennium of liberalization and globalization for a business is to serve and maintain good relationship with the king ndash the customer In the past producers took their customers for granted because at that time the customers were not demanding nor had alternative source of supply or suppliers But today there is a radical transformation The changing business environment is characterized by economic liberalization increasing competition high consumer choice demanding customer more emphasis on quality and value of purchase etc2
A CRM is a collection of people processes software and internet capabilities that helps an enterprise manage customer relationship effectively and systematically The goal of CRM is to understand and anticipate the needs of current and potential customer to increase customer retention and loyalty while optimizing the way product and services are sold
CRM stands for Customer Relationship Management It is a strategy used to learn more about customers needs and behaviors in order to develop stronger relationships with them After all good customer relationships are at the heart of business success There are many technological components to CRM but thinking about CRM in primarily technological terms is a mistake The more useful way to think about CRM is as a process that will help bring together lots of pieces of information about customers sales marketing effectiveness responsiveness and market trends3
The objective is to capture data about every contact a company a company has with a customer through every channel and store it in the CRM system to enable the company to truly understand customer action CRM software helps an organization build a database about its customer that management sales people customer service provider and even customer can access information to access customer needs with product and offering
All these changes have made todayrsquos producer shift from traditional marketing to modern marketing Modern marketing calls for more than developing a product pricing it promoting it and making it accessible to target customer It demands building trust a binding force and value added relationship with the customers
15 Customer Relationship Management CRM Techniques
The CRM is a new technique in marketing where the marketer tries to develop long-term relationship with the customers to develop them as lifetime customers CRM aims to make the customer climb up the ladder of loyalty
2 Source-httpwwwezinarticlescomEmerging-Trends-In-Customer-Relationship-Managementampid=10926073 Source-httpwwwscribddocumentswordpresscom20090917crm-project-report
The company first tries to determine that who are likely prospects ie the people who have a strong potential interest in the product and ability to pay for it The company hopes to convert many of its qualified prospect into first time customers and then to convert those first time customers into repeat customers Then the company tries to convert these repeat customers into clients ndash they are those people who buy only from the company in the relevant product categories The next challenge for the company is to convert this client into advocates Advocates are those clients who praise the company and encourage others to buy from it
The ultimate challenge is to convert these advocates into partners where the customers and the clients work actively together to discover ways of getting mutual benefit
Thus in CRM the key performance figure is not just current market share but share of lifetime value by converting customers into partners
In CRM the company tries to identify that small percentage (20) of key account holders whose contribution to the company revenues is high (80) So from this point of view CRM is also known as KEY ACCOUNT MANAGEMENT
16 Why ndash Customer Relationship Management
Satisfied customers in 10 years will bring100 more customers to the company It costs 7 times more to attract a new customer than to serve an old one 20 of the companyrsquos loyal customers account for 80 of its revenues (Paretorsquosprinciple) The chances of selling to an existing customer are 1 in 2 the chances of selling to a new customer are 1 in 16
Eight ways to keep customers for life
1 Every part of the companyrsquos marketing effort should be geared towards building lifetime relationships
2 People want to do business with friendly people To have effective relations a friendly attitude must permeate in the organization
3 Information technology developments should be positively used to serve the customers
4 The company should always be flexible to bend its rules and procedures in the clientrsquos favor
5 The company should communicate with its customers even when it is not trying to sell something
6 The company can communicate and develop stronger customer bonding by providing financial and social benefits
7 The company should try to know all its customers including their lifestyles hobbies likes or dislikes etc
8 The company should make it a point to deliver more than what is promised
17 How to introduce CRM in the company
There are four key steps for putting one tone marketing program to work ndash
Step 1 Identify your customers
To launch a one to one initiative the company must be able to locate and contact a fair
number of customers or at least a substantial portion of its valuable customers It is
crucial to know the customer details as much as possible not just their names or
address but their habits preferences and so forth
Step 2 Differentiating your customers
Customers are different in two principal ways they represent different levels of value
and have different needs Once the company identifies its customers differentiating
them will help the company to focus its efforts to gain the most advantage with the
most valuable customers
Step 3 Interacting with the customer
Interaction is also a crucial component of successful CRM initiative It is important to
remember that interaction just not occur through marketing and sales channels
customer interact in many different ways with many different areas of the organization
so to foster relationship all the areas of the organization must be accessible to the
customer
Step 4 Customize your enterprisersquos behavior
Ultimately to lock a customer into a relationship a company must adapt some aspect
of its behavior to meet customerrsquos individually expressed needs this might mean mass
customizing a manufactured product or it might involve tailoring some aspect of the
service surrounding the product
Chapter2
INDUSTRY OVERVIEW amp COMPANY OVERVIEW
21 Industry Overview
211 Industry Profile
A stockbroker is nothing but a registered and qualified working professional who buys
stocks and derivatives for other people The stockbroker thus performs all the
transactions for people on the stock exchange The stockbroker maintains information of
the people for whom he is buying or selling stocks This information includes name
address PAN no and other relevant information No transaction can take place in the
stock market with out a stockbroker
The stockbroker cannot give inputs advice to people buying or selling stocks unless he is
registered with the Securities and exchange board of India as a portfolio manager The
stockbroker takes a certain brokerage for the transactions he does for his clients on the
stock exchange The brokers are expected to issue contract notes to the clients after a
particular transaction has been done They are also expected to issue periodic reports to
their clients with respect to the transactions that have been done by them in that periodic
interval If you are looking to become a portfolio manager then there is a different policy
and procedure that you need to follow for it
Stockbrokers can be individual stockbrokers or form a company or an organization there
by making a brokerage All brokerages have to pay a certain sales tax for the transactions
that are done with the brokerage by other clients wither through selling or buying a
certain stock Thus any person who wants to buy or sell any stock with a particular stock
exchange has to do that with a particular stockbroker affiliated with that stock exchange4
Securities Markets is a place where buyers and sellers of securities can enter into
transactions to purchase and sell shares bonds debentures etc
Further it performs an important role of enabling corporate entrepreneurs to raise
resources for their companies and business ventures through public issues Transfer of
resources from those having idle resources (investors) to others who have a need for
them (corporate) is most efficiently achieved through the securities market Stated
4 Source- httpwwwstockbrokingcoinwhat-is-stockbrokinghtml
formally securities markets provide channels for reallocation of savings to investments
and entrepreneurship Savings are linked to investments by a variety of intermediaries
through a range of financial products called lsquoSecuritiesrsquo5
The Securities Contract (Regulation) Act 1956 [SCRA] defines lsquoStock Exchangersquo as any
body of individuals whether incorporated or not constituted for the purpose of assisting
regulating or controlling the business of buying selling or dealing in securities Stock
exchange could be a regional stock exchange whose area of operationjurisdiction is
specified at the time of its recognition or national exchanges which are permitted to have
nationwide trading since inception NSE was incorporated as a national stock exchange6
222 Industry Evolution
The history of stockbrokers can be traced back to the origins of the first stock exchange in
1602 at Amsterdam Even before that brokers are said to have existed in France dealing
with government securities The Amsterdam Stock Exchange was involved in buying and
selling of shares for the Dutch East India Company However the first real stock exchange
came up in Philadelphia in the United States during the late 18th century Later it was the
New York stock exchange which saw a rise in its popularity Wall Street as it was called
became the hub of brokerage activities Earlier stockbrokers were largely unorganized
but later most of them joined hands to form institutes and organizations Until the 1980rsquos
stock broking services were used only by the wealthy class who could afford them Later
with the advent of the Internet stock broking became very easy Thus the price tag on
stockbrokers lowered considerably and their services became available even to the
common man The stock broking duties are now mostly taken up by major organizations
with the smaller companies being absorbed by them In India too with increasing
globalization the major corporations are penetrating deeper into the society7
A Stockbroker is nothing but a person who buys and sells securities from the stock market
on behalf of other investors Stock broking began in the United States of America
Philadelphia was the first city in America to have a stock exchange After which New York
became the heart of all stock transactions and Wall Street became synonymous with
investing and trading
5 Source-httpwwwgascicomfaqhtm6 Source-httpwwwaumassociatecoinsharebazaraspx7 Source-httpwwwindiacomcomyellowpagecategory-gyanarticlesStock-BrokersStock-Broker-Introductionasp
Since the early part of the 1980s stock broking was allowed in America In addition in the
late part of 1990s stock broking went online and now there are several online stock
brokerages on the internet and hence online transactions happen in a jiffy these days A
stockbroker may also be a financial advisor or an investment consultant these days but in
India you need to be registered with the Securities and exchange board of India in order
to act as a financial advisor As the name suggests a stockbroker mainly deals in stocks
that is the shares of a company Other professionals such as foreign exchange brokers
deal with currencies where as commodity brokers deal with commodities
All stock market transactions that is buying or selling of shares have to take place through
a broker or a brokerage Even if you make online transactions you need to do it through
an online stockbroker For performing the transaction online stockbrokers charge a small
brokerage fee or commission fee for the transactions that they do for other companies or
retail investors The brokerages that a stockbroker may charge are different for various
brokerages as they might have a different business model for the same8
The history of stock broking in the United States parallels the growth of the nations
economy since colonial times The industry has tended to be cyclical in nature and has
survived several downturns including a major economic depression in the 1930s
Government regulations have been introduced at times in an effort to place controls on
what were viewed as harmful trading practices
Origin
The first stock brokerage house in the United States started in Philadelphia in 1800 While
the practice had been around since the early 1700s the Philadelphia Stock Exchange was
the first organized body that brought brokers together and served to codify the rules and
regulations under which business had been conducted The profession continued to
expand with the growth of corporations and the dawning of the Industrial Revolution
Crash
The first major negative event in the industry occurred when the stock market crashed in
1929 which was followed by the Great Depression The result of the crash was due to
8 Source- httpwwwstockbrokingcoinorigin-of-stockbrokinghtml
investors who had borrowed heavily to purchase stocks and began to realize that they
were hugely overvalued and attempted to sell them off resulting in a panic
Securities Act
In an effort to prevent the recurrence of the 1929 crash the Securities Act was
implemented in 1933 as a way to regulate the industry Eventually the stock market
began to rebound and continued a general pattern of steady growth over the next several
decades
Change
In the early 1970s the growth of technology led to reforms in the United States that
helped to reopen the markets to more liberalized trading In the late 1980s another crash
in the market occurred due to the dropping of prices of stock index futures Much like the
Great Depression this led to a mass selling of these securities causing the stock market to
plummet
Rebound
Stock broking again saw a boom as tighter regulations were put in place following the
1987 crash The markets reached new heights in the late 1990s The terrorist attacks of
September 11 2001 slowed the pattern of growth
Another Crash
In 2008 the largest single-day drop since 1987 occurred as the market lost $12 trillion of
its value on September 29 The drop occurred because of several factors including the
collapse of the mortgage industry and a worsening credit crisis The market has
rebounded only slightly as of mid-20099
223 Salient Features of the Industry in India
On the basis of geographical concentration the west region has the maximum
representation of 52 around 24 firms are located in the North 13 in the South and
10 in the East
9 Source-httpwwweHowcommabout_5208105_history-stockbrokinghtml
3 firms are started broking operations before 1950 65 between 1950-1995 and
32 Post1995
On the basis of terminals 40 are located at Mumbai 12 in Delhi 8 in
Ahmadabad 7 in Kolkata 4 in Chennai and 29 are from other cities
From the study we find that almost 36 firms trade in cash derivatives and
commodities
In the cash market around 34 firms trade at NSE 14 at BSE and 52 trade at
both exchanges In the derivative segment 48 trade at NSE 7 at BSE and 45 at both
whereas in the debt market 31 trade at NSE 26 at BSE and 43 at both Exchanges
Majority of branches are located in the North ie around 40 West has 31 24
are located in South and 5 in East
In terms of Sub brokers around 55 are located in the South 29 in West 11 in
North and 4 in East
Trading IPOs and Mutual funds are the top three products offered with 90 firms
offering trading 67 IPOs and 53 firms offering mutual fund transactions
In terms of various areas of growth 84 firms have expressed interest in
expanding their institutional clients 6 firms intend to increase FII clients and 43 are
interested in setting up JV in India and abroad
In terms of IT penetration 62 firms have provided their website and around 94
firms have E-mail facility10
224 Recent Trends
Equity brokerage industry in India is experiencing rapid growth and diversity Following
the wide range of stock market reforms in the early 2000rsquos brokerage industry underwent
major transformations from being engaged in only brokerage business to offering a wide
range of financial services A modern broking house in India may well be a corporate
entity that offers a wide range of products relies on research for advice uses modern
technology has large distribution network connecting the country provides investor
education and awareness and is compliance focused These developments have resulted
in a huge spurt in business as also growing market share of the large sized brokerage
houses that led to surge in enterprise value thus becoming objects of interest for global
investing In the recent period global and domestic private equity firms have taken stake
10 Source- httpwwwdnbcoinequitybrokingindustry20insightsasp
in brokerage firms such as Anand Rathi (Citigroup) Edelweiss (Lehman Brothers) Geojit
(BNP Paribas) SMC (Millennium India) Motilal Oswal (New Vernon) Marwari Shares
(India Capital Growth Fund) J R G Securities (Barings Pvt Equity) and Network Broking
(Amas Bank of Hindujas) India Infoline (Orient Global) etc Initial Public Offerings of large
firms in2007 such as Motilal Oswal Edelweiss and Religare received huge response from
the markets (over subscription going more than 100) and also high premiums Large
issues of these brokerage firms debuted in the stock exchange with premiums ranging
from 20 to 75 With the stock market momentum likely to continue broking firms
could look forward to scaling up their resource mobilization to fund growing operations
and expansion Brokerages mopping up huge resources from the market are not unusual
even in the emerging markets For instance Citic Securities a Chinese securities firm is
reported to have raised US $ 33 bn last year and other firms such as Haitong and Gold
state are planning to come out with IPOs of US $ 4-5 bn in 2008
In India about 45 equity brokerage houses are at present listed on the stock exchanges
that together reported Rs 35 bn of equity total income of Rs 47 bn and net profit of Rs 3
bn for the second quarter of FY08
Prospects and Outlook
Indian broking houses could look forward to a period of growth and consolidation Indiarsquos
economic growth and deepening of the financial system will present the broking firms
with numerous opportunities for growth and expansion Integration of the financial
markets will enhance the scope of their business and scalability Access to public equity
markets will enable them to raise resources to fund expansion and growths as pursue
useful business acquisitions Growing international investor interest in India will add
newer opportunities to scale up the business as also harmonsing with global standard and
practices Introduction of new products such as mini contracts in the derivatives and other
futures and options products will add new opportunities for creating new business
segments
While opportunities abound there is a great need for reform and restructuring of the
equity broking industry There are about 9000 brokers registered with SEBI but 80
percent of the turnover in NSE and BSE is accounted for by about 100 brokers
Consolidation thus becomes relevant to forge a stronger industry Similarly capital levels
too need to be strengthened The 45 odd listed broking firms in India together have a
meager Rs 35 bn of capital which is far less than what one top broking firm in China
could raise from the capital markets Better performance and practices will enable broking
firms to increase capital levels that will be essential for funding expansion
Investor education and awareness is another aspect broking industry should promote in
the long-term interest of the market As the product mix and risk matrix in financial
markets are continuously changing it becomes imperative for the intermediaries to
educate and create awareness in the clients that would be mutually beneficial Better
understanding of the financial products and associated risks by the investors will be in the
interest of the growth and stability of the markets
The Indian broking industry is coming of age It has enormous opportunities for growth
and diversity As markets expand and get globalised these firms will have increased
opportunity to cater to a large and diverse range of clientele with a wide mix of products
and services Expanding markets offer enhanced opportunities Those who are well
prepared will be in a better position to garner the benefits11
225 Performance Growth Scenario
Some of the major recent developments in the global securities markets have been
summarized below
Equalization
Equity markets have expanded significantly in a large number of countries across the
world The market capitalization of the worldrsquos leading stock exchanges rose from about
USD11 trillion in 1991 to USD35 trillion in 1999 to about USD51 trillion in 2006 The
growth of market capitalization is evident across regions Market capitalization in Asia
nearly doubled from USD68 trillion in 1999 to USD118 trillion in2006 where as in
America it grew from USD179 trillion to USD226 trillion and in EuropeAfricaMiddle
East it rose from USD102 trillion to USD161 trillion Market capitalization as a percent of
GDP witnessed steep growth in several countries during this period
Similarly trading volumes in stock exchanges too has shown rapid growth Value of share
trading in stock exchanges rose from about USD54 trillion in 1991 to USD33 trillion in
1999 to about USD70 trillion in 2006 During the period 1999 and 2006 value of share
trading in Asia Pacific rose from USD42 trillion to USD12 trillion in EuropeAfricaMiddle
11 Source- httpwwwdnbcoinequitybroking2008Emergingtrenasp
East from USD83 trillion to USD218 trillion and in Americas from USD20 trillion to USD35
trillion
Institutional investment
The rapid growth of stock markets in the world to a significant extent could be explained
by the surge in the institutional investors consisting of pension funds insurance
companies and mutual funds During the period 1995 and 2005 the assets under
management of the institutional investors doubled from USD21trillion to USD53 trillion A
large number of institutional investors are moving away from the home bias investing in
outside world Emerging markets with higher economic growth and rapidly growing
financial markets became major centers of destination for the investments of institutional
investors For instance in the US in 1994 pension funds invested 41 of their portfolio in
domestic equity and 7 in international equities where as by 2005 that share rose to 48
in domestic equities and 15 in international equities The portfolio allocation to bond
markets during the same period reduced from 42 to 32 Emerging markets received
sizeable portion of the investments In the US the dedicated emerging markets mutual
funds rose from about USD27 bn in2000 to USD 230 bn in 2006
International listings
On the back of the liberalization of cross border financial flows companies in several
countries are seeking listing in international exchanges to garner benefits from
international investors as also widen their investor base The number of foreign
companies listed in the London Stock Exchange rose from 387 in 1970 to 553 in 1990 to
636 in 2006 The number of foreign companies listed on the NYSE has also risen rapidly in
the 1990s There is a keen competition across the worldrsquos leading stock exchanges to
promote international listing and gain greater influence In the recent period the US
experienced a slowdown in the listing of foreign companies The decline is attributed to
stringent corporate governance norms that were applied following the corporate abuses
found in the beginning of the decade The US is now examining in greater detail measures
to gain the prominence once it enjoyed in the international listings The Alternative
Investment Market of London Stock Exchange attracted huge interest from SMEs from a
large number of countries
Emerging markets as an investment destination
Liberalization of capital flows led to surge in international investment into emerging
economies finding value on the back of huge prospects for growth The flow of net
Foreign Direct Investment (FDI) into developing countries increased from USD170 bn in
1998 to USD325 bn in 2006 and net portfolio equity flows increased from USD6 bn to
USD94 bn during the same period Net debt flows during this period are rather subdued
with net debt flows from official creditors turning negative Net portfolio equity flows to
China between the year 2000 and 2006 rose from USD69 bn to USD32 bn and in India
from USD23 bn to USD87 bn Other emerging markets such as Brazil Mexico South
Africa Thailand and Russia too showed surge in the net portfolio equity flows Emerging
markets showed significant growth in stock prices making them attractive investment
destinations though issues of valuations are beginning to become a concern now
Growing correlation of returns
Greater harmonization of stock markets in mature and emerging markets is in evidence by
the increasing correlation in market returns across different markets The higher
correlation in the stock price movements gained momentum in the late 1990s due to
growing foreign institutional investment in several markets and growth of the technology
sector that pervaded many markets and has driven stock price momentum in the late
1990s
Emerging markets in the new issuance market
Emerging markets also became very active in the new issuance market In 2006 all the ten
largest cross border new capital issues were from the emerging markets These ten issues
were from China Russia Mexico Thailand and Kazakhstan Of these ten issues four each
were listed in London and Hong Kong and only one in the US The value of the new listings
by emerging market companies in the US exchanges declined from USD29 bn in 2004 to
USD27 bn in 2006 where as that of London rose from USD07 bn to USD96 bn and in
Hong Kong from USD72 bn to USD304 bn Emerging markets in the first five months of
2007 have raised USD537 bn in global financial markets which is reported to be the
highest ever amount raised for a year Some of the leading issues during this period
include the USD8 bn IPO by VTB second largest Russian bank USD185 bn by Turkish
financial institution Halk bank and USD14 bn by a Russian real estate company AFI
Development Some of the largest issues from the emerging markets in the recent period
include USD219 bn issue of Chinarsquos ICBC Bank (Oct 2006) USD112 bn issue of Bank of
China (May 06) USD107 bn issue of Russian energy company Ros neft (Jul 06) USD59 bn
pubic issue of Chinarsquos Citic Bank
Alternative markets
In view of the limitations on listing of small and medium scale companies in the big boards
of the main exchanges several stock exchanges have developed alternative markets for
encouraging listing of small and midcap stocks Almost every major exchange has an
alternative platform for listing and trading of small and midcap stocks and new generation
companies without much listing history The market capitalization of the alternative
markets in the year 2006 has grown at an impressive rate of 30 More than 12000
companies are listed in these alternative markets and the value of share trading of these
for SMEs markets rose 15 in 2006 from USD802 bn to USD919 bn New capital (IPOs)
rose in the alternative markets rose 59 in 2006 from USD136 bn to USD216 bn
Growth of Derivatives
The growth of derivatives picked up on the need for risk transfer products The size of
global derivatives industry in 2006 USD370 trillion of notional value and USD10 trillion of
market value in the Over the Counter (OTC) derivative markets and USD84 trillion of
notional value and USD10 trillion market value in the Exchange traded derivative markets
According to the International Swaps and Derivatives Association more than 90 percent
of the global 500 corporations use derivatives for hedging risks in interest rates foreign
exchange and equities In the OTC markets derivative products accounting for large share
of market value include interest rate (785) and Foreign Exchange (114) where as in
the Exchange Traded segment derivative products on interest rate government debt and
equities form the major part of the volumes
Dark Pools and Private Markets
In the third week of May 2007 Goldman Sachs launched GSTrue which is a platform
developed to allow exclusive club of big investors to trade unregistered privately placed
securities which is considered to be a major challenge for the public equity capital
markets in the US Goldman Sachs in that deal helped underwrite the private sale of 15
of hedge fund manager Oak tree Capital Management for USD800 mn The investors in
this sale would be able to buy and sell Oak tree shares through the new Goldman Sachs
Tradable Unregistered Equity System which has its acronym GSTRue
Under the rules of the Securities and Exchange Commission of the US companies can sell
securities without registering them as long as the issues are limited to qualified
institutional buyers which are investors with at least USD100 mn of assets and there are
no more than 500 stockholders Private pools of capital are growing in size and
significance in international markets to overcome the costs and pressures from stringent
regulation According to an estimate of NASDAQ in 2006 companies in the US raised
USD162 bn of capital through unregistered private placements (also known as 144A
private placements) compared with USD154 bn through IPOs which are registered with
the regulator A group of worldrsquos largest banks are developing ldquoProject Turquoiserdquo which
is a hybrid share trading system that allows transactions both on exchange and outside it
(called as dark liquidity pools) where firms with large asset base can buy and sell large
blocks of shares away from the regulatory oversight
Private Equity
Private equity is growing in size and significance In view of the regulatory standards
prevalent in the public equity capital markets several firms seek the private equity option
to raise resources According to Dialogic the top 50 private equity firms raised USD551 bn
out of the USD800 bn estimated to have been raised by the total private equity since Jan
2002 Of the top 50 private equity firms more than 30 are from the US 11 from the UK
five from Western Europe and one from Asia Pacific Private equity is now involved in high
value deals and recent transactions include USD35 bn HCA buyout in the healthcare
industry and bids of USD39 bn and USD41 bn for Equity Office Property Trust a
commercial office real estate trust in the United Trust It is expected that the transaction
values of the private equity may go up to USD50-100 bn in the near future Private equity
market in India raised USD22 bn in 2005 about USD4 bn in 2006 and is expected to raise
about USD10 bn by 2010 according to a recent study
Hedge Funds
Hedge Funds emerged from the need of investors seeking alpha to earn an excess return
and beat the market and the returns from the conventional investments Alpha is a
common measure of assessing an active managerrsquos performance as it is the return in
excess of a benchmark index or ldquorisk-freerdquo investment The difference between the fair
and actually expected rates of return on a stock is called the stockrsquos alpha In view of rapid
growth of hedge funds and their complex nature of operations and lack of adequate
regulatory control these funds became a major concern of global financial regulation
Notwithstanding these concerns hedge funds continue to grow with the size of the
market growing from about USD30 bn in 1990 to more than USD14 trillion in 2005 and
the number of funds rising from about 530 to about 7000 during this period An
interesting development in the recent period is the growing institutional investment in the
hedge funds which is estimated at USD360 bn in 2005 and the rising allocations to these
funds that was evident in the US and XXVII the European markets The investor base of
the hedge funds consists of individualsfamilies fund of funds corporations and
institutions public and private pensions and endowments and foundations in that order
Investor Protection
With democratization of markets leading to greater participation of individuals and
investments and wide choices of asset classes now available issues of investor interest
and protection have assumed centre stage Following the corporate crises in the US that
adversely affected the investor interests extensive federal investigations were launched
that led to imposition of huge penalties and punitive damages leading to billions of
dollars Such actions were taken against a wide spectrum of global investment banks
brokerage firms and other related entities Simultaneously growth of litigation and class
action suits showed significant rise when the market intermediaries failed to meet their
obligations or did not provide all the material facts to the investors that were crucial for
an investment decision
Securities regulators imposed penalties on market participants who were found to have
indulged in market abuses In India disgorgement orders were passed on certain entities
that were found to making money by unfair means and for violating regulatory norms and
procedures Top institutional investors in several countries devised their own review
process for investing in countries and companies that brought into light greater need for
higher standards in corporate governance disclosure and transparency standards and in
some cases concern towards issues such as democracy and social equity environment
economic and political reforms
Surge in Chinese capital markets
A major change in the year 2007 is the sudden leap of China into big league of global stock
markets On 9 May 07 Shanghai Stock Exchange Chinarsquos top stock market recorded
turnover of USD332 bn and Shenzhen Stock Exchange a stock market for SMEs an
equally powerful USD158 bn taking the combined turnover of both these stock
exchanges on that day to USD495 bn In the first three months of the year 2007 value of
share trading in both these Chinese stock markets reached 89 of the whole turnover of
the year 2006 Value of share trading in Shanghai Stock Exchange rose from USD256 bn in
2003 to USD736 bn in 2006 and in the first three months of the year 2007 it already
recorded USD652 bn Market capitalization in China between Apr 2006 and 2007 rose by
almost 4 times pushing it to a position among the top 10 exchanges in the world and
value of share turnover rose 6 times making Shanghai 6 the biggest Main indexes of
Shanghai Stock Exchange and Shenzhen Stock Exchange posted returns of 194 and 204
respectively in the 12 months proceeding Apr 2007
Rise of smaller markets
The growth and momentum of the stock markets is spreading across a large number of
markets big and small Recent evidence of big surge in stock markets include countries in
the Middle East which witnessed exceptional growth in 20052006 China in 2007 and
several smaller European and Latin American countries in the last one year As
international investing is spreading its presence domestic financial institutions and
investors are finding stocks as an important asset class and stock markets all over the
world have experienced rapid growth in the last five years
Stock exchange consolidation
A big wave of stock exchange consolidation is taking place across the global financial
markets The most notable merger in the recent period is that of the New York Stock
Exchange with Archipelago that led to the demutualization of the former which
subsequently acquired Euro next to form NYSE Group that makes it a formidable force in
the North America and the Euro region Another American exchange NASDAQ after the
merger with Instinet announced plans to acquire OMX which is Europersquos leading
exchange as also provider of cutting edge technology solutions for stock exchanges
worldwide Deutsche Borsersquos recent acquisition of International Securities Exchange gives
the former a powerful position in the derivatives markets in Europe and America There
was also sizeable consolidation within the domestic securities markets in several countries
with the merger of equities and derivatives markets in countries such as Korea Malaysia
and Hong Kong In India the issue of appropriate solutions for the 20 odd stock exchanges
that currently lack proper liquidity is engaging the attention of policy and regulation
RECENT DEVELOPMENTS GOVERNING REGULATION OF STOCK MARKETS
Systematic and streamlined regulation is the key strength and sustainability of the
securities markets Though formal regulation of the securities markets is about 70 years
old some of the recent developments in the financial markets are reshaping the scope
and focus of the regulation These include ndash
There is growing harmonization of regulation across different markets Organizations
such as International Organization for Securities Commissions (IOSCO) are playing a very
important role in adoption of uniform principles and guidelines across the markets
The size and scope of the securities markets is rapidly changing from being one or
two product markets to multi product markets with diverse features and different
investor base
Markets have become more democratized with more people and institutions
participating in the market related activities
Rapid increase in the size of the institutional participation in the financial markets
For instance equity markets which in the past were retail investor driven are now
increasingly become institutional induced
Securities markets are transforming from being membership driven to public
corporation following demutualization and corporatization of stock exchanges in mature
and emerging markets
Two most important pieces of regulation that came into being in the recent period are in
the form of market structure reforms in the US known more popularly as regulation NMS
which underlines the promotion of competition across the markets under three major
principles best price open access and transparency Under the new trade-through role in
whichever market a customer placed his order it should be able to access the best price
that is immediately and automatically available anywhere in the national market system
The trade-through rule will not allow markets to ignore better-priced automated quotes
displayed by the competitors Similarly open access to displayed prices will be a major
feature governing the competition of the markets The regulation also stipulates that all
significant markets must display their quotations and trade reports should be available to
all interested parties on fair terms and non-discriminatory manner Another equally
important development is the Markets in Financial Industry Directive (MiFiD) that will
come into force from 1 Nov 2007 and stipulates wide-ranging norms for financial
institutions in the European Union Major features of the MiFiD include wider scope of
coverage of the financial institutions and the related business activities greater degree of
harmonization across the European markets and facilitate cross border business and
stipulated capital requirements
MiFiD is envisaged to bring major changes in the manner financial institutions in the
European Union will be monitored Simultaneous with stringent norms of regulation the
scope of regulation is considerably delegated to the markets and institutions in the form
of self-regulation Self-regulation brings a number of benefits to the business Institutions
such as National Association of Securities Dealers (NASD) have played an important role in
promoting self-regulation However self-regulation has certain limitations it needs to
overcome before it becomes widely accepted across the markets12
225 Top five companies of the industry
Many time new investor or trader gets confusion for open a D Mat and trading account in
broking House Many of broking House promises to you for better service but clients get
problem due to trading session in theirs Broker house firm Here is the list of Indiarsquos top 5
broking House on base of survey of investors and traders of many cities In their views
following Broking Houses gives best and reliable services13
1 ICICI directcom
ICICI Securities empowers over 2 million Indians to seamlessly access the capital market
with ICICIdirectcom an award winning and pioneering online broking platform The
platform not only offers convenient ways to invest in Equity Derivatives Currency
Futures Mutual Funds but also other services Fixed Deposits Loans Tax Services New
Pension Systems and Insurance are available ICICIdirectcom offers a convenient and easy
to use platform to invest in equity and various other financial products using its unique 3-
in-1 account which integrates customerrsquos saving trading and demat accounts
Apart from convenience ICICIdirectcom also offers access to comprehensive research
information stock picks and mutual fund recommendations among other offerings
Tailored services and trading strategies are available to different types of customers long
term investors day traders high-volume traders and derivatives traders to name some
ICICIdirectcom uses the most advanced commercially available 128-bit encryption
technology enabled Secure Socket Layer (SSL) to ensure that the information transmitted
between the client and ICICIdirectcom across the internet is safe and cannot be accessed
by any third party14
2 India Infoline
India Infoline Ltd (India Infoline) established in 1995 is the holding company of the
India Infoline Group It has membership in the cash and derivative segments of both 12 Source- httpwwwdnbcoinequitybrokingglobal20scenarioasp13 Source- Httpwwwindianstockmarketorgindias-top-10-stock-broking-house14 Source-httpwwwicicisecuritiescomOurBusinessSubSubReportID=10223ampshortCode=INST
the NSE and BSE India Infoline is also registered as a DP with NSDL and CDSL India
Infoline through its subsidiary India Infoline Commodities Limited also offers commodity-
trading services which is a registered member with DGCX since 2006 It also operates in
the currency futures market segment India Infoline offers a wide range of products
and services which include investment banking distribution of financial products
demat services private equity PMS institutional broking WMS insurance broking
among others In addition it also offers research services in areas of economy
derivative strategies mutual funds IPO credit policy and various others The company
has 15 domestic subsidiaries and five foreign subsidiaries The company has global
presence through its subsidiaries in New York Singapore and Dubai India Infoline caters
majorly to retail clients During CY09 the company added 303480 client accounts
Address 75 Nirlon Complex Off Western Express Highway Goregaon (East) Mumbai -
400063 Maharashtra
Telephone 91 22 42499000 Fax 91 22 26850451
Email mailindiainfolinecom Website wwwindiainfolinecom
Registration Number NSE - INBINF231097537 BSE - INBINF01109753315
3 Kotak Securities Ltd
Kotak Securities Ltd (Kotak Securities) is the stock-broking and distribution arm of the
Kotak Mahindra Group and a subsidiary of Kotak Mahindra Bank Kotak Securities was
established in 1994 It has memberships in the cash derivatives and currency futures
segments of NSE and BSE Kotak Securities is also a DP with NSDL and CDSL Apart from
stock broking the company is engaged in offering depository services asset management
margin financing PMS and distribution of financial products like IPOrsquos mutual funds and
insurance The company has a full-fledged research division which offers macro
economic sectoral research and company specific equity research Its domestic network
spans over 383 cities and 1048 offices Trading in equities and derivatives contributes to
major part of the companyrsquos revenue During CY09 Kotak Securities added around 62194
accounts of which around 27 are e-broking accounts The companyrsquos overseas
operations include one subsidiary and two associate firms operating in two foreign
locations
15 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndia+Infoline+Limited2Epdf
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF01113323016
4 Share Khan
Sharekhan Ltd (Sharekhan) is one a leading brokerage houses established in 2000
Sharekhan has membership in the cash and derivative segments of both BSE and NSE It
also operates in the debt and currency futures segment The company is registered as a
DP with CDSL and NSDL Besides trading the company also offers PMS demat services and
mutual funds Share khan provides a comprehensive set of research reports relating
to IPO and mutual funds Other value added facilities offered to clients include
online trading dial-n-trade share shops fundamental and technical research The
company serves large number of retail clients with a client network of more than 100000
clients which includes HNIrsquos corporate and other retail customers The company
through its subsidiary Share khan Commodities Ltd provides commodity-trading services
Address A - 206 Phoenix House 2nd Floor Senapati Bapat Marg Lower Parel
Mumbai - 400013 Maharashtra
Telephone 91 22 67482000 Fax 91 22 66104533
Email compliancelpsharekhancom Website wwwsharekhancom
Registration Number NSE - INBINF231073330 BSE - INBINF01107335117
5 Indiabulls
Indiabulls Securities Ltd (Indiabulls) part of Indiabulls Group was established in 1995 The
company is in the business of providing securities and advisory services It is a corporate
member of capital market wholesale debt market and derivative segments of NSE and of
capital market and derivative segments of BSE
Indiabulls also operates in currency futures and is a DP of CDSL and NSDL It provides a
wide range of products and services which include internet trading NRI trading demat
16 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CKotak+Securities+Limited2Epdf17 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CSharekhan+ Limited2Epdf
services margin financing and distribution of financial products like IPO online
mutual funds etc Power Indiabulls (PIB) is the advanced online trading platform offered
by the company Indiabulls also offers research services in the areas of economic equity
mutual fund IPO and others The company operates in commodity segment through its
subsidiary India bulls Commodities Pvt Ltd which is a member of MCX and NCDEX It
is listed on both NSE and BSE
Address F-60 Malhotra Building 2nd Floor Connaught Place New Delhi - 110001 Delhi
Telephone 91 11 41523700 Fax 91 11 41529071
Email helpdeskindiabullscom Website wwwindiabullscom
Registration Number NSE - INBINF230875632 BSE - INBINF01087563218
18 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndiabulls+Securities+Limited2Epdf
22 Company Overview
221 Overview of the Organizations
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited Uday Kotak Sidney A A Pinto and Kotak amp Company promoted this company Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and thats when the company changed its name to Kotak Mahindra Finance Limited Since then its been a steady and confident journey to growth and success
Kotak Securities Ltd is one of Indias largest brokerage and securities distribution house in India Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-ordinates Kotak Securities Ltd offers online (through wwwkotaksecuritiescom) and offline services based on well-researched expertise and financial products to the non-institutional investors Kotak Securities Limited is the world of Capital Markets where everything newsworthy exists only in the present moment and where knowing the importance of timing sentiments and strategic forecasting makes the difference between profit and loss Kotak Securities Limited a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25 - one of the worldrsquos leading investment banks and brokerage firms) is Indiarsquos leading stock broking house with a market share of 7 - 8
Kotak Securities Limited is one of the larger players in distribution of IPOs - it was ranked number One in 2003-04 as Book Running Lead Manager in public equity offerings by PRIME Database It has also won the ldquoBest Equity Houserdquo Award from Finance Asia -April 2004 The Company has a full-fledged Research division involved in macro economic studies Sectoral research and Company specific equity research combined with a strong and well Networked sales force which helps deliver current and up-to-date market information and news
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them Kotak securities provide portfolio Management Services catering to the high end of the market Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market with the backing of an expert Kotak Securities Limited manages assets over Rs 1700 crores through itrsquos Portfolio Management Services (PMS) servicing high net worth clients with a large
investible surplus through its preferred client services in the mass affluent and wealth management segments The company has a full-fledged research division involved in Macro Economic studies Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news
222 MARKET SHARE
Kotak Securities Ltd is Indiarsquos leading stock broking house with a market share of around
85 percent as of March 31 2006 It handles more IPOs than any other brokerage The
company has a full-fledged research division involved in macroeconomic studies sect oral
research and company-specific equity research combined with a strong and well-
networked sales force which helps deliver current market information and news
The firm has 195 branches servicing more than 2200000 customers across 231 cities
Kotaksecuritiescom the online division offers Internet brokerage services and also online
IPO and mutual fund investments Kotak Securities manages over 2500 crores of Assets
under Management (AUM)
223 AWARDS AND RECOGNIZATION
Kotak Securities Ltd 100 subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry The companyrsquos offerings include stock broking
through the branch and Internet Investments in IPO Mutual funds and Portfolio
management service Kotak Securities has a full-fledged research division involved in
Macro Economic studies Sect oral research and Company Specific Equity Research
combined with a strong and well-networked sales force which helps deliver current and
up to date market information and news Kotak Securitiesrsquo network spans over 321 cities
with 877 outlets with an employee workforce beyond 5100
The company is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can avail the companyrsquos brokerage services for executing the
transactions and the depository services for settling them Kotak Securities Ltd processes
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Executive Summary
This project has been a great experience for me and at the same time it gave me
enough scope to implement my analytical ability Stock Broking leading industry
which is my concern industry around which my project has to be revolved is really a
very complex industry The growth of any company whether it is working in stock
market or retail sector desire to capture a large share of the existing and future
market They need to create relationship with customer and maintain it for lifetime is
the success tools This project report on ldquocustomer relationship management at Kotak
Securities ltdrdquo is based on understanding customer relationship management that is
taking place at Kotak securities ltd Kotak being the market leader in PMS which is
having corpus 3200 crore out of 6200 crore total market corpus Kotak securities
limited are a subsidiary of Kotak Mahindra Bank Limited is one of largest private
brokerage and distribution house Set up in 1994 by Mr Uday Kotak Kotak securities
have 25 equity participation from Goldman Sachs Kotak securities have been the
largest in IPO distribution and were ranked no1 in the year 2003-2004 as book
running lead managers in I POrsquos by prime database The biggest management
challenge in the new millennium of liberalization and globalization for a business is to
serve and maintain good relationship with the king ndash the customer The objective of
the project ldquocustomer relationship management at Kotak Securities ltdrdquo was to find
out the strategies required for good customer relationship how to achieve customer
how we can handle customer problem how we can build customer loyalty how we
can increase customer satisfaction How we can reduce customers defection How we
can attract customer Such knowledge will assist managers to better understand and
segment their Markets and design appropriate marketing communication strategies
Table of Contents
S No
Index Page No
1 Chapter one
11 Evolution of CRM
12 In the beginning
13 Advances in the 1990rsquos
14 Introduction to CRM
1 5 Customer Relationship Management Techniques
16 Why- Customer Relationship Management
17 How to introduce CRM in the company
2 Chapter two
21 Industry Overview
Industry Profile
Industry Evolution
Salient Features of the Industry in India
Recent Trends
Performance Growth Scenario
Top five companies of the industry
22 COMPANY OVERVIEW
221 Overview of the organization
Brief history
Nature of the organization
Business volume
Number of employees
Product lines
Main office amp Branch Offices
Organizational Structure
3 Chapter three
31 Project Profile
4 Chapter four
40 Research Methodology
41 Research Design
42 Sampling Plan
43 Collection of Data
44 Data collection
45 Limitations
46 Questionnaire Design
5 Chapter Five
51 Data Analysis and Interpretations
52 Observation
53 Findings
54 Recommendation
55 Conclusion
56 Learning Outcome
7 Reference and Bibliography
8 Annexure
Chapter1
INTRODUCTION TO CRM
12 Evolution of CRM
Customer Relationship Management (CRM) is one of those magnificent concepts that swept the business world in the 1990rsquos with the promise of forever changing the way businesses small and large interacted with their customer bases In the short term however it proved to be an unwieldy process that was better in theory than in practice for a variety of reasons First among these was that it was simply so difficult and expensive to track and keep the high volume of records needed accurately and constantly update them In the last several years however newer software systems and advanced tracking features have vastly improved CRM capabilities and the real promise of CRM is becoming a reality As the price of newer more customizable Internet solutions have hit the market place competition has driven the prices down so that even relatively small businesses are reaping the benefits of some custom CRM programs
12 In the beginninghellip
The 1980rsquos saw the emergence of database marketing which was simply a catch phrase to define the practice of setting up customer service groups to speak individually to all of a companyrsquos customers In the case of larger key client sit was a valuable tool for keeping the lines of communication open and tailoring service to the clients needs In the case of smaller clients however it tended to provide repetitive survey-like information that cluttered databases and didnrsquot provide much insight As companies began tracking database information they realized that the bare bones were all that was needed in most cases what they buy regularly what they spend what they do
13 Advances in the 1990rsquos
In the 1990rsquos companies began to improve on Customer Relationship Management by making it more of a two-way street Instead of simply gathering data for their own use they began giving back to their customers not only in terms of the obvious goal of improved customer service but in incentives gifts and other perks for customer loyalty This was the beginning of the now familiar frequent flyer programs bonus points on credit cards and a host of other resources that are based on CRM tracking of customer activity and spending patterns CRM was now being used as a way to increase sales passively as well as through active improvement of customer service 1
1 Source- httpwwwcrm-software-guidecomhistory-of-crmhtm
14 Customer Relationship Management Introduction
The biggest management challenge in the new millennium of liberalization and globalization for a business is to serve and maintain good relationship with the king ndash the customer In the past producers took their customers for granted because at that time the customers were not demanding nor had alternative source of supply or suppliers But today there is a radical transformation The changing business environment is characterized by economic liberalization increasing competition high consumer choice demanding customer more emphasis on quality and value of purchase etc2
A CRM is a collection of people processes software and internet capabilities that helps an enterprise manage customer relationship effectively and systematically The goal of CRM is to understand and anticipate the needs of current and potential customer to increase customer retention and loyalty while optimizing the way product and services are sold
CRM stands for Customer Relationship Management It is a strategy used to learn more about customers needs and behaviors in order to develop stronger relationships with them After all good customer relationships are at the heart of business success There are many technological components to CRM but thinking about CRM in primarily technological terms is a mistake The more useful way to think about CRM is as a process that will help bring together lots of pieces of information about customers sales marketing effectiveness responsiveness and market trends3
The objective is to capture data about every contact a company a company has with a customer through every channel and store it in the CRM system to enable the company to truly understand customer action CRM software helps an organization build a database about its customer that management sales people customer service provider and even customer can access information to access customer needs with product and offering
All these changes have made todayrsquos producer shift from traditional marketing to modern marketing Modern marketing calls for more than developing a product pricing it promoting it and making it accessible to target customer It demands building trust a binding force and value added relationship with the customers
15 Customer Relationship Management CRM Techniques
The CRM is a new technique in marketing where the marketer tries to develop long-term relationship with the customers to develop them as lifetime customers CRM aims to make the customer climb up the ladder of loyalty
2 Source-httpwwwezinarticlescomEmerging-Trends-In-Customer-Relationship-Managementampid=10926073 Source-httpwwwscribddocumentswordpresscom20090917crm-project-report
The company first tries to determine that who are likely prospects ie the people who have a strong potential interest in the product and ability to pay for it The company hopes to convert many of its qualified prospect into first time customers and then to convert those first time customers into repeat customers Then the company tries to convert these repeat customers into clients ndash they are those people who buy only from the company in the relevant product categories The next challenge for the company is to convert this client into advocates Advocates are those clients who praise the company and encourage others to buy from it
The ultimate challenge is to convert these advocates into partners where the customers and the clients work actively together to discover ways of getting mutual benefit
Thus in CRM the key performance figure is not just current market share but share of lifetime value by converting customers into partners
In CRM the company tries to identify that small percentage (20) of key account holders whose contribution to the company revenues is high (80) So from this point of view CRM is also known as KEY ACCOUNT MANAGEMENT
16 Why ndash Customer Relationship Management
Satisfied customers in 10 years will bring100 more customers to the company It costs 7 times more to attract a new customer than to serve an old one 20 of the companyrsquos loyal customers account for 80 of its revenues (Paretorsquosprinciple) The chances of selling to an existing customer are 1 in 2 the chances of selling to a new customer are 1 in 16
Eight ways to keep customers for life
1 Every part of the companyrsquos marketing effort should be geared towards building lifetime relationships
2 People want to do business with friendly people To have effective relations a friendly attitude must permeate in the organization
3 Information technology developments should be positively used to serve the customers
4 The company should always be flexible to bend its rules and procedures in the clientrsquos favor
5 The company should communicate with its customers even when it is not trying to sell something
6 The company can communicate and develop stronger customer bonding by providing financial and social benefits
7 The company should try to know all its customers including their lifestyles hobbies likes or dislikes etc
8 The company should make it a point to deliver more than what is promised
17 How to introduce CRM in the company
There are four key steps for putting one tone marketing program to work ndash
Step 1 Identify your customers
To launch a one to one initiative the company must be able to locate and contact a fair
number of customers or at least a substantial portion of its valuable customers It is
crucial to know the customer details as much as possible not just their names or
address but their habits preferences and so forth
Step 2 Differentiating your customers
Customers are different in two principal ways they represent different levels of value
and have different needs Once the company identifies its customers differentiating
them will help the company to focus its efforts to gain the most advantage with the
most valuable customers
Step 3 Interacting with the customer
Interaction is also a crucial component of successful CRM initiative It is important to
remember that interaction just not occur through marketing and sales channels
customer interact in many different ways with many different areas of the organization
so to foster relationship all the areas of the organization must be accessible to the
customer
Step 4 Customize your enterprisersquos behavior
Ultimately to lock a customer into a relationship a company must adapt some aspect
of its behavior to meet customerrsquos individually expressed needs this might mean mass
customizing a manufactured product or it might involve tailoring some aspect of the
service surrounding the product
Chapter2
INDUSTRY OVERVIEW amp COMPANY OVERVIEW
21 Industry Overview
211 Industry Profile
A stockbroker is nothing but a registered and qualified working professional who buys
stocks and derivatives for other people The stockbroker thus performs all the
transactions for people on the stock exchange The stockbroker maintains information of
the people for whom he is buying or selling stocks This information includes name
address PAN no and other relevant information No transaction can take place in the
stock market with out a stockbroker
The stockbroker cannot give inputs advice to people buying or selling stocks unless he is
registered with the Securities and exchange board of India as a portfolio manager The
stockbroker takes a certain brokerage for the transactions he does for his clients on the
stock exchange The brokers are expected to issue contract notes to the clients after a
particular transaction has been done They are also expected to issue periodic reports to
their clients with respect to the transactions that have been done by them in that periodic
interval If you are looking to become a portfolio manager then there is a different policy
and procedure that you need to follow for it
Stockbrokers can be individual stockbrokers or form a company or an organization there
by making a brokerage All brokerages have to pay a certain sales tax for the transactions
that are done with the brokerage by other clients wither through selling or buying a
certain stock Thus any person who wants to buy or sell any stock with a particular stock
exchange has to do that with a particular stockbroker affiliated with that stock exchange4
Securities Markets is a place where buyers and sellers of securities can enter into
transactions to purchase and sell shares bonds debentures etc
Further it performs an important role of enabling corporate entrepreneurs to raise
resources for their companies and business ventures through public issues Transfer of
resources from those having idle resources (investors) to others who have a need for
them (corporate) is most efficiently achieved through the securities market Stated
4 Source- httpwwwstockbrokingcoinwhat-is-stockbrokinghtml
formally securities markets provide channels for reallocation of savings to investments
and entrepreneurship Savings are linked to investments by a variety of intermediaries
through a range of financial products called lsquoSecuritiesrsquo5
The Securities Contract (Regulation) Act 1956 [SCRA] defines lsquoStock Exchangersquo as any
body of individuals whether incorporated or not constituted for the purpose of assisting
regulating or controlling the business of buying selling or dealing in securities Stock
exchange could be a regional stock exchange whose area of operationjurisdiction is
specified at the time of its recognition or national exchanges which are permitted to have
nationwide trading since inception NSE was incorporated as a national stock exchange6
222 Industry Evolution
The history of stockbrokers can be traced back to the origins of the first stock exchange in
1602 at Amsterdam Even before that brokers are said to have existed in France dealing
with government securities The Amsterdam Stock Exchange was involved in buying and
selling of shares for the Dutch East India Company However the first real stock exchange
came up in Philadelphia in the United States during the late 18th century Later it was the
New York stock exchange which saw a rise in its popularity Wall Street as it was called
became the hub of brokerage activities Earlier stockbrokers were largely unorganized
but later most of them joined hands to form institutes and organizations Until the 1980rsquos
stock broking services were used only by the wealthy class who could afford them Later
with the advent of the Internet stock broking became very easy Thus the price tag on
stockbrokers lowered considerably and their services became available even to the
common man The stock broking duties are now mostly taken up by major organizations
with the smaller companies being absorbed by them In India too with increasing
globalization the major corporations are penetrating deeper into the society7
A Stockbroker is nothing but a person who buys and sells securities from the stock market
on behalf of other investors Stock broking began in the United States of America
Philadelphia was the first city in America to have a stock exchange After which New York
became the heart of all stock transactions and Wall Street became synonymous with
investing and trading
5 Source-httpwwwgascicomfaqhtm6 Source-httpwwwaumassociatecoinsharebazaraspx7 Source-httpwwwindiacomcomyellowpagecategory-gyanarticlesStock-BrokersStock-Broker-Introductionasp
Since the early part of the 1980s stock broking was allowed in America In addition in the
late part of 1990s stock broking went online and now there are several online stock
brokerages on the internet and hence online transactions happen in a jiffy these days A
stockbroker may also be a financial advisor or an investment consultant these days but in
India you need to be registered with the Securities and exchange board of India in order
to act as a financial advisor As the name suggests a stockbroker mainly deals in stocks
that is the shares of a company Other professionals such as foreign exchange brokers
deal with currencies where as commodity brokers deal with commodities
All stock market transactions that is buying or selling of shares have to take place through
a broker or a brokerage Even if you make online transactions you need to do it through
an online stockbroker For performing the transaction online stockbrokers charge a small
brokerage fee or commission fee for the transactions that they do for other companies or
retail investors The brokerages that a stockbroker may charge are different for various
brokerages as they might have a different business model for the same8
The history of stock broking in the United States parallels the growth of the nations
economy since colonial times The industry has tended to be cyclical in nature and has
survived several downturns including a major economic depression in the 1930s
Government regulations have been introduced at times in an effort to place controls on
what were viewed as harmful trading practices
Origin
The first stock brokerage house in the United States started in Philadelphia in 1800 While
the practice had been around since the early 1700s the Philadelphia Stock Exchange was
the first organized body that brought brokers together and served to codify the rules and
regulations under which business had been conducted The profession continued to
expand with the growth of corporations and the dawning of the Industrial Revolution
Crash
The first major negative event in the industry occurred when the stock market crashed in
1929 which was followed by the Great Depression The result of the crash was due to
8 Source- httpwwwstockbrokingcoinorigin-of-stockbrokinghtml
investors who had borrowed heavily to purchase stocks and began to realize that they
were hugely overvalued and attempted to sell them off resulting in a panic
Securities Act
In an effort to prevent the recurrence of the 1929 crash the Securities Act was
implemented in 1933 as a way to regulate the industry Eventually the stock market
began to rebound and continued a general pattern of steady growth over the next several
decades
Change
In the early 1970s the growth of technology led to reforms in the United States that
helped to reopen the markets to more liberalized trading In the late 1980s another crash
in the market occurred due to the dropping of prices of stock index futures Much like the
Great Depression this led to a mass selling of these securities causing the stock market to
plummet
Rebound
Stock broking again saw a boom as tighter regulations were put in place following the
1987 crash The markets reached new heights in the late 1990s The terrorist attacks of
September 11 2001 slowed the pattern of growth
Another Crash
In 2008 the largest single-day drop since 1987 occurred as the market lost $12 trillion of
its value on September 29 The drop occurred because of several factors including the
collapse of the mortgage industry and a worsening credit crisis The market has
rebounded only slightly as of mid-20099
223 Salient Features of the Industry in India
On the basis of geographical concentration the west region has the maximum
representation of 52 around 24 firms are located in the North 13 in the South and
10 in the East
9 Source-httpwwweHowcommabout_5208105_history-stockbrokinghtml
3 firms are started broking operations before 1950 65 between 1950-1995 and
32 Post1995
On the basis of terminals 40 are located at Mumbai 12 in Delhi 8 in
Ahmadabad 7 in Kolkata 4 in Chennai and 29 are from other cities
From the study we find that almost 36 firms trade in cash derivatives and
commodities
In the cash market around 34 firms trade at NSE 14 at BSE and 52 trade at
both exchanges In the derivative segment 48 trade at NSE 7 at BSE and 45 at both
whereas in the debt market 31 trade at NSE 26 at BSE and 43 at both Exchanges
Majority of branches are located in the North ie around 40 West has 31 24
are located in South and 5 in East
In terms of Sub brokers around 55 are located in the South 29 in West 11 in
North and 4 in East
Trading IPOs and Mutual funds are the top three products offered with 90 firms
offering trading 67 IPOs and 53 firms offering mutual fund transactions
In terms of various areas of growth 84 firms have expressed interest in
expanding their institutional clients 6 firms intend to increase FII clients and 43 are
interested in setting up JV in India and abroad
In terms of IT penetration 62 firms have provided their website and around 94
firms have E-mail facility10
224 Recent Trends
Equity brokerage industry in India is experiencing rapid growth and diversity Following
the wide range of stock market reforms in the early 2000rsquos brokerage industry underwent
major transformations from being engaged in only brokerage business to offering a wide
range of financial services A modern broking house in India may well be a corporate
entity that offers a wide range of products relies on research for advice uses modern
technology has large distribution network connecting the country provides investor
education and awareness and is compliance focused These developments have resulted
in a huge spurt in business as also growing market share of the large sized brokerage
houses that led to surge in enterprise value thus becoming objects of interest for global
investing In the recent period global and domestic private equity firms have taken stake
10 Source- httpwwwdnbcoinequitybrokingindustry20insightsasp
in brokerage firms such as Anand Rathi (Citigroup) Edelweiss (Lehman Brothers) Geojit
(BNP Paribas) SMC (Millennium India) Motilal Oswal (New Vernon) Marwari Shares
(India Capital Growth Fund) J R G Securities (Barings Pvt Equity) and Network Broking
(Amas Bank of Hindujas) India Infoline (Orient Global) etc Initial Public Offerings of large
firms in2007 such as Motilal Oswal Edelweiss and Religare received huge response from
the markets (over subscription going more than 100) and also high premiums Large
issues of these brokerage firms debuted in the stock exchange with premiums ranging
from 20 to 75 With the stock market momentum likely to continue broking firms
could look forward to scaling up their resource mobilization to fund growing operations
and expansion Brokerages mopping up huge resources from the market are not unusual
even in the emerging markets For instance Citic Securities a Chinese securities firm is
reported to have raised US $ 33 bn last year and other firms such as Haitong and Gold
state are planning to come out with IPOs of US $ 4-5 bn in 2008
In India about 45 equity brokerage houses are at present listed on the stock exchanges
that together reported Rs 35 bn of equity total income of Rs 47 bn and net profit of Rs 3
bn for the second quarter of FY08
Prospects and Outlook
Indian broking houses could look forward to a period of growth and consolidation Indiarsquos
economic growth and deepening of the financial system will present the broking firms
with numerous opportunities for growth and expansion Integration of the financial
markets will enhance the scope of their business and scalability Access to public equity
markets will enable them to raise resources to fund expansion and growths as pursue
useful business acquisitions Growing international investor interest in India will add
newer opportunities to scale up the business as also harmonsing with global standard and
practices Introduction of new products such as mini contracts in the derivatives and other
futures and options products will add new opportunities for creating new business
segments
While opportunities abound there is a great need for reform and restructuring of the
equity broking industry There are about 9000 brokers registered with SEBI but 80
percent of the turnover in NSE and BSE is accounted for by about 100 brokers
Consolidation thus becomes relevant to forge a stronger industry Similarly capital levels
too need to be strengthened The 45 odd listed broking firms in India together have a
meager Rs 35 bn of capital which is far less than what one top broking firm in China
could raise from the capital markets Better performance and practices will enable broking
firms to increase capital levels that will be essential for funding expansion
Investor education and awareness is another aspect broking industry should promote in
the long-term interest of the market As the product mix and risk matrix in financial
markets are continuously changing it becomes imperative for the intermediaries to
educate and create awareness in the clients that would be mutually beneficial Better
understanding of the financial products and associated risks by the investors will be in the
interest of the growth and stability of the markets
The Indian broking industry is coming of age It has enormous opportunities for growth
and diversity As markets expand and get globalised these firms will have increased
opportunity to cater to a large and diverse range of clientele with a wide mix of products
and services Expanding markets offer enhanced opportunities Those who are well
prepared will be in a better position to garner the benefits11
225 Performance Growth Scenario
Some of the major recent developments in the global securities markets have been
summarized below
Equalization
Equity markets have expanded significantly in a large number of countries across the
world The market capitalization of the worldrsquos leading stock exchanges rose from about
USD11 trillion in 1991 to USD35 trillion in 1999 to about USD51 trillion in 2006 The
growth of market capitalization is evident across regions Market capitalization in Asia
nearly doubled from USD68 trillion in 1999 to USD118 trillion in2006 where as in
America it grew from USD179 trillion to USD226 trillion and in EuropeAfricaMiddle
East it rose from USD102 trillion to USD161 trillion Market capitalization as a percent of
GDP witnessed steep growth in several countries during this period
Similarly trading volumes in stock exchanges too has shown rapid growth Value of share
trading in stock exchanges rose from about USD54 trillion in 1991 to USD33 trillion in
1999 to about USD70 trillion in 2006 During the period 1999 and 2006 value of share
trading in Asia Pacific rose from USD42 trillion to USD12 trillion in EuropeAfricaMiddle
11 Source- httpwwwdnbcoinequitybroking2008Emergingtrenasp
East from USD83 trillion to USD218 trillion and in Americas from USD20 trillion to USD35
trillion
Institutional investment
The rapid growth of stock markets in the world to a significant extent could be explained
by the surge in the institutional investors consisting of pension funds insurance
companies and mutual funds During the period 1995 and 2005 the assets under
management of the institutional investors doubled from USD21trillion to USD53 trillion A
large number of institutional investors are moving away from the home bias investing in
outside world Emerging markets with higher economic growth and rapidly growing
financial markets became major centers of destination for the investments of institutional
investors For instance in the US in 1994 pension funds invested 41 of their portfolio in
domestic equity and 7 in international equities where as by 2005 that share rose to 48
in domestic equities and 15 in international equities The portfolio allocation to bond
markets during the same period reduced from 42 to 32 Emerging markets received
sizeable portion of the investments In the US the dedicated emerging markets mutual
funds rose from about USD27 bn in2000 to USD 230 bn in 2006
International listings
On the back of the liberalization of cross border financial flows companies in several
countries are seeking listing in international exchanges to garner benefits from
international investors as also widen their investor base The number of foreign
companies listed in the London Stock Exchange rose from 387 in 1970 to 553 in 1990 to
636 in 2006 The number of foreign companies listed on the NYSE has also risen rapidly in
the 1990s There is a keen competition across the worldrsquos leading stock exchanges to
promote international listing and gain greater influence In the recent period the US
experienced a slowdown in the listing of foreign companies The decline is attributed to
stringent corporate governance norms that were applied following the corporate abuses
found in the beginning of the decade The US is now examining in greater detail measures
to gain the prominence once it enjoyed in the international listings The Alternative
Investment Market of London Stock Exchange attracted huge interest from SMEs from a
large number of countries
Emerging markets as an investment destination
Liberalization of capital flows led to surge in international investment into emerging
economies finding value on the back of huge prospects for growth The flow of net
Foreign Direct Investment (FDI) into developing countries increased from USD170 bn in
1998 to USD325 bn in 2006 and net portfolio equity flows increased from USD6 bn to
USD94 bn during the same period Net debt flows during this period are rather subdued
with net debt flows from official creditors turning negative Net portfolio equity flows to
China between the year 2000 and 2006 rose from USD69 bn to USD32 bn and in India
from USD23 bn to USD87 bn Other emerging markets such as Brazil Mexico South
Africa Thailand and Russia too showed surge in the net portfolio equity flows Emerging
markets showed significant growth in stock prices making them attractive investment
destinations though issues of valuations are beginning to become a concern now
Growing correlation of returns
Greater harmonization of stock markets in mature and emerging markets is in evidence by
the increasing correlation in market returns across different markets The higher
correlation in the stock price movements gained momentum in the late 1990s due to
growing foreign institutional investment in several markets and growth of the technology
sector that pervaded many markets and has driven stock price momentum in the late
1990s
Emerging markets in the new issuance market
Emerging markets also became very active in the new issuance market In 2006 all the ten
largest cross border new capital issues were from the emerging markets These ten issues
were from China Russia Mexico Thailand and Kazakhstan Of these ten issues four each
were listed in London and Hong Kong and only one in the US The value of the new listings
by emerging market companies in the US exchanges declined from USD29 bn in 2004 to
USD27 bn in 2006 where as that of London rose from USD07 bn to USD96 bn and in
Hong Kong from USD72 bn to USD304 bn Emerging markets in the first five months of
2007 have raised USD537 bn in global financial markets which is reported to be the
highest ever amount raised for a year Some of the leading issues during this period
include the USD8 bn IPO by VTB second largest Russian bank USD185 bn by Turkish
financial institution Halk bank and USD14 bn by a Russian real estate company AFI
Development Some of the largest issues from the emerging markets in the recent period
include USD219 bn issue of Chinarsquos ICBC Bank (Oct 2006) USD112 bn issue of Bank of
China (May 06) USD107 bn issue of Russian energy company Ros neft (Jul 06) USD59 bn
pubic issue of Chinarsquos Citic Bank
Alternative markets
In view of the limitations on listing of small and medium scale companies in the big boards
of the main exchanges several stock exchanges have developed alternative markets for
encouraging listing of small and midcap stocks Almost every major exchange has an
alternative platform for listing and trading of small and midcap stocks and new generation
companies without much listing history The market capitalization of the alternative
markets in the year 2006 has grown at an impressive rate of 30 More than 12000
companies are listed in these alternative markets and the value of share trading of these
for SMEs markets rose 15 in 2006 from USD802 bn to USD919 bn New capital (IPOs)
rose in the alternative markets rose 59 in 2006 from USD136 bn to USD216 bn
Growth of Derivatives
The growth of derivatives picked up on the need for risk transfer products The size of
global derivatives industry in 2006 USD370 trillion of notional value and USD10 trillion of
market value in the Over the Counter (OTC) derivative markets and USD84 trillion of
notional value and USD10 trillion market value in the Exchange traded derivative markets
According to the International Swaps and Derivatives Association more than 90 percent
of the global 500 corporations use derivatives for hedging risks in interest rates foreign
exchange and equities In the OTC markets derivative products accounting for large share
of market value include interest rate (785) and Foreign Exchange (114) where as in
the Exchange Traded segment derivative products on interest rate government debt and
equities form the major part of the volumes
Dark Pools and Private Markets
In the third week of May 2007 Goldman Sachs launched GSTrue which is a platform
developed to allow exclusive club of big investors to trade unregistered privately placed
securities which is considered to be a major challenge for the public equity capital
markets in the US Goldman Sachs in that deal helped underwrite the private sale of 15
of hedge fund manager Oak tree Capital Management for USD800 mn The investors in
this sale would be able to buy and sell Oak tree shares through the new Goldman Sachs
Tradable Unregistered Equity System which has its acronym GSTRue
Under the rules of the Securities and Exchange Commission of the US companies can sell
securities without registering them as long as the issues are limited to qualified
institutional buyers which are investors with at least USD100 mn of assets and there are
no more than 500 stockholders Private pools of capital are growing in size and
significance in international markets to overcome the costs and pressures from stringent
regulation According to an estimate of NASDAQ in 2006 companies in the US raised
USD162 bn of capital through unregistered private placements (also known as 144A
private placements) compared with USD154 bn through IPOs which are registered with
the regulator A group of worldrsquos largest banks are developing ldquoProject Turquoiserdquo which
is a hybrid share trading system that allows transactions both on exchange and outside it
(called as dark liquidity pools) where firms with large asset base can buy and sell large
blocks of shares away from the regulatory oversight
Private Equity
Private equity is growing in size and significance In view of the regulatory standards
prevalent in the public equity capital markets several firms seek the private equity option
to raise resources According to Dialogic the top 50 private equity firms raised USD551 bn
out of the USD800 bn estimated to have been raised by the total private equity since Jan
2002 Of the top 50 private equity firms more than 30 are from the US 11 from the UK
five from Western Europe and one from Asia Pacific Private equity is now involved in high
value deals and recent transactions include USD35 bn HCA buyout in the healthcare
industry and bids of USD39 bn and USD41 bn for Equity Office Property Trust a
commercial office real estate trust in the United Trust It is expected that the transaction
values of the private equity may go up to USD50-100 bn in the near future Private equity
market in India raised USD22 bn in 2005 about USD4 bn in 2006 and is expected to raise
about USD10 bn by 2010 according to a recent study
Hedge Funds
Hedge Funds emerged from the need of investors seeking alpha to earn an excess return
and beat the market and the returns from the conventional investments Alpha is a
common measure of assessing an active managerrsquos performance as it is the return in
excess of a benchmark index or ldquorisk-freerdquo investment The difference between the fair
and actually expected rates of return on a stock is called the stockrsquos alpha In view of rapid
growth of hedge funds and their complex nature of operations and lack of adequate
regulatory control these funds became a major concern of global financial regulation
Notwithstanding these concerns hedge funds continue to grow with the size of the
market growing from about USD30 bn in 1990 to more than USD14 trillion in 2005 and
the number of funds rising from about 530 to about 7000 during this period An
interesting development in the recent period is the growing institutional investment in the
hedge funds which is estimated at USD360 bn in 2005 and the rising allocations to these
funds that was evident in the US and XXVII the European markets The investor base of
the hedge funds consists of individualsfamilies fund of funds corporations and
institutions public and private pensions and endowments and foundations in that order
Investor Protection
With democratization of markets leading to greater participation of individuals and
investments and wide choices of asset classes now available issues of investor interest
and protection have assumed centre stage Following the corporate crises in the US that
adversely affected the investor interests extensive federal investigations were launched
that led to imposition of huge penalties and punitive damages leading to billions of
dollars Such actions were taken against a wide spectrum of global investment banks
brokerage firms and other related entities Simultaneously growth of litigation and class
action suits showed significant rise when the market intermediaries failed to meet their
obligations or did not provide all the material facts to the investors that were crucial for
an investment decision
Securities regulators imposed penalties on market participants who were found to have
indulged in market abuses In India disgorgement orders were passed on certain entities
that were found to making money by unfair means and for violating regulatory norms and
procedures Top institutional investors in several countries devised their own review
process for investing in countries and companies that brought into light greater need for
higher standards in corporate governance disclosure and transparency standards and in
some cases concern towards issues such as democracy and social equity environment
economic and political reforms
Surge in Chinese capital markets
A major change in the year 2007 is the sudden leap of China into big league of global stock
markets On 9 May 07 Shanghai Stock Exchange Chinarsquos top stock market recorded
turnover of USD332 bn and Shenzhen Stock Exchange a stock market for SMEs an
equally powerful USD158 bn taking the combined turnover of both these stock
exchanges on that day to USD495 bn In the first three months of the year 2007 value of
share trading in both these Chinese stock markets reached 89 of the whole turnover of
the year 2006 Value of share trading in Shanghai Stock Exchange rose from USD256 bn in
2003 to USD736 bn in 2006 and in the first three months of the year 2007 it already
recorded USD652 bn Market capitalization in China between Apr 2006 and 2007 rose by
almost 4 times pushing it to a position among the top 10 exchanges in the world and
value of share turnover rose 6 times making Shanghai 6 the biggest Main indexes of
Shanghai Stock Exchange and Shenzhen Stock Exchange posted returns of 194 and 204
respectively in the 12 months proceeding Apr 2007
Rise of smaller markets
The growth and momentum of the stock markets is spreading across a large number of
markets big and small Recent evidence of big surge in stock markets include countries in
the Middle East which witnessed exceptional growth in 20052006 China in 2007 and
several smaller European and Latin American countries in the last one year As
international investing is spreading its presence domestic financial institutions and
investors are finding stocks as an important asset class and stock markets all over the
world have experienced rapid growth in the last five years
Stock exchange consolidation
A big wave of stock exchange consolidation is taking place across the global financial
markets The most notable merger in the recent period is that of the New York Stock
Exchange with Archipelago that led to the demutualization of the former which
subsequently acquired Euro next to form NYSE Group that makes it a formidable force in
the North America and the Euro region Another American exchange NASDAQ after the
merger with Instinet announced plans to acquire OMX which is Europersquos leading
exchange as also provider of cutting edge technology solutions for stock exchanges
worldwide Deutsche Borsersquos recent acquisition of International Securities Exchange gives
the former a powerful position in the derivatives markets in Europe and America There
was also sizeable consolidation within the domestic securities markets in several countries
with the merger of equities and derivatives markets in countries such as Korea Malaysia
and Hong Kong In India the issue of appropriate solutions for the 20 odd stock exchanges
that currently lack proper liquidity is engaging the attention of policy and regulation
RECENT DEVELOPMENTS GOVERNING REGULATION OF STOCK MARKETS
Systematic and streamlined regulation is the key strength and sustainability of the
securities markets Though formal regulation of the securities markets is about 70 years
old some of the recent developments in the financial markets are reshaping the scope
and focus of the regulation These include ndash
There is growing harmonization of regulation across different markets Organizations
such as International Organization for Securities Commissions (IOSCO) are playing a very
important role in adoption of uniform principles and guidelines across the markets
The size and scope of the securities markets is rapidly changing from being one or
two product markets to multi product markets with diverse features and different
investor base
Markets have become more democratized with more people and institutions
participating in the market related activities
Rapid increase in the size of the institutional participation in the financial markets
For instance equity markets which in the past were retail investor driven are now
increasingly become institutional induced
Securities markets are transforming from being membership driven to public
corporation following demutualization and corporatization of stock exchanges in mature
and emerging markets
Two most important pieces of regulation that came into being in the recent period are in
the form of market structure reforms in the US known more popularly as regulation NMS
which underlines the promotion of competition across the markets under three major
principles best price open access and transparency Under the new trade-through role in
whichever market a customer placed his order it should be able to access the best price
that is immediately and automatically available anywhere in the national market system
The trade-through rule will not allow markets to ignore better-priced automated quotes
displayed by the competitors Similarly open access to displayed prices will be a major
feature governing the competition of the markets The regulation also stipulates that all
significant markets must display their quotations and trade reports should be available to
all interested parties on fair terms and non-discriminatory manner Another equally
important development is the Markets in Financial Industry Directive (MiFiD) that will
come into force from 1 Nov 2007 and stipulates wide-ranging norms for financial
institutions in the European Union Major features of the MiFiD include wider scope of
coverage of the financial institutions and the related business activities greater degree of
harmonization across the European markets and facilitate cross border business and
stipulated capital requirements
MiFiD is envisaged to bring major changes in the manner financial institutions in the
European Union will be monitored Simultaneous with stringent norms of regulation the
scope of regulation is considerably delegated to the markets and institutions in the form
of self-regulation Self-regulation brings a number of benefits to the business Institutions
such as National Association of Securities Dealers (NASD) have played an important role in
promoting self-regulation However self-regulation has certain limitations it needs to
overcome before it becomes widely accepted across the markets12
225 Top five companies of the industry
Many time new investor or trader gets confusion for open a D Mat and trading account in
broking House Many of broking House promises to you for better service but clients get
problem due to trading session in theirs Broker house firm Here is the list of Indiarsquos top 5
broking House on base of survey of investors and traders of many cities In their views
following Broking Houses gives best and reliable services13
1 ICICI directcom
ICICI Securities empowers over 2 million Indians to seamlessly access the capital market
with ICICIdirectcom an award winning and pioneering online broking platform The
platform not only offers convenient ways to invest in Equity Derivatives Currency
Futures Mutual Funds but also other services Fixed Deposits Loans Tax Services New
Pension Systems and Insurance are available ICICIdirectcom offers a convenient and easy
to use platform to invest in equity and various other financial products using its unique 3-
in-1 account which integrates customerrsquos saving trading and demat accounts
Apart from convenience ICICIdirectcom also offers access to comprehensive research
information stock picks and mutual fund recommendations among other offerings
Tailored services and trading strategies are available to different types of customers long
term investors day traders high-volume traders and derivatives traders to name some
ICICIdirectcom uses the most advanced commercially available 128-bit encryption
technology enabled Secure Socket Layer (SSL) to ensure that the information transmitted
between the client and ICICIdirectcom across the internet is safe and cannot be accessed
by any third party14
2 India Infoline
India Infoline Ltd (India Infoline) established in 1995 is the holding company of the
India Infoline Group It has membership in the cash and derivative segments of both 12 Source- httpwwwdnbcoinequitybrokingglobal20scenarioasp13 Source- Httpwwwindianstockmarketorgindias-top-10-stock-broking-house14 Source-httpwwwicicisecuritiescomOurBusinessSubSubReportID=10223ampshortCode=INST
the NSE and BSE India Infoline is also registered as a DP with NSDL and CDSL India
Infoline through its subsidiary India Infoline Commodities Limited also offers commodity-
trading services which is a registered member with DGCX since 2006 It also operates in
the currency futures market segment India Infoline offers a wide range of products
and services which include investment banking distribution of financial products
demat services private equity PMS institutional broking WMS insurance broking
among others In addition it also offers research services in areas of economy
derivative strategies mutual funds IPO credit policy and various others The company
has 15 domestic subsidiaries and five foreign subsidiaries The company has global
presence through its subsidiaries in New York Singapore and Dubai India Infoline caters
majorly to retail clients During CY09 the company added 303480 client accounts
Address 75 Nirlon Complex Off Western Express Highway Goregaon (East) Mumbai -
400063 Maharashtra
Telephone 91 22 42499000 Fax 91 22 26850451
Email mailindiainfolinecom Website wwwindiainfolinecom
Registration Number NSE - INBINF231097537 BSE - INBINF01109753315
3 Kotak Securities Ltd
Kotak Securities Ltd (Kotak Securities) is the stock-broking and distribution arm of the
Kotak Mahindra Group and a subsidiary of Kotak Mahindra Bank Kotak Securities was
established in 1994 It has memberships in the cash derivatives and currency futures
segments of NSE and BSE Kotak Securities is also a DP with NSDL and CDSL Apart from
stock broking the company is engaged in offering depository services asset management
margin financing PMS and distribution of financial products like IPOrsquos mutual funds and
insurance The company has a full-fledged research division which offers macro
economic sectoral research and company specific equity research Its domestic network
spans over 383 cities and 1048 offices Trading in equities and derivatives contributes to
major part of the companyrsquos revenue During CY09 Kotak Securities added around 62194
accounts of which around 27 are e-broking accounts The companyrsquos overseas
operations include one subsidiary and two associate firms operating in two foreign
locations
15 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndia+Infoline+Limited2Epdf
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF01113323016
4 Share Khan
Sharekhan Ltd (Sharekhan) is one a leading brokerage houses established in 2000
Sharekhan has membership in the cash and derivative segments of both BSE and NSE It
also operates in the debt and currency futures segment The company is registered as a
DP with CDSL and NSDL Besides trading the company also offers PMS demat services and
mutual funds Share khan provides a comprehensive set of research reports relating
to IPO and mutual funds Other value added facilities offered to clients include
online trading dial-n-trade share shops fundamental and technical research The
company serves large number of retail clients with a client network of more than 100000
clients which includes HNIrsquos corporate and other retail customers The company
through its subsidiary Share khan Commodities Ltd provides commodity-trading services
Address A - 206 Phoenix House 2nd Floor Senapati Bapat Marg Lower Parel
Mumbai - 400013 Maharashtra
Telephone 91 22 67482000 Fax 91 22 66104533
Email compliancelpsharekhancom Website wwwsharekhancom
Registration Number NSE - INBINF231073330 BSE - INBINF01107335117
5 Indiabulls
Indiabulls Securities Ltd (Indiabulls) part of Indiabulls Group was established in 1995 The
company is in the business of providing securities and advisory services It is a corporate
member of capital market wholesale debt market and derivative segments of NSE and of
capital market and derivative segments of BSE
Indiabulls also operates in currency futures and is a DP of CDSL and NSDL It provides a
wide range of products and services which include internet trading NRI trading demat
16 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CKotak+Securities+Limited2Epdf17 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CSharekhan+ Limited2Epdf
services margin financing and distribution of financial products like IPO online
mutual funds etc Power Indiabulls (PIB) is the advanced online trading platform offered
by the company Indiabulls also offers research services in the areas of economic equity
mutual fund IPO and others The company operates in commodity segment through its
subsidiary India bulls Commodities Pvt Ltd which is a member of MCX and NCDEX It
is listed on both NSE and BSE
Address F-60 Malhotra Building 2nd Floor Connaught Place New Delhi - 110001 Delhi
Telephone 91 11 41523700 Fax 91 11 41529071
Email helpdeskindiabullscom Website wwwindiabullscom
Registration Number NSE - INBINF230875632 BSE - INBINF01087563218
18 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndiabulls+Securities+Limited2Epdf
22 Company Overview
221 Overview of the Organizations
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited Uday Kotak Sidney A A Pinto and Kotak amp Company promoted this company Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and thats when the company changed its name to Kotak Mahindra Finance Limited Since then its been a steady and confident journey to growth and success
Kotak Securities Ltd is one of Indias largest brokerage and securities distribution house in India Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-ordinates Kotak Securities Ltd offers online (through wwwkotaksecuritiescom) and offline services based on well-researched expertise and financial products to the non-institutional investors Kotak Securities Limited is the world of Capital Markets where everything newsworthy exists only in the present moment and where knowing the importance of timing sentiments and strategic forecasting makes the difference between profit and loss Kotak Securities Limited a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25 - one of the worldrsquos leading investment banks and brokerage firms) is Indiarsquos leading stock broking house with a market share of 7 - 8
Kotak Securities Limited is one of the larger players in distribution of IPOs - it was ranked number One in 2003-04 as Book Running Lead Manager in public equity offerings by PRIME Database It has also won the ldquoBest Equity Houserdquo Award from Finance Asia -April 2004 The Company has a full-fledged Research division involved in macro economic studies Sectoral research and Company specific equity research combined with a strong and well Networked sales force which helps deliver current and up-to-date market information and news
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them Kotak securities provide portfolio Management Services catering to the high end of the market Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market with the backing of an expert Kotak Securities Limited manages assets over Rs 1700 crores through itrsquos Portfolio Management Services (PMS) servicing high net worth clients with a large
investible surplus through its preferred client services in the mass affluent and wealth management segments The company has a full-fledged research division involved in Macro Economic studies Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news
222 MARKET SHARE
Kotak Securities Ltd is Indiarsquos leading stock broking house with a market share of around
85 percent as of March 31 2006 It handles more IPOs than any other brokerage The
company has a full-fledged research division involved in macroeconomic studies sect oral
research and company-specific equity research combined with a strong and well-
networked sales force which helps deliver current market information and news
The firm has 195 branches servicing more than 2200000 customers across 231 cities
Kotaksecuritiescom the online division offers Internet brokerage services and also online
IPO and mutual fund investments Kotak Securities manages over 2500 crores of Assets
under Management (AUM)
223 AWARDS AND RECOGNIZATION
Kotak Securities Ltd 100 subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry The companyrsquos offerings include stock broking
through the branch and Internet Investments in IPO Mutual funds and Portfolio
management service Kotak Securities has a full-fledged research division involved in
Macro Economic studies Sect oral research and Company Specific Equity Research
combined with a strong and well-networked sales force which helps deliver current and
up to date market information and news Kotak Securitiesrsquo network spans over 321 cities
with 877 outlets with an employee workforce beyond 5100
The company is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can avail the companyrsquos brokerage services for executing the
transactions and the depository services for settling them Kotak Securities Ltd processes
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Table of Contents
S No
Index Page No
1 Chapter one
11 Evolution of CRM
12 In the beginning
13 Advances in the 1990rsquos
14 Introduction to CRM
1 5 Customer Relationship Management Techniques
16 Why- Customer Relationship Management
17 How to introduce CRM in the company
2 Chapter two
21 Industry Overview
Industry Profile
Industry Evolution
Salient Features of the Industry in India
Recent Trends
Performance Growth Scenario
Top five companies of the industry
22 COMPANY OVERVIEW
221 Overview of the organization
Brief history
Nature of the organization
Business volume
Number of employees
Product lines
Main office amp Branch Offices
Organizational Structure
3 Chapter three
31 Project Profile
4 Chapter four
40 Research Methodology
41 Research Design
42 Sampling Plan
43 Collection of Data
44 Data collection
45 Limitations
46 Questionnaire Design
5 Chapter Five
51 Data Analysis and Interpretations
52 Observation
53 Findings
54 Recommendation
55 Conclusion
56 Learning Outcome
7 Reference and Bibliography
8 Annexure
Chapter1
INTRODUCTION TO CRM
12 Evolution of CRM
Customer Relationship Management (CRM) is one of those magnificent concepts that swept the business world in the 1990rsquos with the promise of forever changing the way businesses small and large interacted with their customer bases In the short term however it proved to be an unwieldy process that was better in theory than in practice for a variety of reasons First among these was that it was simply so difficult and expensive to track and keep the high volume of records needed accurately and constantly update them In the last several years however newer software systems and advanced tracking features have vastly improved CRM capabilities and the real promise of CRM is becoming a reality As the price of newer more customizable Internet solutions have hit the market place competition has driven the prices down so that even relatively small businesses are reaping the benefits of some custom CRM programs
12 In the beginninghellip
The 1980rsquos saw the emergence of database marketing which was simply a catch phrase to define the practice of setting up customer service groups to speak individually to all of a companyrsquos customers In the case of larger key client sit was a valuable tool for keeping the lines of communication open and tailoring service to the clients needs In the case of smaller clients however it tended to provide repetitive survey-like information that cluttered databases and didnrsquot provide much insight As companies began tracking database information they realized that the bare bones were all that was needed in most cases what they buy regularly what they spend what they do
13 Advances in the 1990rsquos
In the 1990rsquos companies began to improve on Customer Relationship Management by making it more of a two-way street Instead of simply gathering data for their own use they began giving back to their customers not only in terms of the obvious goal of improved customer service but in incentives gifts and other perks for customer loyalty This was the beginning of the now familiar frequent flyer programs bonus points on credit cards and a host of other resources that are based on CRM tracking of customer activity and spending patterns CRM was now being used as a way to increase sales passively as well as through active improvement of customer service 1
1 Source- httpwwwcrm-software-guidecomhistory-of-crmhtm
14 Customer Relationship Management Introduction
The biggest management challenge in the new millennium of liberalization and globalization for a business is to serve and maintain good relationship with the king ndash the customer In the past producers took their customers for granted because at that time the customers were not demanding nor had alternative source of supply or suppliers But today there is a radical transformation The changing business environment is characterized by economic liberalization increasing competition high consumer choice demanding customer more emphasis on quality and value of purchase etc2
A CRM is a collection of people processes software and internet capabilities that helps an enterprise manage customer relationship effectively and systematically The goal of CRM is to understand and anticipate the needs of current and potential customer to increase customer retention and loyalty while optimizing the way product and services are sold
CRM stands for Customer Relationship Management It is a strategy used to learn more about customers needs and behaviors in order to develop stronger relationships with them After all good customer relationships are at the heart of business success There are many technological components to CRM but thinking about CRM in primarily technological terms is a mistake The more useful way to think about CRM is as a process that will help bring together lots of pieces of information about customers sales marketing effectiveness responsiveness and market trends3
The objective is to capture data about every contact a company a company has with a customer through every channel and store it in the CRM system to enable the company to truly understand customer action CRM software helps an organization build a database about its customer that management sales people customer service provider and even customer can access information to access customer needs with product and offering
All these changes have made todayrsquos producer shift from traditional marketing to modern marketing Modern marketing calls for more than developing a product pricing it promoting it and making it accessible to target customer It demands building trust a binding force and value added relationship with the customers
15 Customer Relationship Management CRM Techniques
The CRM is a new technique in marketing where the marketer tries to develop long-term relationship with the customers to develop them as lifetime customers CRM aims to make the customer climb up the ladder of loyalty
2 Source-httpwwwezinarticlescomEmerging-Trends-In-Customer-Relationship-Managementampid=10926073 Source-httpwwwscribddocumentswordpresscom20090917crm-project-report
The company first tries to determine that who are likely prospects ie the people who have a strong potential interest in the product and ability to pay for it The company hopes to convert many of its qualified prospect into first time customers and then to convert those first time customers into repeat customers Then the company tries to convert these repeat customers into clients ndash they are those people who buy only from the company in the relevant product categories The next challenge for the company is to convert this client into advocates Advocates are those clients who praise the company and encourage others to buy from it
The ultimate challenge is to convert these advocates into partners where the customers and the clients work actively together to discover ways of getting mutual benefit
Thus in CRM the key performance figure is not just current market share but share of lifetime value by converting customers into partners
In CRM the company tries to identify that small percentage (20) of key account holders whose contribution to the company revenues is high (80) So from this point of view CRM is also known as KEY ACCOUNT MANAGEMENT
16 Why ndash Customer Relationship Management
Satisfied customers in 10 years will bring100 more customers to the company It costs 7 times more to attract a new customer than to serve an old one 20 of the companyrsquos loyal customers account for 80 of its revenues (Paretorsquosprinciple) The chances of selling to an existing customer are 1 in 2 the chances of selling to a new customer are 1 in 16
Eight ways to keep customers for life
1 Every part of the companyrsquos marketing effort should be geared towards building lifetime relationships
2 People want to do business with friendly people To have effective relations a friendly attitude must permeate in the organization
3 Information technology developments should be positively used to serve the customers
4 The company should always be flexible to bend its rules and procedures in the clientrsquos favor
5 The company should communicate with its customers even when it is not trying to sell something
6 The company can communicate and develop stronger customer bonding by providing financial and social benefits
7 The company should try to know all its customers including their lifestyles hobbies likes or dislikes etc
8 The company should make it a point to deliver more than what is promised
17 How to introduce CRM in the company
There are four key steps for putting one tone marketing program to work ndash
Step 1 Identify your customers
To launch a one to one initiative the company must be able to locate and contact a fair
number of customers or at least a substantial portion of its valuable customers It is
crucial to know the customer details as much as possible not just their names or
address but their habits preferences and so forth
Step 2 Differentiating your customers
Customers are different in two principal ways they represent different levels of value
and have different needs Once the company identifies its customers differentiating
them will help the company to focus its efforts to gain the most advantage with the
most valuable customers
Step 3 Interacting with the customer
Interaction is also a crucial component of successful CRM initiative It is important to
remember that interaction just not occur through marketing and sales channels
customer interact in many different ways with many different areas of the organization
so to foster relationship all the areas of the organization must be accessible to the
customer
Step 4 Customize your enterprisersquos behavior
Ultimately to lock a customer into a relationship a company must adapt some aspect
of its behavior to meet customerrsquos individually expressed needs this might mean mass
customizing a manufactured product or it might involve tailoring some aspect of the
service surrounding the product
Chapter2
INDUSTRY OVERVIEW amp COMPANY OVERVIEW
21 Industry Overview
211 Industry Profile
A stockbroker is nothing but a registered and qualified working professional who buys
stocks and derivatives for other people The stockbroker thus performs all the
transactions for people on the stock exchange The stockbroker maintains information of
the people for whom he is buying or selling stocks This information includes name
address PAN no and other relevant information No transaction can take place in the
stock market with out a stockbroker
The stockbroker cannot give inputs advice to people buying or selling stocks unless he is
registered with the Securities and exchange board of India as a portfolio manager The
stockbroker takes a certain brokerage for the transactions he does for his clients on the
stock exchange The brokers are expected to issue contract notes to the clients after a
particular transaction has been done They are also expected to issue periodic reports to
their clients with respect to the transactions that have been done by them in that periodic
interval If you are looking to become a portfolio manager then there is a different policy
and procedure that you need to follow for it
Stockbrokers can be individual stockbrokers or form a company or an organization there
by making a brokerage All brokerages have to pay a certain sales tax for the transactions
that are done with the brokerage by other clients wither through selling or buying a
certain stock Thus any person who wants to buy or sell any stock with a particular stock
exchange has to do that with a particular stockbroker affiliated with that stock exchange4
Securities Markets is a place where buyers and sellers of securities can enter into
transactions to purchase and sell shares bonds debentures etc
Further it performs an important role of enabling corporate entrepreneurs to raise
resources for their companies and business ventures through public issues Transfer of
resources from those having idle resources (investors) to others who have a need for
them (corporate) is most efficiently achieved through the securities market Stated
4 Source- httpwwwstockbrokingcoinwhat-is-stockbrokinghtml
formally securities markets provide channels for reallocation of savings to investments
and entrepreneurship Savings are linked to investments by a variety of intermediaries
through a range of financial products called lsquoSecuritiesrsquo5
The Securities Contract (Regulation) Act 1956 [SCRA] defines lsquoStock Exchangersquo as any
body of individuals whether incorporated or not constituted for the purpose of assisting
regulating or controlling the business of buying selling or dealing in securities Stock
exchange could be a regional stock exchange whose area of operationjurisdiction is
specified at the time of its recognition or national exchanges which are permitted to have
nationwide trading since inception NSE was incorporated as a national stock exchange6
222 Industry Evolution
The history of stockbrokers can be traced back to the origins of the first stock exchange in
1602 at Amsterdam Even before that brokers are said to have existed in France dealing
with government securities The Amsterdam Stock Exchange was involved in buying and
selling of shares for the Dutch East India Company However the first real stock exchange
came up in Philadelphia in the United States during the late 18th century Later it was the
New York stock exchange which saw a rise in its popularity Wall Street as it was called
became the hub of brokerage activities Earlier stockbrokers were largely unorganized
but later most of them joined hands to form institutes and organizations Until the 1980rsquos
stock broking services were used only by the wealthy class who could afford them Later
with the advent of the Internet stock broking became very easy Thus the price tag on
stockbrokers lowered considerably and their services became available even to the
common man The stock broking duties are now mostly taken up by major organizations
with the smaller companies being absorbed by them In India too with increasing
globalization the major corporations are penetrating deeper into the society7
A Stockbroker is nothing but a person who buys and sells securities from the stock market
on behalf of other investors Stock broking began in the United States of America
Philadelphia was the first city in America to have a stock exchange After which New York
became the heart of all stock transactions and Wall Street became synonymous with
investing and trading
5 Source-httpwwwgascicomfaqhtm6 Source-httpwwwaumassociatecoinsharebazaraspx7 Source-httpwwwindiacomcomyellowpagecategory-gyanarticlesStock-BrokersStock-Broker-Introductionasp
Since the early part of the 1980s stock broking was allowed in America In addition in the
late part of 1990s stock broking went online and now there are several online stock
brokerages on the internet and hence online transactions happen in a jiffy these days A
stockbroker may also be a financial advisor or an investment consultant these days but in
India you need to be registered with the Securities and exchange board of India in order
to act as a financial advisor As the name suggests a stockbroker mainly deals in stocks
that is the shares of a company Other professionals such as foreign exchange brokers
deal with currencies where as commodity brokers deal with commodities
All stock market transactions that is buying or selling of shares have to take place through
a broker or a brokerage Even if you make online transactions you need to do it through
an online stockbroker For performing the transaction online stockbrokers charge a small
brokerage fee or commission fee for the transactions that they do for other companies or
retail investors The brokerages that a stockbroker may charge are different for various
brokerages as they might have a different business model for the same8
The history of stock broking in the United States parallels the growth of the nations
economy since colonial times The industry has tended to be cyclical in nature and has
survived several downturns including a major economic depression in the 1930s
Government regulations have been introduced at times in an effort to place controls on
what were viewed as harmful trading practices
Origin
The first stock brokerage house in the United States started in Philadelphia in 1800 While
the practice had been around since the early 1700s the Philadelphia Stock Exchange was
the first organized body that brought brokers together and served to codify the rules and
regulations under which business had been conducted The profession continued to
expand with the growth of corporations and the dawning of the Industrial Revolution
Crash
The first major negative event in the industry occurred when the stock market crashed in
1929 which was followed by the Great Depression The result of the crash was due to
8 Source- httpwwwstockbrokingcoinorigin-of-stockbrokinghtml
investors who had borrowed heavily to purchase stocks and began to realize that they
were hugely overvalued and attempted to sell them off resulting in a panic
Securities Act
In an effort to prevent the recurrence of the 1929 crash the Securities Act was
implemented in 1933 as a way to regulate the industry Eventually the stock market
began to rebound and continued a general pattern of steady growth over the next several
decades
Change
In the early 1970s the growth of technology led to reforms in the United States that
helped to reopen the markets to more liberalized trading In the late 1980s another crash
in the market occurred due to the dropping of prices of stock index futures Much like the
Great Depression this led to a mass selling of these securities causing the stock market to
plummet
Rebound
Stock broking again saw a boom as tighter regulations were put in place following the
1987 crash The markets reached new heights in the late 1990s The terrorist attacks of
September 11 2001 slowed the pattern of growth
Another Crash
In 2008 the largest single-day drop since 1987 occurred as the market lost $12 trillion of
its value on September 29 The drop occurred because of several factors including the
collapse of the mortgage industry and a worsening credit crisis The market has
rebounded only slightly as of mid-20099
223 Salient Features of the Industry in India
On the basis of geographical concentration the west region has the maximum
representation of 52 around 24 firms are located in the North 13 in the South and
10 in the East
9 Source-httpwwweHowcommabout_5208105_history-stockbrokinghtml
3 firms are started broking operations before 1950 65 between 1950-1995 and
32 Post1995
On the basis of terminals 40 are located at Mumbai 12 in Delhi 8 in
Ahmadabad 7 in Kolkata 4 in Chennai and 29 are from other cities
From the study we find that almost 36 firms trade in cash derivatives and
commodities
In the cash market around 34 firms trade at NSE 14 at BSE and 52 trade at
both exchanges In the derivative segment 48 trade at NSE 7 at BSE and 45 at both
whereas in the debt market 31 trade at NSE 26 at BSE and 43 at both Exchanges
Majority of branches are located in the North ie around 40 West has 31 24
are located in South and 5 in East
In terms of Sub brokers around 55 are located in the South 29 in West 11 in
North and 4 in East
Trading IPOs and Mutual funds are the top three products offered with 90 firms
offering trading 67 IPOs and 53 firms offering mutual fund transactions
In terms of various areas of growth 84 firms have expressed interest in
expanding their institutional clients 6 firms intend to increase FII clients and 43 are
interested in setting up JV in India and abroad
In terms of IT penetration 62 firms have provided their website and around 94
firms have E-mail facility10
224 Recent Trends
Equity brokerage industry in India is experiencing rapid growth and diversity Following
the wide range of stock market reforms in the early 2000rsquos brokerage industry underwent
major transformations from being engaged in only brokerage business to offering a wide
range of financial services A modern broking house in India may well be a corporate
entity that offers a wide range of products relies on research for advice uses modern
technology has large distribution network connecting the country provides investor
education and awareness and is compliance focused These developments have resulted
in a huge spurt in business as also growing market share of the large sized brokerage
houses that led to surge in enterprise value thus becoming objects of interest for global
investing In the recent period global and domestic private equity firms have taken stake
10 Source- httpwwwdnbcoinequitybrokingindustry20insightsasp
in brokerage firms such as Anand Rathi (Citigroup) Edelweiss (Lehman Brothers) Geojit
(BNP Paribas) SMC (Millennium India) Motilal Oswal (New Vernon) Marwari Shares
(India Capital Growth Fund) J R G Securities (Barings Pvt Equity) and Network Broking
(Amas Bank of Hindujas) India Infoline (Orient Global) etc Initial Public Offerings of large
firms in2007 such as Motilal Oswal Edelweiss and Religare received huge response from
the markets (over subscription going more than 100) and also high premiums Large
issues of these brokerage firms debuted in the stock exchange with premiums ranging
from 20 to 75 With the stock market momentum likely to continue broking firms
could look forward to scaling up their resource mobilization to fund growing operations
and expansion Brokerages mopping up huge resources from the market are not unusual
even in the emerging markets For instance Citic Securities a Chinese securities firm is
reported to have raised US $ 33 bn last year and other firms such as Haitong and Gold
state are planning to come out with IPOs of US $ 4-5 bn in 2008
In India about 45 equity brokerage houses are at present listed on the stock exchanges
that together reported Rs 35 bn of equity total income of Rs 47 bn and net profit of Rs 3
bn for the second quarter of FY08
Prospects and Outlook
Indian broking houses could look forward to a period of growth and consolidation Indiarsquos
economic growth and deepening of the financial system will present the broking firms
with numerous opportunities for growth and expansion Integration of the financial
markets will enhance the scope of their business and scalability Access to public equity
markets will enable them to raise resources to fund expansion and growths as pursue
useful business acquisitions Growing international investor interest in India will add
newer opportunities to scale up the business as also harmonsing with global standard and
practices Introduction of new products such as mini contracts in the derivatives and other
futures and options products will add new opportunities for creating new business
segments
While opportunities abound there is a great need for reform and restructuring of the
equity broking industry There are about 9000 brokers registered with SEBI but 80
percent of the turnover in NSE and BSE is accounted for by about 100 brokers
Consolidation thus becomes relevant to forge a stronger industry Similarly capital levels
too need to be strengthened The 45 odd listed broking firms in India together have a
meager Rs 35 bn of capital which is far less than what one top broking firm in China
could raise from the capital markets Better performance and practices will enable broking
firms to increase capital levels that will be essential for funding expansion
Investor education and awareness is another aspect broking industry should promote in
the long-term interest of the market As the product mix and risk matrix in financial
markets are continuously changing it becomes imperative for the intermediaries to
educate and create awareness in the clients that would be mutually beneficial Better
understanding of the financial products and associated risks by the investors will be in the
interest of the growth and stability of the markets
The Indian broking industry is coming of age It has enormous opportunities for growth
and diversity As markets expand and get globalised these firms will have increased
opportunity to cater to a large and diverse range of clientele with a wide mix of products
and services Expanding markets offer enhanced opportunities Those who are well
prepared will be in a better position to garner the benefits11
225 Performance Growth Scenario
Some of the major recent developments in the global securities markets have been
summarized below
Equalization
Equity markets have expanded significantly in a large number of countries across the
world The market capitalization of the worldrsquos leading stock exchanges rose from about
USD11 trillion in 1991 to USD35 trillion in 1999 to about USD51 trillion in 2006 The
growth of market capitalization is evident across regions Market capitalization in Asia
nearly doubled from USD68 trillion in 1999 to USD118 trillion in2006 where as in
America it grew from USD179 trillion to USD226 trillion and in EuropeAfricaMiddle
East it rose from USD102 trillion to USD161 trillion Market capitalization as a percent of
GDP witnessed steep growth in several countries during this period
Similarly trading volumes in stock exchanges too has shown rapid growth Value of share
trading in stock exchanges rose from about USD54 trillion in 1991 to USD33 trillion in
1999 to about USD70 trillion in 2006 During the period 1999 and 2006 value of share
trading in Asia Pacific rose from USD42 trillion to USD12 trillion in EuropeAfricaMiddle
11 Source- httpwwwdnbcoinequitybroking2008Emergingtrenasp
East from USD83 trillion to USD218 trillion and in Americas from USD20 trillion to USD35
trillion
Institutional investment
The rapid growth of stock markets in the world to a significant extent could be explained
by the surge in the institutional investors consisting of pension funds insurance
companies and mutual funds During the period 1995 and 2005 the assets under
management of the institutional investors doubled from USD21trillion to USD53 trillion A
large number of institutional investors are moving away from the home bias investing in
outside world Emerging markets with higher economic growth and rapidly growing
financial markets became major centers of destination for the investments of institutional
investors For instance in the US in 1994 pension funds invested 41 of their portfolio in
domestic equity and 7 in international equities where as by 2005 that share rose to 48
in domestic equities and 15 in international equities The portfolio allocation to bond
markets during the same period reduced from 42 to 32 Emerging markets received
sizeable portion of the investments In the US the dedicated emerging markets mutual
funds rose from about USD27 bn in2000 to USD 230 bn in 2006
International listings
On the back of the liberalization of cross border financial flows companies in several
countries are seeking listing in international exchanges to garner benefits from
international investors as also widen their investor base The number of foreign
companies listed in the London Stock Exchange rose from 387 in 1970 to 553 in 1990 to
636 in 2006 The number of foreign companies listed on the NYSE has also risen rapidly in
the 1990s There is a keen competition across the worldrsquos leading stock exchanges to
promote international listing and gain greater influence In the recent period the US
experienced a slowdown in the listing of foreign companies The decline is attributed to
stringent corporate governance norms that were applied following the corporate abuses
found in the beginning of the decade The US is now examining in greater detail measures
to gain the prominence once it enjoyed in the international listings The Alternative
Investment Market of London Stock Exchange attracted huge interest from SMEs from a
large number of countries
Emerging markets as an investment destination
Liberalization of capital flows led to surge in international investment into emerging
economies finding value on the back of huge prospects for growth The flow of net
Foreign Direct Investment (FDI) into developing countries increased from USD170 bn in
1998 to USD325 bn in 2006 and net portfolio equity flows increased from USD6 bn to
USD94 bn during the same period Net debt flows during this period are rather subdued
with net debt flows from official creditors turning negative Net portfolio equity flows to
China between the year 2000 and 2006 rose from USD69 bn to USD32 bn and in India
from USD23 bn to USD87 bn Other emerging markets such as Brazil Mexico South
Africa Thailand and Russia too showed surge in the net portfolio equity flows Emerging
markets showed significant growth in stock prices making them attractive investment
destinations though issues of valuations are beginning to become a concern now
Growing correlation of returns
Greater harmonization of stock markets in mature and emerging markets is in evidence by
the increasing correlation in market returns across different markets The higher
correlation in the stock price movements gained momentum in the late 1990s due to
growing foreign institutional investment in several markets and growth of the technology
sector that pervaded many markets and has driven stock price momentum in the late
1990s
Emerging markets in the new issuance market
Emerging markets also became very active in the new issuance market In 2006 all the ten
largest cross border new capital issues were from the emerging markets These ten issues
were from China Russia Mexico Thailand and Kazakhstan Of these ten issues four each
were listed in London and Hong Kong and only one in the US The value of the new listings
by emerging market companies in the US exchanges declined from USD29 bn in 2004 to
USD27 bn in 2006 where as that of London rose from USD07 bn to USD96 bn and in
Hong Kong from USD72 bn to USD304 bn Emerging markets in the first five months of
2007 have raised USD537 bn in global financial markets which is reported to be the
highest ever amount raised for a year Some of the leading issues during this period
include the USD8 bn IPO by VTB second largest Russian bank USD185 bn by Turkish
financial institution Halk bank and USD14 bn by a Russian real estate company AFI
Development Some of the largest issues from the emerging markets in the recent period
include USD219 bn issue of Chinarsquos ICBC Bank (Oct 2006) USD112 bn issue of Bank of
China (May 06) USD107 bn issue of Russian energy company Ros neft (Jul 06) USD59 bn
pubic issue of Chinarsquos Citic Bank
Alternative markets
In view of the limitations on listing of small and medium scale companies in the big boards
of the main exchanges several stock exchanges have developed alternative markets for
encouraging listing of small and midcap stocks Almost every major exchange has an
alternative platform for listing and trading of small and midcap stocks and new generation
companies without much listing history The market capitalization of the alternative
markets in the year 2006 has grown at an impressive rate of 30 More than 12000
companies are listed in these alternative markets and the value of share trading of these
for SMEs markets rose 15 in 2006 from USD802 bn to USD919 bn New capital (IPOs)
rose in the alternative markets rose 59 in 2006 from USD136 bn to USD216 bn
Growth of Derivatives
The growth of derivatives picked up on the need for risk transfer products The size of
global derivatives industry in 2006 USD370 trillion of notional value and USD10 trillion of
market value in the Over the Counter (OTC) derivative markets and USD84 trillion of
notional value and USD10 trillion market value in the Exchange traded derivative markets
According to the International Swaps and Derivatives Association more than 90 percent
of the global 500 corporations use derivatives for hedging risks in interest rates foreign
exchange and equities In the OTC markets derivative products accounting for large share
of market value include interest rate (785) and Foreign Exchange (114) where as in
the Exchange Traded segment derivative products on interest rate government debt and
equities form the major part of the volumes
Dark Pools and Private Markets
In the third week of May 2007 Goldman Sachs launched GSTrue which is a platform
developed to allow exclusive club of big investors to trade unregistered privately placed
securities which is considered to be a major challenge for the public equity capital
markets in the US Goldman Sachs in that deal helped underwrite the private sale of 15
of hedge fund manager Oak tree Capital Management for USD800 mn The investors in
this sale would be able to buy and sell Oak tree shares through the new Goldman Sachs
Tradable Unregistered Equity System which has its acronym GSTRue
Under the rules of the Securities and Exchange Commission of the US companies can sell
securities without registering them as long as the issues are limited to qualified
institutional buyers which are investors with at least USD100 mn of assets and there are
no more than 500 stockholders Private pools of capital are growing in size and
significance in international markets to overcome the costs and pressures from stringent
regulation According to an estimate of NASDAQ in 2006 companies in the US raised
USD162 bn of capital through unregistered private placements (also known as 144A
private placements) compared with USD154 bn through IPOs which are registered with
the regulator A group of worldrsquos largest banks are developing ldquoProject Turquoiserdquo which
is a hybrid share trading system that allows transactions both on exchange and outside it
(called as dark liquidity pools) where firms with large asset base can buy and sell large
blocks of shares away from the regulatory oversight
Private Equity
Private equity is growing in size and significance In view of the regulatory standards
prevalent in the public equity capital markets several firms seek the private equity option
to raise resources According to Dialogic the top 50 private equity firms raised USD551 bn
out of the USD800 bn estimated to have been raised by the total private equity since Jan
2002 Of the top 50 private equity firms more than 30 are from the US 11 from the UK
five from Western Europe and one from Asia Pacific Private equity is now involved in high
value deals and recent transactions include USD35 bn HCA buyout in the healthcare
industry and bids of USD39 bn and USD41 bn for Equity Office Property Trust a
commercial office real estate trust in the United Trust It is expected that the transaction
values of the private equity may go up to USD50-100 bn in the near future Private equity
market in India raised USD22 bn in 2005 about USD4 bn in 2006 and is expected to raise
about USD10 bn by 2010 according to a recent study
Hedge Funds
Hedge Funds emerged from the need of investors seeking alpha to earn an excess return
and beat the market and the returns from the conventional investments Alpha is a
common measure of assessing an active managerrsquos performance as it is the return in
excess of a benchmark index or ldquorisk-freerdquo investment The difference between the fair
and actually expected rates of return on a stock is called the stockrsquos alpha In view of rapid
growth of hedge funds and their complex nature of operations and lack of adequate
regulatory control these funds became a major concern of global financial regulation
Notwithstanding these concerns hedge funds continue to grow with the size of the
market growing from about USD30 bn in 1990 to more than USD14 trillion in 2005 and
the number of funds rising from about 530 to about 7000 during this period An
interesting development in the recent period is the growing institutional investment in the
hedge funds which is estimated at USD360 bn in 2005 and the rising allocations to these
funds that was evident in the US and XXVII the European markets The investor base of
the hedge funds consists of individualsfamilies fund of funds corporations and
institutions public and private pensions and endowments and foundations in that order
Investor Protection
With democratization of markets leading to greater participation of individuals and
investments and wide choices of asset classes now available issues of investor interest
and protection have assumed centre stage Following the corporate crises in the US that
adversely affected the investor interests extensive federal investigations were launched
that led to imposition of huge penalties and punitive damages leading to billions of
dollars Such actions were taken against a wide spectrum of global investment banks
brokerage firms and other related entities Simultaneously growth of litigation and class
action suits showed significant rise when the market intermediaries failed to meet their
obligations or did not provide all the material facts to the investors that were crucial for
an investment decision
Securities regulators imposed penalties on market participants who were found to have
indulged in market abuses In India disgorgement orders were passed on certain entities
that were found to making money by unfair means and for violating regulatory norms and
procedures Top institutional investors in several countries devised their own review
process for investing in countries and companies that brought into light greater need for
higher standards in corporate governance disclosure and transparency standards and in
some cases concern towards issues such as democracy and social equity environment
economic and political reforms
Surge in Chinese capital markets
A major change in the year 2007 is the sudden leap of China into big league of global stock
markets On 9 May 07 Shanghai Stock Exchange Chinarsquos top stock market recorded
turnover of USD332 bn and Shenzhen Stock Exchange a stock market for SMEs an
equally powerful USD158 bn taking the combined turnover of both these stock
exchanges on that day to USD495 bn In the first three months of the year 2007 value of
share trading in both these Chinese stock markets reached 89 of the whole turnover of
the year 2006 Value of share trading in Shanghai Stock Exchange rose from USD256 bn in
2003 to USD736 bn in 2006 and in the first three months of the year 2007 it already
recorded USD652 bn Market capitalization in China between Apr 2006 and 2007 rose by
almost 4 times pushing it to a position among the top 10 exchanges in the world and
value of share turnover rose 6 times making Shanghai 6 the biggest Main indexes of
Shanghai Stock Exchange and Shenzhen Stock Exchange posted returns of 194 and 204
respectively in the 12 months proceeding Apr 2007
Rise of smaller markets
The growth and momentum of the stock markets is spreading across a large number of
markets big and small Recent evidence of big surge in stock markets include countries in
the Middle East which witnessed exceptional growth in 20052006 China in 2007 and
several smaller European and Latin American countries in the last one year As
international investing is spreading its presence domestic financial institutions and
investors are finding stocks as an important asset class and stock markets all over the
world have experienced rapid growth in the last five years
Stock exchange consolidation
A big wave of stock exchange consolidation is taking place across the global financial
markets The most notable merger in the recent period is that of the New York Stock
Exchange with Archipelago that led to the demutualization of the former which
subsequently acquired Euro next to form NYSE Group that makes it a formidable force in
the North America and the Euro region Another American exchange NASDAQ after the
merger with Instinet announced plans to acquire OMX which is Europersquos leading
exchange as also provider of cutting edge technology solutions for stock exchanges
worldwide Deutsche Borsersquos recent acquisition of International Securities Exchange gives
the former a powerful position in the derivatives markets in Europe and America There
was also sizeable consolidation within the domestic securities markets in several countries
with the merger of equities and derivatives markets in countries such as Korea Malaysia
and Hong Kong In India the issue of appropriate solutions for the 20 odd stock exchanges
that currently lack proper liquidity is engaging the attention of policy and regulation
RECENT DEVELOPMENTS GOVERNING REGULATION OF STOCK MARKETS
Systematic and streamlined regulation is the key strength and sustainability of the
securities markets Though formal regulation of the securities markets is about 70 years
old some of the recent developments in the financial markets are reshaping the scope
and focus of the regulation These include ndash
There is growing harmonization of regulation across different markets Organizations
such as International Organization for Securities Commissions (IOSCO) are playing a very
important role in adoption of uniform principles and guidelines across the markets
The size and scope of the securities markets is rapidly changing from being one or
two product markets to multi product markets with diverse features and different
investor base
Markets have become more democratized with more people and institutions
participating in the market related activities
Rapid increase in the size of the institutional participation in the financial markets
For instance equity markets which in the past were retail investor driven are now
increasingly become institutional induced
Securities markets are transforming from being membership driven to public
corporation following demutualization and corporatization of stock exchanges in mature
and emerging markets
Two most important pieces of regulation that came into being in the recent period are in
the form of market structure reforms in the US known more popularly as regulation NMS
which underlines the promotion of competition across the markets under three major
principles best price open access and transparency Under the new trade-through role in
whichever market a customer placed his order it should be able to access the best price
that is immediately and automatically available anywhere in the national market system
The trade-through rule will not allow markets to ignore better-priced automated quotes
displayed by the competitors Similarly open access to displayed prices will be a major
feature governing the competition of the markets The regulation also stipulates that all
significant markets must display their quotations and trade reports should be available to
all interested parties on fair terms and non-discriminatory manner Another equally
important development is the Markets in Financial Industry Directive (MiFiD) that will
come into force from 1 Nov 2007 and stipulates wide-ranging norms for financial
institutions in the European Union Major features of the MiFiD include wider scope of
coverage of the financial institutions and the related business activities greater degree of
harmonization across the European markets and facilitate cross border business and
stipulated capital requirements
MiFiD is envisaged to bring major changes in the manner financial institutions in the
European Union will be monitored Simultaneous with stringent norms of regulation the
scope of regulation is considerably delegated to the markets and institutions in the form
of self-regulation Self-regulation brings a number of benefits to the business Institutions
such as National Association of Securities Dealers (NASD) have played an important role in
promoting self-regulation However self-regulation has certain limitations it needs to
overcome before it becomes widely accepted across the markets12
225 Top five companies of the industry
Many time new investor or trader gets confusion for open a D Mat and trading account in
broking House Many of broking House promises to you for better service but clients get
problem due to trading session in theirs Broker house firm Here is the list of Indiarsquos top 5
broking House on base of survey of investors and traders of many cities In their views
following Broking Houses gives best and reliable services13
1 ICICI directcom
ICICI Securities empowers over 2 million Indians to seamlessly access the capital market
with ICICIdirectcom an award winning and pioneering online broking platform The
platform not only offers convenient ways to invest in Equity Derivatives Currency
Futures Mutual Funds but also other services Fixed Deposits Loans Tax Services New
Pension Systems and Insurance are available ICICIdirectcom offers a convenient and easy
to use platform to invest in equity and various other financial products using its unique 3-
in-1 account which integrates customerrsquos saving trading and demat accounts
Apart from convenience ICICIdirectcom also offers access to comprehensive research
information stock picks and mutual fund recommendations among other offerings
Tailored services and trading strategies are available to different types of customers long
term investors day traders high-volume traders and derivatives traders to name some
ICICIdirectcom uses the most advanced commercially available 128-bit encryption
technology enabled Secure Socket Layer (SSL) to ensure that the information transmitted
between the client and ICICIdirectcom across the internet is safe and cannot be accessed
by any third party14
2 India Infoline
India Infoline Ltd (India Infoline) established in 1995 is the holding company of the
India Infoline Group It has membership in the cash and derivative segments of both 12 Source- httpwwwdnbcoinequitybrokingglobal20scenarioasp13 Source- Httpwwwindianstockmarketorgindias-top-10-stock-broking-house14 Source-httpwwwicicisecuritiescomOurBusinessSubSubReportID=10223ampshortCode=INST
the NSE and BSE India Infoline is also registered as a DP with NSDL and CDSL India
Infoline through its subsidiary India Infoline Commodities Limited also offers commodity-
trading services which is a registered member with DGCX since 2006 It also operates in
the currency futures market segment India Infoline offers a wide range of products
and services which include investment banking distribution of financial products
demat services private equity PMS institutional broking WMS insurance broking
among others In addition it also offers research services in areas of economy
derivative strategies mutual funds IPO credit policy and various others The company
has 15 domestic subsidiaries and five foreign subsidiaries The company has global
presence through its subsidiaries in New York Singapore and Dubai India Infoline caters
majorly to retail clients During CY09 the company added 303480 client accounts
Address 75 Nirlon Complex Off Western Express Highway Goregaon (East) Mumbai -
400063 Maharashtra
Telephone 91 22 42499000 Fax 91 22 26850451
Email mailindiainfolinecom Website wwwindiainfolinecom
Registration Number NSE - INBINF231097537 BSE - INBINF01109753315
3 Kotak Securities Ltd
Kotak Securities Ltd (Kotak Securities) is the stock-broking and distribution arm of the
Kotak Mahindra Group and a subsidiary of Kotak Mahindra Bank Kotak Securities was
established in 1994 It has memberships in the cash derivatives and currency futures
segments of NSE and BSE Kotak Securities is also a DP with NSDL and CDSL Apart from
stock broking the company is engaged in offering depository services asset management
margin financing PMS and distribution of financial products like IPOrsquos mutual funds and
insurance The company has a full-fledged research division which offers macro
economic sectoral research and company specific equity research Its domestic network
spans over 383 cities and 1048 offices Trading in equities and derivatives contributes to
major part of the companyrsquos revenue During CY09 Kotak Securities added around 62194
accounts of which around 27 are e-broking accounts The companyrsquos overseas
operations include one subsidiary and two associate firms operating in two foreign
locations
15 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndia+Infoline+Limited2Epdf
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF01113323016
4 Share Khan
Sharekhan Ltd (Sharekhan) is one a leading brokerage houses established in 2000
Sharekhan has membership in the cash and derivative segments of both BSE and NSE It
also operates in the debt and currency futures segment The company is registered as a
DP with CDSL and NSDL Besides trading the company also offers PMS demat services and
mutual funds Share khan provides a comprehensive set of research reports relating
to IPO and mutual funds Other value added facilities offered to clients include
online trading dial-n-trade share shops fundamental and technical research The
company serves large number of retail clients with a client network of more than 100000
clients which includes HNIrsquos corporate and other retail customers The company
through its subsidiary Share khan Commodities Ltd provides commodity-trading services
Address A - 206 Phoenix House 2nd Floor Senapati Bapat Marg Lower Parel
Mumbai - 400013 Maharashtra
Telephone 91 22 67482000 Fax 91 22 66104533
Email compliancelpsharekhancom Website wwwsharekhancom
Registration Number NSE - INBINF231073330 BSE - INBINF01107335117
5 Indiabulls
Indiabulls Securities Ltd (Indiabulls) part of Indiabulls Group was established in 1995 The
company is in the business of providing securities and advisory services It is a corporate
member of capital market wholesale debt market and derivative segments of NSE and of
capital market and derivative segments of BSE
Indiabulls also operates in currency futures and is a DP of CDSL and NSDL It provides a
wide range of products and services which include internet trading NRI trading demat
16 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CKotak+Securities+Limited2Epdf17 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CSharekhan+ Limited2Epdf
services margin financing and distribution of financial products like IPO online
mutual funds etc Power Indiabulls (PIB) is the advanced online trading platform offered
by the company Indiabulls also offers research services in the areas of economic equity
mutual fund IPO and others The company operates in commodity segment through its
subsidiary India bulls Commodities Pvt Ltd which is a member of MCX and NCDEX It
is listed on both NSE and BSE
Address F-60 Malhotra Building 2nd Floor Connaught Place New Delhi - 110001 Delhi
Telephone 91 11 41523700 Fax 91 11 41529071
Email helpdeskindiabullscom Website wwwindiabullscom
Registration Number NSE - INBINF230875632 BSE - INBINF01087563218
18 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndiabulls+Securities+Limited2Epdf
22 Company Overview
221 Overview of the Organizations
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited Uday Kotak Sidney A A Pinto and Kotak amp Company promoted this company Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and thats when the company changed its name to Kotak Mahindra Finance Limited Since then its been a steady and confident journey to growth and success
Kotak Securities Ltd is one of Indias largest brokerage and securities distribution house in India Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-ordinates Kotak Securities Ltd offers online (through wwwkotaksecuritiescom) and offline services based on well-researched expertise and financial products to the non-institutional investors Kotak Securities Limited is the world of Capital Markets where everything newsworthy exists only in the present moment and where knowing the importance of timing sentiments and strategic forecasting makes the difference between profit and loss Kotak Securities Limited a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25 - one of the worldrsquos leading investment banks and brokerage firms) is Indiarsquos leading stock broking house with a market share of 7 - 8
Kotak Securities Limited is one of the larger players in distribution of IPOs - it was ranked number One in 2003-04 as Book Running Lead Manager in public equity offerings by PRIME Database It has also won the ldquoBest Equity Houserdquo Award from Finance Asia -April 2004 The Company has a full-fledged Research division involved in macro economic studies Sectoral research and Company specific equity research combined with a strong and well Networked sales force which helps deliver current and up-to-date market information and news
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them Kotak securities provide portfolio Management Services catering to the high end of the market Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market with the backing of an expert Kotak Securities Limited manages assets over Rs 1700 crores through itrsquos Portfolio Management Services (PMS) servicing high net worth clients with a large
investible surplus through its preferred client services in the mass affluent and wealth management segments The company has a full-fledged research division involved in Macro Economic studies Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news
222 MARKET SHARE
Kotak Securities Ltd is Indiarsquos leading stock broking house with a market share of around
85 percent as of March 31 2006 It handles more IPOs than any other brokerage The
company has a full-fledged research division involved in macroeconomic studies sect oral
research and company-specific equity research combined with a strong and well-
networked sales force which helps deliver current market information and news
The firm has 195 branches servicing more than 2200000 customers across 231 cities
Kotaksecuritiescom the online division offers Internet brokerage services and also online
IPO and mutual fund investments Kotak Securities manages over 2500 crores of Assets
under Management (AUM)
223 AWARDS AND RECOGNIZATION
Kotak Securities Ltd 100 subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry The companyrsquos offerings include stock broking
through the branch and Internet Investments in IPO Mutual funds and Portfolio
management service Kotak Securities has a full-fledged research division involved in
Macro Economic studies Sect oral research and Company Specific Equity Research
combined with a strong and well-networked sales force which helps deliver current and
up to date market information and news Kotak Securitiesrsquo network spans over 321 cities
with 877 outlets with an employee workforce beyond 5100
The company is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can avail the companyrsquos brokerage services for executing the
transactions and the depository services for settling them Kotak Securities Ltd processes
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
43 Collection of Data
44 Data collection
45 Limitations
46 Questionnaire Design
5 Chapter Five
51 Data Analysis and Interpretations
52 Observation
53 Findings
54 Recommendation
55 Conclusion
56 Learning Outcome
7 Reference and Bibliography
8 Annexure
Chapter1
INTRODUCTION TO CRM
12 Evolution of CRM
Customer Relationship Management (CRM) is one of those magnificent concepts that swept the business world in the 1990rsquos with the promise of forever changing the way businesses small and large interacted with their customer bases In the short term however it proved to be an unwieldy process that was better in theory than in practice for a variety of reasons First among these was that it was simply so difficult and expensive to track and keep the high volume of records needed accurately and constantly update them In the last several years however newer software systems and advanced tracking features have vastly improved CRM capabilities and the real promise of CRM is becoming a reality As the price of newer more customizable Internet solutions have hit the market place competition has driven the prices down so that even relatively small businesses are reaping the benefits of some custom CRM programs
12 In the beginninghellip
The 1980rsquos saw the emergence of database marketing which was simply a catch phrase to define the practice of setting up customer service groups to speak individually to all of a companyrsquos customers In the case of larger key client sit was a valuable tool for keeping the lines of communication open and tailoring service to the clients needs In the case of smaller clients however it tended to provide repetitive survey-like information that cluttered databases and didnrsquot provide much insight As companies began tracking database information they realized that the bare bones were all that was needed in most cases what they buy regularly what they spend what they do
13 Advances in the 1990rsquos
In the 1990rsquos companies began to improve on Customer Relationship Management by making it more of a two-way street Instead of simply gathering data for their own use they began giving back to their customers not only in terms of the obvious goal of improved customer service but in incentives gifts and other perks for customer loyalty This was the beginning of the now familiar frequent flyer programs bonus points on credit cards and a host of other resources that are based on CRM tracking of customer activity and spending patterns CRM was now being used as a way to increase sales passively as well as through active improvement of customer service 1
1 Source- httpwwwcrm-software-guidecomhistory-of-crmhtm
14 Customer Relationship Management Introduction
The biggest management challenge in the new millennium of liberalization and globalization for a business is to serve and maintain good relationship with the king ndash the customer In the past producers took their customers for granted because at that time the customers were not demanding nor had alternative source of supply or suppliers But today there is a radical transformation The changing business environment is characterized by economic liberalization increasing competition high consumer choice demanding customer more emphasis on quality and value of purchase etc2
A CRM is a collection of people processes software and internet capabilities that helps an enterprise manage customer relationship effectively and systematically The goal of CRM is to understand and anticipate the needs of current and potential customer to increase customer retention and loyalty while optimizing the way product and services are sold
CRM stands for Customer Relationship Management It is a strategy used to learn more about customers needs and behaviors in order to develop stronger relationships with them After all good customer relationships are at the heart of business success There are many technological components to CRM but thinking about CRM in primarily technological terms is a mistake The more useful way to think about CRM is as a process that will help bring together lots of pieces of information about customers sales marketing effectiveness responsiveness and market trends3
The objective is to capture data about every contact a company a company has with a customer through every channel and store it in the CRM system to enable the company to truly understand customer action CRM software helps an organization build a database about its customer that management sales people customer service provider and even customer can access information to access customer needs with product and offering
All these changes have made todayrsquos producer shift from traditional marketing to modern marketing Modern marketing calls for more than developing a product pricing it promoting it and making it accessible to target customer It demands building trust a binding force and value added relationship with the customers
15 Customer Relationship Management CRM Techniques
The CRM is a new technique in marketing where the marketer tries to develop long-term relationship with the customers to develop them as lifetime customers CRM aims to make the customer climb up the ladder of loyalty
2 Source-httpwwwezinarticlescomEmerging-Trends-In-Customer-Relationship-Managementampid=10926073 Source-httpwwwscribddocumentswordpresscom20090917crm-project-report
The company first tries to determine that who are likely prospects ie the people who have a strong potential interest in the product and ability to pay for it The company hopes to convert many of its qualified prospect into first time customers and then to convert those first time customers into repeat customers Then the company tries to convert these repeat customers into clients ndash they are those people who buy only from the company in the relevant product categories The next challenge for the company is to convert this client into advocates Advocates are those clients who praise the company and encourage others to buy from it
The ultimate challenge is to convert these advocates into partners where the customers and the clients work actively together to discover ways of getting mutual benefit
Thus in CRM the key performance figure is not just current market share but share of lifetime value by converting customers into partners
In CRM the company tries to identify that small percentage (20) of key account holders whose contribution to the company revenues is high (80) So from this point of view CRM is also known as KEY ACCOUNT MANAGEMENT
16 Why ndash Customer Relationship Management
Satisfied customers in 10 years will bring100 more customers to the company It costs 7 times more to attract a new customer than to serve an old one 20 of the companyrsquos loyal customers account for 80 of its revenues (Paretorsquosprinciple) The chances of selling to an existing customer are 1 in 2 the chances of selling to a new customer are 1 in 16
Eight ways to keep customers for life
1 Every part of the companyrsquos marketing effort should be geared towards building lifetime relationships
2 People want to do business with friendly people To have effective relations a friendly attitude must permeate in the organization
3 Information technology developments should be positively used to serve the customers
4 The company should always be flexible to bend its rules and procedures in the clientrsquos favor
5 The company should communicate with its customers even when it is not trying to sell something
6 The company can communicate and develop stronger customer bonding by providing financial and social benefits
7 The company should try to know all its customers including their lifestyles hobbies likes or dislikes etc
8 The company should make it a point to deliver more than what is promised
17 How to introduce CRM in the company
There are four key steps for putting one tone marketing program to work ndash
Step 1 Identify your customers
To launch a one to one initiative the company must be able to locate and contact a fair
number of customers or at least a substantial portion of its valuable customers It is
crucial to know the customer details as much as possible not just their names or
address but their habits preferences and so forth
Step 2 Differentiating your customers
Customers are different in two principal ways they represent different levels of value
and have different needs Once the company identifies its customers differentiating
them will help the company to focus its efforts to gain the most advantage with the
most valuable customers
Step 3 Interacting with the customer
Interaction is also a crucial component of successful CRM initiative It is important to
remember that interaction just not occur through marketing and sales channels
customer interact in many different ways with many different areas of the organization
so to foster relationship all the areas of the organization must be accessible to the
customer
Step 4 Customize your enterprisersquos behavior
Ultimately to lock a customer into a relationship a company must adapt some aspect
of its behavior to meet customerrsquos individually expressed needs this might mean mass
customizing a manufactured product or it might involve tailoring some aspect of the
service surrounding the product
Chapter2
INDUSTRY OVERVIEW amp COMPANY OVERVIEW
21 Industry Overview
211 Industry Profile
A stockbroker is nothing but a registered and qualified working professional who buys
stocks and derivatives for other people The stockbroker thus performs all the
transactions for people on the stock exchange The stockbroker maintains information of
the people for whom he is buying or selling stocks This information includes name
address PAN no and other relevant information No transaction can take place in the
stock market with out a stockbroker
The stockbroker cannot give inputs advice to people buying or selling stocks unless he is
registered with the Securities and exchange board of India as a portfolio manager The
stockbroker takes a certain brokerage for the transactions he does for his clients on the
stock exchange The brokers are expected to issue contract notes to the clients after a
particular transaction has been done They are also expected to issue periodic reports to
their clients with respect to the transactions that have been done by them in that periodic
interval If you are looking to become a portfolio manager then there is a different policy
and procedure that you need to follow for it
Stockbrokers can be individual stockbrokers or form a company or an organization there
by making a brokerage All brokerages have to pay a certain sales tax for the transactions
that are done with the brokerage by other clients wither through selling or buying a
certain stock Thus any person who wants to buy or sell any stock with a particular stock
exchange has to do that with a particular stockbroker affiliated with that stock exchange4
Securities Markets is a place where buyers and sellers of securities can enter into
transactions to purchase and sell shares bonds debentures etc
Further it performs an important role of enabling corporate entrepreneurs to raise
resources for their companies and business ventures through public issues Transfer of
resources from those having idle resources (investors) to others who have a need for
them (corporate) is most efficiently achieved through the securities market Stated
4 Source- httpwwwstockbrokingcoinwhat-is-stockbrokinghtml
formally securities markets provide channels for reallocation of savings to investments
and entrepreneurship Savings are linked to investments by a variety of intermediaries
through a range of financial products called lsquoSecuritiesrsquo5
The Securities Contract (Regulation) Act 1956 [SCRA] defines lsquoStock Exchangersquo as any
body of individuals whether incorporated or not constituted for the purpose of assisting
regulating or controlling the business of buying selling or dealing in securities Stock
exchange could be a regional stock exchange whose area of operationjurisdiction is
specified at the time of its recognition or national exchanges which are permitted to have
nationwide trading since inception NSE was incorporated as a national stock exchange6
222 Industry Evolution
The history of stockbrokers can be traced back to the origins of the first stock exchange in
1602 at Amsterdam Even before that brokers are said to have existed in France dealing
with government securities The Amsterdam Stock Exchange was involved in buying and
selling of shares for the Dutch East India Company However the first real stock exchange
came up in Philadelphia in the United States during the late 18th century Later it was the
New York stock exchange which saw a rise in its popularity Wall Street as it was called
became the hub of brokerage activities Earlier stockbrokers were largely unorganized
but later most of them joined hands to form institutes and organizations Until the 1980rsquos
stock broking services were used only by the wealthy class who could afford them Later
with the advent of the Internet stock broking became very easy Thus the price tag on
stockbrokers lowered considerably and their services became available even to the
common man The stock broking duties are now mostly taken up by major organizations
with the smaller companies being absorbed by them In India too with increasing
globalization the major corporations are penetrating deeper into the society7
A Stockbroker is nothing but a person who buys and sells securities from the stock market
on behalf of other investors Stock broking began in the United States of America
Philadelphia was the first city in America to have a stock exchange After which New York
became the heart of all stock transactions and Wall Street became synonymous with
investing and trading
5 Source-httpwwwgascicomfaqhtm6 Source-httpwwwaumassociatecoinsharebazaraspx7 Source-httpwwwindiacomcomyellowpagecategory-gyanarticlesStock-BrokersStock-Broker-Introductionasp
Since the early part of the 1980s stock broking was allowed in America In addition in the
late part of 1990s stock broking went online and now there are several online stock
brokerages on the internet and hence online transactions happen in a jiffy these days A
stockbroker may also be a financial advisor or an investment consultant these days but in
India you need to be registered with the Securities and exchange board of India in order
to act as a financial advisor As the name suggests a stockbroker mainly deals in stocks
that is the shares of a company Other professionals such as foreign exchange brokers
deal with currencies where as commodity brokers deal with commodities
All stock market transactions that is buying or selling of shares have to take place through
a broker or a brokerage Even if you make online transactions you need to do it through
an online stockbroker For performing the transaction online stockbrokers charge a small
brokerage fee or commission fee for the transactions that they do for other companies or
retail investors The brokerages that a stockbroker may charge are different for various
brokerages as they might have a different business model for the same8
The history of stock broking in the United States parallels the growth of the nations
economy since colonial times The industry has tended to be cyclical in nature and has
survived several downturns including a major economic depression in the 1930s
Government regulations have been introduced at times in an effort to place controls on
what were viewed as harmful trading practices
Origin
The first stock brokerage house in the United States started in Philadelphia in 1800 While
the practice had been around since the early 1700s the Philadelphia Stock Exchange was
the first organized body that brought brokers together and served to codify the rules and
regulations under which business had been conducted The profession continued to
expand with the growth of corporations and the dawning of the Industrial Revolution
Crash
The first major negative event in the industry occurred when the stock market crashed in
1929 which was followed by the Great Depression The result of the crash was due to
8 Source- httpwwwstockbrokingcoinorigin-of-stockbrokinghtml
investors who had borrowed heavily to purchase stocks and began to realize that they
were hugely overvalued and attempted to sell them off resulting in a panic
Securities Act
In an effort to prevent the recurrence of the 1929 crash the Securities Act was
implemented in 1933 as a way to regulate the industry Eventually the stock market
began to rebound and continued a general pattern of steady growth over the next several
decades
Change
In the early 1970s the growth of technology led to reforms in the United States that
helped to reopen the markets to more liberalized trading In the late 1980s another crash
in the market occurred due to the dropping of prices of stock index futures Much like the
Great Depression this led to a mass selling of these securities causing the stock market to
plummet
Rebound
Stock broking again saw a boom as tighter regulations were put in place following the
1987 crash The markets reached new heights in the late 1990s The terrorist attacks of
September 11 2001 slowed the pattern of growth
Another Crash
In 2008 the largest single-day drop since 1987 occurred as the market lost $12 trillion of
its value on September 29 The drop occurred because of several factors including the
collapse of the mortgage industry and a worsening credit crisis The market has
rebounded only slightly as of mid-20099
223 Salient Features of the Industry in India
On the basis of geographical concentration the west region has the maximum
representation of 52 around 24 firms are located in the North 13 in the South and
10 in the East
9 Source-httpwwweHowcommabout_5208105_history-stockbrokinghtml
3 firms are started broking operations before 1950 65 between 1950-1995 and
32 Post1995
On the basis of terminals 40 are located at Mumbai 12 in Delhi 8 in
Ahmadabad 7 in Kolkata 4 in Chennai and 29 are from other cities
From the study we find that almost 36 firms trade in cash derivatives and
commodities
In the cash market around 34 firms trade at NSE 14 at BSE and 52 trade at
both exchanges In the derivative segment 48 trade at NSE 7 at BSE and 45 at both
whereas in the debt market 31 trade at NSE 26 at BSE and 43 at both Exchanges
Majority of branches are located in the North ie around 40 West has 31 24
are located in South and 5 in East
In terms of Sub brokers around 55 are located in the South 29 in West 11 in
North and 4 in East
Trading IPOs and Mutual funds are the top three products offered with 90 firms
offering trading 67 IPOs and 53 firms offering mutual fund transactions
In terms of various areas of growth 84 firms have expressed interest in
expanding their institutional clients 6 firms intend to increase FII clients and 43 are
interested in setting up JV in India and abroad
In terms of IT penetration 62 firms have provided their website and around 94
firms have E-mail facility10
224 Recent Trends
Equity brokerage industry in India is experiencing rapid growth and diversity Following
the wide range of stock market reforms in the early 2000rsquos brokerage industry underwent
major transformations from being engaged in only brokerage business to offering a wide
range of financial services A modern broking house in India may well be a corporate
entity that offers a wide range of products relies on research for advice uses modern
technology has large distribution network connecting the country provides investor
education and awareness and is compliance focused These developments have resulted
in a huge spurt in business as also growing market share of the large sized brokerage
houses that led to surge in enterprise value thus becoming objects of interest for global
investing In the recent period global and domestic private equity firms have taken stake
10 Source- httpwwwdnbcoinequitybrokingindustry20insightsasp
in brokerage firms such as Anand Rathi (Citigroup) Edelweiss (Lehman Brothers) Geojit
(BNP Paribas) SMC (Millennium India) Motilal Oswal (New Vernon) Marwari Shares
(India Capital Growth Fund) J R G Securities (Barings Pvt Equity) and Network Broking
(Amas Bank of Hindujas) India Infoline (Orient Global) etc Initial Public Offerings of large
firms in2007 such as Motilal Oswal Edelweiss and Religare received huge response from
the markets (over subscription going more than 100) and also high premiums Large
issues of these brokerage firms debuted in the stock exchange with premiums ranging
from 20 to 75 With the stock market momentum likely to continue broking firms
could look forward to scaling up their resource mobilization to fund growing operations
and expansion Brokerages mopping up huge resources from the market are not unusual
even in the emerging markets For instance Citic Securities a Chinese securities firm is
reported to have raised US $ 33 bn last year and other firms such as Haitong and Gold
state are planning to come out with IPOs of US $ 4-5 bn in 2008
In India about 45 equity brokerage houses are at present listed on the stock exchanges
that together reported Rs 35 bn of equity total income of Rs 47 bn and net profit of Rs 3
bn for the second quarter of FY08
Prospects and Outlook
Indian broking houses could look forward to a period of growth and consolidation Indiarsquos
economic growth and deepening of the financial system will present the broking firms
with numerous opportunities for growth and expansion Integration of the financial
markets will enhance the scope of their business and scalability Access to public equity
markets will enable them to raise resources to fund expansion and growths as pursue
useful business acquisitions Growing international investor interest in India will add
newer opportunities to scale up the business as also harmonsing with global standard and
practices Introduction of new products such as mini contracts in the derivatives and other
futures and options products will add new opportunities for creating new business
segments
While opportunities abound there is a great need for reform and restructuring of the
equity broking industry There are about 9000 brokers registered with SEBI but 80
percent of the turnover in NSE and BSE is accounted for by about 100 brokers
Consolidation thus becomes relevant to forge a stronger industry Similarly capital levels
too need to be strengthened The 45 odd listed broking firms in India together have a
meager Rs 35 bn of capital which is far less than what one top broking firm in China
could raise from the capital markets Better performance and practices will enable broking
firms to increase capital levels that will be essential for funding expansion
Investor education and awareness is another aspect broking industry should promote in
the long-term interest of the market As the product mix and risk matrix in financial
markets are continuously changing it becomes imperative for the intermediaries to
educate and create awareness in the clients that would be mutually beneficial Better
understanding of the financial products and associated risks by the investors will be in the
interest of the growth and stability of the markets
The Indian broking industry is coming of age It has enormous opportunities for growth
and diversity As markets expand and get globalised these firms will have increased
opportunity to cater to a large and diverse range of clientele with a wide mix of products
and services Expanding markets offer enhanced opportunities Those who are well
prepared will be in a better position to garner the benefits11
225 Performance Growth Scenario
Some of the major recent developments in the global securities markets have been
summarized below
Equalization
Equity markets have expanded significantly in a large number of countries across the
world The market capitalization of the worldrsquos leading stock exchanges rose from about
USD11 trillion in 1991 to USD35 trillion in 1999 to about USD51 trillion in 2006 The
growth of market capitalization is evident across regions Market capitalization in Asia
nearly doubled from USD68 trillion in 1999 to USD118 trillion in2006 where as in
America it grew from USD179 trillion to USD226 trillion and in EuropeAfricaMiddle
East it rose from USD102 trillion to USD161 trillion Market capitalization as a percent of
GDP witnessed steep growth in several countries during this period
Similarly trading volumes in stock exchanges too has shown rapid growth Value of share
trading in stock exchanges rose from about USD54 trillion in 1991 to USD33 trillion in
1999 to about USD70 trillion in 2006 During the period 1999 and 2006 value of share
trading in Asia Pacific rose from USD42 trillion to USD12 trillion in EuropeAfricaMiddle
11 Source- httpwwwdnbcoinequitybroking2008Emergingtrenasp
East from USD83 trillion to USD218 trillion and in Americas from USD20 trillion to USD35
trillion
Institutional investment
The rapid growth of stock markets in the world to a significant extent could be explained
by the surge in the institutional investors consisting of pension funds insurance
companies and mutual funds During the period 1995 and 2005 the assets under
management of the institutional investors doubled from USD21trillion to USD53 trillion A
large number of institutional investors are moving away from the home bias investing in
outside world Emerging markets with higher economic growth and rapidly growing
financial markets became major centers of destination for the investments of institutional
investors For instance in the US in 1994 pension funds invested 41 of their portfolio in
domestic equity and 7 in international equities where as by 2005 that share rose to 48
in domestic equities and 15 in international equities The portfolio allocation to bond
markets during the same period reduced from 42 to 32 Emerging markets received
sizeable portion of the investments In the US the dedicated emerging markets mutual
funds rose from about USD27 bn in2000 to USD 230 bn in 2006
International listings
On the back of the liberalization of cross border financial flows companies in several
countries are seeking listing in international exchanges to garner benefits from
international investors as also widen their investor base The number of foreign
companies listed in the London Stock Exchange rose from 387 in 1970 to 553 in 1990 to
636 in 2006 The number of foreign companies listed on the NYSE has also risen rapidly in
the 1990s There is a keen competition across the worldrsquos leading stock exchanges to
promote international listing and gain greater influence In the recent period the US
experienced a slowdown in the listing of foreign companies The decline is attributed to
stringent corporate governance norms that were applied following the corporate abuses
found in the beginning of the decade The US is now examining in greater detail measures
to gain the prominence once it enjoyed in the international listings The Alternative
Investment Market of London Stock Exchange attracted huge interest from SMEs from a
large number of countries
Emerging markets as an investment destination
Liberalization of capital flows led to surge in international investment into emerging
economies finding value on the back of huge prospects for growth The flow of net
Foreign Direct Investment (FDI) into developing countries increased from USD170 bn in
1998 to USD325 bn in 2006 and net portfolio equity flows increased from USD6 bn to
USD94 bn during the same period Net debt flows during this period are rather subdued
with net debt flows from official creditors turning negative Net portfolio equity flows to
China between the year 2000 and 2006 rose from USD69 bn to USD32 bn and in India
from USD23 bn to USD87 bn Other emerging markets such as Brazil Mexico South
Africa Thailand and Russia too showed surge in the net portfolio equity flows Emerging
markets showed significant growth in stock prices making them attractive investment
destinations though issues of valuations are beginning to become a concern now
Growing correlation of returns
Greater harmonization of stock markets in mature and emerging markets is in evidence by
the increasing correlation in market returns across different markets The higher
correlation in the stock price movements gained momentum in the late 1990s due to
growing foreign institutional investment in several markets and growth of the technology
sector that pervaded many markets and has driven stock price momentum in the late
1990s
Emerging markets in the new issuance market
Emerging markets also became very active in the new issuance market In 2006 all the ten
largest cross border new capital issues were from the emerging markets These ten issues
were from China Russia Mexico Thailand and Kazakhstan Of these ten issues four each
were listed in London and Hong Kong and only one in the US The value of the new listings
by emerging market companies in the US exchanges declined from USD29 bn in 2004 to
USD27 bn in 2006 where as that of London rose from USD07 bn to USD96 bn and in
Hong Kong from USD72 bn to USD304 bn Emerging markets in the first five months of
2007 have raised USD537 bn in global financial markets which is reported to be the
highest ever amount raised for a year Some of the leading issues during this period
include the USD8 bn IPO by VTB second largest Russian bank USD185 bn by Turkish
financial institution Halk bank and USD14 bn by a Russian real estate company AFI
Development Some of the largest issues from the emerging markets in the recent period
include USD219 bn issue of Chinarsquos ICBC Bank (Oct 2006) USD112 bn issue of Bank of
China (May 06) USD107 bn issue of Russian energy company Ros neft (Jul 06) USD59 bn
pubic issue of Chinarsquos Citic Bank
Alternative markets
In view of the limitations on listing of small and medium scale companies in the big boards
of the main exchanges several stock exchanges have developed alternative markets for
encouraging listing of small and midcap stocks Almost every major exchange has an
alternative platform for listing and trading of small and midcap stocks and new generation
companies without much listing history The market capitalization of the alternative
markets in the year 2006 has grown at an impressive rate of 30 More than 12000
companies are listed in these alternative markets and the value of share trading of these
for SMEs markets rose 15 in 2006 from USD802 bn to USD919 bn New capital (IPOs)
rose in the alternative markets rose 59 in 2006 from USD136 bn to USD216 bn
Growth of Derivatives
The growth of derivatives picked up on the need for risk transfer products The size of
global derivatives industry in 2006 USD370 trillion of notional value and USD10 trillion of
market value in the Over the Counter (OTC) derivative markets and USD84 trillion of
notional value and USD10 trillion market value in the Exchange traded derivative markets
According to the International Swaps and Derivatives Association more than 90 percent
of the global 500 corporations use derivatives for hedging risks in interest rates foreign
exchange and equities In the OTC markets derivative products accounting for large share
of market value include interest rate (785) and Foreign Exchange (114) where as in
the Exchange Traded segment derivative products on interest rate government debt and
equities form the major part of the volumes
Dark Pools and Private Markets
In the third week of May 2007 Goldman Sachs launched GSTrue which is a platform
developed to allow exclusive club of big investors to trade unregistered privately placed
securities which is considered to be a major challenge for the public equity capital
markets in the US Goldman Sachs in that deal helped underwrite the private sale of 15
of hedge fund manager Oak tree Capital Management for USD800 mn The investors in
this sale would be able to buy and sell Oak tree shares through the new Goldman Sachs
Tradable Unregistered Equity System which has its acronym GSTRue
Under the rules of the Securities and Exchange Commission of the US companies can sell
securities without registering them as long as the issues are limited to qualified
institutional buyers which are investors with at least USD100 mn of assets and there are
no more than 500 stockholders Private pools of capital are growing in size and
significance in international markets to overcome the costs and pressures from stringent
regulation According to an estimate of NASDAQ in 2006 companies in the US raised
USD162 bn of capital through unregistered private placements (also known as 144A
private placements) compared with USD154 bn through IPOs which are registered with
the regulator A group of worldrsquos largest banks are developing ldquoProject Turquoiserdquo which
is a hybrid share trading system that allows transactions both on exchange and outside it
(called as dark liquidity pools) where firms with large asset base can buy and sell large
blocks of shares away from the regulatory oversight
Private Equity
Private equity is growing in size and significance In view of the regulatory standards
prevalent in the public equity capital markets several firms seek the private equity option
to raise resources According to Dialogic the top 50 private equity firms raised USD551 bn
out of the USD800 bn estimated to have been raised by the total private equity since Jan
2002 Of the top 50 private equity firms more than 30 are from the US 11 from the UK
five from Western Europe and one from Asia Pacific Private equity is now involved in high
value deals and recent transactions include USD35 bn HCA buyout in the healthcare
industry and bids of USD39 bn and USD41 bn for Equity Office Property Trust a
commercial office real estate trust in the United Trust It is expected that the transaction
values of the private equity may go up to USD50-100 bn in the near future Private equity
market in India raised USD22 bn in 2005 about USD4 bn in 2006 and is expected to raise
about USD10 bn by 2010 according to a recent study
Hedge Funds
Hedge Funds emerged from the need of investors seeking alpha to earn an excess return
and beat the market and the returns from the conventional investments Alpha is a
common measure of assessing an active managerrsquos performance as it is the return in
excess of a benchmark index or ldquorisk-freerdquo investment The difference between the fair
and actually expected rates of return on a stock is called the stockrsquos alpha In view of rapid
growth of hedge funds and their complex nature of operations and lack of adequate
regulatory control these funds became a major concern of global financial regulation
Notwithstanding these concerns hedge funds continue to grow with the size of the
market growing from about USD30 bn in 1990 to more than USD14 trillion in 2005 and
the number of funds rising from about 530 to about 7000 during this period An
interesting development in the recent period is the growing institutional investment in the
hedge funds which is estimated at USD360 bn in 2005 and the rising allocations to these
funds that was evident in the US and XXVII the European markets The investor base of
the hedge funds consists of individualsfamilies fund of funds corporations and
institutions public and private pensions and endowments and foundations in that order
Investor Protection
With democratization of markets leading to greater participation of individuals and
investments and wide choices of asset classes now available issues of investor interest
and protection have assumed centre stage Following the corporate crises in the US that
adversely affected the investor interests extensive federal investigations were launched
that led to imposition of huge penalties and punitive damages leading to billions of
dollars Such actions were taken against a wide spectrum of global investment banks
brokerage firms and other related entities Simultaneously growth of litigation and class
action suits showed significant rise when the market intermediaries failed to meet their
obligations or did not provide all the material facts to the investors that were crucial for
an investment decision
Securities regulators imposed penalties on market participants who were found to have
indulged in market abuses In India disgorgement orders were passed on certain entities
that were found to making money by unfair means and for violating regulatory norms and
procedures Top institutional investors in several countries devised their own review
process for investing in countries and companies that brought into light greater need for
higher standards in corporate governance disclosure and transparency standards and in
some cases concern towards issues such as democracy and social equity environment
economic and political reforms
Surge in Chinese capital markets
A major change in the year 2007 is the sudden leap of China into big league of global stock
markets On 9 May 07 Shanghai Stock Exchange Chinarsquos top stock market recorded
turnover of USD332 bn and Shenzhen Stock Exchange a stock market for SMEs an
equally powerful USD158 bn taking the combined turnover of both these stock
exchanges on that day to USD495 bn In the first three months of the year 2007 value of
share trading in both these Chinese stock markets reached 89 of the whole turnover of
the year 2006 Value of share trading in Shanghai Stock Exchange rose from USD256 bn in
2003 to USD736 bn in 2006 and in the first three months of the year 2007 it already
recorded USD652 bn Market capitalization in China between Apr 2006 and 2007 rose by
almost 4 times pushing it to a position among the top 10 exchanges in the world and
value of share turnover rose 6 times making Shanghai 6 the biggest Main indexes of
Shanghai Stock Exchange and Shenzhen Stock Exchange posted returns of 194 and 204
respectively in the 12 months proceeding Apr 2007
Rise of smaller markets
The growth and momentum of the stock markets is spreading across a large number of
markets big and small Recent evidence of big surge in stock markets include countries in
the Middle East which witnessed exceptional growth in 20052006 China in 2007 and
several smaller European and Latin American countries in the last one year As
international investing is spreading its presence domestic financial institutions and
investors are finding stocks as an important asset class and stock markets all over the
world have experienced rapid growth in the last five years
Stock exchange consolidation
A big wave of stock exchange consolidation is taking place across the global financial
markets The most notable merger in the recent period is that of the New York Stock
Exchange with Archipelago that led to the demutualization of the former which
subsequently acquired Euro next to form NYSE Group that makes it a formidable force in
the North America and the Euro region Another American exchange NASDAQ after the
merger with Instinet announced plans to acquire OMX which is Europersquos leading
exchange as also provider of cutting edge technology solutions for stock exchanges
worldwide Deutsche Borsersquos recent acquisition of International Securities Exchange gives
the former a powerful position in the derivatives markets in Europe and America There
was also sizeable consolidation within the domestic securities markets in several countries
with the merger of equities and derivatives markets in countries such as Korea Malaysia
and Hong Kong In India the issue of appropriate solutions for the 20 odd stock exchanges
that currently lack proper liquidity is engaging the attention of policy and regulation
RECENT DEVELOPMENTS GOVERNING REGULATION OF STOCK MARKETS
Systematic and streamlined regulation is the key strength and sustainability of the
securities markets Though formal regulation of the securities markets is about 70 years
old some of the recent developments in the financial markets are reshaping the scope
and focus of the regulation These include ndash
There is growing harmonization of regulation across different markets Organizations
such as International Organization for Securities Commissions (IOSCO) are playing a very
important role in adoption of uniform principles and guidelines across the markets
The size and scope of the securities markets is rapidly changing from being one or
two product markets to multi product markets with diverse features and different
investor base
Markets have become more democratized with more people and institutions
participating in the market related activities
Rapid increase in the size of the institutional participation in the financial markets
For instance equity markets which in the past were retail investor driven are now
increasingly become institutional induced
Securities markets are transforming from being membership driven to public
corporation following demutualization and corporatization of stock exchanges in mature
and emerging markets
Two most important pieces of regulation that came into being in the recent period are in
the form of market structure reforms in the US known more popularly as regulation NMS
which underlines the promotion of competition across the markets under three major
principles best price open access and transparency Under the new trade-through role in
whichever market a customer placed his order it should be able to access the best price
that is immediately and automatically available anywhere in the national market system
The trade-through rule will not allow markets to ignore better-priced automated quotes
displayed by the competitors Similarly open access to displayed prices will be a major
feature governing the competition of the markets The regulation also stipulates that all
significant markets must display their quotations and trade reports should be available to
all interested parties on fair terms and non-discriminatory manner Another equally
important development is the Markets in Financial Industry Directive (MiFiD) that will
come into force from 1 Nov 2007 and stipulates wide-ranging norms for financial
institutions in the European Union Major features of the MiFiD include wider scope of
coverage of the financial institutions and the related business activities greater degree of
harmonization across the European markets and facilitate cross border business and
stipulated capital requirements
MiFiD is envisaged to bring major changes in the manner financial institutions in the
European Union will be monitored Simultaneous with stringent norms of regulation the
scope of regulation is considerably delegated to the markets and institutions in the form
of self-regulation Self-regulation brings a number of benefits to the business Institutions
such as National Association of Securities Dealers (NASD) have played an important role in
promoting self-regulation However self-regulation has certain limitations it needs to
overcome before it becomes widely accepted across the markets12
225 Top five companies of the industry
Many time new investor or trader gets confusion for open a D Mat and trading account in
broking House Many of broking House promises to you for better service but clients get
problem due to trading session in theirs Broker house firm Here is the list of Indiarsquos top 5
broking House on base of survey of investors and traders of many cities In their views
following Broking Houses gives best and reliable services13
1 ICICI directcom
ICICI Securities empowers over 2 million Indians to seamlessly access the capital market
with ICICIdirectcom an award winning and pioneering online broking platform The
platform not only offers convenient ways to invest in Equity Derivatives Currency
Futures Mutual Funds but also other services Fixed Deposits Loans Tax Services New
Pension Systems and Insurance are available ICICIdirectcom offers a convenient and easy
to use platform to invest in equity and various other financial products using its unique 3-
in-1 account which integrates customerrsquos saving trading and demat accounts
Apart from convenience ICICIdirectcom also offers access to comprehensive research
information stock picks and mutual fund recommendations among other offerings
Tailored services and trading strategies are available to different types of customers long
term investors day traders high-volume traders and derivatives traders to name some
ICICIdirectcom uses the most advanced commercially available 128-bit encryption
technology enabled Secure Socket Layer (SSL) to ensure that the information transmitted
between the client and ICICIdirectcom across the internet is safe and cannot be accessed
by any third party14
2 India Infoline
India Infoline Ltd (India Infoline) established in 1995 is the holding company of the
India Infoline Group It has membership in the cash and derivative segments of both 12 Source- httpwwwdnbcoinequitybrokingglobal20scenarioasp13 Source- Httpwwwindianstockmarketorgindias-top-10-stock-broking-house14 Source-httpwwwicicisecuritiescomOurBusinessSubSubReportID=10223ampshortCode=INST
the NSE and BSE India Infoline is also registered as a DP with NSDL and CDSL India
Infoline through its subsidiary India Infoline Commodities Limited also offers commodity-
trading services which is a registered member with DGCX since 2006 It also operates in
the currency futures market segment India Infoline offers a wide range of products
and services which include investment banking distribution of financial products
demat services private equity PMS institutional broking WMS insurance broking
among others In addition it also offers research services in areas of economy
derivative strategies mutual funds IPO credit policy and various others The company
has 15 domestic subsidiaries and five foreign subsidiaries The company has global
presence through its subsidiaries in New York Singapore and Dubai India Infoline caters
majorly to retail clients During CY09 the company added 303480 client accounts
Address 75 Nirlon Complex Off Western Express Highway Goregaon (East) Mumbai -
400063 Maharashtra
Telephone 91 22 42499000 Fax 91 22 26850451
Email mailindiainfolinecom Website wwwindiainfolinecom
Registration Number NSE - INBINF231097537 BSE - INBINF01109753315
3 Kotak Securities Ltd
Kotak Securities Ltd (Kotak Securities) is the stock-broking and distribution arm of the
Kotak Mahindra Group and a subsidiary of Kotak Mahindra Bank Kotak Securities was
established in 1994 It has memberships in the cash derivatives and currency futures
segments of NSE and BSE Kotak Securities is also a DP with NSDL and CDSL Apart from
stock broking the company is engaged in offering depository services asset management
margin financing PMS and distribution of financial products like IPOrsquos mutual funds and
insurance The company has a full-fledged research division which offers macro
economic sectoral research and company specific equity research Its domestic network
spans over 383 cities and 1048 offices Trading in equities and derivatives contributes to
major part of the companyrsquos revenue During CY09 Kotak Securities added around 62194
accounts of which around 27 are e-broking accounts The companyrsquos overseas
operations include one subsidiary and two associate firms operating in two foreign
locations
15 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndia+Infoline+Limited2Epdf
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF01113323016
4 Share Khan
Sharekhan Ltd (Sharekhan) is one a leading brokerage houses established in 2000
Sharekhan has membership in the cash and derivative segments of both BSE and NSE It
also operates in the debt and currency futures segment The company is registered as a
DP with CDSL and NSDL Besides trading the company also offers PMS demat services and
mutual funds Share khan provides a comprehensive set of research reports relating
to IPO and mutual funds Other value added facilities offered to clients include
online trading dial-n-trade share shops fundamental and technical research The
company serves large number of retail clients with a client network of more than 100000
clients which includes HNIrsquos corporate and other retail customers The company
through its subsidiary Share khan Commodities Ltd provides commodity-trading services
Address A - 206 Phoenix House 2nd Floor Senapati Bapat Marg Lower Parel
Mumbai - 400013 Maharashtra
Telephone 91 22 67482000 Fax 91 22 66104533
Email compliancelpsharekhancom Website wwwsharekhancom
Registration Number NSE - INBINF231073330 BSE - INBINF01107335117
5 Indiabulls
Indiabulls Securities Ltd (Indiabulls) part of Indiabulls Group was established in 1995 The
company is in the business of providing securities and advisory services It is a corporate
member of capital market wholesale debt market and derivative segments of NSE and of
capital market and derivative segments of BSE
Indiabulls also operates in currency futures and is a DP of CDSL and NSDL It provides a
wide range of products and services which include internet trading NRI trading demat
16 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CKotak+Securities+Limited2Epdf17 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CSharekhan+ Limited2Epdf
services margin financing and distribution of financial products like IPO online
mutual funds etc Power Indiabulls (PIB) is the advanced online trading platform offered
by the company Indiabulls also offers research services in the areas of economic equity
mutual fund IPO and others The company operates in commodity segment through its
subsidiary India bulls Commodities Pvt Ltd which is a member of MCX and NCDEX It
is listed on both NSE and BSE
Address F-60 Malhotra Building 2nd Floor Connaught Place New Delhi - 110001 Delhi
Telephone 91 11 41523700 Fax 91 11 41529071
Email helpdeskindiabullscom Website wwwindiabullscom
Registration Number NSE - INBINF230875632 BSE - INBINF01087563218
18 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndiabulls+Securities+Limited2Epdf
22 Company Overview
221 Overview of the Organizations
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited Uday Kotak Sidney A A Pinto and Kotak amp Company promoted this company Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and thats when the company changed its name to Kotak Mahindra Finance Limited Since then its been a steady and confident journey to growth and success
Kotak Securities Ltd is one of Indias largest brokerage and securities distribution house in India Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-ordinates Kotak Securities Ltd offers online (through wwwkotaksecuritiescom) and offline services based on well-researched expertise and financial products to the non-institutional investors Kotak Securities Limited is the world of Capital Markets where everything newsworthy exists only in the present moment and where knowing the importance of timing sentiments and strategic forecasting makes the difference between profit and loss Kotak Securities Limited a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25 - one of the worldrsquos leading investment banks and brokerage firms) is Indiarsquos leading stock broking house with a market share of 7 - 8
Kotak Securities Limited is one of the larger players in distribution of IPOs - it was ranked number One in 2003-04 as Book Running Lead Manager in public equity offerings by PRIME Database It has also won the ldquoBest Equity Houserdquo Award from Finance Asia -April 2004 The Company has a full-fledged Research division involved in macro economic studies Sectoral research and Company specific equity research combined with a strong and well Networked sales force which helps deliver current and up-to-date market information and news
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them Kotak securities provide portfolio Management Services catering to the high end of the market Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market with the backing of an expert Kotak Securities Limited manages assets over Rs 1700 crores through itrsquos Portfolio Management Services (PMS) servicing high net worth clients with a large
investible surplus through its preferred client services in the mass affluent and wealth management segments The company has a full-fledged research division involved in Macro Economic studies Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news
222 MARKET SHARE
Kotak Securities Ltd is Indiarsquos leading stock broking house with a market share of around
85 percent as of March 31 2006 It handles more IPOs than any other brokerage The
company has a full-fledged research division involved in macroeconomic studies sect oral
research and company-specific equity research combined with a strong and well-
networked sales force which helps deliver current market information and news
The firm has 195 branches servicing more than 2200000 customers across 231 cities
Kotaksecuritiescom the online division offers Internet brokerage services and also online
IPO and mutual fund investments Kotak Securities manages over 2500 crores of Assets
under Management (AUM)
223 AWARDS AND RECOGNIZATION
Kotak Securities Ltd 100 subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry The companyrsquos offerings include stock broking
through the branch and Internet Investments in IPO Mutual funds and Portfolio
management service Kotak Securities has a full-fledged research division involved in
Macro Economic studies Sect oral research and Company Specific Equity Research
combined with a strong and well-networked sales force which helps deliver current and
up to date market information and news Kotak Securitiesrsquo network spans over 321 cities
with 877 outlets with an employee workforce beyond 5100
The company is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can avail the companyrsquos brokerage services for executing the
transactions and the depository services for settling them Kotak Securities Ltd processes
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Chapter1
INTRODUCTION TO CRM
12 Evolution of CRM
Customer Relationship Management (CRM) is one of those magnificent concepts that swept the business world in the 1990rsquos with the promise of forever changing the way businesses small and large interacted with their customer bases In the short term however it proved to be an unwieldy process that was better in theory than in practice for a variety of reasons First among these was that it was simply so difficult and expensive to track and keep the high volume of records needed accurately and constantly update them In the last several years however newer software systems and advanced tracking features have vastly improved CRM capabilities and the real promise of CRM is becoming a reality As the price of newer more customizable Internet solutions have hit the market place competition has driven the prices down so that even relatively small businesses are reaping the benefits of some custom CRM programs
12 In the beginninghellip
The 1980rsquos saw the emergence of database marketing which was simply a catch phrase to define the practice of setting up customer service groups to speak individually to all of a companyrsquos customers In the case of larger key client sit was a valuable tool for keeping the lines of communication open and tailoring service to the clients needs In the case of smaller clients however it tended to provide repetitive survey-like information that cluttered databases and didnrsquot provide much insight As companies began tracking database information they realized that the bare bones were all that was needed in most cases what they buy regularly what they spend what they do
13 Advances in the 1990rsquos
In the 1990rsquos companies began to improve on Customer Relationship Management by making it more of a two-way street Instead of simply gathering data for their own use they began giving back to their customers not only in terms of the obvious goal of improved customer service but in incentives gifts and other perks for customer loyalty This was the beginning of the now familiar frequent flyer programs bonus points on credit cards and a host of other resources that are based on CRM tracking of customer activity and spending patterns CRM was now being used as a way to increase sales passively as well as through active improvement of customer service 1
1 Source- httpwwwcrm-software-guidecomhistory-of-crmhtm
14 Customer Relationship Management Introduction
The biggest management challenge in the new millennium of liberalization and globalization for a business is to serve and maintain good relationship with the king ndash the customer In the past producers took their customers for granted because at that time the customers were not demanding nor had alternative source of supply or suppliers But today there is a radical transformation The changing business environment is characterized by economic liberalization increasing competition high consumer choice demanding customer more emphasis on quality and value of purchase etc2
A CRM is a collection of people processes software and internet capabilities that helps an enterprise manage customer relationship effectively and systematically The goal of CRM is to understand and anticipate the needs of current and potential customer to increase customer retention and loyalty while optimizing the way product and services are sold
CRM stands for Customer Relationship Management It is a strategy used to learn more about customers needs and behaviors in order to develop stronger relationships with them After all good customer relationships are at the heart of business success There are many technological components to CRM but thinking about CRM in primarily technological terms is a mistake The more useful way to think about CRM is as a process that will help bring together lots of pieces of information about customers sales marketing effectiveness responsiveness and market trends3
The objective is to capture data about every contact a company a company has with a customer through every channel and store it in the CRM system to enable the company to truly understand customer action CRM software helps an organization build a database about its customer that management sales people customer service provider and even customer can access information to access customer needs with product and offering
All these changes have made todayrsquos producer shift from traditional marketing to modern marketing Modern marketing calls for more than developing a product pricing it promoting it and making it accessible to target customer It demands building trust a binding force and value added relationship with the customers
15 Customer Relationship Management CRM Techniques
The CRM is a new technique in marketing where the marketer tries to develop long-term relationship with the customers to develop them as lifetime customers CRM aims to make the customer climb up the ladder of loyalty
2 Source-httpwwwezinarticlescomEmerging-Trends-In-Customer-Relationship-Managementampid=10926073 Source-httpwwwscribddocumentswordpresscom20090917crm-project-report
The company first tries to determine that who are likely prospects ie the people who have a strong potential interest in the product and ability to pay for it The company hopes to convert many of its qualified prospect into first time customers and then to convert those first time customers into repeat customers Then the company tries to convert these repeat customers into clients ndash they are those people who buy only from the company in the relevant product categories The next challenge for the company is to convert this client into advocates Advocates are those clients who praise the company and encourage others to buy from it
The ultimate challenge is to convert these advocates into partners where the customers and the clients work actively together to discover ways of getting mutual benefit
Thus in CRM the key performance figure is not just current market share but share of lifetime value by converting customers into partners
In CRM the company tries to identify that small percentage (20) of key account holders whose contribution to the company revenues is high (80) So from this point of view CRM is also known as KEY ACCOUNT MANAGEMENT
16 Why ndash Customer Relationship Management
Satisfied customers in 10 years will bring100 more customers to the company It costs 7 times more to attract a new customer than to serve an old one 20 of the companyrsquos loyal customers account for 80 of its revenues (Paretorsquosprinciple) The chances of selling to an existing customer are 1 in 2 the chances of selling to a new customer are 1 in 16
Eight ways to keep customers for life
1 Every part of the companyrsquos marketing effort should be geared towards building lifetime relationships
2 People want to do business with friendly people To have effective relations a friendly attitude must permeate in the organization
3 Information technology developments should be positively used to serve the customers
4 The company should always be flexible to bend its rules and procedures in the clientrsquos favor
5 The company should communicate with its customers even when it is not trying to sell something
6 The company can communicate and develop stronger customer bonding by providing financial and social benefits
7 The company should try to know all its customers including their lifestyles hobbies likes or dislikes etc
8 The company should make it a point to deliver more than what is promised
17 How to introduce CRM in the company
There are four key steps for putting one tone marketing program to work ndash
Step 1 Identify your customers
To launch a one to one initiative the company must be able to locate and contact a fair
number of customers or at least a substantial portion of its valuable customers It is
crucial to know the customer details as much as possible not just their names or
address but their habits preferences and so forth
Step 2 Differentiating your customers
Customers are different in two principal ways they represent different levels of value
and have different needs Once the company identifies its customers differentiating
them will help the company to focus its efforts to gain the most advantage with the
most valuable customers
Step 3 Interacting with the customer
Interaction is also a crucial component of successful CRM initiative It is important to
remember that interaction just not occur through marketing and sales channels
customer interact in many different ways with many different areas of the organization
so to foster relationship all the areas of the organization must be accessible to the
customer
Step 4 Customize your enterprisersquos behavior
Ultimately to lock a customer into a relationship a company must adapt some aspect
of its behavior to meet customerrsquos individually expressed needs this might mean mass
customizing a manufactured product or it might involve tailoring some aspect of the
service surrounding the product
Chapter2
INDUSTRY OVERVIEW amp COMPANY OVERVIEW
21 Industry Overview
211 Industry Profile
A stockbroker is nothing but a registered and qualified working professional who buys
stocks and derivatives for other people The stockbroker thus performs all the
transactions for people on the stock exchange The stockbroker maintains information of
the people for whom he is buying or selling stocks This information includes name
address PAN no and other relevant information No transaction can take place in the
stock market with out a stockbroker
The stockbroker cannot give inputs advice to people buying or selling stocks unless he is
registered with the Securities and exchange board of India as a portfolio manager The
stockbroker takes a certain brokerage for the transactions he does for his clients on the
stock exchange The brokers are expected to issue contract notes to the clients after a
particular transaction has been done They are also expected to issue periodic reports to
their clients with respect to the transactions that have been done by them in that periodic
interval If you are looking to become a portfolio manager then there is a different policy
and procedure that you need to follow for it
Stockbrokers can be individual stockbrokers or form a company or an organization there
by making a brokerage All brokerages have to pay a certain sales tax for the transactions
that are done with the brokerage by other clients wither through selling or buying a
certain stock Thus any person who wants to buy or sell any stock with a particular stock
exchange has to do that with a particular stockbroker affiliated with that stock exchange4
Securities Markets is a place where buyers and sellers of securities can enter into
transactions to purchase and sell shares bonds debentures etc
Further it performs an important role of enabling corporate entrepreneurs to raise
resources for their companies and business ventures through public issues Transfer of
resources from those having idle resources (investors) to others who have a need for
them (corporate) is most efficiently achieved through the securities market Stated
4 Source- httpwwwstockbrokingcoinwhat-is-stockbrokinghtml
formally securities markets provide channels for reallocation of savings to investments
and entrepreneurship Savings are linked to investments by a variety of intermediaries
through a range of financial products called lsquoSecuritiesrsquo5
The Securities Contract (Regulation) Act 1956 [SCRA] defines lsquoStock Exchangersquo as any
body of individuals whether incorporated or not constituted for the purpose of assisting
regulating or controlling the business of buying selling or dealing in securities Stock
exchange could be a regional stock exchange whose area of operationjurisdiction is
specified at the time of its recognition or national exchanges which are permitted to have
nationwide trading since inception NSE was incorporated as a national stock exchange6
222 Industry Evolution
The history of stockbrokers can be traced back to the origins of the first stock exchange in
1602 at Amsterdam Even before that brokers are said to have existed in France dealing
with government securities The Amsterdam Stock Exchange was involved in buying and
selling of shares for the Dutch East India Company However the first real stock exchange
came up in Philadelphia in the United States during the late 18th century Later it was the
New York stock exchange which saw a rise in its popularity Wall Street as it was called
became the hub of brokerage activities Earlier stockbrokers were largely unorganized
but later most of them joined hands to form institutes and organizations Until the 1980rsquos
stock broking services were used only by the wealthy class who could afford them Later
with the advent of the Internet stock broking became very easy Thus the price tag on
stockbrokers lowered considerably and their services became available even to the
common man The stock broking duties are now mostly taken up by major organizations
with the smaller companies being absorbed by them In India too with increasing
globalization the major corporations are penetrating deeper into the society7
A Stockbroker is nothing but a person who buys and sells securities from the stock market
on behalf of other investors Stock broking began in the United States of America
Philadelphia was the first city in America to have a stock exchange After which New York
became the heart of all stock transactions and Wall Street became synonymous with
investing and trading
5 Source-httpwwwgascicomfaqhtm6 Source-httpwwwaumassociatecoinsharebazaraspx7 Source-httpwwwindiacomcomyellowpagecategory-gyanarticlesStock-BrokersStock-Broker-Introductionasp
Since the early part of the 1980s stock broking was allowed in America In addition in the
late part of 1990s stock broking went online and now there are several online stock
brokerages on the internet and hence online transactions happen in a jiffy these days A
stockbroker may also be a financial advisor or an investment consultant these days but in
India you need to be registered with the Securities and exchange board of India in order
to act as a financial advisor As the name suggests a stockbroker mainly deals in stocks
that is the shares of a company Other professionals such as foreign exchange brokers
deal with currencies where as commodity brokers deal with commodities
All stock market transactions that is buying or selling of shares have to take place through
a broker or a brokerage Even if you make online transactions you need to do it through
an online stockbroker For performing the transaction online stockbrokers charge a small
brokerage fee or commission fee for the transactions that they do for other companies or
retail investors The brokerages that a stockbroker may charge are different for various
brokerages as they might have a different business model for the same8
The history of stock broking in the United States parallels the growth of the nations
economy since colonial times The industry has tended to be cyclical in nature and has
survived several downturns including a major economic depression in the 1930s
Government regulations have been introduced at times in an effort to place controls on
what were viewed as harmful trading practices
Origin
The first stock brokerage house in the United States started in Philadelphia in 1800 While
the practice had been around since the early 1700s the Philadelphia Stock Exchange was
the first organized body that brought brokers together and served to codify the rules and
regulations under which business had been conducted The profession continued to
expand with the growth of corporations and the dawning of the Industrial Revolution
Crash
The first major negative event in the industry occurred when the stock market crashed in
1929 which was followed by the Great Depression The result of the crash was due to
8 Source- httpwwwstockbrokingcoinorigin-of-stockbrokinghtml
investors who had borrowed heavily to purchase stocks and began to realize that they
were hugely overvalued and attempted to sell them off resulting in a panic
Securities Act
In an effort to prevent the recurrence of the 1929 crash the Securities Act was
implemented in 1933 as a way to regulate the industry Eventually the stock market
began to rebound and continued a general pattern of steady growth over the next several
decades
Change
In the early 1970s the growth of technology led to reforms in the United States that
helped to reopen the markets to more liberalized trading In the late 1980s another crash
in the market occurred due to the dropping of prices of stock index futures Much like the
Great Depression this led to a mass selling of these securities causing the stock market to
plummet
Rebound
Stock broking again saw a boom as tighter regulations were put in place following the
1987 crash The markets reached new heights in the late 1990s The terrorist attacks of
September 11 2001 slowed the pattern of growth
Another Crash
In 2008 the largest single-day drop since 1987 occurred as the market lost $12 trillion of
its value on September 29 The drop occurred because of several factors including the
collapse of the mortgage industry and a worsening credit crisis The market has
rebounded only slightly as of mid-20099
223 Salient Features of the Industry in India
On the basis of geographical concentration the west region has the maximum
representation of 52 around 24 firms are located in the North 13 in the South and
10 in the East
9 Source-httpwwweHowcommabout_5208105_history-stockbrokinghtml
3 firms are started broking operations before 1950 65 between 1950-1995 and
32 Post1995
On the basis of terminals 40 are located at Mumbai 12 in Delhi 8 in
Ahmadabad 7 in Kolkata 4 in Chennai and 29 are from other cities
From the study we find that almost 36 firms trade in cash derivatives and
commodities
In the cash market around 34 firms trade at NSE 14 at BSE and 52 trade at
both exchanges In the derivative segment 48 trade at NSE 7 at BSE and 45 at both
whereas in the debt market 31 trade at NSE 26 at BSE and 43 at both Exchanges
Majority of branches are located in the North ie around 40 West has 31 24
are located in South and 5 in East
In terms of Sub brokers around 55 are located in the South 29 in West 11 in
North and 4 in East
Trading IPOs and Mutual funds are the top three products offered with 90 firms
offering trading 67 IPOs and 53 firms offering mutual fund transactions
In terms of various areas of growth 84 firms have expressed interest in
expanding their institutional clients 6 firms intend to increase FII clients and 43 are
interested in setting up JV in India and abroad
In terms of IT penetration 62 firms have provided their website and around 94
firms have E-mail facility10
224 Recent Trends
Equity brokerage industry in India is experiencing rapid growth and diversity Following
the wide range of stock market reforms in the early 2000rsquos brokerage industry underwent
major transformations from being engaged in only brokerage business to offering a wide
range of financial services A modern broking house in India may well be a corporate
entity that offers a wide range of products relies on research for advice uses modern
technology has large distribution network connecting the country provides investor
education and awareness and is compliance focused These developments have resulted
in a huge spurt in business as also growing market share of the large sized brokerage
houses that led to surge in enterprise value thus becoming objects of interest for global
investing In the recent period global and domestic private equity firms have taken stake
10 Source- httpwwwdnbcoinequitybrokingindustry20insightsasp
in brokerage firms such as Anand Rathi (Citigroup) Edelweiss (Lehman Brothers) Geojit
(BNP Paribas) SMC (Millennium India) Motilal Oswal (New Vernon) Marwari Shares
(India Capital Growth Fund) J R G Securities (Barings Pvt Equity) and Network Broking
(Amas Bank of Hindujas) India Infoline (Orient Global) etc Initial Public Offerings of large
firms in2007 such as Motilal Oswal Edelweiss and Religare received huge response from
the markets (over subscription going more than 100) and also high premiums Large
issues of these brokerage firms debuted in the stock exchange with premiums ranging
from 20 to 75 With the stock market momentum likely to continue broking firms
could look forward to scaling up their resource mobilization to fund growing operations
and expansion Brokerages mopping up huge resources from the market are not unusual
even in the emerging markets For instance Citic Securities a Chinese securities firm is
reported to have raised US $ 33 bn last year and other firms such as Haitong and Gold
state are planning to come out with IPOs of US $ 4-5 bn in 2008
In India about 45 equity brokerage houses are at present listed on the stock exchanges
that together reported Rs 35 bn of equity total income of Rs 47 bn and net profit of Rs 3
bn for the second quarter of FY08
Prospects and Outlook
Indian broking houses could look forward to a period of growth and consolidation Indiarsquos
economic growth and deepening of the financial system will present the broking firms
with numerous opportunities for growth and expansion Integration of the financial
markets will enhance the scope of their business and scalability Access to public equity
markets will enable them to raise resources to fund expansion and growths as pursue
useful business acquisitions Growing international investor interest in India will add
newer opportunities to scale up the business as also harmonsing with global standard and
practices Introduction of new products such as mini contracts in the derivatives and other
futures and options products will add new opportunities for creating new business
segments
While opportunities abound there is a great need for reform and restructuring of the
equity broking industry There are about 9000 brokers registered with SEBI but 80
percent of the turnover in NSE and BSE is accounted for by about 100 brokers
Consolidation thus becomes relevant to forge a stronger industry Similarly capital levels
too need to be strengthened The 45 odd listed broking firms in India together have a
meager Rs 35 bn of capital which is far less than what one top broking firm in China
could raise from the capital markets Better performance and practices will enable broking
firms to increase capital levels that will be essential for funding expansion
Investor education and awareness is another aspect broking industry should promote in
the long-term interest of the market As the product mix and risk matrix in financial
markets are continuously changing it becomes imperative for the intermediaries to
educate and create awareness in the clients that would be mutually beneficial Better
understanding of the financial products and associated risks by the investors will be in the
interest of the growth and stability of the markets
The Indian broking industry is coming of age It has enormous opportunities for growth
and diversity As markets expand and get globalised these firms will have increased
opportunity to cater to a large and diverse range of clientele with a wide mix of products
and services Expanding markets offer enhanced opportunities Those who are well
prepared will be in a better position to garner the benefits11
225 Performance Growth Scenario
Some of the major recent developments in the global securities markets have been
summarized below
Equalization
Equity markets have expanded significantly in a large number of countries across the
world The market capitalization of the worldrsquos leading stock exchanges rose from about
USD11 trillion in 1991 to USD35 trillion in 1999 to about USD51 trillion in 2006 The
growth of market capitalization is evident across regions Market capitalization in Asia
nearly doubled from USD68 trillion in 1999 to USD118 trillion in2006 where as in
America it grew from USD179 trillion to USD226 trillion and in EuropeAfricaMiddle
East it rose from USD102 trillion to USD161 trillion Market capitalization as a percent of
GDP witnessed steep growth in several countries during this period
Similarly trading volumes in stock exchanges too has shown rapid growth Value of share
trading in stock exchanges rose from about USD54 trillion in 1991 to USD33 trillion in
1999 to about USD70 trillion in 2006 During the period 1999 and 2006 value of share
trading in Asia Pacific rose from USD42 trillion to USD12 trillion in EuropeAfricaMiddle
11 Source- httpwwwdnbcoinequitybroking2008Emergingtrenasp
East from USD83 trillion to USD218 trillion and in Americas from USD20 trillion to USD35
trillion
Institutional investment
The rapid growth of stock markets in the world to a significant extent could be explained
by the surge in the institutional investors consisting of pension funds insurance
companies and mutual funds During the period 1995 and 2005 the assets under
management of the institutional investors doubled from USD21trillion to USD53 trillion A
large number of institutional investors are moving away from the home bias investing in
outside world Emerging markets with higher economic growth and rapidly growing
financial markets became major centers of destination for the investments of institutional
investors For instance in the US in 1994 pension funds invested 41 of their portfolio in
domestic equity and 7 in international equities where as by 2005 that share rose to 48
in domestic equities and 15 in international equities The portfolio allocation to bond
markets during the same period reduced from 42 to 32 Emerging markets received
sizeable portion of the investments In the US the dedicated emerging markets mutual
funds rose from about USD27 bn in2000 to USD 230 bn in 2006
International listings
On the back of the liberalization of cross border financial flows companies in several
countries are seeking listing in international exchanges to garner benefits from
international investors as also widen their investor base The number of foreign
companies listed in the London Stock Exchange rose from 387 in 1970 to 553 in 1990 to
636 in 2006 The number of foreign companies listed on the NYSE has also risen rapidly in
the 1990s There is a keen competition across the worldrsquos leading stock exchanges to
promote international listing and gain greater influence In the recent period the US
experienced a slowdown in the listing of foreign companies The decline is attributed to
stringent corporate governance norms that were applied following the corporate abuses
found in the beginning of the decade The US is now examining in greater detail measures
to gain the prominence once it enjoyed in the international listings The Alternative
Investment Market of London Stock Exchange attracted huge interest from SMEs from a
large number of countries
Emerging markets as an investment destination
Liberalization of capital flows led to surge in international investment into emerging
economies finding value on the back of huge prospects for growth The flow of net
Foreign Direct Investment (FDI) into developing countries increased from USD170 bn in
1998 to USD325 bn in 2006 and net portfolio equity flows increased from USD6 bn to
USD94 bn during the same period Net debt flows during this period are rather subdued
with net debt flows from official creditors turning negative Net portfolio equity flows to
China between the year 2000 and 2006 rose from USD69 bn to USD32 bn and in India
from USD23 bn to USD87 bn Other emerging markets such as Brazil Mexico South
Africa Thailand and Russia too showed surge in the net portfolio equity flows Emerging
markets showed significant growth in stock prices making them attractive investment
destinations though issues of valuations are beginning to become a concern now
Growing correlation of returns
Greater harmonization of stock markets in mature and emerging markets is in evidence by
the increasing correlation in market returns across different markets The higher
correlation in the stock price movements gained momentum in the late 1990s due to
growing foreign institutional investment in several markets and growth of the technology
sector that pervaded many markets and has driven stock price momentum in the late
1990s
Emerging markets in the new issuance market
Emerging markets also became very active in the new issuance market In 2006 all the ten
largest cross border new capital issues were from the emerging markets These ten issues
were from China Russia Mexico Thailand and Kazakhstan Of these ten issues four each
were listed in London and Hong Kong and only one in the US The value of the new listings
by emerging market companies in the US exchanges declined from USD29 bn in 2004 to
USD27 bn in 2006 where as that of London rose from USD07 bn to USD96 bn and in
Hong Kong from USD72 bn to USD304 bn Emerging markets in the first five months of
2007 have raised USD537 bn in global financial markets which is reported to be the
highest ever amount raised for a year Some of the leading issues during this period
include the USD8 bn IPO by VTB second largest Russian bank USD185 bn by Turkish
financial institution Halk bank and USD14 bn by a Russian real estate company AFI
Development Some of the largest issues from the emerging markets in the recent period
include USD219 bn issue of Chinarsquos ICBC Bank (Oct 2006) USD112 bn issue of Bank of
China (May 06) USD107 bn issue of Russian energy company Ros neft (Jul 06) USD59 bn
pubic issue of Chinarsquos Citic Bank
Alternative markets
In view of the limitations on listing of small and medium scale companies in the big boards
of the main exchanges several stock exchanges have developed alternative markets for
encouraging listing of small and midcap stocks Almost every major exchange has an
alternative platform for listing and trading of small and midcap stocks and new generation
companies without much listing history The market capitalization of the alternative
markets in the year 2006 has grown at an impressive rate of 30 More than 12000
companies are listed in these alternative markets and the value of share trading of these
for SMEs markets rose 15 in 2006 from USD802 bn to USD919 bn New capital (IPOs)
rose in the alternative markets rose 59 in 2006 from USD136 bn to USD216 bn
Growth of Derivatives
The growth of derivatives picked up on the need for risk transfer products The size of
global derivatives industry in 2006 USD370 trillion of notional value and USD10 trillion of
market value in the Over the Counter (OTC) derivative markets and USD84 trillion of
notional value and USD10 trillion market value in the Exchange traded derivative markets
According to the International Swaps and Derivatives Association more than 90 percent
of the global 500 corporations use derivatives for hedging risks in interest rates foreign
exchange and equities In the OTC markets derivative products accounting for large share
of market value include interest rate (785) and Foreign Exchange (114) where as in
the Exchange Traded segment derivative products on interest rate government debt and
equities form the major part of the volumes
Dark Pools and Private Markets
In the third week of May 2007 Goldman Sachs launched GSTrue which is a platform
developed to allow exclusive club of big investors to trade unregistered privately placed
securities which is considered to be a major challenge for the public equity capital
markets in the US Goldman Sachs in that deal helped underwrite the private sale of 15
of hedge fund manager Oak tree Capital Management for USD800 mn The investors in
this sale would be able to buy and sell Oak tree shares through the new Goldman Sachs
Tradable Unregistered Equity System which has its acronym GSTRue
Under the rules of the Securities and Exchange Commission of the US companies can sell
securities without registering them as long as the issues are limited to qualified
institutional buyers which are investors with at least USD100 mn of assets and there are
no more than 500 stockholders Private pools of capital are growing in size and
significance in international markets to overcome the costs and pressures from stringent
regulation According to an estimate of NASDAQ in 2006 companies in the US raised
USD162 bn of capital through unregistered private placements (also known as 144A
private placements) compared with USD154 bn through IPOs which are registered with
the regulator A group of worldrsquos largest banks are developing ldquoProject Turquoiserdquo which
is a hybrid share trading system that allows transactions both on exchange and outside it
(called as dark liquidity pools) where firms with large asset base can buy and sell large
blocks of shares away from the regulatory oversight
Private Equity
Private equity is growing in size and significance In view of the regulatory standards
prevalent in the public equity capital markets several firms seek the private equity option
to raise resources According to Dialogic the top 50 private equity firms raised USD551 bn
out of the USD800 bn estimated to have been raised by the total private equity since Jan
2002 Of the top 50 private equity firms more than 30 are from the US 11 from the UK
five from Western Europe and one from Asia Pacific Private equity is now involved in high
value deals and recent transactions include USD35 bn HCA buyout in the healthcare
industry and bids of USD39 bn and USD41 bn for Equity Office Property Trust a
commercial office real estate trust in the United Trust It is expected that the transaction
values of the private equity may go up to USD50-100 bn in the near future Private equity
market in India raised USD22 bn in 2005 about USD4 bn in 2006 and is expected to raise
about USD10 bn by 2010 according to a recent study
Hedge Funds
Hedge Funds emerged from the need of investors seeking alpha to earn an excess return
and beat the market and the returns from the conventional investments Alpha is a
common measure of assessing an active managerrsquos performance as it is the return in
excess of a benchmark index or ldquorisk-freerdquo investment The difference between the fair
and actually expected rates of return on a stock is called the stockrsquos alpha In view of rapid
growth of hedge funds and their complex nature of operations and lack of adequate
regulatory control these funds became a major concern of global financial regulation
Notwithstanding these concerns hedge funds continue to grow with the size of the
market growing from about USD30 bn in 1990 to more than USD14 trillion in 2005 and
the number of funds rising from about 530 to about 7000 during this period An
interesting development in the recent period is the growing institutional investment in the
hedge funds which is estimated at USD360 bn in 2005 and the rising allocations to these
funds that was evident in the US and XXVII the European markets The investor base of
the hedge funds consists of individualsfamilies fund of funds corporations and
institutions public and private pensions and endowments and foundations in that order
Investor Protection
With democratization of markets leading to greater participation of individuals and
investments and wide choices of asset classes now available issues of investor interest
and protection have assumed centre stage Following the corporate crises in the US that
adversely affected the investor interests extensive federal investigations were launched
that led to imposition of huge penalties and punitive damages leading to billions of
dollars Such actions were taken against a wide spectrum of global investment banks
brokerage firms and other related entities Simultaneously growth of litigation and class
action suits showed significant rise when the market intermediaries failed to meet their
obligations or did not provide all the material facts to the investors that were crucial for
an investment decision
Securities regulators imposed penalties on market participants who were found to have
indulged in market abuses In India disgorgement orders were passed on certain entities
that were found to making money by unfair means and for violating regulatory norms and
procedures Top institutional investors in several countries devised their own review
process for investing in countries and companies that brought into light greater need for
higher standards in corporate governance disclosure and transparency standards and in
some cases concern towards issues such as democracy and social equity environment
economic and political reforms
Surge in Chinese capital markets
A major change in the year 2007 is the sudden leap of China into big league of global stock
markets On 9 May 07 Shanghai Stock Exchange Chinarsquos top stock market recorded
turnover of USD332 bn and Shenzhen Stock Exchange a stock market for SMEs an
equally powerful USD158 bn taking the combined turnover of both these stock
exchanges on that day to USD495 bn In the first three months of the year 2007 value of
share trading in both these Chinese stock markets reached 89 of the whole turnover of
the year 2006 Value of share trading in Shanghai Stock Exchange rose from USD256 bn in
2003 to USD736 bn in 2006 and in the first three months of the year 2007 it already
recorded USD652 bn Market capitalization in China between Apr 2006 and 2007 rose by
almost 4 times pushing it to a position among the top 10 exchanges in the world and
value of share turnover rose 6 times making Shanghai 6 the biggest Main indexes of
Shanghai Stock Exchange and Shenzhen Stock Exchange posted returns of 194 and 204
respectively in the 12 months proceeding Apr 2007
Rise of smaller markets
The growth and momentum of the stock markets is spreading across a large number of
markets big and small Recent evidence of big surge in stock markets include countries in
the Middle East which witnessed exceptional growth in 20052006 China in 2007 and
several smaller European and Latin American countries in the last one year As
international investing is spreading its presence domestic financial institutions and
investors are finding stocks as an important asset class and stock markets all over the
world have experienced rapid growth in the last five years
Stock exchange consolidation
A big wave of stock exchange consolidation is taking place across the global financial
markets The most notable merger in the recent period is that of the New York Stock
Exchange with Archipelago that led to the demutualization of the former which
subsequently acquired Euro next to form NYSE Group that makes it a formidable force in
the North America and the Euro region Another American exchange NASDAQ after the
merger with Instinet announced plans to acquire OMX which is Europersquos leading
exchange as also provider of cutting edge technology solutions for stock exchanges
worldwide Deutsche Borsersquos recent acquisition of International Securities Exchange gives
the former a powerful position in the derivatives markets in Europe and America There
was also sizeable consolidation within the domestic securities markets in several countries
with the merger of equities and derivatives markets in countries such as Korea Malaysia
and Hong Kong In India the issue of appropriate solutions for the 20 odd stock exchanges
that currently lack proper liquidity is engaging the attention of policy and regulation
RECENT DEVELOPMENTS GOVERNING REGULATION OF STOCK MARKETS
Systematic and streamlined regulation is the key strength and sustainability of the
securities markets Though formal regulation of the securities markets is about 70 years
old some of the recent developments in the financial markets are reshaping the scope
and focus of the regulation These include ndash
There is growing harmonization of regulation across different markets Organizations
such as International Organization for Securities Commissions (IOSCO) are playing a very
important role in adoption of uniform principles and guidelines across the markets
The size and scope of the securities markets is rapidly changing from being one or
two product markets to multi product markets with diverse features and different
investor base
Markets have become more democratized with more people and institutions
participating in the market related activities
Rapid increase in the size of the institutional participation in the financial markets
For instance equity markets which in the past were retail investor driven are now
increasingly become institutional induced
Securities markets are transforming from being membership driven to public
corporation following demutualization and corporatization of stock exchanges in mature
and emerging markets
Two most important pieces of regulation that came into being in the recent period are in
the form of market structure reforms in the US known more popularly as regulation NMS
which underlines the promotion of competition across the markets under three major
principles best price open access and transparency Under the new trade-through role in
whichever market a customer placed his order it should be able to access the best price
that is immediately and automatically available anywhere in the national market system
The trade-through rule will not allow markets to ignore better-priced automated quotes
displayed by the competitors Similarly open access to displayed prices will be a major
feature governing the competition of the markets The regulation also stipulates that all
significant markets must display their quotations and trade reports should be available to
all interested parties on fair terms and non-discriminatory manner Another equally
important development is the Markets in Financial Industry Directive (MiFiD) that will
come into force from 1 Nov 2007 and stipulates wide-ranging norms for financial
institutions in the European Union Major features of the MiFiD include wider scope of
coverage of the financial institutions and the related business activities greater degree of
harmonization across the European markets and facilitate cross border business and
stipulated capital requirements
MiFiD is envisaged to bring major changes in the manner financial institutions in the
European Union will be monitored Simultaneous with stringent norms of regulation the
scope of regulation is considerably delegated to the markets and institutions in the form
of self-regulation Self-regulation brings a number of benefits to the business Institutions
such as National Association of Securities Dealers (NASD) have played an important role in
promoting self-regulation However self-regulation has certain limitations it needs to
overcome before it becomes widely accepted across the markets12
225 Top five companies of the industry
Many time new investor or trader gets confusion for open a D Mat and trading account in
broking House Many of broking House promises to you for better service but clients get
problem due to trading session in theirs Broker house firm Here is the list of Indiarsquos top 5
broking House on base of survey of investors and traders of many cities In their views
following Broking Houses gives best and reliable services13
1 ICICI directcom
ICICI Securities empowers over 2 million Indians to seamlessly access the capital market
with ICICIdirectcom an award winning and pioneering online broking platform The
platform not only offers convenient ways to invest in Equity Derivatives Currency
Futures Mutual Funds but also other services Fixed Deposits Loans Tax Services New
Pension Systems and Insurance are available ICICIdirectcom offers a convenient and easy
to use platform to invest in equity and various other financial products using its unique 3-
in-1 account which integrates customerrsquos saving trading and demat accounts
Apart from convenience ICICIdirectcom also offers access to comprehensive research
information stock picks and mutual fund recommendations among other offerings
Tailored services and trading strategies are available to different types of customers long
term investors day traders high-volume traders and derivatives traders to name some
ICICIdirectcom uses the most advanced commercially available 128-bit encryption
technology enabled Secure Socket Layer (SSL) to ensure that the information transmitted
between the client and ICICIdirectcom across the internet is safe and cannot be accessed
by any third party14
2 India Infoline
India Infoline Ltd (India Infoline) established in 1995 is the holding company of the
India Infoline Group It has membership in the cash and derivative segments of both 12 Source- httpwwwdnbcoinequitybrokingglobal20scenarioasp13 Source- Httpwwwindianstockmarketorgindias-top-10-stock-broking-house14 Source-httpwwwicicisecuritiescomOurBusinessSubSubReportID=10223ampshortCode=INST
the NSE and BSE India Infoline is also registered as a DP with NSDL and CDSL India
Infoline through its subsidiary India Infoline Commodities Limited also offers commodity-
trading services which is a registered member with DGCX since 2006 It also operates in
the currency futures market segment India Infoline offers a wide range of products
and services which include investment banking distribution of financial products
demat services private equity PMS institutional broking WMS insurance broking
among others In addition it also offers research services in areas of economy
derivative strategies mutual funds IPO credit policy and various others The company
has 15 domestic subsidiaries and five foreign subsidiaries The company has global
presence through its subsidiaries in New York Singapore and Dubai India Infoline caters
majorly to retail clients During CY09 the company added 303480 client accounts
Address 75 Nirlon Complex Off Western Express Highway Goregaon (East) Mumbai -
400063 Maharashtra
Telephone 91 22 42499000 Fax 91 22 26850451
Email mailindiainfolinecom Website wwwindiainfolinecom
Registration Number NSE - INBINF231097537 BSE - INBINF01109753315
3 Kotak Securities Ltd
Kotak Securities Ltd (Kotak Securities) is the stock-broking and distribution arm of the
Kotak Mahindra Group and a subsidiary of Kotak Mahindra Bank Kotak Securities was
established in 1994 It has memberships in the cash derivatives and currency futures
segments of NSE and BSE Kotak Securities is also a DP with NSDL and CDSL Apart from
stock broking the company is engaged in offering depository services asset management
margin financing PMS and distribution of financial products like IPOrsquos mutual funds and
insurance The company has a full-fledged research division which offers macro
economic sectoral research and company specific equity research Its domestic network
spans over 383 cities and 1048 offices Trading in equities and derivatives contributes to
major part of the companyrsquos revenue During CY09 Kotak Securities added around 62194
accounts of which around 27 are e-broking accounts The companyrsquos overseas
operations include one subsidiary and two associate firms operating in two foreign
locations
15 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndia+Infoline+Limited2Epdf
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF01113323016
4 Share Khan
Sharekhan Ltd (Sharekhan) is one a leading brokerage houses established in 2000
Sharekhan has membership in the cash and derivative segments of both BSE and NSE It
also operates in the debt and currency futures segment The company is registered as a
DP with CDSL and NSDL Besides trading the company also offers PMS demat services and
mutual funds Share khan provides a comprehensive set of research reports relating
to IPO and mutual funds Other value added facilities offered to clients include
online trading dial-n-trade share shops fundamental and technical research The
company serves large number of retail clients with a client network of more than 100000
clients which includes HNIrsquos corporate and other retail customers The company
through its subsidiary Share khan Commodities Ltd provides commodity-trading services
Address A - 206 Phoenix House 2nd Floor Senapati Bapat Marg Lower Parel
Mumbai - 400013 Maharashtra
Telephone 91 22 67482000 Fax 91 22 66104533
Email compliancelpsharekhancom Website wwwsharekhancom
Registration Number NSE - INBINF231073330 BSE - INBINF01107335117
5 Indiabulls
Indiabulls Securities Ltd (Indiabulls) part of Indiabulls Group was established in 1995 The
company is in the business of providing securities and advisory services It is a corporate
member of capital market wholesale debt market and derivative segments of NSE and of
capital market and derivative segments of BSE
Indiabulls also operates in currency futures and is a DP of CDSL and NSDL It provides a
wide range of products and services which include internet trading NRI trading demat
16 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CKotak+Securities+Limited2Epdf17 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CSharekhan+ Limited2Epdf
services margin financing and distribution of financial products like IPO online
mutual funds etc Power Indiabulls (PIB) is the advanced online trading platform offered
by the company Indiabulls also offers research services in the areas of economic equity
mutual fund IPO and others The company operates in commodity segment through its
subsidiary India bulls Commodities Pvt Ltd which is a member of MCX and NCDEX It
is listed on both NSE and BSE
Address F-60 Malhotra Building 2nd Floor Connaught Place New Delhi - 110001 Delhi
Telephone 91 11 41523700 Fax 91 11 41529071
Email helpdeskindiabullscom Website wwwindiabullscom
Registration Number NSE - INBINF230875632 BSE - INBINF01087563218
18 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndiabulls+Securities+Limited2Epdf
22 Company Overview
221 Overview of the Organizations
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited Uday Kotak Sidney A A Pinto and Kotak amp Company promoted this company Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and thats when the company changed its name to Kotak Mahindra Finance Limited Since then its been a steady and confident journey to growth and success
Kotak Securities Ltd is one of Indias largest brokerage and securities distribution house in India Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-ordinates Kotak Securities Ltd offers online (through wwwkotaksecuritiescom) and offline services based on well-researched expertise and financial products to the non-institutional investors Kotak Securities Limited is the world of Capital Markets where everything newsworthy exists only in the present moment and where knowing the importance of timing sentiments and strategic forecasting makes the difference between profit and loss Kotak Securities Limited a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25 - one of the worldrsquos leading investment banks and brokerage firms) is Indiarsquos leading stock broking house with a market share of 7 - 8
Kotak Securities Limited is one of the larger players in distribution of IPOs - it was ranked number One in 2003-04 as Book Running Lead Manager in public equity offerings by PRIME Database It has also won the ldquoBest Equity Houserdquo Award from Finance Asia -April 2004 The Company has a full-fledged Research division involved in macro economic studies Sectoral research and Company specific equity research combined with a strong and well Networked sales force which helps deliver current and up-to-date market information and news
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them Kotak securities provide portfolio Management Services catering to the high end of the market Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market with the backing of an expert Kotak Securities Limited manages assets over Rs 1700 crores through itrsquos Portfolio Management Services (PMS) servicing high net worth clients with a large
investible surplus through its preferred client services in the mass affluent and wealth management segments The company has a full-fledged research division involved in Macro Economic studies Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news
222 MARKET SHARE
Kotak Securities Ltd is Indiarsquos leading stock broking house with a market share of around
85 percent as of March 31 2006 It handles more IPOs than any other brokerage The
company has a full-fledged research division involved in macroeconomic studies sect oral
research and company-specific equity research combined with a strong and well-
networked sales force which helps deliver current market information and news
The firm has 195 branches servicing more than 2200000 customers across 231 cities
Kotaksecuritiescom the online division offers Internet brokerage services and also online
IPO and mutual fund investments Kotak Securities manages over 2500 crores of Assets
under Management (AUM)
223 AWARDS AND RECOGNIZATION
Kotak Securities Ltd 100 subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry The companyrsquos offerings include stock broking
through the branch and Internet Investments in IPO Mutual funds and Portfolio
management service Kotak Securities has a full-fledged research division involved in
Macro Economic studies Sect oral research and Company Specific Equity Research
combined with a strong and well-networked sales force which helps deliver current and
up to date market information and news Kotak Securitiesrsquo network spans over 321 cities
with 877 outlets with an employee workforce beyond 5100
The company is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can avail the companyrsquos brokerage services for executing the
transactions and the depository services for settling them Kotak Securities Ltd processes
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
12 Evolution of CRM
Customer Relationship Management (CRM) is one of those magnificent concepts that swept the business world in the 1990rsquos with the promise of forever changing the way businesses small and large interacted with their customer bases In the short term however it proved to be an unwieldy process that was better in theory than in practice for a variety of reasons First among these was that it was simply so difficult and expensive to track and keep the high volume of records needed accurately and constantly update them In the last several years however newer software systems and advanced tracking features have vastly improved CRM capabilities and the real promise of CRM is becoming a reality As the price of newer more customizable Internet solutions have hit the market place competition has driven the prices down so that even relatively small businesses are reaping the benefits of some custom CRM programs
12 In the beginninghellip
The 1980rsquos saw the emergence of database marketing which was simply a catch phrase to define the practice of setting up customer service groups to speak individually to all of a companyrsquos customers In the case of larger key client sit was a valuable tool for keeping the lines of communication open and tailoring service to the clients needs In the case of smaller clients however it tended to provide repetitive survey-like information that cluttered databases and didnrsquot provide much insight As companies began tracking database information they realized that the bare bones were all that was needed in most cases what they buy regularly what they spend what they do
13 Advances in the 1990rsquos
In the 1990rsquos companies began to improve on Customer Relationship Management by making it more of a two-way street Instead of simply gathering data for their own use they began giving back to their customers not only in terms of the obvious goal of improved customer service but in incentives gifts and other perks for customer loyalty This was the beginning of the now familiar frequent flyer programs bonus points on credit cards and a host of other resources that are based on CRM tracking of customer activity and spending patterns CRM was now being used as a way to increase sales passively as well as through active improvement of customer service 1
1 Source- httpwwwcrm-software-guidecomhistory-of-crmhtm
14 Customer Relationship Management Introduction
The biggest management challenge in the new millennium of liberalization and globalization for a business is to serve and maintain good relationship with the king ndash the customer In the past producers took their customers for granted because at that time the customers were not demanding nor had alternative source of supply or suppliers But today there is a radical transformation The changing business environment is characterized by economic liberalization increasing competition high consumer choice demanding customer more emphasis on quality and value of purchase etc2
A CRM is a collection of people processes software and internet capabilities that helps an enterprise manage customer relationship effectively and systematically The goal of CRM is to understand and anticipate the needs of current and potential customer to increase customer retention and loyalty while optimizing the way product and services are sold
CRM stands for Customer Relationship Management It is a strategy used to learn more about customers needs and behaviors in order to develop stronger relationships with them After all good customer relationships are at the heart of business success There are many technological components to CRM but thinking about CRM in primarily technological terms is a mistake The more useful way to think about CRM is as a process that will help bring together lots of pieces of information about customers sales marketing effectiveness responsiveness and market trends3
The objective is to capture data about every contact a company a company has with a customer through every channel and store it in the CRM system to enable the company to truly understand customer action CRM software helps an organization build a database about its customer that management sales people customer service provider and even customer can access information to access customer needs with product and offering
All these changes have made todayrsquos producer shift from traditional marketing to modern marketing Modern marketing calls for more than developing a product pricing it promoting it and making it accessible to target customer It demands building trust a binding force and value added relationship with the customers
15 Customer Relationship Management CRM Techniques
The CRM is a new technique in marketing where the marketer tries to develop long-term relationship with the customers to develop them as lifetime customers CRM aims to make the customer climb up the ladder of loyalty
2 Source-httpwwwezinarticlescomEmerging-Trends-In-Customer-Relationship-Managementampid=10926073 Source-httpwwwscribddocumentswordpresscom20090917crm-project-report
The company first tries to determine that who are likely prospects ie the people who have a strong potential interest in the product and ability to pay for it The company hopes to convert many of its qualified prospect into first time customers and then to convert those first time customers into repeat customers Then the company tries to convert these repeat customers into clients ndash they are those people who buy only from the company in the relevant product categories The next challenge for the company is to convert this client into advocates Advocates are those clients who praise the company and encourage others to buy from it
The ultimate challenge is to convert these advocates into partners where the customers and the clients work actively together to discover ways of getting mutual benefit
Thus in CRM the key performance figure is not just current market share but share of lifetime value by converting customers into partners
In CRM the company tries to identify that small percentage (20) of key account holders whose contribution to the company revenues is high (80) So from this point of view CRM is also known as KEY ACCOUNT MANAGEMENT
16 Why ndash Customer Relationship Management
Satisfied customers in 10 years will bring100 more customers to the company It costs 7 times more to attract a new customer than to serve an old one 20 of the companyrsquos loyal customers account for 80 of its revenues (Paretorsquosprinciple) The chances of selling to an existing customer are 1 in 2 the chances of selling to a new customer are 1 in 16
Eight ways to keep customers for life
1 Every part of the companyrsquos marketing effort should be geared towards building lifetime relationships
2 People want to do business with friendly people To have effective relations a friendly attitude must permeate in the organization
3 Information technology developments should be positively used to serve the customers
4 The company should always be flexible to bend its rules and procedures in the clientrsquos favor
5 The company should communicate with its customers even when it is not trying to sell something
6 The company can communicate and develop stronger customer bonding by providing financial and social benefits
7 The company should try to know all its customers including their lifestyles hobbies likes or dislikes etc
8 The company should make it a point to deliver more than what is promised
17 How to introduce CRM in the company
There are four key steps for putting one tone marketing program to work ndash
Step 1 Identify your customers
To launch a one to one initiative the company must be able to locate and contact a fair
number of customers or at least a substantial portion of its valuable customers It is
crucial to know the customer details as much as possible not just their names or
address but their habits preferences and so forth
Step 2 Differentiating your customers
Customers are different in two principal ways they represent different levels of value
and have different needs Once the company identifies its customers differentiating
them will help the company to focus its efforts to gain the most advantage with the
most valuable customers
Step 3 Interacting with the customer
Interaction is also a crucial component of successful CRM initiative It is important to
remember that interaction just not occur through marketing and sales channels
customer interact in many different ways with many different areas of the organization
so to foster relationship all the areas of the organization must be accessible to the
customer
Step 4 Customize your enterprisersquos behavior
Ultimately to lock a customer into a relationship a company must adapt some aspect
of its behavior to meet customerrsquos individually expressed needs this might mean mass
customizing a manufactured product or it might involve tailoring some aspect of the
service surrounding the product
Chapter2
INDUSTRY OVERVIEW amp COMPANY OVERVIEW
21 Industry Overview
211 Industry Profile
A stockbroker is nothing but a registered and qualified working professional who buys
stocks and derivatives for other people The stockbroker thus performs all the
transactions for people on the stock exchange The stockbroker maintains information of
the people for whom he is buying or selling stocks This information includes name
address PAN no and other relevant information No transaction can take place in the
stock market with out a stockbroker
The stockbroker cannot give inputs advice to people buying or selling stocks unless he is
registered with the Securities and exchange board of India as a portfolio manager The
stockbroker takes a certain brokerage for the transactions he does for his clients on the
stock exchange The brokers are expected to issue contract notes to the clients after a
particular transaction has been done They are also expected to issue periodic reports to
their clients with respect to the transactions that have been done by them in that periodic
interval If you are looking to become a portfolio manager then there is a different policy
and procedure that you need to follow for it
Stockbrokers can be individual stockbrokers or form a company or an organization there
by making a brokerage All brokerages have to pay a certain sales tax for the transactions
that are done with the brokerage by other clients wither through selling or buying a
certain stock Thus any person who wants to buy or sell any stock with a particular stock
exchange has to do that with a particular stockbroker affiliated with that stock exchange4
Securities Markets is a place where buyers and sellers of securities can enter into
transactions to purchase and sell shares bonds debentures etc
Further it performs an important role of enabling corporate entrepreneurs to raise
resources for their companies and business ventures through public issues Transfer of
resources from those having idle resources (investors) to others who have a need for
them (corporate) is most efficiently achieved through the securities market Stated
4 Source- httpwwwstockbrokingcoinwhat-is-stockbrokinghtml
formally securities markets provide channels for reallocation of savings to investments
and entrepreneurship Savings are linked to investments by a variety of intermediaries
through a range of financial products called lsquoSecuritiesrsquo5
The Securities Contract (Regulation) Act 1956 [SCRA] defines lsquoStock Exchangersquo as any
body of individuals whether incorporated or not constituted for the purpose of assisting
regulating or controlling the business of buying selling or dealing in securities Stock
exchange could be a regional stock exchange whose area of operationjurisdiction is
specified at the time of its recognition or national exchanges which are permitted to have
nationwide trading since inception NSE was incorporated as a national stock exchange6
222 Industry Evolution
The history of stockbrokers can be traced back to the origins of the first stock exchange in
1602 at Amsterdam Even before that brokers are said to have existed in France dealing
with government securities The Amsterdam Stock Exchange was involved in buying and
selling of shares for the Dutch East India Company However the first real stock exchange
came up in Philadelphia in the United States during the late 18th century Later it was the
New York stock exchange which saw a rise in its popularity Wall Street as it was called
became the hub of brokerage activities Earlier stockbrokers were largely unorganized
but later most of them joined hands to form institutes and organizations Until the 1980rsquos
stock broking services were used only by the wealthy class who could afford them Later
with the advent of the Internet stock broking became very easy Thus the price tag on
stockbrokers lowered considerably and their services became available even to the
common man The stock broking duties are now mostly taken up by major organizations
with the smaller companies being absorbed by them In India too with increasing
globalization the major corporations are penetrating deeper into the society7
A Stockbroker is nothing but a person who buys and sells securities from the stock market
on behalf of other investors Stock broking began in the United States of America
Philadelphia was the first city in America to have a stock exchange After which New York
became the heart of all stock transactions and Wall Street became synonymous with
investing and trading
5 Source-httpwwwgascicomfaqhtm6 Source-httpwwwaumassociatecoinsharebazaraspx7 Source-httpwwwindiacomcomyellowpagecategory-gyanarticlesStock-BrokersStock-Broker-Introductionasp
Since the early part of the 1980s stock broking was allowed in America In addition in the
late part of 1990s stock broking went online and now there are several online stock
brokerages on the internet and hence online transactions happen in a jiffy these days A
stockbroker may also be a financial advisor or an investment consultant these days but in
India you need to be registered with the Securities and exchange board of India in order
to act as a financial advisor As the name suggests a stockbroker mainly deals in stocks
that is the shares of a company Other professionals such as foreign exchange brokers
deal with currencies where as commodity brokers deal with commodities
All stock market transactions that is buying or selling of shares have to take place through
a broker or a brokerage Even if you make online transactions you need to do it through
an online stockbroker For performing the transaction online stockbrokers charge a small
brokerage fee or commission fee for the transactions that they do for other companies or
retail investors The brokerages that a stockbroker may charge are different for various
brokerages as they might have a different business model for the same8
The history of stock broking in the United States parallels the growth of the nations
economy since colonial times The industry has tended to be cyclical in nature and has
survived several downturns including a major economic depression in the 1930s
Government regulations have been introduced at times in an effort to place controls on
what were viewed as harmful trading practices
Origin
The first stock brokerage house in the United States started in Philadelphia in 1800 While
the practice had been around since the early 1700s the Philadelphia Stock Exchange was
the first organized body that brought brokers together and served to codify the rules and
regulations under which business had been conducted The profession continued to
expand with the growth of corporations and the dawning of the Industrial Revolution
Crash
The first major negative event in the industry occurred when the stock market crashed in
1929 which was followed by the Great Depression The result of the crash was due to
8 Source- httpwwwstockbrokingcoinorigin-of-stockbrokinghtml
investors who had borrowed heavily to purchase stocks and began to realize that they
were hugely overvalued and attempted to sell them off resulting in a panic
Securities Act
In an effort to prevent the recurrence of the 1929 crash the Securities Act was
implemented in 1933 as a way to regulate the industry Eventually the stock market
began to rebound and continued a general pattern of steady growth over the next several
decades
Change
In the early 1970s the growth of technology led to reforms in the United States that
helped to reopen the markets to more liberalized trading In the late 1980s another crash
in the market occurred due to the dropping of prices of stock index futures Much like the
Great Depression this led to a mass selling of these securities causing the stock market to
plummet
Rebound
Stock broking again saw a boom as tighter regulations were put in place following the
1987 crash The markets reached new heights in the late 1990s The terrorist attacks of
September 11 2001 slowed the pattern of growth
Another Crash
In 2008 the largest single-day drop since 1987 occurred as the market lost $12 trillion of
its value on September 29 The drop occurred because of several factors including the
collapse of the mortgage industry and a worsening credit crisis The market has
rebounded only slightly as of mid-20099
223 Salient Features of the Industry in India
On the basis of geographical concentration the west region has the maximum
representation of 52 around 24 firms are located in the North 13 in the South and
10 in the East
9 Source-httpwwweHowcommabout_5208105_history-stockbrokinghtml
3 firms are started broking operations before 1950 65 between 1950-1995 and
32 Post1995
On the basis of terminals 40 are located at Mumbai 12 in Delhi 8 in
Ahmadabad 7 in Kolkata 4 in Chennai and 29 are from other cities
From the study we find that almost 36 firms trade in cash derivatives and
commodities
In the cash market around 34 firms trade at NSE 14 at BSE and 52 trade at
both exchanges In the derivative segment 48 trade at NSE 7 at BSE and 45 at both
whereas in the debt market 31 trade at NSE 26 at BSE and 43 at both Exchanges
Majority of branches are located in the North ie around 40 West has 31 24
are located in South and 5 in East
In terms of Sub brokers around 55 are located in the South 29 in West 11 in
North and 4 in East
Trading IPOs and Mutual funds are the top three products offered with 90 firms
offering trading 67 IPOs and 53 firms offering mutual fund transactions
In terms of various areas of growth 84 firms have expressed interest in
expanding their institutional clients 6 firms intend to increase FII clients and 43 are
interested in setting up JV in India and abroad
In terms of IT penetration 62 firms have provided their website and around 94
firms have E-mail facility10
224 Recent Trends
Equity brokerage industry in India is experiencing rapid growth and diversity Following
the wide range of stock market reforms in the early 2000rsquos brokerage industry underwent
major transformations from being engaged in only brokerage business to offering a wide
range of financial services A modern broking house in India may well be a corporate
entity that offers a wide range of products relies on research for advice uses modern
technology has large distribution network connecting the country provides investor
education and awareness and is compliance focused These developments have resulted
in a huge spurt in business as also growing market share of the large sized brokerage
houses that led to surge in enterprise value thus becoming objects of interest for global
investing In the recent period global and domestic private equity firms have taken stake
10 Source- httpwwwdnbcoinequitybrokingindustry20insightsasp
in brokerage firms such as Anand Rathi (Citigroup) Edelweiss (Lehman Brothers) Geojit
(BNP Paribas) SMC (Millennium India) Motilal Oswal (New Vernon) Marwari Shares
(India Capital Growth Fund) J R G Securities (Barings Pvt Equity) and Network Broking
(Amas Bank of Hindujas) India Infoline (Orient Global) etc Initial Public Offerings of large
firms in2007 such as Motilal Oswal Edelweiss and Religare received huge response from
the markets (over subscription going more than 100) and also high premiums Large
issues of these brokerage firms debuted in the stock exchange with premiums ranging
from 20 to 75 With the stock market momentum likely to continue broking firms
could look forward to scaling up their resource mobilization to fund growing operations
and expansion Brokerages mopping up huge resources from the market are not unusual
even in the emerging markets For instance Citic Securities a Chinese securities firm is
reported to have raised US $ 33 bn last year and other firms such as Haitong and Gold
state are planning to come out with IPOs of US $ 4-5 bn in 2008
In India about 45 equity brokerage houses are at present listed on the stock exchanges
that together reported Rs 35 bn of equity total income of Rs 47 bn and net profit of Rs 3
bn for the second quarter of FY08
Prospects and Outlook
Indian broking houses could look forward to a period of growth and consolidation Indiarsquos
economic growth and deepening of the financial system will present the broking firms
with numerous opportunities for growth and expansion Integration of the financial
markets will enhance the scope of their business and scalability Access to public equity
markets will enable them to raise resources to fund expansion and growths as pursue
useful business acquisitions Growing international investor interest in India will add
newer opportunities to scale up the business as also harmonsing with global standard and
practices Introduction of new products such as mini contracts in the derivatives and other
futures and options products will add new opportunities for creating new business
segments
While opportunities abound there is a great need for reform and restructuring of the
equity broking industry There are about 9000 brokers registered with SEBI but 80
percent of the turnover in NSE and BSE is accounted for by about 100 brokers
Consolidation thus becomes relevant to forge a stronger industry Similarly capital levels
too need to be strengthened The 45 odd listed broking firms in India together have a
meager Rs 35 bn of capital which is far less than what one top broking firm in China
could raise from the capital markets Better performance and practices will enable broking
firms to increase capital levels that will be essential for funding expansion
Investor education and awareness is another aspect broking industry should promote in
the long-term interest of the market As the product mix and risk matrix in financial
markets are continuously changing it becomes imperative for the intermediaries to
educate and create awareness in the clients that would be mutually beneficial Better
understanding of the financial products and associated risks by the investors will be in the
interest of the growth and stability of the markets
The Indian broking industry is coming of age It has enormous opportunities for growth
and diversity As markets expand and get globalised these firms will have increased
opportunity to cater to a large and diverse range of clientele with a wide mix of products
and services Expanding markets offer enhanced opportunities Those who are well
prepared will be in a better position to garner the benefits11
225 Performance Growth Scenario
Some of the major recent developments in the global securities markets have been
summarized below
Equalization
Equity markets have expanded significantly in a large number of countries across the
world The market capitalization of the worldrsquos leading stock exchanges rose from about
USD11 trillion in 1991 to USD35 trillion in 1999 to about USD51 trillion in 2006 The
growth of market capitalization is evident across regions Market capitalization in Asia
nearly doubled from USD68 trillion in 1999 to USD118 trillion in2006 where as in
America it grew from USD179 trillion to USD226 trillion and in EuropeAfricaMiddle
East it rose from USD102 trillion to USD161 trillion Market capitalization as a percent of
GDP witnessed steep growth in several countries during this period
Similarly trading volumes in stock exchanges too has shown rapid growth Value of share
trading in stock exchanges rose from about USD54 trillion in 1991 to USD33 trillion in
1999 to about USD70 trillion in 2006 During the period 1999 and 2006 value of share
trading in Asia Pacific rose from USD42 trillion to USD12 trillion in EuropeAfricaMiddle
11 Source- httpwwwdnbcoinequitybroking2008Emergingtrenasp
East from USD83 trillion to USD218 trillion and in Americas from USD20 trillion to USD35
trillion
Institutional investment
The rapid growth of stock markets in the world to a significant extent could be explained
by the surge in the institutional investors consisting of pension funds insurance
companies and mutual funds During the period 1995 and 2005 the assets under
management of the institutional investors doubled from USD21trillion to USD53 trillion A
large number of institutional investors are moving away from the home bias investing in
outside world Emerging markets with higher economic growth and rapidly growing
financial markets became major centers of destination for the investments of institutional
investors For instance in the US in 1994 pension funds invested 41 of their portfolio in
domestic equity and 7 in international equities where as by 2005 that share rose to 48
in domestic equities and 15 in international equities The portfolio allocation to bond
markets during the same period reduced from 42 to 32 Emerging markets received
sizeable portion of the investments In the US the dedicated emerging markets mutual
funds rose from about USD27 bn in2000 to USD 230 bn in 2006
International listings
On the back of the liberalization of cross border financial flows companies in several
countries are seeking listing in international exchanges to garner benefits from
international investors as also widen their investor base The number of foreign
companies listed in the London Stock Exchange rose from 387 in 1970 to 553 in 1990 to
636 in 2006 The number of foreign companies listed on the NYSE has also risen rapidly in
the 1990s There is a keen competition across the worldrsquos leading stock exchanges to
promote international listing and gain greater influence In the recent period the US
experienced a slowdown in the listing of foreign companies The decline is attributed to
stringent corporate governance norms that were applied following the corporate abuses
found in the beginning of the decade The US is now examining in greater detail measures
to gain the prominence once it enjoyed in the international listings The Alternative
Investment Market of London Stock Exchange attracted huge interest from SMEs from a
large number of countries
Emerging markets as an investment destination
Liberalization of capital flows led to surge in international investment into emerging
economies finding value on the back of huge prospects for growth The flow of net
Foreign Direct Investment (FDI) into developing countries increased from USD170 bn in
1998 to USD325 bn in 2006 and net portfolio equity flows increased from USD6 bn to
USD94 bn during the same period Net debt flows during this period are rather subdued
with net debt flows from official creditors turning negative Net portfolio equity flows to
China between the year 2000 and 2006 rose from USD69 bn to USD32 bn and in India
from USD23 bn to USD87 bn Other emerging markets such as Brazil Mexico South
Africa Thailand and Russia too showed surge in the net portfolio equity flows Emerging
markets showed significant growth in stock prices making them attractive investment
destinations though issues of valuations are beginning to become a concern now
Growing correlation of returns
Greater harmonization of stock markets in mature and emerging markets is in evidence by
the increasing correlation in market returns across different markets The higher
correlation in the stock price movements gained momentum in the late 1990s due to
growing foreign institutional investment in several markets and growth of the technology
sector that pervaded many markets and has driven stock price momentum in the late
1990s
Emerging markets in the new issuance market
Emerging markets also became very active in the new issuance market In 2006 all the ten
largest cross border new capital issues were from the emerging markets These ten issues
were from China Russia Mexico Thailand and Kazakhstan Of these ten issues four each
were listed in London and Hong Kong and only one in the US The value of the new listings
by emerging market companies in the US exchanges declined from USD29 bn in 2004 to
USD27 bn in 2006 where as that of London rose from USD07 bn to USD96 bn and in
Hong Kong from USD72 bn to USD304 bn Emerging markets in the first five months of
2007 have raised USD537 bn in global financial markets which is reported to be the
highest ever amount raised for a year Some of the leading issues during this period
include the USD8 bn IPO by VTB second largest Russian bank USD185 bn by Turkish
financial institution Halk bank and USD14 bn by a Russian real estate company AFI
Development Some of the largest issues from the emerging markets in the recent period
include USD219 bn issue of Chinarsquos ICBC Bank (Oct 2006) USD112 bn issue of Bank of
China (May 06) USD107 bn issue of Russian energy company Ros neft (Jul 06) USD59 bn
pubic issue of Chinarsquos Citic Bank
Alternative markets
In view of the limitations on listing of small and medium scale companies in the big boards
of the main exchanges several stock exchanges have developed alternative markets for
encouraging listing of small and midcap stocks Almost every major exchange has an
alternative platform for listing and trading of small and midcap stocks and new generation
companies without much listing history The market capitalization of the alternative
markets in the year 2006 has grown at an impressive rate of 30 More than 12000
companies are listed in these alternative markets and the value of share trading of these
for SMEs markets rose 15 in 2006 from USD802 bn to USD919 bn New capital (IPOs)
rose in the alternative markets rose 59 in 2006 from USD136 bn to USD216 bn
Growth of Derivatives
The growth of derivatives picked up on the need for risk transfer products The size of
global derivatives industry in 2006 USD370 trillion of notional value and USD10 trillion of
market value in the Over the Counter (OTC) derivative markets and USD84 trillion of
notional value and USD10 trillion market value in the Exchange traded derivative markets
According to the International Swaps and Derivatives Association more than 90 percent
of the global 500 corporations use derivatives for hedging risks in interest rates foreign
exchange and equities In the OTC markets derivative products accounting for large share
of market value include interest rate (785) and Foreign Exchange (114) where as in
the Exchange Traded segment derivative products on interest rate government debt and
equities form the major part of the volumes
Dark Pools and Private Markets
In the third week of May 2007 Goldman Sachs launched GSTrue which is a platform
developed to allow exclusive club of big investors to trade unregistered privately placed
securities which is considered to be a major challenge for the public equity capital
markets in the US Goldman Sachs in that deal helped underwrite the private sale of 15
of hedge fund manager Oak tree Capital Management for USD800 mn The investors in
this sale would be able to buy and sell Oak tree shares through the new Goldman Sachs
Tradable Unregistered Equity System which has its acronym GSTRue
Under the rules of the Securities and Exchange Commission of the US companies can sell
securities without registering them as long as the issues are limited to qualified
institutional buyers which are investors with at least USD100 mn of assets and there are
no more than 500 stockholders Private pools of capital are growing in size and
significance in international markets to overcome the costs and pressures from stringent
regulation According to an estimate of NASDAQ in 2006 companies in the US raised
USD162 bn of capital through unregistered private placements (also known as 144A
private placements) compared with USD154 bn through IPOs which are registered with
the regulator A group of worldrsquos largest banks are developing ldquoProject Turquoiserdquo which
is a hybrid share trading system that allows transactions both on exchange and outside it
(called as dark liquidity pools) where firms with large asset base can buy and sell large
blocks of shares away from the regulatory oversight
Private Equity
Private equity is growing in size and significance In view of the regulatory standards
prevalent in the public equity capital markets several firms seek the private equity option
to raise resources According to Dialogic the top 50 private equity firms raised USD551 bn
out of the USD800 bn estimated to have been raised by the total private equity since Jan
2002 Of the top 50 private equity firms more than 30 are from the US 11 from the UK
five from Western Europe and one from Asia Pacific Private equity is now involved in high
value deals and recent transactions include USD35 bn HCA buyout in the healthcare
industry and bids of USD39 bn and USD41 bn for Equity Office Property Trust a
commercial office real estate trust in the United Trust It is expected that the transaction
values of the private equity may go up to USD50-100 bn in the near future Private equity
market in India raised USD22 bn in 2005 about USD4 bn in 2006 and is expected to raise
about USD10 bn by 2010 according to a recent study
Hedge Funds
Hedge Funds emerged from the need of investors seeking alpha to earn an excess return
and beat the market and the returns from the conventional investments Alpha is a
common measure of assessing an active managerrsquos performance as it is the return in
excess of a benchmark index or ldquorisk-freerdquo investment The difference between the fair
and actually expected rates of return on a stock is called the stockrsquos alpha In view of rapid
growth of hedge funds and their complex nature of operations and lack of adequate
regulatory control these funds became a major concern of global financial regulation
Notwithstanding these concerns hedge funds continue to grow with the size of the
market growing from about USD30 bn in 1990 to more than USD14 trillion in 2005 and
the number of funds rising from about 530 to about 7000 during this period An
interesting development in the recent period is the growing institutional investment in the
hedge funds which is estimated at USD360 bn in 2005 and the rising allocations to these
funds that was evident in the US and XXVII the European markets The investor base of
the hedge funds consists of individualsfamilies fund of funds corporations and
institutions public and private pensions and endowments and foundations in that order
Investor Protection
With democratization of markets leading to greater participation of individuals and
investments and wide choices of asset classes now available issues of investor interest
and protection have assumed centre stage Following the corporate crises in the US that
adversely affected the investor interests extensive federal investigations were launched
that led to imposition of huge penalties and punitive damages leading to billions of
dollars Such actions were taken against a wide spectrum of global investment banks
brokerage firms and other related entities Simultaneously growth of litigation and class
action suits showed significant rise when the market intermediaries failed to meet their
obligations or did not provide all the material facts to the investors that were crucial for
an investment decision
Securities regulators imposed penalties on market participants who were found to have
indulged in market abuses In India disgorgement orders were passed on certain entities
that were found to making money by unfair means and for violating regulatory norms and
procedures Top institutional investors in several countries devised their own review
process for investing in countries and companies that brought into light greater need for
higher standards in corporate governance disclosure and transparency standards and in
some cases concern towards issues such as democracy and social equity environment
economic and political reforms
Surge in Chinese capital markets
A major change in the year 2007 is the sudden leap of China into big league of global stock
markets On 9 May 07 Shanghai Stock Exchange Chinarsquos top stock market recorded
turnover of USD332 bn and Shenzhen Stock Exchange a stock market for SMEs an
equally powerful USD158 bn taking the combined turnover of both these stock
exchanges on that day to USD495 bn In the first three months of the year 2007 value of
share trading in both these Chinese stock markets reached 89 of the whole turnover of
the year 2006 Value of share trading in Shanghai Stock Exchange rose from USD256 bn in
2003 to USD736 bn in 2006 and in the first three months of the year 2007 it already
recorded USD652 bn Market capitalization in China between Apr 2006 and 2007 rose by
almost 4 times pushing it to a position among the top 10 exchanges in the world and
value of share turnover rose 6 times making Shanghai 6 the biggest Main indexes of
Shanghai Stock Exchange and Shenzhen Stock Exchange posted returns of 194 and 204
respectively in the 12 months proceeding Apr 2007
Rise of smaller markets
The growth and momentum of the stock markets is spreading across a large number of
markets big and small Recent evidence of big surge in stock markets include countries in
the Middle East which witnessed exceptional growth in 20052006 China in 2007 and
several smaller European and Latin American countries in the last one year As
international investing is spreading its presence domestic financial institutions and
investors are finding stocks as an important asset class and stock markets all over the
world have experienced rapid growth in the last five years
Stock exchange consolidation
A big wave of stock exchange consolidation is taking place across the global financial
markets The most notable merger in the recent period is that of the New York Stock
Exchange with Archipelago that led to the demutualization of the former which
subsequently acquired Euro next to form NYSE Group that makes it a formidable force in
the North America and the Euro region Another American exchange NASDAQ after the
merger with Instinet announced plans to acquire OMX which is Europersquos leading
exchange as also provider of cutting edge technology solutions for stock exchanges
worldwide Deutsche Borsersquos recent acquisition of International Securities Exchange gives
the former a powerful position in the derivatives markets in Europe and America There
was also sizeable consolidation within the domestic securities markets in several countries
with the merger of equities and derivatives markets in countries such as Korea Malaysia
and Hong Kong In India the issue of appropriate solutions for the 20 odd stock exchanges
that currently lack proper liquidity is engaging the attention of policy and regulation
RECENT DEVELOPMENTS GOVERNING REGULATION OF STOCK MARKETS
Systematic and streamlined regulation is the key strength and sustainability of the
securities markets Though formal regulation of the securities markets is about 70 years
old some of the recent developments in the financial markets are reshaping the scope
and focus of the regulation These include ndash
There is growing harmonization of regulation across different markets Organizations
such as International Organization for Securities Commissions (IOSCO) are playing a very
important role in adoption of uniform principles and guidelines across the markets
The size and scope of the securities markets is rapidly changing from being one or
two product markets to multi product markets with diverse features and different
investor base
Markets have become more democratized with more people and institutions
participating in the market related activities
Rapid increase in the size of the institutional participation in the financial markets
For instance equity markets which in the past were retail investor driven are now
increasingly become institutional induced
Securities markets are transforming from being membership driven to public
corporation following demutualization and corporatization of stock exchanges in mature
and emerging markets
Two most important pieces of regulation that came into being in the recent period are in
the form of market structure reforms in the US known more popularly as regulation NMS
which underlines the promotion of competition across the markets under three major
principles best price open access and transparency Under the new trade-through role in
whichever market a customer placed his order it should be able to access the best price
that is immediately and automatically available anywhere in the national market system
The trade-through rule will not allow markets to ignore better-priced automated quotes
displayed by the competitors Similarly open access to displayed prices will be a major
feature governing the competition of the markets The regulation also stipulates that all
significant markets must display their quotations and trade reports should be available to
all interested parties on fair terms and non-discriminatory manner Another equally
important development is the Markets in Financial Industry Directive (MiFiD) that will
come into force from 1 Nov 2007 and stipulates wide-ranging norms for financial
institutions in the European Union Major features of the MiFiD include wider scope of
coverage of the financial institutions and the related business activities greater degree of
harmonization across the European markets and facilitate cross border business and
stipulated capital requirements
MiFiD is envisaged to bring major changes in the manner financial institutions in the
European Union will be monitored Simultaneous with stringent norms of regulation the
scope of regulation is considerably delegated to the markets and institutions in the form
of self-regulation Self-regulation brings a number of benefits to the business Institutions
such as National Association of Securities Dealers (NASD) have played an important role in
promoting self-regulation However self-regulation has certain limitations it needs to
overcome before it becomes widely accepted across the markets12
225 Top five companies of the industry
Many time new investor or trader gets confusion for open a D Mat and trading account in
broking House Many of broking House promises to you for better service but clients get
problem due to trading session in theirs Broker house firm Here is the list of Indiarsquos top 5
broking House on base of survey of investors and traders of many cities In their views
following Broking Houses gives best and reliable services13
1 ICICI directcom
ICICI Securities empowers over 2 million Indians to seamlessly access the capital market
with ICICIdirectcom an award winning and pioneering online broking platform The
platform not only offers convenient ways to invest in Equity Derivatives Currency
Futures Mutual Funds but also other services Fixed Deposits Loans Tax Services New
Pension Systems and Insurance are available ICICIdirectcom offers a convenient and easy
to use platform to invest in equity and various other financial products using its unique 3-
in-1 account which integrates customerrsquos saving trading and demat accounts
Apart from convenience ICICIdirectcom also offers access to comprehensive research
information stock picks and mutual fund recommendations among other offerings
Tailored services and trading strategies are available to different types of customers long
term investors day traders high-volume traders and derivatives traders to name some
ICICIdirectcom uses the most advanced commercially available 128-bit encryption
technology enabled Secure Socket Layer (SSL) to ensure that the information transmitted
between the client and ICICIdirectcom across the internet is safe and cannot be accessed
by any third party14
2 India Infoline
India Infoline Ltd (India Infoline) established in 1995 is the holding company of the
India Infoline Group It has membership in the cash and derivative segments of both 12 Source- httpwwwdnbcoinequitybrokingglobal20scenarioasp13 Source- Httpwwwindianstockmarketorgindias-top-10-stock-broking-house14 Source-httpwwwicicisecuritiescomOurBusinessSubSubReportID=10223ampshortCode=INST
the NSE and BSE India Infoline is also registered as a DP with NSDL and CDSL India
Infoline through its subsidiary India Infoline Commodities Limited also offers commodity-
trading services which is a registered member with DGCX since 2006 It also operates in
the currency futures market segment India Infoline offers a wide range of products
and services which include investment banking distribution of financial products
demat services private equity PMS institutional broking WMS insurance broking
among others In addition it also offers research services in areas of economy
derivative strategies mutual funds IPO credit policy and various others The company
has 15 domestic subsidiaries and five foreign subsidiaries The company has global
presence through its subsidiaries in New York Singapore and Dubai India Infoline caters
majorly to retail clients During CY09 the company added 303480 client accounts
Address 75 Nirlon Complex Off Western Express Highway Goregaon (East) Mumbai -
400063 Maharashtra
Telephone 91 22 42499000 Fax 91 22 26850451
Email mailindiainfolinecom Website wwwindiainfolinecom
Registration Number NSE - INBINF231097537 BSE - INBINF01109753315
3 Kotak Securities Ltd
Kotak Securities Ltd (Kotak Securities) is the stock-broking and distribution arm of the
Kotak Mahindra Group and a subsidiary of Kotak Mahindra Bank Kotak Securities was
established in 1994 It has memberships in the cash derivatives and currency futures
segments of NSE and BSE Kotak Securities is also a DP with NSDL and CDSL Apart from
stock broking the company is engaged in offering depository services asset management
margin financing PMS and distribution of financial products like IPOrsquos mutual funds and
insurance The company has a full-fledged research division which offers macro
economic sectoral research and company specific equity research Its domestic network
spans over 383 cities and 1048 offices Trading in equities and derivatives contributes to
major part of the companyrsquos revenue During CY09 Kotak Securities added around 62194
accounts of which around 27 are e-broking accounts The companyrsquos overseas
operations include one subsidiary and two associate firms operating in two foreign
locations
15 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndia+Infoline+Limited2Epdf
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF01113323016
4 Share Khan
Sharekhan Ltd (Sharekhan) is one a leading brokerage houses established in 2000
Sharekhan has membership in the cash and derivative segments of both BSE and NSE It
also operates in the debt and currency futures segment The company is registered as a
DP with CDSL and NSDL Besides trading the company also offers PMS demat services and
mutual funds Share khan provides a comprehensive set of research reports relating
to IPO and mutual funds Other value added facilities offered to clients include
online trading dial-n-trade share shops fundamental and technical research The
company serves large number of retail clients with a client network of more than 100000
clients which includes HNIrsquos corporate and other retail customers The company
through its subsidiary Share khan Commodities Ltd provides commodity-trading services
Address A - 206 Phoenix House 2nd Floor Senapati Bapat Marg Lower Parel
Mumbai - 400013 Maharashtra
Telephone 91 22 67482000 Fax 91 22 66104533
Email compliancelpsharekhancom Website wwwsharekhancom
Registration Number NSE - INBINF231073330 BSE - INBINF01107335117
5 Indiabulls
Indiabulls Securities Ltd (Indiabulls) part of Indiabulls Group was established in 1995 The
company is in the business of providing securities and advisory services It is a corporate
member of capital market wholesale debt market and derivative segments of NSE and of
capital market and derivative segments of BSE
Indiabulls also operates in currency futures and is a DP of CDSL and NSDL It provides a
wide range of products and services which include internet trading NRI trading demat
16 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CKotak+Securities+Limited2Epdf17 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CSharekhan+ Limited2Epdf
services margin financing and distribution of financial products like IPO online
mutual funds etc Power Indiabulls (PIB) is the advanced online trading platform offered
by the company Indiabulls also offers research services in the areas of economic equity
mutual fund IPO and others The company operates in commodity segment through its
subsidiary India bulls Commodities Pvt Ltd which is a member of MCX and NCDEX It
is listed on both NSE and BSE
Address F-60 Malhotra Building 2nd Floor Connaught Place New Delhi - 110001 Delhi
Telephone 91 11 41523700 Fax 91 11 41529071
Email helpdeskindiabullscom Website wwwindiabullscom
Registration Number NSE - INBINF230875632 BSE - INBINF01087563218
18 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndiabulls+Securities+Limited2Epdf
22 Company Overview
221 Overview of the Organizations
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited Uday Kotak Sidney A A Pinto and Kotak amp Company promoted this company Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and thats when the company changed its name to Kotak Mahindra Finance Limited Since then its been a steady and confident journey to growth and success
Kotak Securities Ltd is one of Indias largest brokerage and securities distribution house in India Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-ordinates Kotak Securities Ltd offers online (through wwwkotaksecuritiescom) and offline services based on well-researched expertise and financial products to the non-institutional investors Kotak Securities Limited is the world of Capital Markets where everything newsworthy exists only in the present moment and where knowing the importance of timing sentiments and strategic forecasting makes the difference between profit and loss Kotak Securities Limited a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25 - one of the worldrsquos leading investment banks and brokerage firms) is Indiarsquos leading stock broking house with a market share of 7 - 8
Kotak Securities Limited is one of the larger players in distribution of IPOs - it was ranked number One in 2003-04 as Book Running Lead Manager in public equity offerings by PRIME Database It has also won the ldquoBest Equity Houserdquo Award from Finance Asia -April 2004 The Company has a full-fledged Research division involved in macro economic studies Sectoral research and Company specific equity research combined with a strong and well Networked sales force which helps deliver current and up-to-date market information and news
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them Kotak securities provide portfolio Management Services catering to the high end of the market Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market with the backing of an expert Kotak Securities Limited manages assets over Rs 1700 crores through itrsquos Portfolio Management Services (PMS) servicing high net worth clients with a large
investible surplus through its preferred client services in the mass affluent and wealth management segments The company has a full-fledged research division involved in Macro Economic studies Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news
222 MARKET SHARE
Kotak Securities Ltd is Indiarsquos leading stock broking house with a market share of around
85 percent as of March 31 2006 It handles more IPOs than any other brokerage The
company has a full-fledged research division involved in macroeconomic studies sect oral
research and company-specific equity research combined with a strong and well-
networked sales force which helps deliver current market information and news
The firm has 195 branches servicing more than 2200000 customers across 231 cities
Kotaksecuritiescom the online division offers Internet brokerage services and also online
IPO and mutual fund investments Kotak Securities manages over 2500 crores of Assets
under Management (AUM)
223 AWARDS AND RECOGNIZATION
Kotak Securities Ltd 100 subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry The companyrsquos offerings include stock broking
through the branch and Internet Investments in IPO Mutual funds and Portfolio
management service Kotak Securities has a full-fledged research division involved in
Macro Economic studies Sect oral research and Company Specific Equity Research
combined with a strong and well-networked sales force which helps deliver current and
up to date market information and news Kotak Securitiesrsquo network spans over 321 cities
with 877 outlets with an employee workforce beyond 5100
The company is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can avail the companyrsquos brokerage services for executing the
transactions and the depository services for settling them Kotak Securities Ltd processes
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
14 Customer Relationship Management Introduction
The biggest management challenge in the new millennium of liberalization and globalization for a business is to serve and maintain good relationship with the king ndash the customer In the past producers took their customers for granted because at that time the customers were not demanding nor had alternative source of supply or suppliers But today there is a radical transformation The changing business environment is characterized by economic liberalization increasing competition high consumer choice demanding customer more emphasis on quality and value of purchase etc2
A CRM is a collection of people processes software and internet capabilities that helps an enterprise manage customer relationship effectively and systematically The goal of CRM is to understand and anticipate the needs of current and potential customer to increase customer retention and loyalty while optimizing the way product and services are sold
CRM stands for Customer Relationship Management It is a strategy used to learn more about customers needs and behaviors in order to develop stronger relationships with them After all good customer relationships are at the heart of business success There are many technological components to CRM but thinking about CRM in primarily technological terms is a mistake The more useful way to think about CRM is as a process that will help bring together lots of pieces of information about customers sales marketing effectiveness responsiveness and market trends3
The objective is to capture data about every contact a company a company has with a customer through every channel and store it in the CRM system to enable the company to truly understand customer action CRM software helps an organization build a database about its customer that management sales people customer service provider and even customer can access information to access customer needs with product and offering
All these changes have made todayrsquos producer shift from traditional marketing to modern marketing Modern marketing calls for more than developing a product pricing it promoting it and making it accessible to target customer It demands building trust a binding force and value added relationship with the customers
15 Customer Relationship Management CRM Techniques
The CRM is a new technique in marketing where the marketer tries to develop long-term relationship with the customers to develop them as lifetime customers CRM aims to make the customer climb up the ladder of loyalty
2 Source-httpwwwezinarticlescomEmerging-Trends-In-Customer-Relationship-Managementampid=10926073 Source-httpwwwscribddocumentswordpresscom20090917crm-project-report
The company first tries to determine that who are likely prospects ie the people who have a strong potential interest in the product and ability to pay for it The company hopes to convert many of its qualified prospect into first time customers and then to convert those first time customers into repeat customers Then the company tries to convert these repeat customers into clients ndash they are those people who buy only from the company in the relevant product categories The next challenge for the company is to convert this client into advocates Advocates are those clients who praise the company and encourage others to buy from it
The ultimate challenge is to convert these advocates into partners where the customers and the clients work actively together to discover ways of getting mutual benefit
Thus in CRM the key performance figure is not just current market share but share of lifetime value by converting customers into partners
In CRM the company tries to identify that small percentage (20) of key account holders whose contribution to the company revenues is high (80) So from this point of view CRM is also known as KEY ACCOUNT MANAGEMENT
16 Why ndash Customer Relationship Management
Satisfied customers in 10 years will bring100 more customers to the company It costs 7 times more to attract a new customer than to serve an old one 20 of the companyrsquos loyal customers account for 80 of its revenues (Paretorsquosprinciple) The chances of selling to an existing customer are 1 in 2 the chances of selling to a new customer are 1 in 16
Eight ways to keep customers for life
1 Every part of the companyrsquos marketing effort should be geared towards building lifetime relationships
2 People want to do business with friendly people To have effective relations a friendly attitude must permeate in the organization
3 Information technology developments should be positively used to serve the customers
4 The company should always be flexible to bend its rules and procedures in the clientrsquos favor
5 The company should communicate with its customers even when it is not trying to sell something
6 The company can communicate and develop stronger customer bonding by providing financial and social benefits
7 The company should try to know all its customers including their lifestyles hobbies likes or dislikes etc
8 The company should make it a point to deliver more than what is promised
17 How to introduce CRM in the company
There are four key steps for putting one tone marketing program to work ndash
Step 1 Identify your customers
To launch a one to one initiative the company must be able to locate and contact a fair
number of customers or at least a substantial portion of its valuable customers It is
crucial to know the customer details as much as possible not just their names or
address but their habits preferences and so forth
Step 2 Differentiating your customers
Customers are different in two principal ways they represent different levels of value
and have different needs Once the company identifies its customers differentiating
them will help the company to focus its efforts to gain the most advantage with the
most valuable customers
Step 3 Interacting with the customer
Interaction is also a crucial component of successful CRM initiative It is important to
remember that interaction just not occur through marketing and sales channels
customer interact in many different ways with many different areas of the organization
so to foster relationship all the areas of the organization must be accessible to the
customer
Step 4 Customize your enterprisersquos behavior
Ultimately to lock a customer into a relationship a company must adapt some aspect
of its behavior to meet customerrsquos individually expressed needs this might mean mass
customizing a manufactured product or it might involve tailoring some aspect of the
service surrounding the product
Chapter2
INDUSTRY OVERVIEW amp COMPANY OVERVIEW
21 Industry Overview
211 Industry Profile
A stockbroker is nothing but a registered and qualified working professional who buys
stocks and derivatives for other people The stockbroker thus performs all the
transactions for people on the stock exchange The stockbroker maintains information of
the people for whom he is buying or selling stocks This information includes name
address PAN no and other relevant information No transaction can take place in the
stock market with out a stockbroker
The stockbroker cannot give inputs advice to people buying or selling stocks unless he is
registered with the Securities and exchange board of India as a portfolio manager The
stockbroker takes a certain brokerage for the transactions he does for his clients on the
stock exchange The brokers are expected to issue contract notes to the clients after a
particular transaction has been done They are also expected to issue periodic reports to
their clients with respect to the transactions that have been done by them in that periodic
interval If you are looking to become a portfolio manager then there is a different policy
and procedure that you need to follow for it
Stockbrokers can be individual stockbrokers or form a company or an organization there
by making a brokerage All brokerages have to pay a certain sales tax for the transactions
that are done with the brokerage by other clients wither through selling or buying a
certain stock Thus any person who wants to buy or sell any stock with a particular stock
exchange has to do that with a particular stockbroker affiliated with that stock exchange4
Securities Markets is a place where buyers and sellers of securities can enter into
transactions to purchase and sell shares bonds debentures etc
Further it performs an important role of enabling corporate entrepreneurs to raise
resources for their companies and business ventures through public issues Transfer of
resources from those having idle resources (investors) to others who have a need for
them (corporate) is most efficiently achieved through the securities market Stated
4 Source- httpwwwstockbrokingcoinwhat-is-stockbrokinghtml
formally securities markets provide channels for reallocation of savings to investments
and entrepreneurship Savings are linked to investments by a variety of intermediaries
through a range of financial products called lsquoSecuritiesrsquo5
The Securities Contract (Regulation) Act 1956 [SCRA] defines lsquoStock Exchangersquo as any
body of individuals whether incorporated or not constituted for the purpose of assisting
regulating or controlling the business of buying selling or dealing in securities Stock
exchange could be a regional stock exchange whose area of operationjurisdiction is
specified at the time of its recognition or national exchanges which are permitted to have
nationwide trading since inception NSE was incorporated as a national stock exchange6
222 Industry Evolution
The history of stockbrokers can be traced back to the origins of the first stock exchange in
1602 at Amsterdam Even before that brokers are said to have existed in France dealing
with government securities The Amsterdam Stock Exchange was involved in buying and
selling of shares for the Dutch East India Company However the first real stock exchange
came up in Philadelphia in the United States during the late 18th century Later it was the
New York stock exchange which saw a rise in its popularity Wall Street as it was called
became the hub of brokerage activities Earlier stockbrokers were largely unorganized
but later most of them joined hands to form institutes and organizations Until the 1980rsquos
stock broking services were used only by the wealthy class who could afford them Later
with the advent of the Internet stock broking became very easy Thus the price tag on
stockbrokers lowered considerably and their services became available even to the
common man The stock broking duties are now mostly taken up by major organizations
with the smaller companies being absorbed by them In India too with increasing
globalization the major corporations are penetrating deeper into the society7
A Stockbroker is nothing but a person who buys and sells securities from the stock market
on behalf of other investors Stock broking began in the United States of America
Philadelphia was the first city in America to have a stock exchange After which New York
became the heart of all stock transactions and Wall Street became synonymous with
investing and trading
5 Source-httpwwwgascicomfaqhtm6 Source-httpwwwaumassociatecoinsharebazaraspx7 Source-httpwwwindiacomcomyellowpagecategory-gyanarticlesStock-BrokersStock-Broker-Introductionasp
Since the early part of the 1980s stock broking was allowed in America In addition in the
late part of 1990s stock broking went online and now there are several online stock
brokerages on the internet and hence online transactions happen in a jiffy these days A
stockbroker may also be a financial advisor or an investment consultant these days but in
India you need to be registered with the Securities and exchange board of India in order
to act as a financial advisor As the name suggests a stockbroker mainly deals in stocks
that is the shares of a company Other professionals such as foreign exchange brokers
deal with currencies where as commodity brokers deal with commodities
All stock market transactions that is buying or selling of shares have to take place through
a broker or a brokerage Even if you make online transactions you need to do it through
an online stockbroker For performing the transaction online stockbrokers charge a small
brokerage fee or commission fee for the transactions that they do for other companies or
retail investors The brokerages that a stockbroker may charge are different for various
brokerages as they might have a different business model for the same8
The history of stock broking in the United States parallels the growth of the nations
economy since colonial times The industry has tended to be cyclical in nature and has
survived several downturns including a major economic depression in the 1930s
Government regulations have been introduced at times in an effort to place controls on
what were viewed as harmful trading practices
Origin
The first stock brokerage house in the United States started in Philadelphia in 1800 While
the practice had been around since the early 1700s the Philadelphia Stock Exchange was
the first organized body that brought brokers together and served to codify the rules and
regulations under which business had been conducted The profession continued to
expand with the growth of corporations and the dawning of the Industrial Revolution
Crash
The first major negative event in the industry occurred when the stock market crashed in
1929 which was followed by the Great Depression The result of the crash was due to
8 Source- httpwwwstockbrokingcoinorigin-of-stockbrokinghtml
investors who had borrowed heavily to purchase stocks and began to realize that they
were hugely overvalued and attempted to sell them off resulting in a panic
Securities Act
In an effort to prevent the recurrence of the 1929 crash the Securities Act was
implemented in 1933 as a way to regulate the industry Eventually the stock market
began to rebound and continued a general pattern of steady growth over the next several
decades
Change
In the early 1970s the growth of technology led to reforms in the United States that
helped to reopen the markets to more liberalized trading In the late 1980s another crash
in the market occurred due to the dropping of prices of stock index futures Much like the
Great Depression this led to a mass selling of these securities causing the stock market to
plummet
Rebound
Stock broking again saw a boom as tighter regulations were put in place following the
1987 crash The markets reached new heights in the late 1990s The terrorist attacks of
September 11 2001 slowed the pattern of growth
Another Crash
In 2008 the largest single-day drop since 1987 occurred as the market lost $12 trillion of
its value on September 29 The drop occurred because of several factors including the
collapse of the mortgage industry and a worsening credit crisis The market has
rebounded only slightly as of mid-20099
223 Salient Features of the Industry in India
On the basis of geographical concentration the west region has the maximum
representation of 52 around 24 firms are located in the North 13 in the South and
10 in the East
9 Source-httpwwweHowcommabout_5208105_history-stockbrokinghtml
3 firms are started broking operations before 1950 65 between 1950-1995 and
32 Post1995
On the basis of terminals 40 are located at Mumbai 12 in Delhi 8 in
Ahmadabad 7 in Kolkata 4 in Chennai and 29 are from other cities
From the study we find that almost 36 firms trade in cash derivatives and
commodities
In the cash market around 34 firms trade at NSE 14 at BSE and 52 trade at
both exchanges In the derivative segment 48 trade at NSE 7 at BSE and 45 at both
whereas in the debt market 31 trade at NSE 26 at BSE and 43 at both Exchanges
Majority of branches are located in the North ie around 40 West has 31 24
are located in South and 5 in East
In terms of Sub brokers around 55 are located in the South 29 in West 11 in
North and 4 in East
Trading IPOs and Mutual funds are the top three products offered with 90 firms
offering trading 67 IPOs and 53 firms offering mutual fund transactions
In terms of various areas of growth 84 firms have expressed interest in
expanding their institutional clients 6 firms intend to increase FII clients and 43 are
interested in setting up JV in India and abroad
In terms of IT penetration 62 firms have provided their website and around 94
firms have E-mail facility10
224 Recent Trends
Equity brokerage industry in India is experiencing rapid growth and diversity Following
the wide range of stock market reforms in the early 2000rsquos brokerage industry underwent
major transformations from being engaged in only brokerage business to offering a wide
range of financial services A modern broking house in India may well be a corporate
entity that offers a wide range of products relies on research for advice uses modern
technology has large distribution network connecting the country provides investor
education and awareness and is compliance focused These developments have resulted
in a huge spurt in business as also growing market share of the large sized brokerage
houses that led to surge in enterprise value thus becoming objects of interest for global
investing In the recent period global and domestic private equity firms have taken stake
10 Source- httpwwwdnbcoinequitybrokingindustry20insightsasp
in brokerage firms such as Anand Rathi (Citigroup) Edelweiss (Lehman Brothers) Geojit
(BNP Paribas) SMC (Millennium India) Motilal Oswal (New Vernon) Marwari Shares
(India Capital Growth Fund) J R G Securities (Barings Pvt Equity) and Network Broking
(Amas Bank of Hindujas) India Infoline (Orient Global) etc Initial Public Offerings of large
firms in2007 such as Motilal Oswal Edelweiss and Religare received huge response from
the markets (over subscription going more than 100) and also high premiums Large
issues of these brokerage firms debuted in the stock exchange with premiums ranging
from 20 to 75 With the stock market momentum likely to continue broking firms
could look forward to scaling up their resource mobilization to fund growing operations
and expansion Brokerages mopping up huge resources from the market are not unusual
even in the emerging markets For instance Citic Securities a Chinese securities firm is
reported to have raised US $ 33 bn last year and other firms such as Haitong and Gold
state are planning to come out with IPOs of US $ 4-5 bn in 2008
In India about 45 equity brokerage houses are at present listed on the stock exchanges
that together reported Rs 35 bn of equity total income of Rs 47 bn and net profit of Rs 3
bn for the second quarter of FY08
Prospects and Outlook
Indian broking houses could look forward to a period of growth and consolidation Indiarsquos
economic growth and deepening of the financial system will present the broking firms
with numerous opportunities for growth and expansion Integration of the financial
markets will enhance the scope of their business and scalability Access to public equity
markets will enable them to raise resources to fund expansion and growths as pursue
useful business acquisitions Growing international investor interest in India will add
newer opportunities to scale up the business as also harmonsing with global standard and
practices Introduction of new products such as mini contracts in the derivatives and other
futures and options products will add new opportunities for creating new business
segments
While opportunities abound there is a great need for reform and restructuring of the
equity broking industry There are about 9000 brokers registered with SEBI but 80
percent of the turnover in NSE and BSE is accounted for by about 100 brokers
Consolidation thus becomes relevant to forge a stronger industry Similarly capital levels
too need to be strengthened The 45 odd listed broking firms in India together have a
meager Rs 35 bn of capital which is far less than what one top broking firm in China
could raise from the capital markets Better performance and practices will enable broking
firms to increase capital levels that will be essential for funding expansion
Investor education and awareness is another aspect broking industry should promote in
the long-term interest of the market As the product mix and risk matrix in financial
markets are continuously changing it becomes imperative for the intermediaries to
educate and create awareness in the clients that would be mutually beneficial Better
understanding of the financial products and associated risks by the investors will be in the
interest of the growth and stability of the markets
The Indian broking industry is coming of age It has enormous opportunities for growth
and diversity As markets expand and get globalised these firms will have increased
opportunity to cater to a large and diverse range of clientele with a wide mix of products
and services Expanding markets offer enhanced opportunities Those who are well
prepared will be in a better position to garner the benefits11
225 Performance Growth Scenario
Some of the major recent developments in the global securities markets have been
summarized below
Equalization
Equity markets have expanded significantly in a large number of countries across the
world The market capitalization of the worldrsquos leading stock exchanges rose from about
USD11 trillion in 1991 to USD35 trillion in 1999 to about USD51 trillion in 2006 The
growth of market capitalization is evident across regions Market capitalization in Asia
nearly doubled from USD68 trillion in 1999 to USD118 trillion in2006 where as in
America it grew from USD179 trillion to USD226 trillion and in EuropeAfricaMiddle
East it rose from USD102 trillion to USD161 trillion Market capitalization as a percent of
GDP witnessed steep growth in several countries during this period
Similarly trading volumes in stock exchanges too has shown rapid growth Value of share
trading in stock exchanges rose from about USD54 trillion in 1991 to USD33 trillion in
1999 to about USD70 trillion in 2006 During the period 1999 and 2006 value of share
trading in Asia Pacific rose from USD42 trillion to USD12 trillion in EuropeAfricaMiddle
11 Source- httpwwwdnbcoinequitybroking2008Emergingtrenasp
East from USD83 trillion to USD218 trillion and in Americas from USD20 trillion to USD35
trillion
Institutional investment
The rapid growth of stock markets in the world to a significant extent could be explained
by the surge in the institutional investors consisting of pension funds insurance
companies and mutual funds During the period 1995 and 2005 the assets under
management of the institutional investors doubled from USD21trillion to USD53 trillion A
large number of institutional investors are moving away from the home bias investing in
outside world Emerging markets with higher economic growth and rapidly growing
financial markets became major centers of destination for the investments of institutional
investors For instance in the US in 1994 pension funds invested 41 of their portfolio in
domestic equity and 7 in international equities where as by 2005 that share rose to 48
in domestic equities and 15 in international equities The portfolio allocation to bond
markets during the same period reduced from 42 to 32 Emerging markets received
sizeable portion of the investments In the US the dedicated emerging markets mutual
funds rose from about USD27 bn in2000 to USD 230 bn in 2006
International listings
On the back of the liberalization of cross border financial flows companies in several
countries are seeking listing in international exchanges to garner benefits from
international investors as also widen their investor base The number of foreign
companies listed in the London Stock Exchange rose from 387 in 1970 to 553 in 1990 to
636 in 2006 The number of foreign companies listed on the NYSE has also risen rapidly in
the 1990s There is a keen competition across the worldrsquos leading stock exchanges to
promote international listing and gain greater influence In the recent period the US
experienced a slowdown in the listing of foreign companies The decline is attributed to
stringent corporate governance norms that were applied following the corporate abuses
found in the beginning of the decade The US is now examining in greater detail measures
to gain the prominence once it enjoyed in the international listings The Alternative
Investment Market of London Stock Exchange attracted huge interest from SMEs from a
large number of countries
Emerging markets as an investment destination
Liberalization of capital flows led to surge in international investment into emerging
economies finding value on the back of huge prospects for growth The flow of net
Foreign Direct Investment (FDI) into developing countries increased from USD170 bn in
1998 to USD325 bn in 2006 and net portfolio equity flows increased from USD6 bn to
USD94 bn during the same period Net debt flows during this period are rather subdued
with net debt flows from official creditors turning negative Net portfolio equity flows to
China between the year 2000 and 2006 rose from USD69 bn to USD32 bn and in India
from USD23 bn to USD87 bn Other emerging markets such as Brazil Mexico South
Africa Thailand and Russia too showed surge in the net portfolio equity flows Emerging
markets showed significant growth in stock prices making them attractive investment
destinations though issues of valuations are beginning to become a concern now
Growing correlation of returns
Greater harmonization of stock markets in mature and emerging markets is in evidence by
the increasing correlation in market returns across different markets The higher
correlation in the stock price movements gained momentum in the late 1990s due to
growing foreign institutional investment in several markets and growth of the technology
sector that pervaded many markets and has driven stock price momentum in the late
1990s
Emerging markets in the new issuance market
Emerging markets also became very active in the new issuance market In 2006 all the ten
largest cross border new capital issues were from the emerging markets These ten issues
were from China Russia Mexico Thailand and Kazakhstan Of these ten issues four each
were listed in London and Hong Kong and only one in the US The value of the new listings
by emerging market companies in the US exchanges declined from USD29 bn in 2004 to
USD27 bn in 2006 where as that of London rose from USD07 bn to USD96 bn and in
Hong Kong from USD72 bn to USD304 bn Emerging markets in the first five months of
2007 have raised USD537 bn in global financial markets which is reported to be the
highest ever amount raised for a year Some of the leading issues during this period
include the USD8 bn IPO by VTB second largest Russian bank USD185 bn by Turkish
financial institution Halk bank and USD14 bn by a Russian real estate company AFI
Development Some of the largest issues from the emerging markets in the recent period
include USD219 bn issue of Chinarsquos ICBC Bank (Oct 2006) USD112 bn issue of Bank of
China (May 06) USD107 bn issue of Russian energy company Ros neft (Jul 06) USD59 bn
pubic issue of Chinarsquos Citic Bank
Alternative markets
In view of the limitations on listing of small and medium scale companies in the big boards
of the main exchanges several stock exchanges have developed alternative markets for
encouraging listing of small and midcap stocks Almost every major exchange has an
alternative platform for listing and trading of small and midcap stocks and new generation
companies without much listing history The market capitalization of the alternative
markets in the year 2006 has grown at an impressive rate of 30 More than 12000
companies are listed in these alternative markets and the value of share trading of these
for SMEs markets rose 15 in 2006 from USD802 bn to USD919 bn New capital (IPOs)
rose in the alternative markets rose 59 in 2006 from USD136 bn to USD216 bn
Growth of Derivatives
The growth of derivatives picked up on the need for risk transfer products The size of
global derivatives industry in 2006 USD370 trillion of notional value and USD10 trillion of
market value in the Over the Counter (OTC) derivative markets and USD84 trillion of
notional value and USD10 trillion market value in the Exchange traded derivative markets
According to the International Swaps and Derivatives Association more than 90 percent
of the global 500 corporations use derivatives for hedging risks in interest rates foreign
exchange and equities In the OTC markets derivative products accounting for large share
of market value include interest rate (785) and Foreign Exchange (114) where as in
the Exchange Traded segment derivative products on interest rate government debt and
equities form the major part of the volumes
Dark Pools and Private Markets
In the third week of May 2007 Goldman Sachs launched GSTrue which is a platform
developed to allow exclusive club of big investors to trade unregistered privately placed
securities which is considered to be a major challenge for the public equity capital
markets in the US Goldman Sachs in that deal helped underwrite the private sale of 15
of hedge fund manager Oak tree Capital Management for USD800 mn The investors in
this sale would be able to buy and sell Oak tree shares through the new Goldman Sachs
Tradable Unregistered Equity System which has its acronym GSTRue
Under the rules of the Securities and Exchange Commission of the US companies can sell
securities without registering them as long as the issues are limited to qualified
institutional buyers which are investors with at least USD100 mn of assets and there are
no more than 500 stockholders Private pools of capital are growing in size and
significance in international markets to overcome the costs and pressures from stringent
regulation According to an estimate of NASDAQ in 2006 companies in the US raised
USD162 bn of capital through unregistered private placements (also known as 144A
private placements) compared with USD154 bn through IPOs which are registered with
the regulator A group of worldrsquos largest banks are developing ldquoProject Turquoiserdquo which
is a hybrid share trading system that allows transactions both on exchange and outside it
(called as dark liquidity pools) where firms with large asset base can buy and sell large
blocks of shares away from the regulatory oversight
Private Equity
Private equity is growing in size and significance In view of the regulatory standards
prevalent in the public equity capital markets several firms seek the private equity option
to raise resources According to Dialogic the top 50 private equity firms raised USD551 bn
out of the USD800 bn estimated to have been raised by the total private equity since Jan
2002 Of the top 50 private equity firms more than 30 are from the US 11 from the UK
five from Western Europe and one from Asia Pacific Private equity is now involved in high
value deals and recent transactions include USD35 bn HCA buyout in the healthcare
industry and bids of USD39 bn and USD41 bn for Equity Office Property Trust a
commercial office real estate trust in the United Trust It is expected that the transaction
values of the private equity may go up to USD50-100 bn in the near future Private equity
market in India raised USD22 bn in 2005 about USD4 bn in 2006 and is expected to raise
about USD10 bn by 2010 according to a recent study
Hedge Funds
Hedge Funds emerged from the need of investors seeking alpha to earn an excess return
and beat the market and the returns from the conventional investments Alpha is a
common measure of assessing an active managerrsquos performance as it is the return in
excess of a benchmark index or ldquorisk-freerdquo investment The difference between the fair
and actually expected rates of return on a stock is called the stockrsquos alpha In view of rapid
growth of hedge funds and their complex nature of operations and lack of adequate
regulatory control these funds became a major concern of global financial regulation
Notwithstanding these concerns hedge funds continue to grow with the size of the
market growing from about USD30 bn in 1990 to more than USD14 trillion in 2005 and
the number of funds rising from about 530 to about 7000 during this period An
interesting development in the recent period is the growing institutional investment in the
hedge funds which is estimated at USD360 bn in 2005 and the rising allocations to these
funds that was evident in the US and XXVII the European markets The investor base of
the hedge funds consists of individualsfamilies fund of funds corporations and
institutions public and private pensions and endowments and foundations in that order
Investor Protection
With democratization of markets leading to greater participation of individuals and
investments and wide choices of asset classes now available issues of investor interest
and protection have assumed centre stage Following the corporate crises in the US that
adversely affected the investor interests extensive federal investigations were launched
that led to imposition of huge penalties and punitive damages leading to billions of
dollars Such actions were taken against a wide spectrum of global investment banks
brokerage firms and other related entities Simultaneously growth of litigation and class
action suits showed significant rise when the market intermediaries failed to meet their
obligations or did not provide all the material facts to the investors that were crucial for
an investment decision
Securities regulators imposed penalties on market participants who were found to have
indulged in market abuses In India disgorgement orders were passed on certain entities
that were found to making money by unfair means and for violating regulatory norms and
procedures Top institutional investors in several countries devised their own review
process for investing in countries and companies that brought into light greater need for
higher standards in corporate governance disclosure and transparency standards and in
some cases concern towards issues such as democracy and social equity environment
economic and political reforms
Surge in Chinese capital markets
A major change in the year 2007 is the sudden leap of China into big league of global stock
markets On 9 May 07 Shanghai Stock Exchange Chinarsquos top stock market recorded
turnover of USD332 bn and Shenzhen Stock Exchange a stock market for SMEs an
equally powerful USD158 bn taking the combined turnover of both these stock
exchanges on that day to USD495 bn In the first three months of the year 2007 value of
share trading in both these Chinese stock markets reached 89 of the whole turnover of
the year 2006 Value of share trading in Shanghai Stock Exchange rose from USD256 bn in
2003 to USD736 bn in 2006 and in the first three months of the year 2007 it already
recorded USD652 bn Market capitalization in China between Apr 2006 and 2007 rose by
almost 4 times pushing it to a position among the top 10 exchanges in the world and
value of share turnover rose 6 times making Shanghai 6 the biggest Main indexes of
Shanghai Stock Exchange and Shenzhen Stock Exchange posted returns of 194 and 204
respectively in the 12 months proceeding Apr 2007
Rise of smaller markets
The growth and momentum of the stock markets is spreading across a large number of
markets big and small Recent evidence of big surge in stock markets include countries in
the Middle East which witnessed exceptional growth in 20052006 China in 2007 and
several smaller European and Latin American countries in the last one year As
international investing is spreading its presence domestic financial institutions and
investors are finding stocks as an important asset class and stock markets all over the
world have experienced rapid growth in the last five years
Stock exchange consolidation
A big wave of stock exchange consolidation is taking place across the global financial
markets The most notable merger in the recent period is that of the New York Stock
Exchange with Archipelago that led to the demutualization of the former which
subsequently acquired Euro next to form NYSE Group that makes it a formidable force in
the North America and the Euro region Another American exchange NASDAQ after the
merger with Instinet announced plans to acquire OMX which is Europersquos leading
exchange as also provider of cutting edge technology solutions for stock exchanges
worldwide Deutsche Borsersquos recent acquisition of International Securities Exchange gives
the former a powerful position in the derivatives markets in Europe and America There
was also sizeable consolidation within the domestic securities markets in several countries
with the merger of equities and derivatives markets in countries such as Korea Malaysia
and Hong Kong In India the issue of appropriate solutions for the 20 odd stock exchanges
that currently lack proper liquidity is engaging the attention of policy and regulation
RECENT DEVELOPMENTS GOVERNING REGULATION OF STOCK MARKETS
Systematic and streamlined regulation is the key strength and sustainability of the
securities markets Though formal regulation of the securities markets is about 70 years
old some of the recent developments in the financial markets are reshaping the scope
and focus of the regulation These include ndash
There is growing harmonization of regulation across different markets Organizations
such as International Organization for Securities Commissions (IOSCO) are playing a very
important role in adoption of uniform principles and guidelines across the markets
The size and scope of the securities markets is rapidly changing from being one or
two product markets to multi product markets with diverse features and different
investor base
Markets have become more democratized with more people and institutions
participating in the market related activities
Rapid increase in the size of the institutional participation in the financial markets
For instance equity markets which in the past were retail investor driven are now
increasingly become institutional induced
Securities markets are transforming from being membership driven to public
corporation following demutualization and corporatization of stock exchanges in mature
and emerging markets
Two most important pieces of regulation that came into being in the recent period are in
the form of market structure reforms in the US known more popularly as regulation NMS
which underlines the promotion of competition across the markets under three major
principles best price open access and transparency Under the new trade-through role in
whichever market a customer placed his order it should be able to access the best price
that is immediately and automatically available anywhere in the national market system
The trade-through rule will not allow markets to ignore better-priced automated quotes
displayed by the competitors Similarly open access to displayed prices will be a major
feature governing the competition of the markets The regulation also stipulates that all
significant markets must display their quotations and trade reports should be available to
all interested parties on fair terms and non-discriminatory manner Another equally
important development is the Markets in Financial Industry Directive (MiFiD) that will
come into force from 1 Nov 2007 and stipulates wide-ranging norms for financial
institutions in the European Union Major features of the MiFiD include wider scope of
coverage of the financial institutions and the related business activities greater degree of
harmonization across the European markets and facilitate cross border business and
stipulated capital requirements
MiFiD is envisaged to bring major changes in the manner financial institutions in the
European Union will be monitored Simultaneous with stringent norms of regulation the
scope of regulation is considerably delegated to the markets and institutions in the form
of self-regulation Self-regulation brings a number of benefits to the business Institutions
such as National Association of Securities Dealers (NASD) have played an important role in
promoting self-regulation However self-regulation has certain limitations it needs to
overcome before it becomes widely accepted across the markets12
225 Top five companies of the industry
Many time new investor or trader gets confusion for open a D Mat and trading account in
broking House Many of broking House promises to you for better service but clients get
problem due to trading session in theirs Broker house firm Here is the list of Indiarsquos top 5
broking House on base of survey of investors and traders of many cities In their views
following Broking Houses gives best and reliable services13
1 ICICI directcom
ICICI Securities empowers over 2 million Indians to seamlessly access the capital market
with ICICIdirectcom an award winning and pioneering online broking platform The
platform not only offers convenient ways to invest in Equity Derivatives Currency
Futures Mutual Funds but also other services Fixed Deposits Loans Tax Services New
Pension Systems and Insurance are available ICICIdirectcom offers a convenient and easy
to use platform to invest in equity and various other financial products using its unique 3-
in-1 account which integrates customerrsquos saving trading and demat accounts
Apart from convenience ICICIdirectcom also offers access to comprehensive research
information stock picks and mutual fund recommendations among other offerings
Tailored services and trading strategies are available to different types of customers long
term investors day traders high-volume traders and derivatives traders to name some
ICICIdirectcom uses the most advanced commercially available 128-bit encryption
technology enabled Secure Socket Layer (SSL) to ensure that the information transmitted
between the client and ICICIdirectcom across the internet is safe and cannot be accessed
by any third party14
2 India Infoline
India Infoline Ltd (India Infoline) established in 1995 is the holding company of the
India Infoline Group It has membership in the cash and derivative segments of both 12 Source- httpwwwdnbcoinequitybrokingglobal20scenarioasp13 Source- Httpwwwindianstockmarketorgindias-top-10-stock-broking-house14 Source-httpwwwicicisecuritiescomOurBusinessSubSubReportID=10223ampshortCode=INST
the NSE and BSE India Infoline is also registered as a DP with NSDL and CDSL India
Infoline through its subsidiary India Infoline Commodities Limited also offers commodity-
trading services which is a registered member with DGCX since 2006 It also operates in
the currency futures market segment India Infoline offers a wide range of products
and services which include investment banking distribution of financial products
demat services private equity PMS institutional broking WMS insurance broking
among others In addition it also offers research services in areas of economy
derivative strategies mutual funds IPO credit policy and various others The company
has 15 domestic subsidiaries and five foreign subsidiaries The company has global
presence through its subsidiaries in New York Singapore and Dubai India Infoline caters
majorly to retail clients During CY09 the company added 303480 client accounts
Address 75 Nirlon Complex Off Western Express Highway Goregaon (East) Mumbai -
400063 Maharashtra
Telephone 91 22 42499000 Fax 91 22 26850451
Email mailindiainfolinecom Website wwwindiainfolinecom
Registration Number NSE - INBINF231097537 BSE - INBINF01109753315
3 Kotak Securities Ltd
Kotak Securities Ltd (Kotak Securities) is the stock-broking and distribution arm of the
Kotak Mahindra Group and a subsidiary of Kotak Mahindra Bank Kotak Securities was
established in 1994 It has memberships in the cash derivatives and currency futures
segments of NSE and BSE Kotak Securities is also a DP with NSDL and CDSL Apart from
stock broking the company is engaged in offering depository services asset management
margin financing PMS and distribution of financial products like IPOrsquos mutual funds and
insurance The company has a full-fledged research division which offers macro
economic sectoral research and company specific equity research Its domestic network
spans over 383 cities and 1048 offices Trading in equities and derivatives contributes to
major part of the companyrsquos revenue During CY09 Kotak Securities added around 62194
accounts of which around 27 are e-broking accounts The companyrsquos overseas
operations include one subsidiary and two associate firms operating in two foreign
locations
15 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndia+Infoline+Limited2Epdf
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF01113323016
4 Share Khan
Sharekhan Ltd (Sharekhan) is one a leading brokerage houses established in 2000
Sharekhan has membership in the cash and derivative segments of both BSE and NSE It
also operates in the debt and currency futures segment The company is registered as a
DP with CDSL and NSDL Besides trading the company also offers PMS demat services and
mutual funds Share khan provides a comprehensive set of research reports relating
to IPO and mutual funds Other value added facilities offered to clients include
online trading dial-n-trade share shops fundamental and technical research The
company serves large number of retail clients with a client network of more than 100000
clients which includes HNIrsquos corporate and other retail customers The company
through its subsidiary Share khan Commodities Ltd provides commodity-trading services
Address A - 206 Phoenix House 2nd Floor Senapati Bapat Marg Lower Parel
Mumbai - 400013 Maharashtra
Telephone 91 22 67482000 Fax 91 22 66104533
Email compliancelpsharekhancom Website wwwsharekhancom
Registration Number NSE - INBINF231073330 BSE - INBINF01107335117
5 Indiabulls
Indiabulls Securities Ltd (Indiabulls) part of Indiabulls Group was established in 1995 The
company is in the business of providing securities and advisory services It is a corporate
member of capital market wholesale debt market and derivative segments of NSE and of
capital market and derivative segments of BSE
Indiabulls also operates in currency futures and is a DP of CDSL and NSDL It provides a
wide range of products and services which include internet trading NRI trading demat
16 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CKotak+Securities+Limited2Epdf17 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CSharekhan+ Limited2Epdf
services margin financing and distribution of financial products like IPO online
mutual funds etc Power Indiabulls (PIB) is the advanced online trading platform offered
by the company Indiabulls also offers research services in the areas of economic equity
mutual fund IPO and others The company operates in commodity segment through its
subsidiary India bulls Commodities Pvt Ltd which is a member of MCX and NCDEX It
is listed on both NSE and BSE
Address F-60 Malhotra Building 2nd Floor Connaught Place New Delhi - 110001 Delhi
Telephone 91 11 41523700 Fax 91 11 41529071
Email helpdeskindiabullscom Website wwwindiabullscom
Registration Number NSE - INBINF230875632 BSE - INBINF01087563218
18 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndiabulls+Securities+Limited2Epdf
22 Company Overview
221 Overview of the Organizations
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited Uday Kotak Sidney A A Pinto and Kotak amp Company promoted this company Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and thats when the company changed its name to Kotak Mahindra Finance Limited Since then its been a steady and confident journey to growth and success
Kotak Securities Ltd is one of Indias largest brokerage and securities distribution house in India Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-ordinates Kotak Securities Ltd offers online (through wwwkotaksecuritiescom) and offline services based on well-researched expertise and financial products to the non-institutional investors Kotak Securities Limited is the world of Capital Markets where everything newsworthy exists only in the present moment and where knowing the importance of timing sentiments and strategic forecasting makes the difference between profit and loss Kotak Securities Limited a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25 - one of the worldrsquos leading investment banks and brokerage firms) is Indiarsquos leading stock broking house with a market share of 7 - 8
Kotak Securities Limited is one of the larger players in distribution of IPOs - it was ranked number One in 2003-04 as Book Running Lead Manager in public equity offerings by PRIME Database It has also won the ldquoBest Equity Houserdquo Award from Finance Asia -April 2004 The Company has a full-fledged Research division involved in macro economic studies Sectoral research and Company specific equity research combined with a strong and well Networked sales force which helps deliver current and up-to-date market information and news
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them Kotak securities provide portfolio Management Services catering to the high end of the market Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market with the backing of an expert Kotak Securities Limited manages assets over Rs 1700 crores through itrsquos Portfolio Management Services (PMS) servicing high net worth clients with a large
investible surplus through its preferred client services in the mass affluent and wealth management segments The company has a full-fledged research division involved in Macro Economic studies Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news
222 MARKET SHARE
Kotak Securities Ltd is Indiarsquos leading stock broking house with a market share of around
85 percent as of March 31 2006 It handles more IPOs than any other brokerage The
company has a full-fledged research division involved in macroeconomic studies sect oral
research and company-specific equity research combined with a strong and well-
networked sales force which helps deliver current market information and news
The firm has 195 branches servicing more than 2200000 customers across 231 cities
Kotaksecuritiescom the online division offers Internet brokerage services and also online
IPO and mutual fund investments Kotak Securities manages over 2500 crores of Assets
under Management (AUM)
223 AWARDS AND RECOGNIZATION
Kotak Securities Ltd 100 subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry The companyrsquos offerings include stock broking
through the branch and Internet Investments in IPO Mutual funds and Portfolio
management service Kotak Securities has a full-fledged research division involved in
Macro Economic studies Sect oral research and Company Specific Equity Research
combined with a strong and well-networked sales force which helps deliver current and
up to date market information and news Kotak Securitiesrsquo network spans over 321 cities
with 877 outlets with an employee workforce beyond 5100
The company is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can avail the companyrsquos brokerage services for executing the
transactions and the depository services for settling them Kotak Securities Ltd processes
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
The company first tries to determine that who are likely prospects ie the people who have a strong potential interest in the product and ability to pay for it The company hopes to convert many of its qualified prospect into first time customers and then to convert those first time customers into repeat customers Then the company tries to convert these repeat customers into clients ndash they are those people who buy only from the company in the relevant product categories The next challenge for the company is to convert this client into advocates Advocates are those clients who praise the company and encourage others to buy from it
The ultimate challenge is to convert these advocates into partners where the customers and the clients work actively together to discover ways of getting mutual benefit
Thus in CRM the key performance figure is not just current market share but share of lifetime value by converting customers into partners
In CRM the company tries to identify that small percentage (20) of key account holders whose contribution to the company revenues is high (80) So from this point of view CRM is also known as KEY ACCOUNT MANAGEMENT
16 Why ndash Customer Relationship Management
Satisfied customers in 10 years will bring100 more customers to the company It costs 7 times more to attract a new customer than to serve an old one 20 of the companyrsquos loyal customers account for 80 of its revenues (Paretorsquosprinciple) The chances of selling to an existing customer are 1 in 2 the chances of selling to a new customer are 1 in 16
Eight ways to keep customers for life
1 Every part of the companyrsquos marketing effort should be geared towards building lifetime relationships
2 People want to do business with friendly people To have effective relations a friendly attitude must permeate in the organization
3 Information technology developments should be positively used to serve the customers
4 The company should always be flexible to bend its rules and procedures in the clientrsquos favor
5 The company should communicate with its customers even when it is not trying to sell something
6 The company can communicate and develop stronger customer bonding by providing financial and social benefits
7 The company should try to know all its customers including their lifestyles hobbies likes or dislikes etc
8 The company should make it a point to deliver more than what is promised
17 How to introduce CRM in the company
There are four key steps for putting one tone marketing program to work ndash
Step 1 Identify your customers
To launch a one to one initiative the company must be able to locate and contact a fair
number of customers or at least a substantial portion of its valuable customers It is
crucial to know the customer details as much as possible not just their names or
address but their habits preferences and so forth
Step 2 Differentiating your customers
Customers are different in two principal ways they represent different levels of value
and have different needs Once the company identifies its customers differentiating
them will help the company to focus its efforts to gain the most advantage with the
most valuable customers
Step 3 Interacting with the customer
Interaction is also a crucial component of successful CRM initiative It is important to
remember that interaction just not occur through marketing and sales channels
customer interact in many different ways with many different areas of the organization
so to foster relationship all the areas of the organization must be accessible to the
customer
Step 4 Customize your enterprisersquos behavior
Ultimately to lock a customer into a relationship a company must adapt some aspect
of its behavior to meet customerrsquos individually expressed needs this might mean mass
customizing a manufactured product or it might involve tailoring some aspect of the
service surrounding the product
Chapter2
INDUSTRY OVERVIEW amp COMPANY OVERVIEW
21 Industry Overview
211 Industry Profile
A stockbroker is nothing but a registered and qualified working professional who buys
stocks and derivatives for other people The stockbroker thus performs all the
transactions for people on the stock exchange The stockbroker maintains information of
the people for whom he is buying or selling stocks This information includes name
address PAN no and other relevant information No transaction can take place in the
stock market with out a stockbroker
The stockbroker cannot give inputs advice to people buying or selling stocks unless he is
registered with the Securities and exchange board of India as a portfolio manager The
stockbroker takes a certain brokerage for the transactions he does for his clients on the
stock exchange The brokers are expected to issue contract notes to the clients after a
particular transaction has been done They are also expected to issue periodic reports to
their clients with respect to the transactions that have been done by them in that periodic
interval If you are looking to become a portfolio manager then there is a different policy
and procedure that you need to follow for it
Stockbrokers can be individual stockbrokers or form a company or an organization there
by making a brokerage All brokerages have to pay a certain sales tax for the transactions
that are done with the brokerage by other clients wither through selling or buying a
certain stock Thus any person who wants to buy or sell any stock with a particular stock
exchange has to do that with a particular stockbroker affiliated with that stock exchange4
Securities Markets is a place where buyers and sellers of securities can enter into
transactions to purchase and sell shares bonds debentures etc
Further it performs an important role of enabling corporate entrepreneurs to raise
resources for their companies and business ventures through public issues Transfer of
resources from those having idle resources (investors) to others who have a need for
them (corporate) is most efficiently achieved through the securities market Stated
4 Source- httpwwwstockbrokingcoinwhat-is-stockbrokinghtml
formally securities markets provide channels for reallocation of savings to investments
and entrepreneurship Savings are linked to investments by a variety of intermediaries
through a range of financial products called lsquoSecuritiesrsquo5
The Securities Contract (Regulation) Act 1956 [SCRA] defines lsquoStock Exchangersquo as any
body of individuals whether incorporated or not constituted for the purpose of assisting
regulating or controlling the business of buying selling or dealing in securities Stock
exchange could be a regional stock exchange whose area of operationjurisdiction is
specified at the time of its recognition or national exchanges which are permitted to have
nationwide trading since inception NSE was incorporated as a national stock exchange6
222 Industry Evolution
The history of stockbrokers can be traced back to the origins of the first stock exchange in
1602 at Amsterdam Even before that brokers are said to have existed in France dealing
with government securities The Amsterdam Stock Exchange was involved in buying and
selling of shares for the Dutch East India Company However the first real stock exchange
came up in Philadelphia in the United States during the late 18th century Later it was the
New York stock exchange which saw a rise in its popularity Wall Street as it was called
became the hub of brokerage activities Earlier stockbrokers were largely unorganized
but later most of them joined hands to form institutes and organizations Until the 1980rsquos
stock broking services were used only by the wealthy class who could afford them Later
with the advent of the Internet stock broking became very easy Thus the price tag on
stockbrokers lowered considerably and their services became available even to the
common man The stock broking duties are now mostly taken up by major organizations
with the smaller companies being absorbed by them In India too with increasing
globalization the major corporations are penetrating deeper into the society7
A Stockbroker is nothing but a person who buys and sells securities from the stock market
on behalf of other investors Stock broking began in the United States of America
Philadelphia was the first city in America to have a stock exchange After which New York
became the heart of all stock transactions and Wall Street became synonymous with
investing and trading
5 Source-httpwwwgascicomfaqhtm6 Source-httpwwwaumassociatecoinsharebazaraspx7 Source-httpwwwindiacomcomyellowpagecategory-gyanarticlesStock-BrokersStock-Broker-Introductionasp
Since the early part of the 1980s stock broking was allowed in America In addition in the
late part of 1990s stock broking went online and now there are several online stock
brokerages on the internet and hence online transactions happen in a jiffy these days A
stockbroker may also be a financial advisor or an investment consultant these days but in
India you need to be registered with the Securities and exchange board of India in order
to act as a financial advisor As the name suggests a stockbroker mainly deals in stocks
that is the shares of a company Other professionals such as foreign exchange brokers
deal with currencies where as commodity brokers deal with commodities
All stock market transactions that is buying or selling of shares have to take place through
a broker or a brokerage Even if you make online transactions you need to do it through
an online stockbroker For performing the transaction online stockbrokers charge a small
brokerage fee or commission fee for the transactions that they do for other companies or
retail investors The brokerages that a stockbroker may charge are different for various
brokerages as they might have a different business model for the same8
The history of stock broking in the United States parallels the growth of the nations
economy since colonial times The industry has tended to be cyclical in nature and has
survived several downturns including a major economic depression in the 1930s
Government regulations have been introduced at times in an effort to place controls on
what were viewed as harmful trading practices
Origin
The first stock brokerage house in the United States started in Philadelphia in 1800 While
the practice had been around since the early 1700s the Philadelphia Stock Exchange was
the first organized body that brought brokers together and served to codify the rules and
regulations under which business had been conducted The profession continued to
expand with the growth of corporations and the dawning of the Industrial Revolution
Crash
The first major negative event in the industry occurred when the stock market crashed in
1929 which was followed by the Great Depression The result of the crash was due to
8 Source- httpwwwstockbrokingcoinorigin-of-stockbrokinghtml
investors who had borrowed heavily to purchase stocks and began to realize that they
were hugely overvalued and attempted to sell them off resulting in a panic
Securities Act
In an effort to prevent the recurrence of the 1929 crash the Securities Act was
implemented in 1933 as a way to regulate the industry Eventually the stock market
began to rebound and continued a general pattern of steady growth over the next several
decades
Change
In the early 1970s the growth of technology led to reforms in the United States that
helped to reopen the markets to more liberalized trading In the late 1980s another crash
in the market occurred due to the dropping of prices of stock index futures Much like the
Great Depression this led to a mass selling of these securities causing the stock market to
plummet
Rebound
Stock broking again saw a boom as tighter regulations were put in place following the
1987 crash The markets reached new heights in the late 1990s The terrorist attacks of
September 11 2001 slowed the pattern of growth
Another Crash
In 2008 the largest single-day drop since 1987 occurred as the market lost $12 trillion of
its value on September 29 The drop occurred because of several factors including the
collapse of the mortgage industry and a worsening credit crisis The market has
rebounded only slightly as of mid-20099
223 Salient Features of the Industry in India
On the basis of geographical concentration the west region has the maximum
representation of 52 around 24 firms are located in the North 13 in the South and
10 in the East
9 Source-httpwwweHowcommabout_5208105_history-stockbrokinghtml
3 firms are started broking operations before 1950 65 between 1950-1995 and
32 Post1995
On the basis of terminals 40 are located at Mumbai 12 in Delhi 8 in
Ahmadabad 7 in Kolkata 4 in Chennai and 29 are from other cities
From the study we find that almost 36 firms trade in cash derivatives and
commodities
In the cash market around 34 firms trade at NSE 14 at BSE and 52 trade at
both exchanges In the derivative segment 48 trade at NSE 7 at BSE and 45 at both
whereas in the debt market 31 trade at NSE 26 at BSE and 43 at both Exchanges
Majority of branches are located in the North ie around 40 West has 31 24
are located in South and 5 in East
In terms of Sub brokers around 55 are located in the South 29 in West 11 in
North and 4 in East
Trading IPOs and Mutual funds are the top three products offered with 90 firms
offering trading 67 IPOs and 53 firms offering mutual fund transactions
In terms of various areas of growth 84 firms have expressed interest in
expanding their institutional clients 6 firms intend to increase FII clients and 43 are
interested in setting up JV in India and abroad
In terms of IT penetration 62 firms have provided their website and around 94
firms have E-mail facility10
224 Recent Trends
Equity brokerage industry in India is experiencing rapid growth and diversity Following
the wide range of stock market reforms in the early 2000rsquos brokerage industry underwent
major transformations from being engaged in only brokerage business to offering a wide
range of financial services A modern broking house in India may well be a corporate
entity that offers a wide range of products relies on research for advice uses modern
technology has large distribution network connecting the country provides investor
education and awareness and is compliance focused These developments have resulted
in a huge spurt in business as also growing market share of the large sized brokerage
houses that led to surge in enterprise value thus becoming objects of interest for global
investing In the recent period global and domestic private equity firms have taken stake
10 Source- httpwwwdnbcoinequitybrokingindustry20insightsasp
in brokerage firms such as Anand Rathi (Citigroup) Edelweiss (Lehman Brothers) Geojit
(BNP Paribas) SMC (Millennium India) Motilal Oswal (New Vernon) Marwari Shares
(India Capital Growth Fund) J R G Securities (Barings Pvt Equity) and Network Broking
(Amas Bank of Hindujas) India Infoline (Orient Global) etc Initial Public Offerings of large
firms in2007 such as Motilal Oswal Edelweiss and Religare received huge response from
the markets (over subscription going more than 100) and also high premiums Large
issues of these brokerage firms debuted in the stock exchange with premiums ranging
from 20 to 75 With the stock market momentum likely to continue broking firms
could look forward to scaling up their resource mobilization to fund growing operations
and expansion Brokerages mopping up huge resources from the market are not unusual
even in the emerging markets For instance Citic Securities a Chinese securities firm is
reported to have raised US $ 33 bn last year and other firms such as Haitong and Gold
state are planning to come out with IPOs of US $ 4-5 bn in 2008
In India about 45 equity brokerage houses are at present listed on the stock exchanges
that together reported Rs 35 bn of equity total income of Rs 47 bn and net profit of Rs 3
bn for the second quarter of FY08
Prospects and Outlook
Indian broking houses could look forward to a period of growth and consolidation Indiarsquos
economic growth and deepening of the financial system will present the broking firms
with numerous opportunities for growth and expansion Integration of the financial
markets will enhance the scope of their business and scalability Access to public equity
markets will enable them to raise resources to fund expansion and growths as pursue
useful business acquisitions Growing international investor interest in India will add
newer opportunities to scale up the business as also harmonsing with global standard and
practices Introduction of new products such as mini contracts in the derivatives and other
futures and options products will add new opportunities for creating new business
segments
While opportunities abound there is a great need for reform and restructuring of the
equity broking industry There are about 9000 brokers registered with SEBI but 80
percent of the turnover in NSE and BSE is accounted for by about 100 brokers
Consolidation thus becomes relevant to forge a stronger industry Similarly capital levels
too need to be strengthened The 45 odd listed broking firms in India together have a
meager Rs 35 bn of capital which is far less than what one top broking firm in China
could raise from the capital markets Better performance and practices will enable broking
firms to increase capital levels that will be essential for funding expansion
Investor education and awareness is another aspect broking industry should promote in
the long-term interest of the market As the product mix and risk matrix in financial
markets are continuously changing it becomes imperative for the intermediaries to
educate and create awareness in the clients that would be mutually beneficial Better
understanding of the financial products and associated risks by the investors will be in the
interest of the growth and stability of the markets
The Indian broking industry is coming of age It has enormous opportunities for growth
and diversity As markets expand and get globalised these firms will have increased
opportunity to cater to a large and diverse range of clientele with a wide mix of products
and services Expanding markets offer enhanced opportunities Those who are well
prepared will be in a better position to garner the benefits11
225 Performance Growth Scenario
Some of the major recent developments in the global securities markets have been
summarized below
Equalization
Equity markets have expanded significantly in a large number of countries across the
world The market capitalization of the worldrsquos leading stock exchanges rose from about
USD11 trillion in 1991 to USD35 trillion in 1999 to about USD51 trillion in 2006 The
growth of market capitalization is evident across regions Market capitalization in Asia
nearly doubled from USD68 trillion in 1999 to USD118 trillion in2006 where as in
America it grew from USD179 trillion to USD226 trillion and in EuropeAfricaMiddle
East it rose from USD102 trillion to USD161 trillion Market capitalization as a percent of
GDP witnessed steep growth in several countries during this period
Similarly trading volumes in stock exchanges too has shown rapid growth Value of share
trading in stock exchanges rose from about USD54 trillion in 1991 to USD33 trillion in
1999 to about USD70 trillion in 2006 During the period 1999 and 2006 value of share
trading in Asia Pacific rose from USD42 trillion to USD12 trillion in EuropeAfricaMiddle
11 Source- httpwwwdnbcoinequitybroking2008Emergingtrenasp
East from USD83 trillion to USD218 trillion and in Americas from USD20 trillion to USD35
trillion
Institutional investment
The rapid growth of stock markets in the world to a significant extent could be explained
by the surge in the institutional investors consisting of pension funds insurance
companies and mutual funds During the period 1995 and 2005 the assets under
management of the institutional investors doubled from USD21trillion to USD53 trillion A
large number of institutional investors are moving away from the home bias investing in
outside world Emerging markets with higher economic growth and rapidly growing
financial markets became major centers of destination for the investments of institutional
investors For instance in the US in 1994 pension funds invested 41 of their portfolio in
domestic equity and 7 in international equities where as by 2005 that share rose to 48
in domestic equities and 15 in international equities The portfolio allocation to bond
markets during the same period reduced from 42 to 32 Emerging markets received
sizeable portion of the investments In the US the dedicated emerging markets mutual
funds rose from about USD27 bn in2000 to USD 230 bn in 2006
International listings
On the back of the liberalization of cross border financial flows companies in several
countries are seeking listing in international exchanges to garner benefits from
international investors as also widen their investor base The number of foreign
companies listed in the London Stock Exchange rose from 387 in 1970 to 553 in 1990 to
636 in 2006 The number of foreign companies listed on the NYSE has also risen rapidly in
the 1990s There is a keen competition across the worldrsquos leading stock exchanges to
promote international listing and gain greater influence In the recent period the US
experienced a slowdown in the listing of foreign companies The decline is attributed to
stringent corporate governance norms that were applied following the corporate abuses
found in the beginning of the decade The US is now examining in greater detail measures
to gain the prominence once it enjoyed in the international listings The Alternative
Investment Market of London Stock Exchange attracted huge interest from SMEs from a
large number of countries
Emerging markets as an investment destination
Liberalization of capital flows led to surge in international investment into emerging
economies finding value on the back of huge prospects for growth The flow of net
Foreign Direct Investment (FDI) into developing countries increased from USD170 bn in
1998 to USD325 bn in 2006 and net portfolio equity flows increased from USD6 bn to
USD94 bn during the same period Net debt flows during this period are rather subdued
with net debt flows from official creditors turning negative Net portfolio equity flows to
China between the year 2000 and 2006 rose from USD69 bn to USD32 bn and in India
from USD23 bn to USD87 bn Other emerging markets such as Brazil Mexico South
Africa Thailand and Russia too showed surge in the net portfolio equity flows Emerging
markets showed significant growth in stock prices making them attractive investment
destinations though issues of valuations are beginning to become a concern now
Growing correlation of returns
Greater harmonization of stock markets in mature and emerging markets is in evidence by
the increasing correlation in market returns across different markets The higher
correlation in the stock price movements gained momentum in the late 1990s due to
growing foreign institutional investment in several markets and growth of the technology
sector that pervaded many markets and has driven stock price momentum in the late
1990s
Emerging markets in the new issuance market
Emerging markets also became very active in the new issuance market In 2006 all the ten
largest cross border new capital issues were from the emerging markets These ten issues
were from China Russia Mexico Thailand and Kazakhstan Of these ten issues four each
were listed in London and Hong Kong and only one in the US The value of the new listings
by emerging market companies in the US exchanges declined from USD29 bn in 2004 to
USD27 bn in 2006 where as that of London rose from USD07 bn to USD96 bn and in
Hong Kong from USD72 bn to USD304 bn Emerging markets in the first five months of
2007 have raised USD537 bn in global financial markets which is reported to be the
highest ever amount raised for a year Some of the leading issues during this period
include the USD8 bn IPO by VTB second largest Russian bank USD185 bn by Turkish
financial institution Halk bank and USD14 bn by a Russian real estate company AFI
Development Some of the largest issues from the emerging markets in the recent period
include USD219 bn issue of Chinarsquos ICBC Bank (Oct 2006) USD112 bn issue of Bank of
China (May 06) USD107 bn issue of Russian energy company Ros neft (Jul 06) USD59 bn
pubic issue of Chinarsquos Citic Bank
Alternative markets
In view of the limitations on listing of small and medium scale companies in the big boards
of the main exchanges several stock exchanges have developed alternative markets for
encouraging listing of small and midcap stocks Almost every major exchange has an
alternative platform for listing and trading of small and midcap stocks and new generation
companies without much listing history The market capitalization of the alternative
markets in the year 2006 has grown at an impressive rate of 30 More than 12000
companies are listed in these alternative markets and the value of share trading of these
for SMEs markets rose 15 in 2006 from USD802 bn to USD919 bn New capital (IPOs)
rose in the alternative markets rose 59 in 2006 from USD136 bn to USD216 bn
Growth of Derivatives
The growth of derivatives picked up on the need for risk transfer products The size of
global derivatives industry in 2006 USD370 trillion of notional value and USD10 trillion of
market value in the Over the Counter (OTC) derivative markets and USD84 trillion of
notional value and USD10 trillion market value in the Exchange traded derivative markets
According to the International Swaps and Derivatives Association more than 90 percent
of the global 500 corporations use derivatives for hedging risks in interest rates foreign
exchange and equities In the OTC markets derivative products accounting for large share
of market value include interest rate (785) and Foreign Exchange (114) where as in
the Exchange Traded segment derivative products on interest rate government debt and
equities form the major part of the volumes
Dark Pools and Private Markets
In the third week of May 2007 Goldman Sachs launched GSTrue which is a platform
developed to allow exclusive club of big investors to trade unregistered privately placed
securities which is considered to be a major challenge for the public equity capital
markets in the US Goldman Sachs in that deal helped underwrite the private sale of 15
of hedge fund manager Oak tree Capital Management for USD800 mn The investors in
this sale would be able to buy and sell Oak tree shares through the new Goldman Sachs
Tradable Unregistered Equity System which has its acronym GSTRue
Under the rules of the Securities and Exchange Commission of the US companies can sell
securities without registering them as long as the issues are limited to qualified
institutional buyers which are investors with at least USD100 mn of assets and there are
no more than 500 stockholders Private pools of capital are growing in size and
significance in international markets to overcome the costs and pressures from stringent
regulation According to an estimate of NASDAQ in 2006 companies in the US raised
USD162 bn of capital through unregistered private placements (also known as 144A
private placements) compared with USD154 bn through IPOs which are registered with
the regulator A group of worldrsquos largest banks are developing ldquoProject Turquoiserdquo which
is a hybrid share trading system that allows transactions both on exchange and outside it
(called as dark liquidity pools) where firms with large asset base can buy and sell large
blocks of shares away from the regulatory oversight
Private Equity
Private equity is growing in size and significance In view of the regulatory standards
prevalent in the public equity capital markets several firms seek the private equity option
to raise resources According to Dialogic the top 50 private equity firms raised USD551 bn
out of the USD800 bn estimated to have been raised by the total private equity since Jan
2002 Of the top 50 private equity firms more than 30 are from the US 11 from the UK
five from Western Europe and one from Asia Pacific Private equity is now involved in high
value deals and recent transactions include USD35 bn HCA buyout in the healthcare
industry and bids of USD39 bn and USD41 bn for Equity Office Property Trust a
commercial office real estate trust in the United Trust It is expected that the transaction
values of the private equity may go up to USD50-100 bn in the near future Private equity
market in India raised USD22 bn in 2005 about USD4 bn in 2006 and is expected to raise
about USD10 bn by 2010 according to a recent study
Hedge Funds
Hedge Funds emerged from the need of investors seeking alpha to earn an excess return
and beat the market and the returns from the conventional investments Alpha is a
common measure of assessing an active managerrsquos performance as it is the return in
excess of a benchmark index or ldquorisk-freerdquo investment The difference between the fair
and actually expected rates of return on a stock is called the stockrsquos alpha In view of rapid
growth of hedge funds and their complex nature of operations and lack of adequate
regulatory control these funds became a major concern of global financial regulation
Notwithstanding these concerns hedge funds continue to grow with the size of the
market growing from about USD30 bn in 1990 to more than USD14 trillion in 2005 and
the number of funds rising from about 530 to about 7000 during this period An
interesting development in the recent period is the growing institutional investment in the
hedge funds which is estimated at USD360 bn in 2005 and the rising allocations to these
funds that was evident in the US and XXVII the European markets The investor base of
the hedge funds consists of individualsfamilies fund of funds corporations and
institutions public and private pensions and endowments and foundations in that order
Investor Protection
With democratization of markets leading to greater participation of individuals and
investments and wide choices of asset classes now available issues of investor interest
and protection have assumed centre stage Following the corporate crises in the US that
adversely affected the investor interests extensive federal investigations were launched
that led to imposition of huge penalties and punitive damages leading to billions of
dollars Such actions were taken against a wide spectrum of global investment banks
brokerage firms and other related entities Simultaneously growth of litigation and class
action suits showed significant rise when the market intermediaries failed to meet their
obligations or did not provide all the material facts to the investors that were crucial for
an investment decision
Securities regulators imposed penalties on market participants who were found to have
indulged in market abuses In India disgorgement orders were passed on certain entities
that were found to making money by unfair means and for violating regulatory norms and
procedures Top institutional investors in several countries devised their own review
process for investing in countries and companies that brought into light greater need for
higher standards in corporate governance disclosure and transparency standards and in
some cases concern towards issues such as democracy and social equity environment
economic and political reforms
Surge in Chinese capital markets
A major change in the year 2007 is the sudden leap of China into big league of global stock
markets On 9 May 07 Shanghai Stock Exchange Chinarsquos top stock market recorded
turnover of USD332 bn and Shenzhen Stock Exchange a stock market for SMEs an
equally powerful USD158 bn taking the combined turnover of both these stock
exchanges on that day to USD495 bn In the first three months of the year 2007 value of
share trading in both these Chinese stock markets reached 89 of the whole turnover of
the year 2006 Value of share trading in Shanghai Stock Exchange rose from USD256 bn in
2003 to USD736 bn in 2006 and in the first three months of the year 2007 it already
recorded USD652 bn Market capitalization in China between Apr 2006 and 2007 rose by
almost 4 times pushing it to a position among the top 10 exchanges in the world and
value of share turnover rose 6 times making Shanghai 6 the biggest Main indexes of
Shanghai Stock Exchange and Shenzhen Stock Exchange posted returns of 194 and 204
respectively in the 12 months proceeding Apr 2007
Rise of smaller markets
The growth and momentum of the stock markets is spreading across a large number of
markets big and small Recent evidence of big surge in stock markets include countries in
the Middle East which witnessed exceptional growth in 20052006 China in 2007 and
several smaller European and Latin American countries in the last one year As
international investing is spreading its presence domestic financial institutions and
investors are finding stocks as an important asset class and stock markets all over the
world have experienced rapid growth in the last five years
Stock exchange consolidation
A big wave of stock exchange consolidation is taking place across the global financial
markets The most notable merger in the recent period is that of the New York Stock
Exchange with Archipelago that led to the demutualization of the former which
subsequently acquired Euro next to form NYSE Group that makes it a formidable force in
the North America and the Euro region Another American exchange NASDAQ after the
merger with Instinet announced plans to acquire OMX which is Europersquos leading
exchange as also provider of cutting edge technology solutions for stock exchanges
worldwide Deutsche Borsersquos recent acquisition of International Securities Exchange gives
the former a powerful position in the derivatives markets in Europe and America There
was also sizeable consolidation within the domestic securities markets in several countries
with the merger of equities and derivatives markets in countries such as Korea Malaysia
and Hong Kong In India the issue of appropriate solutions for the 20 odd stock exchanges
that currently lack proper liquidity is engaging the attention of policy and regulation
RECENT DEVELOPMENTS GOVERNING REGULATION OF STOCK MARKETS
Systematic and streamlined regulation is the key strength and sustainability of the
securities markets Though formal regulation of the securities markets is about 70 years
old some of the recent developments in the financial markets are reshaping the scope
and focus of the regulation These include ndash
There is growing harmonization of regulation across different markets Organizations
such as International Organization for Securities Commissions (IOSCO) are playing a very
important role in adoption of uniform principles and guidelines across the markets
The size and scope of the securities markets is rapidly changing from being one or
two product markets to multi product markets with diverse features and different
investor base
Markets have become more democratized with more people and institutions
participating in the market related activities
Rapid increase in the size of the institutional participation in the financial markets
For instance equity markets which in the past were retail investor driven are now
increasingly become institutional induced
Securities markets are transforming from being membership driven to public
corporation following demutualization and corporatization of stock exchanges in mature
and emerging markets
Two most important pieces of regulation that came into being in the recent period are in
the form of market structure reforms in the US known more popularly as regulation NMS
which underlines the promotion of competition across the markets under three major
principles best price open access and transparency Under the new trade-through role in
whichever market a customer placed his order it should be able to access the best price
that is immediately and automatically available anywhere in the national market system
The trade-through rule will not allow markets to ignore better-priced automated quotes
displayed by the competitors Similarly open access to displayed prices will be a major
feature governing the competition of the markets The regulation also stipulates that all
significant markets must display their quotations and trade reports should be available to
all interested parties on fair terms and non-discriminatory manner Another equally
important development is the Markets in Financial Industry Directive (MiFiD) that will
come into force from 1 Nov 2007 and stipulates wide-ranging norms for financial
institutions in the European Union Major features of the MiFiD include wider scope of
coverage of the financial institutions and the related business activities greater degree of
harmonization across the European markets and facilitate cross border business and
stipulated capital requirements
MiFiD is envisaged to bring major changes in the manner financial institutions in the
European Union will be monitored Simultaneous with stringent norms of regulation the
scope of regulation is considerably delegated to the markets and institutions in the form
of self-regulation Self-regulation brings a number of benefits to the business Institutions
such as National Association of Securities Dealers (NASD) have played an important role in
promoting self-regulation However self-regulation has certain limitations it needs to
overcome before it becomes widely accepted across the markets12
225 Top five companies of the industry
Many time new investor or trader gets confusion for open a D Mat and trading account in
broking House Many of broking House promises to you for better service but clients get
problem due to trading session in theirs Broker house firm Here is the list of Indiarsquos top 5
broking House on base of survey of investors and traders of many cities In their views
following Broking Houses gives best and reliable services13
1 ICICI directcom
ICICI Securities empowers over 2 million Indians to seamlessly access the capital market
with ICICIdirectcom an award winning and pioneering online broking platform The
platform not only offers convenient ways to invest in Equity Derivatives Currency
Futures Mutual Funds but also other services Fixed Deposits Loans Tax Services New
Pension Systems and Insurance are available ICICIdirectcom offers a convenient and easy
to use platform to invest in equity and various other financial products using its unique 3-
in-1 account which integrates customerrsquos saving trading and demat accounts
Apart from convenience ICICIdirectcom also offers access to comprehensive research
information stock picks and mutual fund recommendations among other offerings
Tailored services and trading strategies are available to different types of customers long
term investors day traders high-volume traders and derivatives traders to name some
ICICIdirectcom uses the most advanced commercially available 128-bit encryption
technology enabled Secure Socket Layer (SSL) to ensure that the information transmitted
between the client and ICICIdirectcom across the internet is safe and cannot be accessed
by any third party14
2 India Infoline
India Infoline Ltd (India Infoline) established in 1995 is the holding company of the
India Infoline Group It has membership in the cash and derivative segments of both 12 Source- httpwwwdnbcoinequitybrokingglobal20scenarioasp13 Source- Httpwwwindianstockmarketorgindias-top-10-stock-broking-house14 Source-httpwwwicicisecuritiescomOurBusinessSubSubReportID=10223ampshortCode=INST
the NSE and BSE India Infoline is also registered as a DP with NSDL and CDSL India
Infoline through its subsidiary India Infoline Commodities Limited also offers commodity-
trading services which is a registered member with DGCX since 2006 It also operates in
the currency futures market segment India Infoline offers a wide range of products
and services which include investment banking distribution of financial products
demat services private equity PMS institutional broking WMS insurance broking
among others In addition it also offers research services in areas of economy
derivative strategies mutual funds IPO credit policy and various others The company
has 15 domestic subsidiaries and five foreign subsidiaries The company has global
presence through its subsidiaries in New York Singapore and Dubai India Infoline caters
majorly to retail clients During CY09 the company added 303480 client accounts
Address 75 Nirlon Complex Off Western Express Highway Goregaon (East) Mumbai -
400063 Maharashtra
Telephone 91 22 42499000 Fax 91 22 26850451
Email mailindiainfolinecom Website wwwindiainfolinecom
Registration Number NSE - INBINF231097537 BSE - INBINF01109753315
3 Kotak Securities Ltd
Kotak Securities Ltd (Kotak Securities) is the stock-broking and distribution arm of the
Kotak Mahindra Group and a subsidiary of Kotak Mahindra Bank Kotak Securities was
established in 1994 It has memberships in the cash derivatives and currency futures
segments of NSE and BSE Kotak Securities is also a DP with NSDL and CDSL Apart from
stock broking the company is engaged in offering depository services asset management
margin financing PMS and distribution of financial products like IPOrsquos mutual funds and
insurance The company has a full-fledged research division which offers macro
economic sectoral research and company specific equity research Its domestic network
spans over 383 cities and 1048 offices Trading in equities and derivatives contributes to
major part of the companyrsquos revenue During CY09 Kotak Securities added around 62194
accounts of which around 27 are e-broking accounts The companyrsquos overseas
operations include one subsidiary and two associate firms operating in two foreign
locations
15 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndia+Infoline+Limited2Epdf
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF01113323016
4 Share Khan
Sharekhan Ltd (Sharekhan) is one a leading brokerage houses established in 2000
Sharekhan has membership in the cash and derivative segments of both BSE and NSE It
also operates in the debt and currency futures segment The company is registered as a
DP with CDSL and NSDL Besides trading the company also offers PMS demat services and
mutual funds Share khan provides a comprehensive set of research reports relating
to IPO and mutual funds Other value added facilities offered to clients include
online trading dial-n-trade share shops fundamental and technical research The
company serves large number of retail clients with a client network of more than 100000
clients which includes HNIrsquos corporate and other retail customers The company
through its subsidiary Share khan Commodities Ltd provides commodity-trading services
Address A - 206 Phoenix House 2nd Floor Senapati Bapat Marg Lower Parel
Mumbai - 400013 Maharashtra
Telephone 91 22 67482000 Fax 91 22 66104533
Email compliancelpsharekhancom Website wwwsharekhancom
Registration Number NSE - INBINF231073330 BSE - INBINF01107335117
5 Indiabulls
Indiabulls Securities Ltd (Indiabulls) part of Indiabulls Group was established in 1995 The
company is in the business of providing securities and advisory services It is a corporate
member of capital market wholesale debt market and derivative segments of NSE and of
capital market and derivative segments of BSE
Indiabulls also operates in currency futures and is a DP of CDSL and NSDL It provides a
wide range of products and services which include internet trading NRI trading demat
16 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CKotak+Securities+Limited2Epdf17 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CSharekhan+ Limited2Epdf
services margin financing and distribution of financial products like IPO online
mutual funds etc Power Indiabulls (PIB) is the advanced online trading platform offered
by the company Indiabulls also offers research services in the areas of economic equity
mutual fund IPO and others The company operates in commodity segment through its
subsidiary India bulls Commodities Pvt Ltd which is a member of MCX and NCDEX It
is listed on both NSE and BSE
Address F-60 Malhotra Building 2nd Floor Connaught Place New Delhi - 110001 Delhi
Telephone 91 11 41523700 Fax 91 11 41529071
Email helpdeskindiabullscom Website wwwindiabullscom
Registration Number NSE - INBINF230875632 BSE - INBINF01087563218
18 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndiabulls+Securities+Limited2Epdf
22 Company Overview
221 Overview of the Organizations
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited Uday Kotak Sidney A A Pinto and Kotak amp Company promoted this company Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and thats when the company changed its name to Kotak Mahindra Finance Limited Since then its been a steady and confident journey to growth and success
Kotak Securities Ltd is one of Indias largest brokerage and securities distribution house in India Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-ordinates Kotak Securities Ltd offers online (through wwwkotaksecuritiescom) and offline services based on well-researched expertise and financial products to the non-institutional investors Kotak Securities Limited is the world of Capital Markets where everything newsworthy exists only in the present moment and where knowing the importance of timing sentiments and strategic forecasting makes the difference between profit and loss Kotak Securities Limited a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25 - one of the worldrsquos leading investment banks and brokerage firms) is Indiarsquos leading stock broking house with a market share of 7 - 8
Kotak Securities Limited is one of the larger players in distribution of IPOs - it was ranked number One in 2003-04 as Book Running Lead Manager in public equity offerings by PRIME Database It has also won the ldquoBest Equity Houserdquo Award from Finance Asia -April 2004 The Company has a full-fledged Research division involved in macro economic studies Sectoral research and Company specific equity research combined with a strong and well Networked sales force which helps deliver current and up-to-date market information and news
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them Kotak securities provide portfolio Management Services catering to the high end of the market Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market with the backing of an expert Kotak Securities Limited manages assets over Rs 1700 crores through itrsquos Portfolio Management Services (PMS) servicing high net worth clients with a large
investible surplus through its preferred client services in the mass affluent and wealth management segments The company has a full-fledged research division involved in Macro Economic studies Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news
222 MARKET SHARE
Kotak Securities Ltd is Indiarsquos leading stock broking house with a market share of around
85 percent as of March 31 2006 It handles more IPOs than any other brokerage The
company has a full-fledged research division involved in macroeconomic studies sect oral
research and company-specific equity research combined with a strong and well-
networked sales force which helps deliver current market information and news
The firm has 195 branches servicing more than 2200000 customers across 231 cities
Kotaksecuritiescom the online division offers Internet brokerage services and also online
IPO and mutual fund investments Kotak Securities manages over 2500 crores of Assets
under Management (AUM)
223 AWARDS AND RECOGNIZATION
Kotak Securities Ltd 100 subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry The companyrsquos offerings include stock broking
through the branch and Internet Investments in IPO Mutual funds and Portfolio
management service Kotak Securities has a full-fledged research division involved in
Macro Economic studies Sect oral research and Company Specific Equity Research
combined with a strong and well-networked sales force which helps deliver current and
up to date market information and news Kotak Securitiesrsquo network spans over 321 cities
with 877 outlets with an employee workforce beyond 5100
The company is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can avail the companyrsquos brokerage services for executing the
transactions and the depository services for settling them Kotak Securities Ltd processes
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
6 The company can communicate and develop stronger customer bonding by providing financial and social benefits
7 The company should try to know all its customers including their lifestyles hobbies likes or dislikes etc
8 The company should make it a point to deliver more than what is promised
17 How to introduce CRM in the company
There are four key steps for putting one tone marketing program to work ndash
Step 1 Identify your customers
To launch a one to one initiative the company must be able to locate and contact a fair
number of customers or at least a substantial portion of its valuable customers It is
crucial to know the customer details as much as possible not just their names or
address but their habits preferences and so forth
Step 2 Differentiating your customers
Customers are different in two principal ways they represent different levels of value
and have different needs Once the company identifies its customers differentiating
them will help the company to focus its efforts to gain the most advantage with the
most valuable customers
Step 3 Interacting with the customer
Interaction is also a crucial component of successful CRM initiative It is important to
remember that interaction just not occur through marketing and sales channels
customer interact in many different ways with many different areas of the organization
so to foster relationship all the areas of the organization must be accessible to the
customer
Step 4 Customize your enterprisersquos behavior
Ultimately to lock a customer into a relationship a company must adapt some aspect
of its behavior to meet customerrsquos individually expressed needs this might mean mass
customizing a manufactured product or it might involve tailoring some aspect of the
service surrounding the product
Chapter2
INDUSTRY OVERVIEW amp COMPANY OVERVIEW
21 Industry Overview
211 Industry Profile
A stockbroker is nothing but a registered and qualified working professional who buys
stocks and derivatives for other people The stockbroker thus performs all the
transactions for people on the stock exchange The stockbroker maintains information of
the people for whom he is buying or selling stocks This information includes name
address PAN no and other relevant information No transaction can take place in the
stock market with out a stockbroker
The stockbroker cannot give inputs advice to people buying or selling stocks unless he is
registered with the Securities and exchange board of India as a portfolio manager The
stockbroker takes a certain brokerage for the transactions he does for his clients on the
stock exchange The brokers are expected to issue contract notes to the clients after a
particular transaction has been done They are also expected to issue periodic reports to
their clients with respect to the transactions that have been done by them in that periodic
interval If you are looking to become a portfolio manager then there is a different policy
and procedure that you need to follow for it
Stockbrokers can be individual stockbrokers or form a company or an organization there
by making a brokerage All brokerages have to pay a certain sales tax for the transactions
that are done with the brokerage by other clients wither through selling or buying a
certain stock Thus any person who wants to buy or sell any stock with a particular stock
exchange has to do that with a particular stockbroker affiliated with that stock exchange4
Securities Markets is a place where buyers and sellers of securities can enter into
transactions to purchase and sell shares bonds debentures etc
Further it performs an important role of enabling corporate entrepreneurs to raise
resources for their companies and business ventures through public issues Transfer of
resources from those having idle resources (investors) to others who have a need for
them (corporate) is most efficiently achieved through the securities market Stated
4 Source- httpwwwstockbrokingcoinwhat-is-stockbrokinghtml
formally securities markets provide channels for reallocation of savings to investments
and entrepreneurship Savings are linked to investments by a variety of intermediaries
through a range of financial products called lsquoSecuritiesrsquo5
The Securities Contract (Regulation) Act 1956 [SCRA] defines lsquoStock Exchangersquo as any
body of individuals whether incorporated or not constituted for the purpose of assisting
regulating or controlling the business of buying selling or dealing in securities Stock
exchange could be a regional stock exchange whose area of operationjurisdiction is
specified at the time of its recognition or national exchanges which are permitted to have
nationwide trading since inception NSE was incorporated as a national stock exchange6
222 Industry Evolution
The history of stockbrokers can be traced back to the origins of the first stock exchange in
1602 at Amsterdam Even before that brokers are said to have existed in France dealing
with government securities The Amsterdam Stock Exchange was involved in buying and
selling of shares for the Dutch East India Company However the first real stock exchange
came up in Philadelphia in the United States during the late 18th century Later it was the
New York stock exchange which saw a rise in its popularity Wall Street as it was called
became the hub of brokerage activities Earlier stockbrokers were largely unorganized
but later most of them joined hands to form institutes and organizations Until the 1980rsquos
stock broking services were used only by the wealthy class who could afford them Later
with the advent of the Internet stock broking became very easy Thus the price tag on
stockbrokers lowered considerably and their services became available even to the
common man The stock broking duties are now mostly taken up by major organizations
with the smaller companies being absorbed by them In India too with increasing
globalization the major corporations are penetrating deeper into the society7
A Stockbroker is nothing but a person who buys and sells securities from the stock market
on behalf of other investors Stock broking began in the United States of America
Philadelphia was the first city in America to have a stock exchange After which New York
became the heart of all stock transactions and Wall Street became synonymous with
investing and trading
5 Source-httpwwwgascicomfaqhtm6 Source-httpwwwaumassociatecoinsharebazaraspx7 Source-httpwwwindiacomcomyellowpagecategory-gyanarticlesStock-BrokersStock-Broker-Introductionasp
Since the early part of the 1980s stock broking was allowed in America In addition in the
late part of 1990s stock broking went online and now there are several online stock
brokerages on the internet and hence online transactions happen in a jiffy these days A
stockbroker may also be a financial advisor or an investment consultant these days but in
India you need to be registered with the Securities and exchange board of India in order
to act as a financial advisor As the name suggests a stockbroker mainly deals in stocks
that is the shares of a company Other professionals such as foreign exchange brokers
deal with currencies where as commodity brokers deal with commodities
All stock market transactions that is buying or selling of shares have to take place through
a broker or a brokerage Even if you make online transactions you need to do it through
an online stockbroker For performing the transaction online stockbrokers charge a small
brokerage fee or commission fee for the transactions that they do for other companies or
retail investors The brokerages that a stockbroker may charge are different for various
brokerages as they might have a different business model for the same8
The history of stock broking in the United States parallels the growth of the nations
economy since colonial times The industry has tended to be cyclical in nature and has
survived several downturns including a major economic depression in the 1930s
Government regulations have been introduced at times in an effort to place controls on
what were viewed as harmful trading practices
Origin
The first stock brokerage house in the United States started in Philadelphia in 1800 While
the practice had been around since the early 1700s the Philadelphia Stock Exchange was
the first organized body that brought brokers together and served to codify the rules and
regulations under which business had been conducted The profession continued to
expand with the growth of corporations and the dawning of the Industrial Revolution
Crash
The first major negative event in the industry occurred when the stock market crashed in
1929 which was followed by the Great Depression The result of the crash was due to
8 Source- httpwwwstockbrokingcoinorigin-of-stockbrokinghtml
investors who had borrowed heavily to purchase stocks and began to realize that they
were hugely overvalued and attempted to sell them off resulting in a panic
Securities Act
In an effort to prevent the recurrence of the 1929 crash the Securities Act was
implemented in 1933 as a way to regulate the industry Eventually the stock market
began to rebound and continued a general pattern of steady growth over the next several
decades
Change
In the early 1970s the growth of technology led to reforms in the United States that
helped to reopen the markets to more liberalized trading In the late 1980s another crash
in the market occurred due to the dropping of prices of stock index futures Much like the
Great Depression this led to a mass selling of these securities causing the stock market to
plummet
Rebound
Stock broking again saw a boom as tighter regulations were put in place following the
1987 crash The markets reached new heights in the late 1990s The terrorist attacks of
September 11 2001 slowed the pattern of growth
Another Crash
In 2008 the largest single-day drop since 1987 occurred as the market lost $12 trillion of
its value on September 29 The drop occurred because of several factors including the
collapse of the mortgage industry and a worsening credit crisis The market has
rebounded only slightly as of mid-20099
223 Salient Features of the Industry in India
On the basis of geographical concentration the west region has the maximum
representation of 52 around 24 firms are located in the North 13 in the South and
10 in the East
9 Source-httpwwweHowcommabout_5208105_history-stockbrokinghtml
3 firms are started broking operations before 1950 65 between 1950-1995 and
32 Post1995
On the basis of terminals 40 are located at Mumbai 12 in Delhi 8 in
Ahmadabad 7 in Kolkata 4 in Chennai and 29 are from other cities
From the study we find that almost 36 firms trade in cash derivatives and
commodities
In the cash market around 34 firms trade at NSE 14 at BSE and 52 trade at
both exchanges In the derivative segment 48 trade at NSE 7 at BSE and 45 at both
whereas in the debt market 31 trade at NSE 26 at BSE and 43 at both Exchanges
Majority of branches are located in the North ie around 40 West has 31 24
are located in South and 5 in East
In terms of Sub brokers around 55 are located in the South 29 in West 11 in
North and 4 in East
Trading IPOs and Mutual funds are the top three products offered with 90 firms
offering trading 67 IPOs and 53 firms offering mutual fund transactions
In terms of various areas of growth 84 firms have expressed interest in
expanding their institutional clients 6 firms intend to increase FII clients and 43 are
interested in setting up JV in India and abroad
In terms of IT penetration 62 firms have provided their website and around 94
firms have E-mail facility10
224 Recent Trends
Equity brokerage industry in India is experiencing rapid growth and diversity Following
the wide range of stock market reforms in the early 2000rsquos brokerage industry underwent
major transformations from being engaged in only brokerage business to offering a wide
range of financial services A modern broking house in India may well be a corporate
entity that offers a wide range of products relies on research for advice uses modern
technology has large distribution network connecting the country provides investor
education and awareness and is compliance focused These developments have resulted
in a huge spurt in business as also growing market share of the large sized brokerage
houses that led to surge in enterprise value thus becoming objects of interest for global
investing In the recent period global and domestic private equity firms have taken stake
10 Source- httpwwwdnbcoinequitybrokingindustry20insightsasp
in brokerage firms such as Anand Rathi (Citigroup) Edelweiss (Lehman Brothers) Geojit
(BNP Paribas) SMC (Millennium India) Motilal Oswal (New Vernon) Marwari Shares
(India Capital Growth Fund) J R G Securities (Barings Pvt Equity) and Network Broking
(Amas Bank of Hindujas) India Infoline (Orient Global) etc Initial Public Offerings of large
firms in2007 such as Motilal Oswal Edelweiss and Religare received huge response from
the markets (over subscription going more than 100) and also high premiums Large
issues of these brokerage firms debuted in the stock exchange with premiums ranging
from 20 to 75 With the stock market momentum likely to continue broking firms
could look forward to scaling up their resource mobilization to fund growing operations
and expansion Brokerages mopping up huge resources from the market are not unusual
even in the emerging markets For instance Citic Securities a Chinese securities firm is
reported to have raised US $ 33 bn last year and other firms such as Haitong and Gold
state are planning to come out with IPOs of US $ 4-5 bn in 2008
In India about 45 equity brokerage houses are at present listed on the stock exchanges
that together reported Rs 35 bn of equity total income of Rs 47 bn and net profit of Rs 3
bn for the second quarter of FY08
Prospects and Outlook
Indian broking houses could look forward to a period of growth and consolidation Indiarsquos
economic growth and deepening of the financial system will present the broking firms
with numerous opportunities for growth and expansion Integration of the financial
markets will enhance the scope of their business and scalability Access to public equity
markets will enable them to raise resources to fund expansion and growths as pursue
useful business acquisitions Growing international investor interest in India will add
newer opportunities to scale up the business as also harmonsing with global standard and
practices Introduction of new products such as mini contracts in the derivatives and other
futures and options products will add new opportunities for creating new business
segments
While opportunities abound there is a great need for reform and restructuring of the
equity broking industry There are about 9000 brokers registered with SEBI but 80
percent of the turnover in NSE and BSE is accounted for by about 100 brokers
Consolidation thus becomes relevant to forge a stronger industry Similarly capital levels
too need to be strengthened The 45 odd listed broking firms in India together have a
meager Rs 35 bn of capital which is far less than what one top broking firm in China
could raise from the capital markets Better performance and practices will enable broking
firms to increase capital levels that will be essential for funding expansion
Investor education and awareness is another aspect broking industry should promote in
the long-term interest of the market As the product mix and risk matrix in financial
markets are continuously changing it becomes imperative for the intermediaries to
educate and create awareness in the clients that would be mutually beneficial Better
understanding of the financial products and associated risks by the investors will be in the
interest of the growth and stability of the markets
The Indian broking industry is coming of age It has enormous opportunities for growth
and diversity As markets expand and get globalised these firms will have increased
opportunity to cater to a large and diverse range of clientele with a wide mix of products
and services Expanding markets offer enhanced opportunities Those who are well
prepared will be in a better position to garner the benefits11
225 Performance Growth Scenario
Some of the major recent developments in the global securities markets have been
summarized below
Equalization
Equity markets have expanded significantly in a large number of countries across the
world The market capitalization of the worldrsquos leading stock exchanges rose from about
USD11 trillion in 1991 to USD35 trillion in 1999 to about USD51 trillion in 2006 The
growth of market capitalization is evident across regions Market capitalization in Asia
nearly doubled from USD68 trillion in 1999 to USD118 trillion in2006 where as in
America it grew from USD179 trillion to USD226 trillion and in EuropeAfricaMiddle
East it rose from USD102 trillion to USD161 trillion Market capitalization as a percent of
GDP witnessed steep growth in several countries during this period
Similarly trading volumes in stock exchanges too has shown rapid growth Value of share
trading in stock exchanges rose from about USD54 trillion in 1991 to USD33 trillion in
1999 to about USD70 trillion in 2006 During the period 1999 and 2006 value of share
trading in Asia Pacific rose from USD42 trillion to USD12 trillion in EuropeAfricaMiddle
11 Source- httpwwwdnbcoinequitybroking2008Emergingtrenasp
East from USD83 trillion to USD218 trillion and in Americas from USD20 trillion to USD35
trillion
Institutional investment
The rapid growth of stock markets in the world to a significant extent could be explained
by the surge in the institutional investors consisting of pension funds insurance
companies and mutual funds During the period 1995 and 2005 the assets under
management of the institutional investors doubled from USD21trillion to USD53 trillion A
large number of institutional investors are moving away from the home bias investing in
outside world Emerging markets with higher economic growth and rapidly growing
financial markets became major centers of destination for the investments of institutional
investors For instance in the US in 1994 pension funds invested 41 of their portfolio in
domestic equity and 7 in international equities where as by 2005 that share rose to 48
in domestic equities and 15 in international equities The portfolio allocation to bond
markets during the same period reduced from 42 to 32 Emerging markets received
sizeable portion of the investments In the US the dedicated emerging markets mutual
funds rose from about USD27 bn in2000 to USD 230 bn in 2006
International listings
On the back of the liberalization of cross border financial flows companies in several
countries are seeking listing in international exchanges to garner benefits from
international investors as also widen their investor base The number of foreign
companies listed in the London Stock Exchange rose from 387 in 1970 to 553 in 1990 to
636 in 2006 The number of foreign companies listed on the NYSE has also risen rapidly in
the 1990s There is a keen competition across the worldrsquos leading stock exchanges to
promote international listing and gain greater influence In the recent period the US
experienced a slowdown in the listing of foreign companies The decline is attributed to
stringent corporate governance norms that were applied following the corporate abuses
found in the beginning of the decade The US is now examining in greater detail measures
to gain the prominence once it enjoyed in the international listings The Alternative
Investment Market of London Stock Exchange attracted huge interest from SMEs from a
large number of countries
Emerging markets as an investment destination
Liberalization of capital flows led to surge in international investment into emerging
economies finding value on the back of huge prospects for growth The flow of net
Foreign Direct Investment (FDI) into developing countries increased from USD170 bn in
1998 to USD325 bn in 2006 and net portfolio equity flows increased from USD6 bn to
USD94 bn during the same period Net debt flows during this period are rather subdued
with net debt flows from official creditors turning negative Net portfolio equity flows to
China between the year 2000 and 2006 rose from USD69 bn to USD32 bn and in India
from USD23 bn to USD87 bn Other emerging markets such as Brazil Mexico South
Africa Thailand and Russia too showed surge in the net portfolio equity flows Emerging
markets showed significant growth in stock prices making them attractive investment
destinations though issues of valuations are beginning to become a concern now
Growing correlation of returns
Greater harmonization of stock markets in mature and emerging markets is in evidence by
the increasing correlation in market returns across different markets The higher
correlation in the stock price movements gained momentum in the late 1990s due to
growing foreign institutional investment in several markets and growth of the technology
sector that pervaded many markets and has driven stock price momentum in the late
1990s
Emerging markets in the new issuance market
Emerging markets also became very active in the new issuance market In 2006 all the ten
largest cross border new capital issues were from the emerging markets These ten issues
were from China Russia Mexico Thailand and Kazakhstan Of these ten issues four each
were listed in London and Hong Kong and only one in the US The value of the new listings
by emerging market companies in the US exchanges declined from USD29 bn in 2004 to
USD27 bn in 2006 where as that of London rose from USD07 bn to USD96 bn and in
Hong Kong from USD72 bn to USD304 bn Emerging markets in the first five months of
2007 have raised USD537 bn in global financial markets which is reported to be the
highest ever amount raised for a year Some of the leading issues during this period
include the USD8 bn IPO by VTB second largest Russian bank USD185 bn by Turkish
financial institution Halk bank and USD14 bn by a Russian real estate company AFI
Development Some of the largest issues from the emerging markets in the recent period
include USD219 bn issue of Chinarsquos ICBC Bank (Oct 2006) USD112 bn issue of Bank of
China (May 06) USD107 bn issue of Russian energy company Ros neft (Jul 06) USD59 bn
pubic issue of Chinarsquos Citic Bank
Alternative markets
In view of the limitations on listing of small and medium scale companies in the big boards
of the main exchanges several stock exchanges have developed alternative markets for
encouraging listing of small and midcap stocks Almost every major exchange has an
alternative platform for listing and trading of small and midcap stocks and new generation
companies without much listing history The market capitalization of the alternative
markets in the year 2006 has grown at an impressive rate of 30 More than 12000
companies are listed in these alternative markets and the value of share trading of these
for SMEs markets rose 15 in 2006 from USD802 bn to USD919 bn New capital (IPOs)
rose in the alternative markets rose 59 in 2006 from USD136 bn to USD216 bn
Growth of Derivatives
The growth of derivatives picked up on the need for risk transfer products The size of
global derivatives industry in 2006 USD370 trillion of notional value and USD10 trillion of
market value in the Over the Counter (OTC) derivative markets and USD84 trillion of
notional value and USD10 trillion market value in the Exchange traded derivative markets
According to the International Swaps and Derivatives Association more than 90 percent
of the global 500 corporations use derivatives for hedging risks in interest rates foreign
exchange and equities In the OTC markets derivative products accounting for large share
of market value include interest rate (785) and Foreign Exchange (114) where as in
the Exchange Traded segment derivative products on interest rate government debt and
equities form the major part of the volumes
Dark Pools and Private Markets
In the third week of May 2007 Goldman Sachs launched GSTrue which is a platform
developed to allow exclusive club of big investors to trade unregistered privately placed
securities which is considered to be a major challenge for the public equity capital
markets in the US Goldman Sachs in that deal helped underwrite the private sale of 15
of hedge fund manager Oak tree Capital Management for USD800 mn The investors in
this sale would be able to buy and sell Oak tree shares through the new Goldman Sachs
Tradable Unregistered Equity System which has its acronym GSTRue
Under the rules of the Securities and Exchange Commission of the US companies can sell
securities without registering them as long as the issues are limited to qualified
institutional buyers which are investors with at least USD100 mn of assets and there are
no more than 500 stockholders Private pools of capital are growing in size and
significance in international markets to overcome the costs and pressures from stringent
regulation According to an estimate of NASDAQ in 2006 companies in the US raised
USD162 bn of capital through unregistered private placements (also known as 144A
private placements) compared with USD154 bn through IPOs which are registered with
the regulator A group of worldrsquos largest banks are developing ldquoProject Turquoiserdquo which
is a hybrid share trading system that allows transactions both on exchange and outside it
(called as dark liquidity pools) where firms with large asset base can buy and sell large
blocks of shares away from the regulatory oversight
Private Equity
Private equity is growing in size and significance In view of the regulatory standards
prevalent in the public equity capital markets several firms seek the private equity option
to raise resources According to Dialogic the top 50 private equity firms raised USD551 bn
out of the USD800 bn estimated to have been raised by the total private equity since Jan
2002 Of the top 50 private equity firms more than 30 are from the US 11 from the UK
five from Western Europe and one from Asia Pacific Private equity is now involved in high
value deals and recent transactions include USD35 bn HCA buyout in the healthcare
industry and bids of USD39 bn and USD41 bn for Equity Office Property Trust a
commercial office real estate trust in the United Trust It is expected that the transaction
values of the private equity may go up to USD50-100 bn in the near future Private equity
market in India raised USD22 bn in 2005 about USD4 bn in 2006 and is expected to raise
about USD10 bn by 2010 according to a recent study
Hedge Funds
Hedge Funds emerged from the need of investors seeking alpha to earn an excess return
and beat the market and the returns from the conventional investments Alpha is a
common measure of assessing an active managerrsquos performance as it is the return in
excess of a benchmark index or ldquorisk-freerdquo investment The difference between the fair
and actually expected rates of return on a stock is called the stockrsquos alpha In view of rapid
growth of hedge funds and their complex nature of operations and lack of adequate
regulatory control these funds became a major concern of global financial regulation
Notwithstanding these concerns hedge funds continue to grow with the size of the
market growing from about USD30 bn in 1990 to more than USD14 trillion in 2005 and
the number of funds rising from about 530 to about 7000 during this period An
interesting development in the recent period is the growing institutional investment in the
hedge funds which is estimated at USD360 bn in 2005 and the rising allocations to these
funds that was evident in the US and XXVII the European markets The investor base of
the hedge funds consists of individualsfamilies fund of funds corporations and
institutions public and private pensions and endowments and foundations in that order
Investor Protection
With democratization of markets leading to greater participation of individuals and
investments and wide choices of asset classes now available issues of investor interest
and protection have assumed centre stage Following the corporate crises in the US that
adversely affected the investor interests extensive federal investigations were launched
that led to imposition of huge penalties and punitive damages leading to billions of
dollars Such actions were taken against a wide spectrum of global investment banks
brokerage firms and other related entities Simultaneously growth of litigation and class
action suits showed significant rise when the market intermediaries failed to meet their
obligations or did not provide all the material facts to the investors that were crucial for
an investment decision
Securities regulators imposed penalties on market participants who were found to have
indulged in market abuses In India disgorgement orders were passed on certain entities
that were found to making money by unfair means and for violating regulatory norms and
procedures Top institutional investors in several countries devised their own review
process for investing in countries and companies that brought into light greater need for
higher standards in corporate governance disclosure and transparency standards and in
some cases concern towards issues such as democracy and social equity environment
economic and political reforms
Surge in Chinese capital markets
A major change in the year 2007 is the sudden leap of China into big league of global stock
markets On 9 May 07 Shanghai Stock Exchange Chinarsquos top stock market recorded
turnover of USD332 bn and Shenzhen Stock Exchange a stock market for SMEs an
equally powerful USD158 bn taking the combined turnover of both these stock
exchanges on that day to USD495 bn In the first three months of the year 2007 value of
share trading in both these Chinese stock markets reached 89 of the whole turnover of
the year 2006 Value of share trading in Shanghai Stock Exchange rose from USD256 bn in
2003 to USD736 bn in 2006 and in the first three months of the year 2007 it already
recorded USD652 bn Market capitalization in China between Apr 2006 and 2007 rose by
almost 4 times pushing it to a position among the top 10 exchanges in the world and
value of share turnover rose 6 times making Shanghai 6 the biggest Main indexes of
Shanghai Stock Exchange and Shenzhen Stock Exchange posted returns of 194 and 204
respectively in the 12 months proceeding Apr 2007
Rise of smaller markets
The growth and momentum of the stock markets is spreading across a large number of
markets big and small Recent evidence of big surge in stock markets include countries in
the Middle East which witnessed exceptional growth in 20052006 China in 2007 and
several smaller European and Latin American countries in the last one year As
international investing is spreading its presence domestic financial institutions and
investors are finding stocks as an important asset class and stock markets all over the
world have experienced rapid growth in the last five years
Stock exchange consolidation
A big wave of stock exchange consolidation is taking place across the global financial
markets The most notable merger in the recent period is that of the New York Stock
Exchange with Archipelago that led to the demutualization of the former which
subsequently acquired Euro next to form NYSE Group that makes it a formidable force in
the North America and the Euro region Another American exchange NASDAQ after the
merger with Instinet announced plans to acquire OMX which is Europersquos leading
exchange as also provider of cutting edge technology solutions for stock exchanges
worldwide Deutsche Borsersquos recent acquisition of International Securities Exchange gives
the former a powerful position in the derivatives markets in Europe and America There
was also sizeable consolidation within the domestic securities markets in several countries
with the merger of equities and derivatives markets in countries such as Korea Malaysia
and Hong Kong In India the issue of appropriate solutions for the 20 odd stock exchanges
that currently lack proper liquidity is engaging the attention of policy and regulation
RECENT DEVELOPMENTS GOVERNING REGULATION OF STOCK MARKETS
Systematic and streamlined regulation is the key strength and sustainability of the
securities markets Though formal regulation of the securities markets is about 70 years
old some of the recent developments in the financial markets are reshaping the scope
and focus of the regulation These include ndash
There is growing harmonization of regulation across different markets Organizations
such as International Organization for Securities Commissions (IOSCO) are playing a very
important role in adoption of uniform principles and guidelines across the markets
The size and scope of the securities markets is rapidly changing from being one or
two product markets to multi product markets with diverse features and different
investor base
Markets have become more democratized with more people and institutions
participating in the market related activities
Rapid increase in the size of the institutional participation in the financial markets
For instance equity markets which in the past were retail investor driven are now
increasingly become institutional induced
Securities markets are transforming from being membership driven to public
corporation following demutualization and corporatization of stock exchanges in mature
and emerging markets
Two most important pieces of regulation that came into being in the recent period are in
the form of market structure reforms in the US known more popularly as regulation NMS
which underlines the promotion of competition across the markets under three major
principles best price open access and transparency Under the new trade-through role in
whichever market a customer placed his order it should be able to access the best price
that is immediately and automatically available anywhere in the national market system
The trade-through rule will not allow markets to ignore better-priced automated quotes
displayed by the competitors Similarly open access to displayed prices will be a major
feature governing the competition of the markets The regulation also stipulates that all
significant markets must display their quotations and trade reports should be available to
all interested parties on fair terms and non-discriminatory manner Another equally
important development is the Markets in Financial Industry Directive (MiFiD) that will
come into force from 1 Nov 2007 and stipulates wide-ranging norms for financial
institutions in the European Union Major features of the MiFiD include wider scope of
coverage of the financial institutions and the related business activities greater degree of
harmonization across the European markets and facilitate cross border business and
stipulated capital requirements
MiFiD is envisaged to bring major changes in the manner financial institutions in the
European Union will be monitored Simultaneous with stringent norms of regulation the
scope of regulation is considerably delegated to the markets and institutions in the form
of self-regulation Self-regulation brings a number of benefits to the business Institutions
such as National Association of Securities Dealers (NASD) have played an important role in
promoting self-regulation However self-regulation has certain limitations it needs to
overcome before it becomes widely accepted across the markets12
225 Top five companies of the industry
Many time new investor or trader gets confusion for open a D Mat and trading account in
broking House Many of broking House promises to you for better service but clients get
problem due to trading session in theirs Broker house firm Here is the list of Indiarsquos top 5
broking House on base of survey of investors and traders of many cities In their views
following Broking Houses gives best and reliable services13
1 ICICI directcom
ICICI Securities empowers over 2 million Indians to seamlessly access the capital market
with ICICIdirectcom an award winning and pioneering online broking platform The
platform not only offers convenient ways to invest in Equity Derivatives Currency
Futures Mutual Funds but also other services Fixed Deposits Loans Tax Services New
Pension Systems and Insurance are available ICICIdirectcom offers a convenient and easy
to use platform to invest in equity and various other financial products using its unique 3-
in-1 account which integrates customerrsquos saving trading and demat accounts
Apart from convenience ICICIdirectcom also offers access to comprehensive research
information stock picks and mutual fund recommendations among other offerings
Tailored services and trading strategies are available to different types of customers long
term investors day traders high-volume traders and derivatives traders to name some
ICICIdirectcom uses the most advanced commercially available 128-bit encryption
technology enabled Secure Socket Layer (SSL) to ensure that the information transmitted
between the client and ICICIdirectcom across the internet is safe and cannot be accessed
by any third party14
2 India Infoline
India Infoline Ltd (India Infoline) established in 1995 is the holding company of the
India Infoline Group It has membership in the cash and derivative segments of both 12 Source- httpwwwdnbcoinequitybrokingglobal20scenarioasp13 Source- Httpwwwindianstockmarketorgindias-top-10-stock-broking-house14 Source-httpwwwicicisecuritiescomOurBusinessSubSubReportID=10223ampshortCode=INST
the NSE and BSE India Infoline is also registered as a DP with NSDL and CDSL India
Infoline through its subsidiary India Infoline Commodities Limited also offers commodity-
trading services which is a registered member with DGCX since 2006 It also operates in
the currency futures market segment India Infoline offers a wide range of products
and services which include investment banking distribution of financial products
demat services private equity PMS institutional broking WMS insurance broking
among others In addition it also offers research services in areas of economy
derivative strategies mutual funds IPO credit policy and various others The company
has 15 domestic subsidiaries and five foreign subsidiaries The company has global
presence through its subsidiaries in New York Singapore and Dubai India Infoline caters
majorly to retail clients During CY09 the company added 303480 client accounts
Address 75 Nirlon Complex Off Western Express Highway Goregaon (East) Mumbai -
400063 Maharashtra
Telephone 91 22 42499000 Fax 91 22 26850451
Email mailindiainfolinecom Website wwwindiainfolinecom
Registration Number NSE - INBINF231097537 BSE - INBINF01109753315
3 Kotak Securities Ltd
Kotak Securities Ltd (Kotak Securities) is the stock-broking and distribution arm of the
Kotak Mahindra Group and a subsidiary of Kotak Mahindra Bank Kotak Securities was
established in 1994 It has memberships in the cash derivatives and currency futures
segments of NSE and BSE Kotak Securities is also a DP with NSDL and CDSL Apart from
stock broking the company is engaged in offering depository services asset management
margin financing PMS and distribution of financial products like IPOrsquos mutual funds and
insurance The company has a full-fledged research division which offers macro
economic sectoral research and company specific equity research Its domestic network
spans over 383 cities and 1048 offices Trading in equities and derivatives contributes to
major part of the companyrsquos revenue During CY09 Kotak Securities added around 62194
accounts of which around 27 are e-broking accounts The companyrsquos overseas
operations include one subsidiary and two associate firms operating in two foreign
locations
15 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndia+Infoline+Limited2Epdf
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF01113323016
4 Share Khan
Sharekhan Ltd (Sharekhan) is one a leading brokerage houses established in 2000
Sharekhan has membership in the cash and derivative segments of both BSE and NSE It
also operates in the debt and currency futures segment The company is registered as a
DP with CDSL and NSDL Besides trading the company also offers PMS demat services and
mutual funds Share khan provides a comprehensive set of research reports relating
to IPO and mutual funds Other value added facilities offered to clients include
online trading dial-n-trade share shops fundamental and technical research The
company serves large number of retail clients with a client network of more than 100000
clients which includes HNIrsquos corporate and other retail customers The company
through its subsidiary Share khan Commodities Ltd provides commodity-trading services
Address A - 206 Phoenix House 2nd Floor Senapati Bapat Marg Lower Parel
Mumbai - 400013 Maharashtra
Telephone 91 22 67482000 Fax 91 22 66104533
Email compliancelpsharekhancom Website wwwsharekhancom
Registration Number NSE - INBINF231073330 BSE - INBINF01107335117
5 Indiabulls
Indiabulls Securities Ltd (Indiabulls) part of Indiabulls Group was established in 1995 The
company is in the business of providing securities and advisory services It is a corporate
member of capital market wholesale debt market and derivative segments of NSE and of
capital market and derivative segments of BSE
Indiabulls also operates in currency futures and is a DP of CDSL and NSDL It provides a
wide range of products and services which include internet trading NRI trading demat
16 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CKotak+Securities+Limited2Epdf17 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CSharekhan+ Limited2Epdf
services margin financing and distribution of financial products like IPO online
mutual funds etc Power Indiabulls (PIB) is the advanced online trading platform offered
by the company Indiabulls also offers research services in the areas of economic equity
mutual fund IPO and others The company operates in commodity segment through its
subsidiary India bulls Commodities Pvt Ltd which is a member of MCX and NCDEX It
is listed on both NSE and BSE
Address F-60 Malhotra Building 2nd Floor Connaught Place New Delhi - 110001 Delhi
Telephone 91 11 41523700 Fax 91 11 41529071
Email helpdeskindiabullscom Website wwwindiabullscom
Registration Number NSE - INBINF230875632 BSE - INBINF01087563218
18 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndiabulls+Securities+Limited2Epdf
22 Company Overview
221 Overview of the Organizations
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited Uday Kotak Sidney A A Pinto and Kotak amp Company promoted this company Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and thats when the company changed its name to Kotak Mahindra Finance Limited Since then its been a steady and confident journey to growth and success
Kotak Securities Ltd is one of Indias largest brokerage and securities distribution house in India Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-ordinates Kotak Securities Ltd offers online (through wwwkotaksecuritiescom) and offline services based on well-researched expertise and financial products to the non-institutional investors Kotak Securities Limited is the world of Capital Markets where everything newsworthy exists only in the present moment and where knowing the importance of timing sentiments and strategic forecasting makes the difference between profit and loss Kotak Securities Limited a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25 - one of the worldrsquos leading investment banks and brokerage firms) is Indiarsquos leading stock broking house with a market share of 7 - 8
Kotak Securities Limited is one of the larger players in distribution of IPOs - it was ranked number One in 2003-04 as Book Running Lead Manager in public equity offerings by PRIME Database It has also won the ldquoBest Equity Houserdquo Award from Finance Asia -April 2004 The Company has a full-fledged Research division involved in macro economic studies Sectoral research and Company specific equity research combined with a strong and well Networked sales force which helps deliver current and up-to-date market information and news
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them Kotak securities provide portfolio Management Services catering to the high end of the market Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market with the backing of an expert Kotak Securities Limited manages assets over Rs 1700 crores through itrsquos Portfolio Management Services (PMS) servicing high net worth clients with a large
investible surplus through its preferred client services in the mass affluent and wealth management segments The company has a full-fledged research division involved in Macro Economic studies Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news
222 MARKET SHARE
Kotak Securities Ltd is Indiarsquos leading stock broking house with a market share of around
85 percent as of March 31 2006 It handles more IPOs than any other brokerage The
company has a full-fledged research division involved in macroeconomic studies sect oral
research and company-specific equity research combined with a strong and well-
networked sales force which helps deliver current market information and news
The firm has 195 branches servicing more than 2200000 customers across 231 cities
Kotaksecuritiescom the online division offers Internet brokerage services and also online
IPO and mutual fund investments Kotak Securities manages over 2500 crores of Assets
under Management (AUM)
223 AWARDS AND RECOGNIZATION
Kotak Securities Ltd 100 subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry The companyrsquos offerings include stock broking
through the branch and Internet Investments in IPO Mutual funds and Portfolio
management service Kotak Securities has a full-fledged research division involved in
Macro Economic studies Sect oral research and Company Specific Equity Research
combined with a strong and well-networked sales force which helps deliver current and
up to date market information and news Kotak Securitiesrsquo network spans over 321 cities
with 877 outlets with an employee workforce beyond 5100
The company is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can avail the companyrsquos brokerage services for executing the
transactions and the depository services for settling them Kotak Securities Ltd processes
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Chapter2
INDUSTRY OVERVIEW amp COMPANY OVERVIEW
21 Industry Overview
211 Industry Profile
A stockbroker is nothing but a registered and qualified working professional who buys
stocks and derivatives for other people The stockbroker thus performs all the
transactions for people on the stock exchange The stockbroker maintains information of
the people for whom he is buying or selling stocks This information includes name
address PAN no and other relevant information No transaction can take place in the
stock market with out a stockbroker
The stockbroker cannot give inputs advice to people buying or selling stocks unless he is
registered with the Securities and exchange board of India as a portfolio manager The
stockbroker takes a certain brokerage for the transactions he does for his clients on the
stock exchange The brokers are expected to issue contract notes to the clients after a
particular transaction has been done They are also expected to issue periodic reports to
their clients with respect to the transactions that have been done by them in that periodic
interval If you are looking to become a portfolio manager then there is a different policy
and procedure that you need to follow for it
Stockbrokers can be individual stockbrokers or form a company or an organization there
by making a brokerage All brokerages have to pay a certain sales tax for the transactions
that are done with the brokerage by other clients wither through selling or buying a
certain stock Thus any person who wants to buy or sell any stock with a particular stock
exchange has to do that with a particular stockbroker affiliated with that stock exchange4
Securities Markets is a place where buyers and sellers of securities can enter into
transactions to purchase and sell shares bonds debentures etc
Further it performs an important role of enabling corporate entrepreneurs to raise
resources for their companies and business ventures through public issues Transfer of
resources from those having idle resources (investors) to others who have a need for
them (corporate) is most efficiently achieved through the securities market Stated
4 Source- httpwwwstockbrokingcoinwhat-is-stockbrokinghtml
formally securities markets provide channels for reallocation of savings to investments
and entrepreneurship Savings are linked to investments by a variety of intermediaries
through a range of financial products called lsquoSecuritiesrsquo5
The Securities Contract (Regulation) Act 1956 [SCRA] defines lsquoStock Exchangersquo as any
body of individuals whether incorporated or not constituted for the purpose of assisting
regulating or controlling the business of buying selling or dealing in securities Stock
exchange could be a regional stock exchange whose area of operationjurisdiction is
specified at the time of its recognition or national exchanges which are permitted to have
nationwide trading since inception NSE was incorporated as a national stock exchange6
222 Industry Evolution
The history of stockbrokers can be traced back to the origins of the first stock exchange in
1602 at Amsterdam Even before that brokers are said to have existed in France dealing
with government securities The Amsterdam Stock Exchange was involved in buying and
selling of shares for the Dutch East India Company However the first real stock exchange
came up in Philadelphia in the United States during the late 18th century Later it was the
New York stock exchange which saw a rise in its popularity Wall Street as it was called
became the hub of brokerage activities Earlier stockbrokers were largely unorganized
but later most of them joined hands to form institutes and organizations Until the 1980rsquos
stock broking services were used only by the wealthy class who could afford them Later
with the advent of the Internet stock broking became very easy Thus the price tag on
stockbrokers lowered considerably and their services became available even to the
common man The stock broking duties are now mostly taken up by major organizations
with the smaller companies being absorbed by them In India too with increasing
globalization the major corporations are penetrating deeper into the society7
A Stockbroker is nothing but a person who buys and sells securities from the stock market
on behalf of other investors Stock broking began in the United States of America
Philadelphia was the first city in America to have a stock exchange After which New York
became the heart of all stock transactions and Wall Street became synonymous with
investing and trading
5 Source-httpwwwgascicomfaqhtm6 Source-httpwwwaumassociatecoinsharebazaraspx7 Source-httpwwwindiacomcomyellowpagecategory-gyanarticlesStock-BrokersStock-Broker-Introductionasp
Since the early part of the 1980s stock broking was allowed in America In addition in the
late part of 1990s stock broking went online and now there are several online stock
brokerages on the internet and hence online transactions happen in a jiffy these days A
stockbroker may also be a financial advisor or an investment consultant these days but in
India you need to be registered with the Securities and exchange board of India in order
to act as a financial advisor As the name suggests a stockbroker mainly deals in stocks
that is the shares of a company Other professionals such as foreign exchange brokers
deal with currencies where as commodity brokers deal with commodities
All stock market transactions that is buying or selling of shares have to take place through
a broker or a brokerage Even if you make online transactions you need to do it through
an online stockbroker For performing the transaction online stockbrokers charge a small
brokerage fee or commission fee for the transactions that they do for other companies or
retail investors The brokerages that a stockbroker may charge are different for various
brokerages as they might have a different business model for the same8
The history of stock broking in the United States parallels the growth of the nations
economy since colonial times The industry has tended to be cyclical in nature and has
survived several downturns including a major economic depression in the 1930s
Government regulations have been introduced at times in an effort to place controls on
what were viewed as harmful trading practices
Origin
The first stock brokerage house in the United States started in Philadelphia in 1800 While
the practice had been around since the early 1700s the Philadelphia Stock Exchange was
the first organized body that brought brokers together and served to codify the rules and
regulations under which business had been conducted The profession continued to
expand with the growth of corporations and the dawning of the Industrial Revolution
Crash
The first major negative event in the industry occurred when the stock market crashed in
1929 which was followed by the Great Depression The result of the crash was due to
8 Source- httpwwwstockbrokingcoinorigin-of-stockbrokinghtml
investors who had borrowed heavily to purchase stocks and began to realize that they
were hugely overvalued and attempted to sell them off resulting in a panic
Securities Act
In an effort to prevent the recurrence of the 1929 crash the Securities Act was
implemented in 1933 as a way to regulate the industry Eventually the stock market
began to rebound and continued a general pattern of steady growth over the next several
decades
Change
In the early 1970s the growth of technology led to reforms in the United States that
helped to reopen the markets to more liberalized trading In the late 1980s another crash
in the market occurred due to the dropping of prices of stock index futures Much like the
Great Depression this led to a mass selling of these securities causing the stock market to
plummet
Rebound
Stock broking again saw a boom as tighter regulations were put in place following the
1987 crash The markets reached new heights in the late 1990s The terrorist attacks of
September 11 2001 slowed the pattern of growth
Another Crash
In 2008 the largest single-day drop since 1987 occurred as the market lost $12 trillion of
its value on September 29 The drop occurred because of several factors including the
collapse of the mortgage industry and a worsening credit crisis The market has
rebounded only slightly as of mid-20099
223 Salient Features of the Industry in India
On the basis of geographical concentration the west region has the maximum
representation of 52 around 24 firms are located in the North 13 in the South and
10 in the East
9 Source-httpwwweHowcommabout_5208105_history-stockbrokinghtml
3 firms are started broking operations before 1950 65 between 1950-1995 and
32 Post1995
On the basis of terminals 40 are located at Mumbai 12 in Delhi 8 in
Ahmadabad 7 in Kolkata 4 in Chennai and 29 are from other cities
From the study we find that almost 36 firms trade in cash derivatives and
commodities
In the cash market around 34 firms trade at NSE 14 at BSE and 52 trade at
both exchanges In the derivative segment 48 trade at NSE 7 at BSE and 45 at both
whereas in the debt market 31 trade at NSE 26 at BSE and 43 at both Exchanges
Majority of branches are located in the North ie around 40 West has 31 24
are located in South and 5 in East
In terms of Sub brokers around 55 are located in the South 29 in West 11 in
North and 4 in East
Trading IPOs and Mutual funds are the top three products offered with 90 firms
offering trading 67 IPOs and 53 firms offering mutual fund transactions
In terms of various areas of growth 84 firms have expressed interest in
expanding their institutional clients 6 firms intend to increase FII clients and 43 are
interested in setting up JV in India and abroad
In terms of IT penetration 62 firms have provided their website and around 94
firms have E-mail facility10
224 Recent Trends
Equity brokerage industry in India is experiencing rapid growth and diversity Following
the wide range of stock market reforms in the early 2000rsquos brokerage industry underwent
major transformations from being engaged in only brokerage business to offering a wide
range of financial services A modern broking house in India may well be a corporate
entity that offers a wide range of products relies on research for advice uses modern
technology has large distribution network connecting the country provides investor
education and awareness and is compliance focused These developments have resulted
in a huge spurt in business as also growing market share of the large sized brokerage
houses that led to surge in enterprise value thus becoming objects of interest for global
investing In the recent period global and domestic private equity firms have taken stake
10 Source- httpwwwdnbcoinequitybrokingindustry20insightsasp
in brokerage firms such as Anand Rathi (Citigroup) Edelweiss (Lehman Brothers) Geojit
(BNP Paribas) SMC (Millennium India) Motilal Oswal (New Vernon) Marwari Shares
(India Capital Growth Fund) J R G Securities (Barings Pvt Equity) and Network Broking
(Amas Bank of Hindujas) India Infoline (Orient Global) etc Initial Public Offerings of large
firms in2007 such as Motilal Oswal Edelweiss and Religare received huge response from
the markets (over subscription going more than 100) and also high premiums Large
issues of these brokerage firms debuted in the stock exchange with premiums ranging
from 20 to 75 With the stock market momentum likely to continue broking firms
could look forward to scaling up their resource mobilization to fund growing operations
and expansion Brokerages mopping up huge resources from the market are not unusual
even in the emerging markets For instance Citic Securities a Chinese securities firm is
reported to have raised US $ 33 bn last year and other firms such as Haitong and Gold
state are planning to come out with IPOs of US $ 4-5 bn in 2008
In India about 45 equity brokerage houses are at present listed on the stock exchanges
that together reported Rs 35 bn of equity total income of Rs 47 bn and net profit of Rs 3
bn for the second quarter of FY08
Prospects and Outlook
Indian broking houses could look forward to a period of growth and consolidation Indiarsquos
economic growth and deepening of the financial system will present the broking firms
with numerous opportunities for growth and expansion Integration of the financial
markets will enhance the scope of their business and scalability Access to public equity
markets will enable them to raise resources to fund expansion and growths as pursue
useful business acquisitions Growing international investor interest in India will add
newer opportunities to scale up the business as also harmonsing with global standard and
practices Introduction of new products such as mini contracts in the derivatives and other
futures and options products will add new opportunities for creating new business
segments
While opportunities abound there is a great need for reform and restructuring of the
equity broking industry There are about 9000 brokers registered with SEBI but 80
percent of the turnover in NSE and BSE is accounted for by about 100 brokers
Consolidation thus becomes relevant to forge a stronger industry Similarly capital levels
too need to be strengthened The 45 odd listed broking firms in India together have a
meager Rs 35 bn of capital which is far less than what one top broking firm in China
could raise from the capital markets Better performance and practices will enable broking
firms to increase capital levels that will be essential for funding expansion
Investor education and awareness is another aspect broking industry should promote in
the long-term interest of the market As the product mix and risk matrix in financial
markets are continuously changing it becomes imperative for the intermediaries to
educate and create awareness in the clients that would be mutually beneficial Better
understanding of the financial products and associated risks by the investors will be in the
interest of the growth and stability of the markets
The Indian broking industry is coming of age It has enormous opportunities for growth
and diversity As markets expand and get globalised these firms will have increased
opportunity to cater to a large and diverse range of clientele with a wide mix of products
and services Expanding markets offer enhanced opportunities Those who are well
prepared will be in a better position to garner the benefits11
225 Performance Growth Scenario
Some of the major recent developments in the global securities markets have been
summarized below
Equalization
Equity markets have expanded significantly in a large number of countries across the
world The market capitalization of the worldrsquos leading stock exchanges rose from about
USD11 trillion in 1991 to USD35 trillion in 1999 to about USD51 trillion in 2006 The
growth of market capitalization is evident across regions Market capitalization in Asia
nearly doubled from USD68 trillion in 1999 to USD118 trillion in2006 where as in
America it grew from USD179 trillion to USD226 trillion and in EuropeAfricaMiddle
East it rose from USD102 trillion to USD161 trillion Market capitalization as a percent of
GDP witnessed steep growth in several countries during this period
Similarly trading volumes in stock exchanges too has shown rapid growth Value of share
trading in stock exchanges rose from about USD54 trillion in 1991 to USD33 trillion in
1999 to about USD70 trillion in 2006 During the period 1999 and 2006 value of share
trading in Asia Pacific rose from USD42 trillion to USD12 trillion in EuropeAfricaMiddle
11 Source- httpwwwdnbcoinequitybroking2008Emergingtrenasp
East from USD83 trillion to USD218 trillion and in Americas from USD20 trillion to USD35
trillion
Institutional investment
The rapid growth of stock markets in the world to a significant extent could be explained
by the surge in the institutional investors consisting of pension funds insurance
companies and mutual funds During the period 1995 and 2005 the assets under
management of the institutional investors doubled from USD21trillion to USD53 trillion A
large number of institutional investors are moving away from the home bias investing in
outside world Emerging markets with higher economic growth and rapidly growing
financial markets became major centers of destination for the investments of institutional
investors For instance in the US in 1994 pension funds invested 41 of their portfolio in
domestic equity and 7 in international equities where as by 2005 that share rose to 48
in domestic equities and 15 in international equities The portfolio allocation to bond
markets during the same period reduced from 42 to 32 Emerging markets received
sizeable portion of the investments In the US the dedicated emerging markets mutual
funds rose from about USD27 bn in2000 to USD 230 bn in 2006
International listings
On the back of the liberalization of cross border financial flows companies in several
countries are seeking listing in international exchanges to garner benefits from
international investors as also widen their investor base The number of foreign
companies listed in the London Stock Exchange rose from 387 in 1970 to 553 in 1990 to
636 in 2006 The number of foreign companies listed on the NYSE has also risen rapidly in
the 1990s There is a keen competition across the worldrsquos leading stock exchanges to
promote international listing and gain greater influence In the recent period the US
experienced a slowdown in the listing of foreign companies The decline is attributed to
stringent corporate governance norms that were applied following the corporate abuses
found in the beginning of the decade The US is now examining in greater detail measures
to gain the prominence once it enjoyed in the international listings The Alternative
Investment Market of London Stock Exchange attracted huge interest from SMEs from a
large number of countries
Emerging markets as an investment destination
Liberalization of capital flows led to surge in international investment into emerging
economies finding value on the back of huge prospects for growth The flow of net
Foreign Direct Investment (FDI) into developing countries increased from USD170 bn in
1998 to USD325 bn in 2006 and net portfolio equity flows increased from USD6 bn to
USD94 bn during the same period Net debt flows during this period are rather subdued
with net debt flows from official creditors turning negative Net portfolio equity flows to
China between the year 2000 and 2006 rose from USD69 bn to USD32 bn and in India
from USD23 bn to USD87 bn Other emerging markets such as Brazil Mexico South
Africa Thailand and Russia too showed surge in the net portfolio equity flows Emerging
markets showed significant growth in stock prices making them attractive investment
destinations though issues of valuations are beginning to become a concern now
Growing correlation of returns
Greater harmonization of stock markets in mature and emerging markets is in evidence by
the increasing correlation in market returns across different markets The higher
correlation in the stock price movements gained momentum in the late 1990s due to
growing foreign institutional investment in several markets and growth of the technology
sector that pervaded many markets and has driven stock price momentum in the late
1990s
Emerging markets in the new issuance market
Emerging markets also became very active in the new issuance market In 2006 all the ten
largest cross border new capital issues were from the emerging markets These ten issues
were from China Russia Mexico Thailand and Kazakhstan Of these ten issues four each
were listed in London and Hong Kong and only one in the US The value of the new listings
by emerging market companies in the US exchanges declined from USD29 bn in 2004 to
USD27 bn in 2006 where as that of London rose from USD07 bn to USD96 bn and in
Hong Kong from USD72 bn to USD304 bn Emerging markets in the first five months of
2007 have raised USD537 bn in global financial markets which is reported to be the
highest ever amount raised for a year Some of the leading issues during this period
include the USD8 bn IPO by VTB second largest Russian bank USD185 bn by Turkish
financial institution Halk bank and USD14 bn by a Russian real estate company AFI
Development Some of the largest issues from the emerging markets in the recent period
include USD219 bn issue of Chinarsquos ICBC Bank (Oct 2006) USD112 bn issue of Bank of
China (May 06) USD107 bn issue of Russian energy company Ros neft (Jul 06) USD59 bn
pubic issue of Chinarsquos Citic Bank
Alternative markets
In view of the limitations on listing of small and medium scale companies in the big boards
of the main exchanges several stock exchanges have developed alternative markets for
encouraging listing of small and midcap stocks Almost every major exchange has an
alternative platform for listing and trading of small and midcap stocks and new generation
companies without much listing history The market capitalization of the alternative
markets in the year 2006 has grown at an impressive rate of 30 More than 12000
companies are listed in these alternative markets and the value of share trading of these
for SMEs markets rose 15 in 2006 from USD802 bn to USD919 bn New capital (IPOs)
rose in the alternative markets rose 59 in 2006 from USD136 bn to USD216 bn
Growth of Derivatives
The growth of derivatives picked up on the need for risk transfer products The size of
global derivatives industry in 2006 USD370 trillion of notional value and USD10 trillion of
market value in the Over the Counter (OTC) derivative markets and USD84 trillion of
notional value and USD10 trillion market value in the Exchange traded derivative markets
According to the International Swaps and Derivatives Association more than 90 percent
of the global 500 corporations use derivatives for hedging risks in interest rates foreign
exchange and equities In the OTC markets derivative products accounting for large share
of market value include interest rate (785) and Foreign Exchange (114) where as in
the Exchange Traded segment derivative products on interest rate government debt and
equities form the major part of the volumes
Dark Pools and Private Markets
In the third week of May 2007 Goldman Sachs launched GSTrue which is a platform
developed to allow exclusive club of big investors to trade unregistered privately placed
securities which is considered to be a major challenge for the public equity capital
markets in the US Goldman Sachs in that deal helped underwrite the private sale of 15
of hedge fund manager Oak tree Capital Management for USD800 mn The investors in
this sale would be able to buy and sell Oak tree shares through the new Goldman Sachs
Tradable Unregistered Equity System which has its acronym GSTRue
Under the rules of the Securities and Exchange Commission of the US companies can sell
securities without registering them as long as the issues are limited to qualified
institutional buyers which are investors with at least USD100 mn of assets and there are
no more than 500 stockholders Private pools of capital are growing in size and
significance in international markets to overcome the costs and pressures from stringent
regulation According to an estimate of NASDAQ in 2006 companies in the US raised
USD162 bn of capital through unregistered private placements (also known as 144A
private placements) compared with USD154 bn through IPOs which are registered with
the regulator A group of worldrsquos largest banks are developing ldquoProject Turquoiserdquo which
is a hybrid share trading system that allows transactions both on exchange and outside it
(called as dark liquidity pools) where firms with large asset base can buy and sell large
blocks of shares away from the regulatory oversight
Private Equity
Private equity is growing in size and significance In view of the regulatory standards
prevalent in the public equity capital markets several firms seek the private equity option
to raise resources According to Dialogic the top 50 private equity firms raised USD551 bn
out of the USD800 bn estimated to have been raised by the total private equity since Jan
2002 Of the top 50 private equity firms more than 30 are from the US 11 from the UK
five from Western Europe and one from Asia Pacific Private equity is now involved in high
value deals and recent transactions include USD35 bn HCA buyout in the healthcare
industry and bids of USD39 bn and USD41 bn for Equity Office Property Trust a
commercial office real estate trust in the United Trust It is expected that the transaction
values of the private equity may go up to USD50-100 bn in the near future Private equity
market in India raised USD22 bn in 2005 about USD4 bn in 2006 and is expected to raise
about USD10 bn by 2010 according to a recent study
Hedge Funds
Hedge Funds emerged from the need of investors seeking alpha to earn an excess return
and beat the market and the returns from the conventional investments Alpha is a
common measure of assessing an active managerrsquos performance as it is the return in
excess of a benchmark index or ldquorisk-freerdquo investment The difference between the fair
and actually expected rates of return on a stock is called the stockrsquos alpha In view of rapid
growth of hedge funds and their complex nature of operations and lack of adequate
regulatory control these funds became a major concern of global financial regulation
Notwithstanding these concerns hedge funds continue to grow with the size of the
market growing from about USD30 bn in 1990 to more than USD14 trillion in 2005 and
the number of funds rising from about 530 to about 7000 during this period An
interesting development in the recent period is the growing institutional investment in the
hedge funds which is estimated at USD360 bn in 2005 and the rising allocations to these
funds that was evident in the US and XXVII the European markets The investor base of
the hedge funds consists of individualsfamilies fund of funds corporations and
institutions public and private pensions and endowments and foundations in that order
Investor Protection
With democratization of markets leading to greater participation of individuals and
investments and wide choices of asset classes now available issues of investor interest
and protection have assumed centre stage Following the corporate crises in the US that
adversely affected the investor interests extensive federal investigations were launched
that led to imposition of huge penalties and punitive damages leading to billions of
dollars Such actions were taken against a wide spectrum of global investment banks
brokerage firms and other related entities Simultaneously growth of litigation and class
action suits showed significant rise when the market intermediaries failed to meet their
obligations or did not provide all the material facts to the investors that were crucial for
an investment decision
Securities regulators imposed penalties on market participants who were found to have
indulged in market abuses In India disgorgement orders were passed on certain entities
that were found to making money by unfair means and for violating regulatory norms and
procedures Top institutional investors in several countries devised their own review
process for investing in countries and companies that brought into light greater need for
higher standards in corporate governance disclosure and transparency standards and in
some cases concern towards issues such as democracy and social equity environment
economic and political reforms
Surge in Chinese capital markets
A major change in the year 2007 is the sudden leap of China into big league of global stock
markets On 9 May 07 Shanghai Stock Exchange Chinarsquos top stock market recorded
turnover of USD332 bn and Shenzhen Stock Exchange a stock market for SMEs an
equally powerful USD158 bn taking the combined turnover of both these stock
exchanges on that day to USD495 bn In the first three months of the year 2007 value of
share trading in both these Chinese stock markets reached 89 of the whole turnover of
the year 2006 Value of share trading in Shanghai Stock Exchange rose from USD256 bn in
2003 to USD736 bn in 2006 and in the first three months of the year 2007 it already
recorded USD652 bn Market capitalization in China between Apr 2006 and 2007 rose by
almost 4 times pushing it to a position among the top 10 exchanges in the world and
value of share turnover rose 6 times making Shanghai 6 the biggest Main indexes of
Shanghai Stock Exchange and Shenzhen Stock Exchange posted returns of 194 and 204
respectively in the 12 months proceeding Apr 2007
Rise of smaller markets
The growth and momentum of the stock markets is spreading across a large number of
markets big and small Recent evidence of big surge in stock markets include countries in
the Middle East which witnessed exceptional growth in 20052006 China in 2007 and
several smaller European and Latin American countries in the last one year As
international investing is spreading its presence domestic financial institutions and
investors are finding stocks as an important asset class and stock markets all over the
world have experienced rapid growth in the last five years
Stock exchange consolidation
A big wave of stock exchange consolidation is taking place across the global financial
markets The most notable merger in the recent period is that of the New York Stock
Exchange with Archipelago that led to the demutualization of the former which
subsequently acquired Euro next to form NYSE Group that makes it a formidable force in
the North America and the Euro region Another American exchange NASDAQ after the
merger with Instinet announced plans to acquire OMX which is Europersquos leading
exchange as also provider of cutting edge technology solutions for stock exchanges
worldwide Deutsche Borsersquos recent acquisition of International Securities Exchange gives
the former a powerful position in the derivatives markets in Europe and America There
was also sizeable consolidation within the domestic securities markets in several countries
with the merger of equities and derivatives markets in countries such as Korea Malaysia
and Hong Kong In India the issue of appropriate solutions for the 20 odd stock exchanges
that currently lack proper liquidity is engaging the attention of policy and regulation
RECENT DEVELOPMENTS GOVERNING REGULATION OF STOCK MARKETS
Systematic and streamlined regulation is the key strength and sustainability of the
securities markets Though formal regulation of the securities markets is about 70 years
old some of the recent developments in the financial markets are reshaping the scope
and focus of the regulation These include ndash
There is growing harmonization of regulation across different markets Organizations
such as International Organization for Securities Commissions (IOSCO) are playing a very
important role in adoption of uniform principles and guidelines across the markets
The size and scope of the securities markets is rapidly changing from being one or
two product markets to multi product markets with diverse features and different
investor base
Markets have become more democratized with more people and institutions
participating in the market related activities
Rapid increase in the size of the institutional participation in the financial markets
For instance equity markets which in the past were retail investor driven are now
increasingly become institutional induced
Securities markets are transforming from being membership driven to public
corporation following demutualization and corporatization of stock exchanges in mature
and emerging markets
Two most important pieces of regulation that came into being in the recent period are in
the form of market structure reforms in the US known more popularly as regulation NMS
which underlines the promotion of competition across the markets under three major
principles best price open access and transparency Under the new trade-through role in
whichever market a customer placed his order it should be able to access the best price
that is immediately and automatically available anywhere in the national market system
The trade-through rule will not allow markets to ignore better-priced automated quotes
displayed by the competitors Similarly open access to displayed prices will be a major
feature governing the competition of the markets The regulation also stipulates that all
significant markets must display their quotations and trade reports should be available to
all interested parties on fair terms and non-discriminatory manner Another equally
important development is the Markets in Financial Industry Directive (MiFiD) that will
come into force from 1 Nov 2007 and stipulates wide-ranging norms for financial
institutions in the European Union Major features of the MiFiD include wider scope of
coverage of the financial institutions and the related business activities greater degree of
harmonization across the European markets and facilitate cross border business and
stipulated capital requirements
MiFiD is envisaged to bring major changes in the manner financial institutions in the
European Union will be monitored Simultaneous with stringent norms of regulation the
scope of regulation is considerably delegated to the markets and institutions in the form
of self-regulation Self-regulation brings a number of benefits to the business Institutions
such as National Association of Securities Dealers (NASD) have played an important role in
promoting self-regulation However self-regulation has certain limitations it needs to
overcome before it becomes widely accepted across the markets12
225 Top five companies of the industry
Many time new investor or trader gets confusion for open a D Mat and trading account in
broking House Many of broking House promises to you for better service but clients get
problem due to trading session in theirs Broker house firm Here is the list of Indiarsquos top 5
broking House on base of survey of investors and traders of many cities In their views
following Broking Houses gives best and reliable services13
1 ICICI directcom
ICICI Securities empowers over 2 million Indians to seamlessly access the capital market
with ICICIdirectcom an award winning and pioneering online broking platform The
platform not only offers convenient ways to invest in Equity Derivatives Currency
Futures Mutual Funds but also other services Fixed Deposits Loans Tax Services New
Pension Systems and Insurance are available ICICIdirectcom offers a convenient and easy
to use platform to invest in equity and various other financial products using its unique 3-
in-1 account which integrates customerrsquos saving trading and demat accounts
Apart from convenience ICICIdirectcom also offers access to comprehensive research
information stock picks and mutual fund recommendations among other offerings
Tailored services and trading strategies are available to different types of customers long
term investors day traders high-volume traders and derivatives traders to name some
ICICIdirectcom uses the most advanced commercially available 128-bit encryption
technology enabled Secure Socket Layer (SSL) to ensure that the information transmitted
between the client and ICICIdirectcom across the internet is safe and cannot be accessed
by any third party14
2 India Infoline
India Infoline Ltd (India Infoline) established in 1995 is the holding company of the
India Infoline Group It has membership in the cash and derivative segments of both 12 Source- httpwwwdnbcoinequitybrokingglobal20scenarioasp13 Source- Httpwwwindianstockmarketorgindias-top-10-stock-broking-house14 Source-httpwwwicicisecuritiescomOurBusinessSubSubReportID=10223ampshortCode=INST
the NSE and BSE India Infoline is also registered as a DP with NSDL and CDSL India
Infoline through its subsidiary India Infoline Commodities Limited also offers commodity-
trading services which is a registered member with DGCX since 2006 It also operates in
the currency futures market segment India Infoline offers a wide range of products
and services which include investment banking distribution of financial products
demat services private equity PMS institutional broking WMS insurance broking
among others In addition it also offers research services in areas of economy
derivative strategies mutual funds IPO credit policy and various others The company
has 15 domestic subsidiaries and five foreign subsidiaries The company has global
presence through its subsidiaries in New York Singapore and Dubai India Infoline caters
majorly to retail clients During CY09 the company added 303480 client accounts
Address 75 Nirlon Complex Off Western Express Highway Goregaon (East) Mumbai -
400063 Maharashtra
Telephone 91 22 42499000 Fax 91 22 26850451
Email mailindiainfolinecom Website wwwindiainfolinecom
Registration Number NSE - INBINF231097537 BSE - INBINF01109753315
3 Kotak Securities Ltd
Kotak Securities Ltd (Kotak Securities) is the stock-broking and distribution arm of the
Kotak Mahindra Group and a subsidiary of Kotak Mahindra Bank Kotak Securities was
established in 1994 It has memberships in the cash derivatives and currency futures
segments of NSE and BSE Kotak Securities is also a DP with NSDL and CDSL Apart from
stock broking the company is engaged in offering depository services asset management
margin financing PMS and distribution of financial products like IPOrsquos mutual funds and
insurance The company has a full-fledged research division which offers macro
economic sectoral research and company specific equity research Its domestic network
spans over 383 cities and 1048 offices Trading in equities and derivatives contributes to
major part of the companyrsquos revenue During CY09 Kotak Securities added around 62194
accounts of which around 27 are e-broking accounts The companyrsquos overseas
operations include one subsidiary and two associate firms operating in two foreign
locations
15 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndia+Infoline+Limited2Epdf
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF01113323016
4 Share Khan
Sharekhan Ltd (Sharekhan) is one a leading brokerage houses established in 2000
Sharekhan has membership in the cash and derivative segments of both BSE and NSE It
also operates in the debt and currency futures segment The company is registered as a
DP with CDSL and NSDL Besides trading the company also offers PMS demat services and
mutual funds Share khan provides a comprehensive set of research reports relating
to IPO and mutual funds Other value added facilities offered to clients include
online trading dial-n-trade share shops fundamental and technical research The
company serves large number of retail clients with a client network of more than 100000
clients which includes HNIrsquos corporate and other retail customers The company
through its subsidiary Share khan Commodities Ltd provides commodity-trading services
Address A - 206 Phoenix House 2nd Floor Senapati Bapat Marg Lower Parel
Mumbai - 400013 Maharashtra
Telephone 91 22 67482000 Fax 91 22 66104533
Email compliancelpsharekhancom Website wwwsharekhancom
Registration Number NSE - INBINF231073330 BSE - INBINF01107335117
5 Indiabulls
Indiabulls Securities Ltd (Indiabulls) part of Indiabulls Group was established in 1995 The
company is in the business of providing securities and advisory services It is a corporate
member of capital market wholesale debt market and derivative segments of NSE and of
capital market and derivative segments of BSE
Indiabulls also operates in currency futures and is a DP of CDSL and NSDL It provides a
wide range of products and services which include internet trading NRI trading demat
16 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CKotak+Securities+Limited2Epdf17 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CSharekhan+ Limited2Epdf
services margin financing and distribution of financial products like IPO online
mutual funds etc Power Indiabulls (PIB) is the advanced online trading platform offered
by the company Indiabulls also offers research services in the areas of economic equity
mutual fund IPO and others The company operates in commodity segment through its
subsidiary India bulls Commodities Pvt Ltd which is a member of MCX and NCDEX It
is listed on both NSE and BSE
Address F-60 Malhotra Building 2nd Floor Connaught Place New Delhi - 110001 Delhi
Telephone 91 11 41523700 Fax 91 11 41529071
Email helpdeskindiabullscom Website wwwindiabullscom
Registration Number NSE - INBINF230875632 BSE - INBINF01087563218
18 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndiabulls+Securities+Limited2Epdf
22 Company Overview
221 Overview of the Organizations
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited Uday Kotak Sidney A A Pinto and Kotak amp Company promoted this company Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and thats when the company changed its name to Kotak Mahindra Finance Limited Since then its been a steady and confident journey to growth and success
Kotak Securities Ltd is one of Indias largest brokerage and securities distribution house in India Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-ordinates Kotak Securities Ltd offers online (through wwwkotaksecuritiescom) and offline services based on well-researched expertise and financial products to the non-institutional investors Kotak Securities Limited is the world of Capital Markets where everything newsworthy exists only in the present moment and where knowing the importance of timing sentiments and strategic forecasting makes the difference between profit and loss Kotak Securities Limited a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25 - one of the worldrsquos leading investment banks and brokerage firms) is Indiarsquos leading stock broking house with a market share of 7 - 8
Kotak Securities Limited is one of the larger players in distribution of IPOs - it was ranked number One in 2003-04 as Book Running Lead Manager in public equity offerings by PRIME Database It has also won the ldquoBest Equity Houserdquo Award from Finance Asia -April 2004 The Company has a full-fledged Research division involved in macro economic studies Sectoral research and Company specific equity research combined with a strong and well Networked sales force which helps deliver current and up-to-date market information and news
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them Kotak securities provide portfolio Management Services catering to the high end of the market Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market with the backing of an expert Kotak Securities Limited manages assets over Rs 1700 crores through itrsquos Portfolio Management Services (PMS) servicing high net worth clients with a large
investible surplus through its preferred client services in the mass affluent and wealth management segments The company has a full-fledged research division involved in Macro Economic studies Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news
222 MARKET SHARE
Kotak Securities Ltd is Indiarsquos leading stock broking house with a market share of around
85 percent as of March 31 2006 It handles more IPOs than any other brokerage The
company has a full-fledged research division involved in macroeconomic studies sect oral
research and company-specific equity research combined with a strong and well-
networked sales force which helps deliver current market information and news
The firm has 195 branches servicing more than 2200000 customers across 231 cities
Kotaksecuritiescom the online division offers Internet brokerage services and also online
IPO and mutual fund investments Kotak Securities manages over 2500 crores of Assets
under Management (AUM)
223 AWARDS AND RECOGNIZATION
Kotak Securities Ltd 100 subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry The companyrsquos offerings include stock broking
through the branch and Internet Investments in IPO Mutual funds and Portfolio
management service Kotak Securities has a full-fledged research division involved in
Macro Economic studies Sect oral research and Company Specific Equity Research
combined with a strong and well-networked sales force which helps deliver current and
up to date market information and news Kotak Securitiesrsquo network spans over 321 cities
with 877 outlets with an employee workforce beyond 5100
The company is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can avail the companyrsquos brokerage services for executing the
transactions and the depository services for settling them Kotak Securities Ltd processes
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
21 Industry Overview
211 Industry Profile
A stockbroker is nothing but a registered and qualified working professional who buys
stocks and derivatives for other people The stockbroker thus performs all the
transactions for people on the stock exchange The stockbroker maintains information of
the people for whom he is buying or selling stocks This information includes name
address PAN no and other relevant information No transaction can take place in the
stock market with out a stockbroker
The stockbroker cannot give inputs advice to people buying or selling stocks unless he is
registered with the Securities and exchange board of India as a portfolio manager The
stockbroker takes a certain brokerage for the transactions he does for his clients on the
stock exchange The brokers are expected to issue contract notes to the clients after a
particular transaction has been done They are also expected to issue periodic reports to
their clients with respect to the transactions that have been done by them in that periodic
interval If you are looking to become a portfolio manager then there is a different policy
and procedure that you need to follow for it
Stockbrokers can be individual stockbrokers or form a company or an organization there
by making a brokerage All brokerages have to pay a certain sales tax for the transactions
that are done with the brokerage by other clients wither through selling or buying a
certain stock Thus any person who wants to buy or sell any stock with a particular stock
exchange has to do that with a particular stockbroker affiliated with that stock exchange4
Securities Markets is a place where buyers and sellers of securities can enter into
transactions to purchase and sell shares bonds debentures etc
Further it performs an important role of enabling corporate entrepreneurs to raise
resources for their companies and business ventures through public issues Transfer of
resources from those having idle resources (investors) to others who have a need for
them (corporate) is most efficiently achieved through the securities market Stated
4 Source- httpwwwstockbrokingcoinwhat-is-stockbrokinghtml
formally securities markets provide channels for reallocation of savings to investments
and entrepreneurship Savings are linked to investments by a variety of intermediaries
through a range of financial products called lsquoSecuritiesrsquo5
The Securities Contract (Regulation) Act 1956 [SCRA] defines lsquoStock Exchangersquo as any
body of individuals whether incorporated or not constituted for the purpose of assisting
regulating or controlling the business of buying selling or dealing in securities Stock
exchange could be a regional stock exchange whose area of operationjurisdiction is
specified at the time of its recognition or national exchanges which are permitted to have
nationwide trading since inception NSE was incorporated as a national stock exchange6
222 Industry Evolution
The history of stockbrokers can be traced back to the origins of the first stock exchange in
1602 at Amsterdam Even before that brokers are said to have existed in France dealing
with government securities The Amsterdam Stock Exchange was involved in buying and
selling of shares for the Dutch East India Company However the first real stock exchange
came up in Philadelphia in the United States during the late 18th century Later it was the
New York stock exchange which saw a rise in its popularity Wall Street as it was called
became the hub of brokerage activities Earlier stockbrokers were largely unorganized
but later most of them joined hands to form institutes and organizations Until the 1980rsquos
stock broking services were used only by the wealthy class who could afford them Later
with the advent of the Internet stock broking became very easy Thus the price tag on
stockbrokers lowered considerably and their services became available even to the
common man The stock broking duties are now mostly taken up by major organizations
with the smaller companies being absorbed by them In India too with increasing
globalization the major corporations are penetrating deeper into the society7
A Stockbroker is nothing but a person who buys and sells securities from the stock market
on behalf of other investors Stock broking began in the United States of America
Philadelphia was the first city in America to have a stock exchange After which New York
became the heart of all stock transactions and Wall Street became synonymous with
investing and trading
5 Source-httpwwwgascicomfaqhtm6 Source-httpwwwaumassociatecoinsharebazaraspx7 Source-httpwwwindiacomcomyellowpagecategory-gyanarticlesStock-BrokersStock-Broker-Introductionasp
Since the early part of the 1980s stock broking was allowed in America In addition in the
late part of 1990s stock broking went online and now there are several online stock
brokerages on the internet and hence online transactions happen in a jiffy these days A
stockbroker may also be a financial advisor or an investment consultant these days but in
India you need to be registered with the Securities and exchange board of India in order
to act as a financial advisor As the name suggests a stockbroker mainly deals in stocks
that is the shares of a company Other professionals such as foreign exchange brokers
deal with currencies where as commodity brokers deal with commodities
All stock market transactions that is buying or selling of shares have to take place through
a broker or a brokerage Even if you make online transactions you need to do it through
an online stockbroker For performing the transaction online stockbrokers charge a small
brokerage fee or commission fee for the transactions that they do for other companies or
retail investors The brokerages that a stockbroker may charge are different for various
brokerages as they might have a different business model for the same8
The history of stock broking in the United States parallels the growth of the nations
economy since colonial times The industry has tended to be cyclical in nature and has
survived several downturns including a major economic depression in the 1930s
Government regulations have been introduced at times in an effort to place controls on
what were viewed as harmful trading practices
Origin
The first stock brokerage house in the United States started in Philadelphia in 1800 While
the practice had been around since the early 1700s the Philadelphia Stock Exchange was
the first organized body that brought brokers together and served to codify the rules and
regulations under which business had been conducted The profession continued to
expand with the growth of corporations and the dawning of the Industrial Revolution
Crash
The first major negative event in the industry occurred when the stock market crashed in
1929 which was followed by the Great Depression The result of the crash was due to
8 Source- httpwwwstockbrokingcoinorigin-of-stockbrokinghtml
investors who had borrowed heavily to purchase stocks and began to realize that they
were hugely overvalued and attempted to sell them off resulting in a panic
Securities Act
In an effort to prevent the recurrence of the 1929 crash the Securities Act was
implemented in 1933 as a way to regulate the industry Eventually the stock market
began to rebound and continued a general pattern of steady growth over the next several
decades
Change
In the early 1970s the growth of technology led to reforms in the United States that
helped to reopen the markets to more liberalized trading In the late 1980s another crash
in the market occurred due to the dropping of prices of stock index futures Much like the
Great Depression this led to a mass selling of these securities causing the stock market to
plummet
Rebound
Stock broking again saw a boom as tighter regulations were put in place following the
1987 crash The markets reached new heights in the late 1990s The terrorist attacks of
September 11 2001 slowed the pattern of growth
Another Crash
In 2008 the largest single-day drop since 1987 occurred as the market lost $12 trillion of
its value on September 29 The drop occurred because of several factors including the
collapse of the mortgage industry and a worsening credit crisis The market has
rebounded only slightly as of mid-20099
223 Salient Features of the Industry in India
On the basis of geographical concentration the west region has the maximum
representation of 52 around 24 firms are located in the North 13 in the South and
10 in the East
9 Source-httpwwweHowcommabout_5208105_history-stockbrokinghtml
3 firms are started broking operations before 1950 65 between 1950-1995 and
32 Post1995
On the basis of terminals 40 are located at Mumbai 12 in Delhi 8 in
Ahmadabad 7 in Kolkata 4 in Chennai and 29 are from other cities
From the study we find that almost 36 firms trade in cash derivatives and
commodities
In the cash market around 34 firms trade at NSE 14 at BSE and 52 trade at
both exchanges In the derivative segment 48 trade at NSE 7 at BSE and 45 at both
whereas in the debt market 31 trade at NSE 26 at BSE and 43 at both Exchanges
Majority of branches are located in the North ie around 40 West has 31 24
are located in South and 5 in East
In terms of Sub brokers around 55 are located in the South 29 in West 11 in
North and 4 in East
Trading IPOs and Mutual funds are the top three products offered with 90 firms
offering trading 67 IPOs and 53 firms offering mutual fund transactions
In terms of various areas of growth 84 firms have expressed interest in
expanding their institutional clients 6 firms intend to increase FII clients and 43 are
interested in setting up JV in India and abroad
In terms of IT penetration 62 firms have provided their website and around 94
firms have E-mail facility10
224 Recent Trends
Equity brokerage industry in India is experiencing rapid growth and diversity Following
the wide range of stock market reforms in the early 2000rsquos brokerage industry underwent
major transformations from being engaged in only brokerage business to offering a wide
range of financial services A modern broking house in India may well be a corporate
entity that offers a wide range of products relies on research for advice uses modern
technology has large distribution network connecting the country provides investor
education and awareness and is compliance focused These developments have resulted
in a huge spurt in business as also growing market share of the large sized brokerage
houses that led to surge in enterprise value thus becoming objects of interest for global
investing In the recent period global and domestic private equity firms have taken stake
10 Source- httpwwwdnbcoinequitybrokingindustry20insightsasp
in brokerage firms such as Anand Rathi (Citigroup) Edelweiss (Lehman Brothers) Geojit
(BNP Paribas) SMC (Millennium India) Motilal Oswal (New Vernon) Marwari Shares
(India Capital Growth Fund) J R G Securities (Barings Pvt Equity) and Network Broking
(Amas Bank of Hindujas) India Infoline (Orient Global) etc Initial Public Offerings of large
firms in2007 such as Motilal Oswal Edelweiss and Religare received huge response from
the markets (over subscription going more than 100) and also high premiums Large
issues of these brokerage firms debuted in the stock exchange with premiums ranging
from 20 to 75 With the stock market momentum likely to continue broking firms
could look forward to scaling up their resource mobilization to fund growing operations
and expansion Brokerages mopping up huge resources from the market are not unusual
even in the emerging markets For instance Citic Securities a Chinese securities firm is
reported to have raised US $ 33 bn last year and other firms such as Haitong and Gold
state are planning to come out with IPOs of US $ 4-5 bn in 2008
In India about 45 equity brokerage houses are at present listed on the stock exchanges
that together reported Rs 35 bn of equity total income of Rs 47 bn and net profit of Rs 3
bn for the second quarter of FY08
Prospects and Outlook
Indian broking houses could look forward to a period of growth and consolidation Indiarsquos
economic growth and deepening of the financial system will present the broking firms
with numerous opportunities for growth and expansion Integration of the financial
markets will enhance the scope of their business and scalability Access to public equity
markets will enable them to raise resources to fund expansion and growths as pursue
useful business acquisitions Growing international investor interest in India will add
newer opportunities to scale up the business as also harmonsing with global standard and
practices Introduction of new products such as mini contracts in the derivatives and other
futures and options products will add new opportunities for creating new business
segments
While opportunities abound there is a great need for reform and restructuring of the
equity broking industry There are about 9000 brokers registered with SEBI but 80
percent of the turnover in NSE and BSE is accounted for by about 100 brokers
Consolidation thus becomes relevant to forge a stronger industry Similarly capital levels
too need to be strengthened The 45 odd listed broking firms in India together have a
meager Rs 35 bn of capital which is far less than what one top broking firm in China
could raise from the capital markets Better performance and practices will enable broking
firms to increase capital levels that will be essential for funding expansion
Investor education and awareness is another aspect broking industry should promote in
the long-term interest of the market As the product mix and risk matrix in financial
markets are continuously changing it becomes imperative for the intermediaries to
educate and create awareness in the clients that would be mutually beneficial Better
understanding of the financial products and associated risks by the investors will be in the
interest of the growth and stability of the markets
The Indian broking industry is coming of age It has enormous opportunities for growth
and diversity As markets expand and get globalised these firms will have increased
opportunity to cater to a large and diverse range of clientele with a wide mix of products
and services Expanding markets offer enhanced opportunities Those who are well
prepared will be in a better position to garner the benefits11
225 Performance Growth Scenario
Some of the major recent developments in the global securities markets have been
summarized below
Equalization
Equity markets have expanded significantly in a large number of countries across the
world The market capitalization of the worldrsquos leading stock exchanges rose from about
USD11 trillion in 1991 to USD35 trillion in 1999 to about USD51 trillion in 2006 The
growth of market capitalization is evident across regions Market capitalization in Asia
nearly doubled from USD68 trillion in 1999 to USD118 trillion in2006 where as in
America it grew from USD179 trillion to USD226 trillion and in EuropeAfricaMiddle
East it rose from USD102 trillion to USD161 trillion Market capitalization as a percent of
GDP witnessed steep growth in several countries during this period
Similarly trading volumes in stock exchanges too has shown rapid growth Value of share
trading in stock exchanges rose from about USD54 trillion in 1991 to USD33 trillion in
1999 to about USD70 trillion in 2006 During the period 1999 and 2006 value of share
trading in Asia Pacific rose from USD42 trillion to USD12 trillion in EuropeAfricaMiddle
11 Source- httpwwwdnbcoinequitybroking2008Emergingtrenasp
East from USD83 trillion to USD218 trillion and in Americas from USD20 trillion to USD35
trillion
Institutional investment
The rapid growth of stock markets in the world to a significant extent could be explained
by the surge in the institutional investors consisting of pension funds insurance
companies and mutual funds During the period 1995 and 2005 the assets under
management of the institutional investors doubled from USD21trillion to USD53 trillion A
large number of institutional investors are moving away from the home bias investing in
outside world Emerging markets with higher economic growth and rapidly growing
financial markets became major centers of destination for the investments of institutional
investors For instance in the US in 1994 pension funds invested 41 of their portfolio in
domestic equity and 7 in international equities where as by 2005 that share rose to 48
in domestic equities and 15 in international equities The portfolio allocation to bond
markets during the same period reduced from 42 to 32 Emerging markets received
sizeable portion of the investments In the US the dedicated emerging markets mutual
funds rose from about USD27 bn in2000 to USD 230 bn in 2006
International listings
On the back of the liberalization of cross border financial flows companies in several
countries are seeking listing in international exchanges to garner benefits from
international investors as also widen their investor base The number of foreign
companies listed in the London Stock Exchange rose from 387 in 1970 to 553 in 1990 to
636 in 2006 The number of foreign companies listed on the NYSE has also risen rapidly in
the 1990s There is a keen competition across the worldrsquos leading stock exchanges to
promote international listing and gain greater influence In the recent period the US
experienced a slowdown in the listing of foreign companies The decline is attributed to
stringent corporate governance norms that were applied following the corporate abuses
found in the beginning of the decade The US is now examining in greater detail measures
to gain the prominence once it enjoyed in the international listings The Alternative
Investment Market of London Stock Exchange attracted huge interest from SMEs from a
large number of countries
Emerging markets as an investment destination
Liberalization of capital flows led to surge in international investment into emerging
economies finding value on the back of huge prospects for growth The flow of net
Foreign Direct Investment (FDI) into developing countries increased from USD170 bn in
1998 to USD325 bn in 2006 and net portfolio equity flows increased from USD6 bn to
USD94 bn during the same period Net debt flows during this period are rather subdued
with net debt flows from official creditors turning negative Net portfolio equity flows to
China between the year 2000 and 2006 rose from USD69 bn to USD32 bn and in India
from USD23 bn to USD87 bn Other emerging markets such as Brazil Mexico South
Africa Thailand and Russia too showed surge in the net portfolio equity flows Emerging
markets showed significant growth in stock prices making them attractive investment
destinations though issues of valuations are beginning to become a concern now
Growing correlation of returns
Greater harmonization of stock markets in mature and emerging markets is in evidence by
the increasing correlation in market returns across different markets The higher
correlation in the stock price movements gained momentum in the late 1990s due to
growing foreign institutional investment in several markets and growth of the technology
sector that pervaded many markets and has driven stock price momentum in the late
1990s
Emerging markets in the new issuance market
Emerging markets also became very active in the new issuance market In 2006 all the ten
largest cross border new capital issues were from the emerging markets These ten issues
were from China Russia Mexico Thailand and Kazakhstan Of these ten issues four each
were listed in London and Hong Kong and only one in the US The value of the new listings
by emerging market companies in the US exchanges declined from USD29 bn in 2004 to
USD27 bn in 2006 where as that of London rose from USD07 bn to USD96 bn and in
Hong Kong from USD72 bn to USD304 bn Emerging markets in the first five months of
2007 have raised USD537 bn in global financial markets which is reported to be the
highest ever amount raised for a year Some of the leading issues during this period
include the USD8 bn IPO by VTB second largest Russian bank USD185 bn by Turkish
financial institution Halk bank and USD14 bn by a Russian real estate company AFI
Development Some of the largest issues from the emerging markets in the recent period
include USD219 bn issue of Chinarsquos ICBC Bank (Oct 2006) USD112 bn issue of Bank of
China (May 06) USD107 bn issue of Russian energy company Ros neft (Jul 06) USD59 bn
pubic issue of Chinarsquos Citic Bank
Alternative markets
In view of the limitations on listing of small and medium scale companies in the big boards
of the main exchanges several stock exchanges have developed alternative markets for
encouraging listing of small and midcap stocks Almost every major exchange has an
alternative platform for listing and trading of small and midcap stocks and new generation
companies without much listing history The market capitalization of the alternative
markets in the year 2006 has grown at an impressive rate of 30 More than 12000
companies are listed in these alternative markets and the value of share trading of these
for SMEs markets rose 15 in 2006 from USD802 bn to USD919 bn New capital (IPOs)
rose in the alternative markets rose 59 in 2006 from USD136 bn to USD216 bn
Growth of Derivatives
The growth of derivatives picked up on the need for risk transfer products The size of
global derivatives industry in 2006 USD370 trillion of notional value and USD10 trillion of
market value in the Over the Counter (OTC) derivative markets and USD84 trillion of
notional value and USD10 trillion market value in the Exchange traded derivative markets
According to the International Swaps and Derivatives Association more than 90 percent
of the global 500 corporations use derivatives for hedging risks in interest rates foreign
exchange and equities In the OTC markets derivative products accounting for large share
of market value include interest rate (785) and Foreign Exchange (114) where as in
the Exchange Traded segment derivative products on interest rate government debt and
equities form the major part of the volumes
Dark Pools and Private Markets
In the third week of May 2007 Goldman Sachs launched GSTrue which is a platform
developed to allow exclusive club of big investors to trade unregistered privately placed
securities which is considered to be a major challenge for the public equity capital
markets in the US Goldman Sachs in that deal helped underwrite the private sale of 15
of hedge fund manager Oak tree Capital Management for USD800 mn The investors in
this sale would be able to buy and sell Oak tree shares through the new Goldman Sachs
Tradable Unregistered Equity System which has its acronym GSTRue
Under the rules of the Securities and Exchange Commission of the US companies can sell
securities without registering them as long as the issues are limited to qualified
institutional buyers which are investors with at least USD100 mn of assets and there are
no more than 500 stockholders Private pools of capital are growing in size and
significance in international markets to overcome the costs and pressures from stringent
regulation According to an estimate of NASDAQ in 2006 companies in the US raised
USD162 bn of capital through unregistered private placements (also known as 144A
private placements) compared with USD154 bn through IPOs which are registered with
the regulator A group of worldrsquos largest banks are developing ldquoProject Turquoiserdquo which
is a hybrid share trading system that allows transactions both on exchange and outside it
(called as dark liquidity pools) where firms with large asset base can buy and sell large
blocks of shares away from the regulatory oversight
Private Equity
Private equity is growing in size and significance In view of the regulatory standards
prevalent in the public equity capital markets several firms seek the private equity option
to raise resources According to Dialogic the top 50 private equity firms raised USD551 bn
out of the USD800 bn estimated to have been raised by the total private equity since Jan
2002 Of the top 50 private equity firms more than 30 are from the US 11 from the UK
five from Western Europe and one from Asia Pacific Private equity is now involved in high
value deals and recent transactions include USD35 bn HCA buyout in the healthcare
industry and bids of USD39 bn and USD41 bn for Equity Office Property Trust a
commercial office real estate trust in the United Trust It is expected that the transaction
values of the private equity may go up to USD50-100 bn in the near future Private equity
market in India raised USD22 bn in 2005 about USD4 bn in 2006 and is expected to raise
about USD10 bn by 2010 according to a recent study
Hedge Funds
Hedge Funds emerged from the need of investors seeking alpha to earn an excess return
and beat the market and the returns from the conventional investments Alpha is a
common measure of assessing an active managerrsquos performance as it is the return in
excess of a benchmark index or ldquorisk-freerdquo investment The difference between the fair
and actually expected rates of return on a stock is called the stockrsquos alpha In view of rapid
growth of hedge funds and their complex nature of operations and lack of adequate
regulatory control these funds became a major concern of global financial regulation
Notwithstanding these concerns hedge funds continue to grow with the size of the
market growing from about USD30 bn in 1990 to more than USD14 trillion in 2005 and
the number of funds rising from about 530 to about 7000 during this period An
interesting development in the recent period is the growing institutional investment in the
hedge funds which is estimated at USD360 bn in 2005 and the rising allocations to these
funds that was evident in the US and XXVII the European markets The investor base of
the hedge funds consists of individualsfamilies fund of funds corporations and
institutions public and private pensions and endowments and foundations in that order
Investor Protection
With democratization of markets leading to greater participation of individuals and
investments and wide choices of asset classes now available issues of investor interest
and protection have assumed centre stage Following the corporate crises in the US that
adversely affected the investor interests extensive federal investigations were launched
that led to imposition of huge penalties and punitive damages leading to billions of
dollars Such actions were taken against a wide spectrum of global investment banks
brokerage firms and other related entities Simultaneously growth of litigation and class
action suits showed significant rise when the market intermediaries failed to meet their
obligations or did not provide all the material facts to the investors that were crucial for
an investment decision
Securities regulators imposed penalties on market participants who were found to have
indulged in market abuses In India disgorgement orders were passed on certain entities
that were found to making money by unfair means and for violating regulatory norms and
procedures Top institutional investors in several countries devised their own review
process for investing in countries and companies that brought into light greater need for
higher standards in corporate governance disclosure and transparency standards and in
some cases concern towards issues such as democracy and social equity environment
economic and political reforms
Surge in Chinese capital markets
A major change in the year 2007 is the sudden leap of China into big league of global stock
markets On 9 May 07 Shanghai Stock Exchange Chinarsquos top stock market recorded
turnover of USD332 bn and Shenzhen Stock Exchange a stock market for SMEs an
equally powerful USD158 bn taking the combined turnover of both these stock
exchanges on that day to USD495 bn In the first three months of the year 2007 value of
share trading in both these Chinese stock markets reached 89 of the whole turnover of
the year 2006 Value of share trading in Shanghai Stock Exchange rose from USD256 bn in
2003 to USD736 bn in 2006 and in the first three months of the year 2007 it already
recorded USD652 bn Market capitalization in China between Apr 2006 and 2007 rose by
almost 4 times pushing it to a position among the top 10 exchanges in the world and
value of share turnover rose 6 times making Shanghai 6 the biggest Main indexes of
Shanghai Stock Exchange and Shenzhen Stock Exchange posted returns of 194 and 204
respectively in the 12 months proceeding Apr 2007
Rise of smaller markets
The growth and momentum of the stock markets is spreading across a large number of
markets big and small Recent evidence of big surge in stock markets include countries in
the Middle East which witnessed exceptional growth in 20052006 China in 2007 and
several smaller European and Latin American countries in the last one year As
international investing is spreading its presence domestic financial institutions and
investors are finding stocks as an important asset class and stock markets all over the
world have experienced rapid growth in the last five years
Stock exchange consolidation
A big wave of stock exchange consolidation is taking place across the global financial
markets The most notable merger in the recent period is that of the New York Stock
Exchange with Archipelago that led to the demutualization of the former which
subsequently acquired Euro next to form NYSE Group that makes it a formidable force in
the North America and the Euro region Another American exchange NASDAQ after the
merger with Instinet announced plans to acquire OMX which is Europersquos leading
exchange as also provider of cutting edge technology solutions for stock exchanges
worldwide Deutsche Borsersquos recent acquisition of International Securities Exchange gives
the former a powerful position in the derivatives markets in Europe and America There
was also sizeable consolidation within the domestic securities markets in several countries
with the merger of equities and derivatives markets in countries such as Korea Malaysia
and Hong Kong In India the issue of appropriate solutions for the 20 odd stock exchanges
that currently lack proper liquidity is engaging the attention of policy and regulation
RECENT DEVELOPMENTS GOVERNING REGULATION OF STOCK MARKETS
Systematic and streamlined regulation is the key strength and sustainability of the
securities markets Though formal regulation of the securities markets is about 70 years
old some of the recent developments in the financial markets are reshaping the scope
and focus of the regulation These include ndash
There is growing harmonization of regulation across different markets Organizations
such as International Organization for Securities Commissions (IOSCO) are playing a very
important role in adoption of uniform principles and guidelines across the markets
The size and scope of the securities markets is rapidly changing from being one or
two product markets to multi product markets with diverse features and different
investor base
Markets have become more democratized with more people and institutions
participating in the market related activities
Rapid increase in the size of the institutional participation in the financial markets
For instance equity markets which in the past were retail investor driven are now
increasingly become institutional induced
Securities markets are transforming from being membership driven to public
corporation following demutualization and corporatization of stock exchanges in mature
and emerging markets
Two most important pieces of regulation that came into being in the recent period are in
the form of market structure reforms in the US known more popularly as regulation NMS
which underlines the promotion of competition across the markets under three major
principles best price open access and transparency Under the new trade-through role in
whichever market a customer placed his order it should be able to access the best price
that is immediately and automatically available anywhere in the national market system
The trade-through rule will not allow markets to ignore better-priced automated quotes
displayed by the competitors Similarly open access to displayed prices will be a major
feature governing the competition of the markets The regulation also stipulates that all
significant markets must display their quotations and trade reports should be available to
all interested parties on fair terms and non-discriminatory manner Another equally
important development is the Markets in Financial Industry Directive (MiFiD) that will
come into force from 1 Nov 2007 and stipulates wide-ranging norms for financial
institutions in the European Union Major features of the MiFiD include wider scope of
coverage of the financial institutions and the related business activities greater degree of
harmonization across the European markets and facilitate cross border business and
stipulated capital requirements
MiFiD is envisaged to bring major changes in the manner financial institutions in the
European Union will be monitored Simultaneous with stringent norms of regulation the
scope of regulation is considerably delegated to the markets and institutions in the form
of self-regulation Self-regulation brings a number of benefits to the business Institutions
such as National Association of Securities Dealers (NASD) have played an important role in
promoting self-regulation However self-regulation has certain limitations it needs to
overcome before it becomes widely accepted across the markets12
225 Top five companies of the industry
Many time new investor or trader gets confusion for open a D Mat and trading account in
broking House Many of broking House promises to you for better service but clients get
problem due to trading session in theirs Broker house firm Here is the list of Indiarsquos top 5
broking House on base of survey of investors and traders of many cities In their views
following Broking Houses gives best and reliable services13
1 ICICI directcom
ICICI Securities empowers over 2 million Indians to seamlessly access the capital market
with ICICIdirectcom an award winning and pioneering online broking platform The
platform not only offers convenient ways to invest in Equity Derivatives Currency
Futures Mutual Funds but also other services Fixed Deposits Loans Tax Services New
Pension Systems and Insurance are available ICICIdirectcom offers a convenient and easy
to use platform to invest in equity and various other financial products using its unique 3-
in-1 account which integrates customerrsquos saving trading and demat accounts
Apart from convenience ICICIdirectcom also offers access to comprehensive research
information stock picks and mutual fund recommendations among other offerings
Tailored services and trading strategies are available to different types of customers long
term investors day traders high-volume traders and derivatives traders to name some
ICICIdirectcom uses the most advanced commercially available 128-bit encryption
technology enabled Secure Socket Layer (SSL) to ensure that the information transmitted
between the client and ICICIdirectcom across the internet is safe and cannot be accessed
by any third party14
2 India Infoline
India Infoline Ltd (India Infoline) established in 1995 is the holding company of the
India Infoline Group It has membership in the cash and derivative segments of both 12 Source- httpwwwdnbcoinequitybrokingglobal20scenarioasp13 Source- Httpwwwindianstockmarketorgindias-top-10-stock-broking-house14 Source-httpwwwicicisecuritiescomOurBusinessSubSubReportID=10223ampshortCode=INST
the NSE and BSE India Infoline is also registered as a DP with NSDL and CDSL India
Infoline through its subsidiary India Infoline Commodities Limited also offers commodity-
trading services which is a registered member with DGCX since 2006 It also operates in
the currency futures market segment India Infoline offers a wide range of products
and services which include investment banking distribution of financial products
demat services private equity PMS institutional broking WMS insurance broking
among others In addition it also offers research services in areas of economy
derivative strategies mutual funds IPO credit policy and various others The company
has 15 domestic subsidiaries and five foreign subsidiaries The company has global
presence through its subsidiaries in New York Singapore and Dubai India Infoline caters
majorly to retail clients During CY09 the company added 303480 client accounts
Address 75 Nirlon Complex Off Western Express Highway Goregaon (East) Mumbai -
400063 Maharashtra
Telephone 91 22 42499000 Fax 91 22 26850451
Email mailindiainfolinecom Website wwwindiainfolinecom
Registration Number NSE - INBINF231097537 BSE - INBINF01109753315
3 Kotak Securities Ltd
Kotak Securities Ltd (Kotak Securities) is the stock-broking and distribution arm of the
Kotak Mahindra Group and a subsidiary of Kotak Mahindra Bank Kotak Securities was
established in 1994 It has memberships in the cash derivatives and currency futures
segments of NSE and BSE Kotak Securities is also a DP with NSDL and CDSL Apart from
stock broking the company is engaged in offering depository services asset management
margin financing PMS and distribution of financial products like IPOrsquos mutual funds and
insurance The company has a full-fledged research division which offers macro
economic sectoral research and company specific equity research Its domestic network
spans over 383 cities and 1048 offices Trading in equities and derivatives contributes to
major part of the companyrsquos revenue During CY09 Kotak Securities added around 62194
accounts of which around 27 are e-broking accounts The companyrsquos overseas
operations include one subsidiary and two associate firms operating in two foreign
locations
15 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndia+Infoline+Limited2Epdf
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF01113323016
4 Share Khan
Sharekhan Ltd (Sharekhan) is one a leading brokerage houses established in 2000
Sharekhan has membership in the cash and derivative segments of both BSE and NSE It
also operates in the debt and currency futures segment The company is registered as a
DP with CDSL and NSDL Besides trading the company also offers PMS demat services and
mutual funds Share khan provides a comprehensive set of research reports relating
to IPO and mutual funds Other value added facilities offered to clients include
online trading dial-n-trade share shops fundamental and technical research The
company serves large number of retail clients with a client network of more than 100000
clients which includes HNIrsquos corporate and other retail customers The company
through its subsidiary Share khan Commodities Ltd provides commodity-trading services
Address A - 206 Phoenix House 2nd Floor Senapati Bapat Marg Lower Parel
Mumbai - 400013 Maharashtra
Telephone 91 22 67482000 Fax 91 22 66104533
Email compliancelpsharekhancom Website wwwsharekhancom
Registration Number NSE - INBINF231073330 BSE - INBINF01107335117
5 Indiabulls
Indiabulls Securities Ltd (Indiabulls) part of Indiabulls Group was established in 1995 The
company is in the business of providing securities and advisory services It is a corporate
member of capital market wholesale debt market and derivative segments of NSE and of
capital market and derivative segments of BSE
Indiabulls also operates in currency futures and is a DP of CDSL and NSDL It provides a
wide range of products and services which include internet trading NRI trading demat
16 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CKotak+Securities+Limited2Epdf17 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CSharekhan+ Limited2Epdf
services margin financing and distribution of financial products like IPO online
mutual funds etc Power Indiabulls (PIB) is the advanced online trading platform offered
by the company Indiabulls also offers research services in the areas of economic equity
mutual fund IPO and others The company operates in commodity segment through its
subsidiary India bulls Commodities Pvt Ltd which is a member of MCX and NCDEX It
is listed on both NSE and BSE
Address F-60 Malhotra Building 2nd Floor Connaught Place New Delhi - 110001 Delhi
Telephone 91 11 41523700 Fax 91 11 41529071
Email helpdeskindiabullscom Website wwwindiabullscom
Registration Number NSE - INBINF230875632 BSE - INBINF01087563218
18 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndiabulls+Securities+Limited2Epdf
22 Company Overview
221 Overview of the Organizations
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited Uday Kotak Sidney A A Pinto and Kotak amp Company promoted this company Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and thats when the company changed its name to Kotak Mahindra Finance Limited Since then its been a steady and confident journey to growth and success
Kotak Securities Ltd is one of Indias largest brokerage and securities distribution house in India Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-ordinates Kotak Securities Ltd offers online (through wwwkotaksecuritiescom) and offline services based on well-researched expertise and financial products to the non-institutional investors Kotak Securities Limited is the world of Capital Markets where everything newsworthy exists only in the present moment and where knowing the importance of timing sentiments and strategic forecasting makes the difference between profit and loss Kotak Securities Limited a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25 - one of the worldrsquos leading investment banks and brokerage firms) is Indiarsquos leading stock broking house with a market share of 7 - 8
Kotak Securities Limited is one of the larger players in distribution of IPOs - it was ranked number One in 2003-04 as Book Running Lead Manager in public equity offerings by PRIME Database It has also won the ldquoBest Equity Houserdquo Award from Finance Asia -April 2004 The Company has a full-fledged Research division involved in macro economic studies Sectoral research and Company specific equity research combined with a strong and well Networked sales force which helps deliver current and up-to-date market information and news
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them Kotak securities provide portfolio Management Services catering to the high end of the market Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market with the backing of an expert Kotak Securities Limited manages assets over Rs 1700 crores through itrsquos Portfolio Management Services (PMS) servicing high net worth clients with a large
investible surplus through its preferred client services in the mass affluent and wealth management segments The company has a full-fledged research division involved in Macro Economic studies Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news
222 MARKET SHARE
Kotak Securities Ltd is Indiarsquos leading stock broking house with a market share of around
85 percent as of March 31 2006 It handles more IPOs than any other brokerage The
company has a full-fledged research division involved in macroeconomic studies sect oral
research and company-specific equity research combined with a strong and well-
networked sales force which helps deliver current market information and news
The firm has 195 branches servicing more than 2200000 customers across 231 cities
Kotaksecuritiescom the online division offers Internet brokerage services and also online
IPO and mutual fund investments Kotak Securities manages over 2500 crores of Assets
under Management (AUM)
223 AWARDS AND RECOGNIZATION
Kotak Securities Ltd 100 subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry The companyrsquos offerings include stock broking
through the branch and Internet Investments in IPO Mutual funds and Portfolio
management service Kotak Securities has a full-fledged research division involved in
Macro Economic studies Sect oral research and Company Specific Equity Research
combined with a strong and well-networked sales force which helps deliver current and
up to date market information and news Kotak Securitiesrsquo network spans over 321 cities
with 877 outlets with an employee workforce beyond 5100
The company is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can avail the companyrsquos brokerage services for executing the
transactions and the depository services for settling them Kotak Securities Ltd processes
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
formally securities markets provide channels for reallocation of savings to investments
and entrepreneurship Savings are linked to investments by a variety of intermediaries
through a range of financial products called lsquoSecuritiesrsquo5
The Securities Contract (Regulation) Act 1956 [SCRA] defines lsquoStock Exchangersquo as any
body of individuals whether incorporated or not constituted for the purpose of assisting
regulating or controlling the business of buying selling or dealing in securities Stock
exchange could be a regional stock exchange whose area of operationjurisdiction is
specified at the time of its recognition or national exchanges which are permitted to have
nationwide trading since inception NSE was incorporated as a national stock exchange6
222 Industry Evolution
The history of stockbrokers can be traced back to the origins of the first stock exchange in
1602 at Amsterdam Even before that brokers are said to have existed in France dealing
with government securities The Amsterdam Stock Exchange was involved in buying and
selling of shares for the Dutch East India Company However the first real stock exchange
came up in Philadelphia in the United States during the late 18th century Later it was the
New York stock exchange which saw a rise in its popularity Wall Street as it was called
became the hub of brokerage activities Earlier stockbrokers were largely unorganized
but later most of them joined hands to form institutes and organizations Until the 1980rsquos
stock broking services were used only by the wealthy class who could afford them Later
with the advent of the Internet stock broking became very easy Thus the price tag on
stockbrokers lowered considerably and their services became available even to the
common man The stock broking duties are now mostly taken up by major organizations
with the smaller companies being absorbed by them In India too with increasing
globalization the major corporations are penetrating deeper into the society7
A Stockbroker is nothing but a person who buys and sells securities from the stock market
on behalf of other investors Stock broking began in the United States of America
Philadelphia was the first city in America to have a stock exchange After which New York
became the heart of all stock transactions and Wall Street became synonymous with
investing and trading
5 Source-httpwwwgascicomfaqhtm6 Source-httpwwwaumassociatecoinsharebazaraspx7 Source-httpwwwindiacomcomyellowpagecategory-gyanarticlesStock-BrokersStock-Broker-Introductionasp
Since the early part of the 1980s stock broking was allowed in America In addition in the
late part of 1990s stock broking went online and now there are several online stock
brokerages on the internet and hence online transactions happen in a jiffy these days A
stockbroker may also be a financial advisor or an investment consultant these days but in
India you need to be registered with the Securities and exchange board of India in order
to act as a financial advisor As the name suggests a stockbroker mainly deals in stocks
that is the shares of a company Other professionals such as foreign exchange brokers
deal with currencies where as commodity brokers deal with commodities
All stock market transactions that is buying or selling of shares have to take place through
a broker or a brokerage Even if you make online transactions you need to do it through
an online stockbroker For performing the transaction online stockbrokers charge a small
brokerage fee or commission fee for the transactions that they do for other companies or
retail investors The brokerages that a stockbroker may charge are different for various
brokerages as they might have a different business model for the same8
The history of stock broking in the United States parallels the growth of the nations
economy since colonial times The industry has tended to be cyclical in nature and has
survived several downturns including a major economic depression in the 1930s
Government regulations have been introduced at times in an effort to place controls on
what were viewed as harmful trading practices
Origin
The first stock brokerage house in the United States started in Philadelphia in 1800 While
the practice had been around since the early 1700s the Philadelphia Stock Exchange was
the first organized body that brought brokers together and served to codify the rules and
regulations under which business had been conducted The profession continued to
expand with the growth of corporations and the dawning of the Industrial Revolution
Crash
The first major negative event in the industry occurred when the stock market crashed in
1929 which was followed by the Great Depression The result of the crash was due to
8 Source- httpwwwstockbrokingcoinorigin-of-stockbrokinghtml
investors who had borrowed heavily to purchase stocks and began to realize that they
were hugely overvalued and attempted to sell them off resulting in a panic
Securities Act
In an effort to prevent the recurrence of the 1929 crash the Securities Act was
implemented in 1933 as a way to regulate the industry Eventually the stock market
began to rebound and continued a general pattern of steady growth over the next several
decades
Change
In the early 1970s the growth of technology led to reforms in the United States that
helped to reopen the markets to more liberalized trading In the late 1980s another crash
in the market occurred due to the dropping of prices of stock index futures Much like the
Great Depression this led to a mass selling of these securities causing the stock market to
plummet
Rebound
Stock broking again saw a boom as tighter regulations were put in place following the
1987 crash The markets reached new heights in the late 1990s The terrorist attacks of
September 11 2001 slowed the pattern of growth
Another Crash
In 2008 the largest single-day drop since 1987 occurred as the market lost $12 trillion of
its value on September 29 The drop occurred because of several factors including the
collapse of the mortgage industry and a worsening credit crisis The market has
rebounded only slightly as of mid-20099
223 Salient Features of the Industry in India
On the basis of geographical concentration the west region has the maximum
representation of 52 around 24 firms are located in the North 13 in the South and
10 in the East
9 Source-httpwwweHowcommabout_5208105_history-stockbrokinghtml
3 firms are started broking operations before 1950 65 between 1950-1995 and
32 Post1995
On the basis of terminals 40 are located at Mumbai 12 in Delhi 8 in
Ahmadabad 7 in Kolkata 4 in Chennai and 29 are from other cities
From the study we find that almost 36 firms trade in cash derivatives and
commodities
In the cash market around 34 firms trade at NSE 14 at BSE and 52 trade at
both exchanges In the derivative segment 48 trade at NSE 7 at BSE and 45 at both
whereas in the debt market 31 trade at NSE 26 at BSE and 43 at both Exchanges
Majority of branches are located in the North ie around 40 West has 31 24
are located in South and 5 in East
In terms of Sub brokers around 55 are located in the South 29 in West 11 in
North and 4 in East
Trading IPOs and Mutual funds are the top three products offered with 90 firms
offering trading 67 IPOs and 53 firms offering mutual fund transactions
In terms of various areas of growth 84 firms have expressed interest in
expanding their institutional clients 6 firms intend to increase FII clients and 43 are
interested in setting up JV in India and abroad
In terms of IT penetration 62 firms have provided their website and around 94
firms have E-mail facility10
224 Recent Trends
Equity brokerage industry in India is experiencing rapid growth and diversity Following
the wide range of stock market reforms in the early 2000rsquos brokerage industry underwent
major transformations from being engaged in only brokerage business to offering a wide
range of financial services A modern broking house in India may well be a corporate
entity that offers a wide range of products relies on research for advice uses modern
technology has large distribution network connecting the country provides investor
education and awareness and is compliance focused These developments have resulted
in a huge spurt in business as also growing market share of the large sized brokerage
houses that led to surge in enterprise value thus becoming objects of interest for global
investing In the recent period global and domestic private equity firms have taken stake
10 Source- httpwwwdnbcoinequitybrokingindustry20insightsasp
in brokerage firms such as Anand Rathi (Citigroup) Edelweiss (Lehman Brothers) Geojit
(BNP Paribas) SMC (Millennium India) Motilal Oswal (New Vernon) Marwari Shares
(India Capital Growth Fund) J R G Securities (Barings Pvt Equity) and Network Broking
(Amas Bank of Hindujas) India Infoline (Orient Global) etc Initial Public Offerings of large
firms in2007 such as Motilal Oswal Edelweiss and Religare received huge response from
the markets (over subscription going more than 100) and also high premiums Large
issues of these brokerage firms debuted in the stock exchange with premiums ranging
from 20 to 75 With the stock market momentum likely to continue broking firms
could look forward to scaling up their resource mobilization to fund growing operations
and expansion Brokerages mopping up huge resources from the market are not unusual
even in the emerging markets For instance Citic Securities a Chinese securities firm is
reported to have raised US $ 33 bn last year and other firms such as Haitong and Gold
state are planning to come out with IPOs of US $ 4-5 bn in 2008
In India about 45 equity brokerage houses are at present listed on the stock exchanges
that together reported Rs 35 bn of equity total income of Rs 47 bn and net profit of Rs 3
bn for the second quarter of FY08
Prospects and Outlook
Indian broking houses could look forward to a period of growth and consolidation Indiarsquos
economic growth and deepening of the financial system will present the broking firms
with numerous opportunities for growth and expansion Integration of the financial
markets will enhance the scope of their business and scalability Access to public equity
markets will enable them to raise resources to fund expansion and growths as pursue
useful business acquisitions Growing international investor interest in India will add
newer opportunities to scale up the business as also harmonsing with global standard and
practices Introduction of new products such as mini contracts in the derivatives and other
futures and options products will add new opportunities for creating new business
segments
While opportunities abound there is a great need for reform and restructuring of the
equity broking industry There are about 9000 brokers registered with SEBI but 80
percent of the turnover in NSE and BSE is accounted for by about 100 brokers
Consolidation thus becomes relevant to forge a stronger industry Similarly capital levels
too need to be strengthened The 45 odd listed broking firms in India together have a
meager Rs 35 bn of capital which is far less than what one top broking firm in China
could raise from the capital markets Better performance and practices will enable broking
firms to increase capital levels that will be essential for funding expansion
Investor education and awareness is another aspect broking industry should promote in
the long-term interest of the market As the product mix and risk matrix in financial
markets are continuously changing it becomes imperative for the intermediaries to
educate and create awareness in the clients that would be mutually beneficial Better
understanding of the financial products and associated risks by the investors will be in the
interest of the growth and stability of the markets
The Indian broking industry is coming of age It has enormous opportunities for growth
and diversity As markets expand and get globalised these firms will have increased
opportunity to cater to a large and diverse range of clientele with a wide mix of products
and services Expanding markets offer enhanced opportunities Those who are well
prepared will be in a better position to garner the benefits11
225 Performance Growth Scenario
Some of the major recent developments in the global securities markets have been
summarized below
Equalization
Equity markets have expanded significantly in a large number of countries across the
world The market capitalization of the worldrsquos leading stock exchanges rose from about
USD11 trillion in 1991 to USD35 trillion in 1999 to about USD51 trillion in 2006 The
growth of market capitalization is evident across regions Market capitalization in Asia
nearly doubled from USD68 trillion in 1999 to USD118 trillion in2006 where as in
America it grew from USD179 trillion to USD226 trillion and in EuropeAfricaMiddle
East it rose from USD102 trillion to USD161 trillion Market capitalization as a percent of
GDP witnessed steep growth in several countries during this period
Similarly trading volumes in stock exchanges too has shown rapid growth Value of share
trading in stock exchanges rose from about USD54 trillion in 1991 to USD33 trillion in
1999 to about USD70 trillion in 2006 During the period 1999 and 2006 value of share
trading in Asia Pacific rose from USD42 trillion to USD12 trillion in EuropeAfricaMiddle
11 Source- httpwwwdnbcoinequitybroking2008Emergingtrenasp
East from USD83 trillion to USD218 trillion and in Americas from USD20 trillion to USD35
trillion
Institutional investment
The rapid growth of stock markets in the world to a significant extent could be explained
by the surge in the institutional investors consisting of pension funds insurance
companies and mutual funds During the period 1995 and 2005 the assets under
management of the institutional investors doubled from USD21trillion to USD53 trillion A
large number of institutional investors are moving away from the home bias investing in
outside world Emerging markets with higher economic growth and rapidly growing
financial markets became major centers of destination for the investments of institutional
investors For instance in the US in 1994 pension funds invested 41 of their portfolio in
domestic equity and 7 in international equities where as by 2005 that share rose to 48
in domestic equities and 15 in international equities The portfolio allocation to bond
markets during the same period reduced from 42 to 32 Emerging markets received
sizeable portion of the investments In the US the dedicated emerging markets mutual
funds rose from about USD27 bn in2000 to USD 230 bn in 2006
International listings
On the back of the liberalization of cross border financial flows companies in several
countries are seeking listing in international exchanges to garner benefits from
international investors as also widen their investor base The number of foreign
companies listed in the London Stock Exchange rose from 387 in 1970 to 553 in 1990 to
636 in 2006 The number of foreign companies listed on the NYSE has also risen rapidly in
the 1990s There is a keen competition across the worldrsquos leading stock exchanges to
promote international listing and gain greater influence In the recent period the US
experienced a slowdown in the listing of foreign companies The decline is attributed to
stringent corporate governance norms that were applied following the corporate abuses
found in the beginning of the decade The US is now examining in greater detail measures
to gain the prominence once it enjoyed in the international listings The Alternative
Investment Market of London Stock Exchange attracted huge interest from SMEs from a
large number of countries
Emerging markets as an investment destination
Liberalization of capital flows led to surge in international investment into emerging
economies finding value on the back of huge prospects for growth The flow of net
Foreign Direct Investment (FDI) into developing countries increased from USD170 bn in
1998 to USD325 bn in 2006 and net portfolio equity flows increased from USD6 bn to
USD94 bn during the same period Net debt flows during this period are rather subdued
with net debt flows from official creditors turning negative Net portfolio equity flows to
China between the year 2000 and 2006 rose from USD69 bn to USD32 bn and in India
from USD23 bn to USD87 bn Other emerging markets such as Brazil Mexico South
Africa Thailand and Russia too showed surge in the net portfolio equity flows Emerging
markets showed significant growth in stock prices making them attractive investment
destinations though issues of valuations are beginning to become a concern now
Growing correlation of returns
Greater harmonization of stock markets in mature and emerging markets is in evidence by
the increasing correlation in market returns across different markets The higher
correlation in the stock price movements gained momentum in the late 1990s due to
growing foreign institutional investment in several markets and growth of the technology
sector that pervaded many markets and has driven stock price momentum in the late
1990s
Emerging markets in the new issuance market
Emerging markets also became very active in the new issuance market In 2006 all the ten
largest cross border new capital issues were from the emerging markets These ten issues
were from China Russia Mexico Thailand and Kazakhstan Of these ten issues four each
were listed in London and Hong Kong and only one in the US The value of the new listings
by emerging market companies in the US exchanges declined from USD29 bn in 2004 to
USD27 bn in 2006 where as that of London rose from USD07 bn to USD96 bn and in
Hong Kong from USD72 bn to USD304 bn Emerging markets in the first five months of
2007 have raised USD537 bn in global financial markets which is reported to be the
highest ever amount raised for a year Some of the leading issues during this period
include the USD8 bn IPO by VTB second largest Russian bank USD185 bn by Turkish
financial institution Halk bank and USD14 bn by a Russian real estate company AFI
Development Some of the largest issues from the emerging markets in the recent period
include USD219 bn issue of Chinarsquos ICBC Bank (Oct 2006) USD112 bn issue of Bank of
China (May 06) USD107 bn issue of Russian energy company Ros neft (Jul 06) USD59 bn
pubic issue of Chinarsquos Citic Bank
Alternative markets
In view of the limitations on listing of small and medium scale companies in the big boards
of the main exchanges several stock exchanges have developed alternative markets for
encouraging listing of small and midcap stocks Almost every major exchange has an
alternative platform for listing and trading of small and midcap stocks and new generation
companies without much listing history The market capitalization of the alternative
markets in the year 2006 has grown at an impressive rate of 30 More than 12000
companies are listed in these alternative markets and the value of share trading of these
for SMEs markets rose 15 in 2006 from USD802 bn to USD919 bn New capital (IPOs)
rose in the alternative markets rose 59 in 2006 from USD136 bn to USD216 bn
Growth of Derivatives
The growth of derivatives picked up on the need for risk transfer products The size of
global derivatives industry in 2006 USD370 trillion of notional value and USD10 trillion of
market value in the Over the Counter (OTC) derivative markets and USD84 trillion of
notional value and USD10 trillion market value in the Exchange traded derivative markets
According to the International Swaps and Derivatives Association more than 90 percent
of the global 500 corporations use derivatives for hedging risks in interest rates foreign
exchange and equities In the OTC markets derivative products accounting for large share
of market value include interest rate (785) and Foreign Exchange (114) where as in
the Exchange Traded segment derivative products on interest rate government debt and
equities form the major part of the volumes
Dark Pools and Private Markets
In the third week of May 2007 Goldman Sachs launched GSTrue which is a platform
developed to allow exclusive club of big investors to trade unregistered privately placed
securities which is considered to be a major challenge for the public equity capital
markets in the US Goldman Sachs in that deal helped underwrite the private sale of 15
of hedge fund manager Oak tree Capital Management for USD800 mn The investors in
this sale would be able to buy and sell Oak tree shares through the new Goldman Sachs
Tradable Unregistered Equity System which has its acronym GSTRue
Under the rules of the Securities and Exchange Commission of the US companies can sell
securities without registering them as long as the issues are limited to qualified
institutional buyers which are investors with at least USD100 mn of assets and there are
no more than 500 stockholders Private pools of capital are growing in size and
significance in international markets to overcome the costs and pressures from stringent
regulation According to an estimate of NASDAQ in 2006 companies in the US raised
USD162 bn of capital through unregistered private placements (also known as 144A
private placements) compared with USD154 bn through IPOs which are registered with
the regulator A group of worldrsquos largest banks are developing ldquoProject Turquoiserdquo which
is a hybrid share trading system that allows transactions both on exchange and outside it
(called as dark liquidity pools) where firms with large asset base can buy and sell large
blocks of shares away from the regulatory oversight
Private Equity
Private equity is growing in size and significance In view of the regulatory standards
prevalent in the public equity capital markets several firms seek the private equity option
to raise resources According to Dialogic the top 50 private equity firms raised USD551 bn
out of the USD800 bn estimated to have been raised by the total private equity since Jan
2002 Of the top 50 private equity firms more than 30 are from the US 11 from the UK
five from Western Europe and one from Asia Pacific Private equity is now involved in high
value deals and recent transactions include USD35 bn HCA buyout in the healthcare
industry and bids of USD39 bn and USD41 bn for Equity Office Property Trust a
commercial office real estate trust in the United Trust It is expected that the transaction
values of the private equity may go up to USD50-100 bn in the near future Private equity
market in India raised USD22 bn in 2005 about USD4 bn in 2006 and is expected to raise
about USD10 bn by 2010 according to a recent study
Hedge Funds
Hedge Funds emerged from the need of investors seeking alpha to earn an excess return
and beat the market and the returns from the conventional investments Alpha is a
common measure of assessing an active managerrsquos performance as it is the return in
excess of a benchmark index or ldquorisk-freerdquo investment The difference between the fair
and actually expected rates of return on a stock is called the stockrsquos alpha In view of rapid
growth of hedge funds and their complex nature of operations and lack of adequate
regulatory control these funds became a major concern of global financial regulation
Notwithstanding these concerns hedge funds continue to grow with the size of the
market growing from about USD30 bn in 1990 to more than USD14 trillion in 2005 and
the number of funds rising from about 530 to about 7000 during this period An
interesting development in the recent period is the growing institutional investment in the
hedge funds which is estimated at USD360 bn in 2005 and the rising allocations to these
funds that was evident in the US and XXVII the European markets The investor base of
the hedge funds consists of individualsfamilies fund of funds corporations and
institutions public and private pensions and endowments and foundations in that order
Investor Protection
With democratization of markets leading to greater participation of individuals and
investments and wide choices of asset classes now available issues of investor interest
and protection have assumed centre stage Following the corporate crises in the US that
adversely affected the investor interests extensive federal investigations were launched
that led to imposition of huge penalties and punitive damages leading to billions of
dollars Such actions were taken against a wide spectrum of global investment banks
brokerage firms and other related entities Simultaneously growth of litigation and class
action suits showed significant rise when the market intermediaries failed to meet their
obligations or did not provide all the material facts to the investors that were crucial for
an investment decision
Securities regulators imposed penalties on market participants who were found to have
indulged in market abuses In India disgorgement orders were passed on certain entities
that were found to making money by unfair means and for violating regulatory norms and
procedures Top institutional investors in several countries devised their own review
process for investing in countries and companies that brought into light greater need for
higher standards in corporate governance disclosure and transparency standards and in
some cases concern towards issues such as democracy and social equity environment
economic and political reforms
Surge in Chinese capital markets
A major change in the year 2007 is the sudden leap of China into big league of global stock
markets On 9 May 07 Shanghai Stock Exchange Chinarsquos top stock market recorded
turnover of USD332 bn and Shenzhen Stock Exchange a stock market for SMEs an
equally powerful USD158 bn taking the combined turnover of both these stock
exchanges on that day to USD495 bn In the first three months of the year 2007 value of
share trading in both these Chinese stock markets reached 89 of the whole turnover of
the year 2006 Value of share trading in Shanghai Stock Exchange rose from USD256 bn in
2003 to USD736 bn in 2006 and in the first three months of the year 2007 it already
recorded USD652 bn Market capitalization in China between Apr 2006 and 2007 rose by
almost 4 times pushing it to a position among the top 10 exchanges in the world and
value of share turnover rose 6 times making Shanghai 6 the biggest Main indexes of
Shanghai Stock Exchange and Shenzhen Stock Exchange posted returns of 194 and 204
respectively in the 12 months proceeding Apr 2007
Rise of smaller markets
The growth and momentum of the stock markets is spreading across a large number of
markets big and small Recent evidence of big surge in stock markets include countries in
the Middle East which witnessed exceptional growth in 20052006 China in 2007 and
several smaller European and Latin American countries in the last one year As
international investing is spreading its presence domestic financial institutions and
investors are finding stocks as an important asset class and stock markets all over the
world have experienced rapid growth in the last five years
Stock exchange consolidation
A big wave of stock exchange consolidation is taking place across the global financial
markets The most notable merger in the recent period is that of the New York Stock
Exchange with Archipelago that led to the demutualization of the former which
subsequently acquired Euro next to form NYSE Group that makes it a formidable force in
the North America and the Euro region Another American exchange NASDAQ after the
merger with Instinet announced plans to acquire OMX which is Europersquos leading
exchange as also provider of cutting edge technology solutions for stock exchanges
worldwide Deutsche Borsersquos recent acquisition of International Securities Exchange gives
the former a powerful position in the derivatives markets in Europe and America There
was also sizeable consolidation within the domestic securities markets in several countries
with the merger of equities and derivatives markets in countries such as Korea Malaysia
and Hong Kong In India the issue of appropriate solutions for the 20 odd stock exchanges
that currently lack proper liquidity is engaging the attention of policy and regulation
RECENT DEVELOPMENTS GOVERNING REGULATION OF STOCK MARKETS
Systematic and streamlined regulation is the key strength and sustainability of the
securities markets Though formal regulation of the securities markets is about 70 years
old some of the recent developments in the financial markets are reshaping the scope
and focus of the regulation These include ndash
There is growing harmonization of regulation across different markets Organizations
such as International Organization for Securities Commissions (IOSCO) are playing a very
important role in adoption of uniform principles and guidelines across the markets
The size and scope of the securities markets is rapidly changing from being one or
two product markets to multi product markets with diverse features and different
investor base
Markets have become more democratized with more people and institutions
participating in the market related activities
Rapid increase in the size of the institutional participation in the financial markets
For instance equity markets which in the past were retail investor driven are now
increasingly become institutional induced
Securities markets are transforming from being membership driven to public
corporation following demutualization and corporatization of stock exchanges in mature
and emerging markets
Two most important pieces of regulation that came into being in the recent period are in
the form of market structure reforms in the US known more popularly as regulation NMS
which underlines the promotion of competition across the markets under three major
principles best price open access and transparency Under the new trade-through role in
whichever market a customer placed his order it should be able to access the best price
that is immediately and automatically available anywhere in the national market system
The trade-through rule will not allow markets to ignore better-priced automated quotes
displayed by the competitors Similarly open access to displayed prices will be a major
feature governing the competition of the markets The regulation also stipulates that all
significant markets must display their quotations and trade reports should be available to
all interested parties on fair terms and non-discriminatory manner Another equally
important development is the Markets in Financial Industry Directive (MiFiD) that will
come into force from 1 Nov 2007 and stipulates wide-ranging norms for financial
institutions in the European Union Major features of the MiFiD include wider scope of
coverage of the financial institutions and the related business activities greater degree of
harmonization across the European markets and facilitate cross border business and
stipulated capital requirements
MiFiD is envisaged to bring major changes in the manner financial institutions in the
European Union will be monitored Simultaneous with stringent norms of regulation the
scope of regulation is considerably delegated to the markets and institutions in the form
of self-regulation Self-regulation brings a number of benefits to the business Institutions
such as National Association of Securities Dealers (NASD) have played an important role in
promoting self-regulation However self-regulation has certain limitations it needs to
overcome before it becomes widely accepted across the markets12
225 Top five companies of the industry
Many time new investor or trader gets confusion for open a D Mat and trading account in
broking House Many of broking House promises to you for better service but clients get
problem due to trading session in theirs Broker house firm Here is the list of Indiarsquos top 5
broking House on base of survey of investors and traders of many cities In their views
following Broking Houses gives best and reliable services13
1 ICICI directcom
ICICI Securities empowers over 2 million Indians to seamlessly access the capital market
with ICICIdirectcom an award winning and pioneering online broking platform The
platform not only offers convenient ways to invest in Equity Derivatives Currency
Futures Mutual Funds but also other services Fixed Deposits Loans Tax Services New
Pension Systems and Insurance are available ICICIdirectcom offers a convenient and easy
to use platform to invest in equity and various other financial products using its unique 3-
in-1 account which integrates customerrsquos saving trading and demat accounts
Apart from convenience ICICIdirectcom also offers access to comprehensive research
information stock picks and mutual fund recommendations among other offerings
Tailored services and trading strategies are available to different types of customers long
term investors day traders high-volume traders and derivatives traders to name some
ICICIdirectcom uses the most advanced commercially available 128-bit encryption
technology enabled Secure Socket Layer (SSL) to ensure that the information transmitted
between the client and ICICIdirectcom across the internet is safe and cannot be accessed
by any third party14
2 India Infoline
India Infoline Ltd (India Infoline) established in 1995 is the holding company of the
India Infoline Group It has membership in the cash and derivative segments of both 12 Source- httpwwwdnbcoinequitybrokingglobal20scenarioasp13 Source- Httpwwwindianstockmarketorgindias-top-10-stock-broking-house14 Source-httpwwwicicisecuritiescomOurBusinessSubSubReportID=10223ampshortCode=INST
the NSE and BSE India Infoline is also registered as a DP with NSDL and CDSL India
Infoline through its subsidiary India Infoline Commodities Limited also offers commodity-
trading services which is a registered member with DGCX since 2006 It also operates in
the currency futures market segment India Infoline offers a wide range of products
and services which include investment banking distribution of financial products
demat services private equity PMS institutional broking WMS insurance broking
among others In addition it also offers research services in areas of economy
derivative strategies mutual funds IPO credit policy and various others The company
has 15 domestic subsidiaries and five foreign subsidiaries The company has global
presence through its subsidiaries in New York Singapore and Dubai India Infoline caters
majorly to retail clients During CY09 the company added 303480 client accounts
Address 75 Nirlon Complex Off Western Express Highway Goregaon (East) Mumbai -
400063 Maharashtra
Telephone 91 22 42499000 Fax 91 22 26850451
Email mailindiainfolinecom Website wwwindiainfolinecom
Registration Number NSE - INBINF231097537 BSE - INBINF01109753315
3 Kotak Securities Ltd
Kotak Securities Ltd (Kotak Securities) is the stock-broking and distribution arm of the
Kotak Mahindra Group and a subsidiary of Kotak Mahindra Bank Kotak Securities was
established in 1994 It has memberships in the cash derivatives and currency futures
segments of NSE and BSE Kotak Securities is also a DP with NSDL and CDSL Apart from
stock broking the company is engaged in offering depository services asset management
margin financing PMS and distribution of financial products like IPOrsquos mutual funds and
insurance The company has a full-fledged research division which offers macro
economic sectoral research and company specific equity research Its domestic network
spans over 383 cities and 1048 offices Trading in equities and derivatives contributes to
major part of the companyrsquos revenue During CY09 Kotak Securities added around 62194
accounts of which around 27 are e-broking accounts The companyrsquos overseas
operations include one subsidiary and two associate firms operating in two foreign
locations
15 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndia+Infoline+Limited2Epdf
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF01113323016
4 Share Khan
Sharekhan Ltd (Sharekhan) is one a leading brokerage houses established in 2000
Sharekhan has membership in the cash and derivative segments of both BSE and NSE It
also operates in the debt and currency futures segment The company is registered as a
DP with CDSL and NSDL Besides trading the company also offers PMS demat services and
mutual funds Share khan provides a comprehensive set of research reports relating
to IPO and mutual funds Other value added facilities offered to clients include
online trading dial-n-trade share shops fundamental and technical research The
company serves large number of retail clients with a client network of more than 100000
clients which includes HNIrsquos corporate and other retail customers The company
through its subsidiary Share khan Commodities Ltd provides commodity-trading services
Address A - 206 Phoenix House 2nd Floor Senapati Bapat Marg Lower Parel
Mumbai - 400013 Maharashtra
Telephone 91 22 67482000 Fax 91 22 66104533
Email compliancelpsharekhancom Website wwwsharekhancom
Registration Number NSE - INBINF231073330 BSE - INBINF01107335117
5 Indiabulls
Indiabulls Securities Ltd (Indiabulls) part of Indiabulls Group was established in 1995 The
company is in the business of providing securities and advisory services It is a corporate
member of capital market wholesale debt market and derivative segments of NSE and of
capital market and derivative segments of BSE
Indiabulls also operates in currency futures and is a DP of CDSL and NSDL It provides a
wide range of products and services which include internet trading NRI trading demat
16 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CKotak+Securities+Limited2Epdf17 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CSharekhan+ Limited2Epdf
services margin financing and distribution of financial products like IPO online
mutual funds etc Power Indiabulls (PIB) is the advanced online trading platform offered
by the company Indiabulls also offers research services in the areas of economic equity
mutual fund IPO and others The company operates in commodity segment through its
subsidiary India bulls Commodities Pvt Ltd which is a member of MCX and NCDEX It
is listed on both NSE and BSE
Address F-60 Malhotra Building 2nd Floor Connaught Place New Delhi - 110001 Delhi
Telephone 91 11 41523700 Fax 91 11 41529071
Email helpdeskindiabullscom Website wwwindiabullscom
Registration Number NSE - INBINF230875632 BSE - INBINF01087563218
18 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndiabulls+Securities+Limited2Epdf
22 Company Overview
221 Overview of the Organizations
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited Uday Kotak Sidney A A Pinto and Kotak amp Company promoted this company Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and thats when the company changed its name to Kotak Mahindra Finance Limited Since then its been a steady and confident journey to growth and success
Kotak Securities Ltd is one of Indias largest brokerage and securities distribution house in India Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-ordinates Kotak Securities Ltd offers online (through wwwkotaksecuritiescom) and offline services based on well-researched expertise and financial products to the non-institutional investors Kotak Securities Limited is the world of Capital Markets where everything newsworthy exists only in the present moment and where knowing the importance of timing sentiments and strategic forecasting makes the difference between profit and loss Kotak Securities Limited a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25 - one of the worldrsquos leading investment banks and brokerage firms) is Indiarsquos leading stock broking house with a market share of 7 - 8
Kotak Securities Limited is one of the larger players in distribution of IPOs - it was ranked number One in 2003-04 as Book Running Lead Manager in public equity offerings by PRIME Database It has also won the ldquoBest Equity Houserdquo Award from Finance Asia -April 2004 The Company has a full-fledged Research division involved in macro economic studies Sectoral research and Company specific equity research combined with a strong and well Networked sales force which helps deliver current and up-to-date market information and news
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them Kotak securities provide portfolio Management Services catering to the high end of the market Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market with the backing of an expert Kotak Securities Limited manages assets over Rs 1700 crores through itrsquos Portfolio Management Services (PMS) servicing high net worth clients with a large
investible surplus through its preferred client services in the mass affluent and wealth management segments The company has a full-fledged research division involved in Macro Economic studies Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news
222 MARKET SHARE
Kotak Securities Ltd is Indiarsquos leading stock broking house with a market share of around
85 percent as of March 31 2006 It handles more IPOs than any other brokerage The
company has a full-fledged research division involved in macroeconomic studies sect oral
research and company-specific equity research combined with a strong and well-
networked sales force which helps deliver current market information and news
The firm has 195 branches servicing more than 2200000 customers across 231 cities
Kotaksecuritiescom the online division offers Internet brokerage services and also online
IPO and mutual fund investments Kotak Securities manages over 2500 crores of Assets
under Management (AUM)
223 AWARDS AND RECOGNIZATION
Kotak Securities Ltd 100 subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry The companyrsquos offerings include stock broking
through the branch and Internet Investments in IPO Mutual funds and Portfolio
management service Kotak Securities has a full-fledged research division involved in
Macro Economic studies Sect oral research and Company Specific Equity Research
combined with a strong and well-networked sales force which helps deliver current and
up to date market information and news Kotak Securitiesrsquo network spans over 321 cities
with 877 outlets with an employee workforce beyond 5100
The company is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can avail the companyrsquos brokerage services for executing the
transactions and the depository services for settling them Kotak Securities Ltd processes
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Since the early part of the 1980s stock broking was allowed in America In addition in the
late part of 1990s stock broking went online and now there are several online stock
brokerages on the internet and hence online transactions happen in a jiffy these days A
stockbroker may also be a financial advisor or an investment consultant these days but in
India you need to be registered with the Securities and exchange board of India in order
to act as a financial advisor As the name suggests a stockbroker mainly deals in stocks
that is the shares of a company Other professionals such as foreign exchange brokers
deal with currencies where as commodity brokers deal with commodities
All stock market transactions that is buying or selling of shares have to take place through
a broker or a brokerage Even if you make online transactions you need to do it through
an online stockbroker For performing the transaction online stockbrokers charge a small
brokerage fee or commission fee for the transactions that they do for other companies or
retail investors The brokerages that a stockbroker may charge are different for various
brokerages as they might have a different business model for the same8
The history of stock broking in the United States parallels the growth of the nations
economy since colonial times The industry has tended to be cyclical in nature and has
survived several downturns including a major economic depression in the 1930s
Government regulations have been introduced at times in an effort to place controls on
what were viewed as harmful trading practices
Origin
The first stock brokerage house in the United States started in Philadelphia in 1800 While
the practice had been around since the early 1700s the Philadelphia Stock Exchange was
the first organized body that brought brokers together and served to codify the rules and
regulations under which business had been conducted The profession continued to
expand with the growth of corporations and the dawning of the Industrial Revolution
Crash
The first major negative event in the industry occurred when the stock market crashed in
1929 which was followed by the Great Depression The result of the crash was due to
8 Source- httpwwwstockbrokingcoinorigin-of-stockbrokinghtml
investors who had borrowed heavily to purchase stocks and began to realize that they
were hugely overvalued and attempted to sell them off resulting in a panic
Securities Act
In an effort to prevent the recurrence of the 1929 crash the Securities Act was
implemented in 1933 as a way to regulate the industry Eventually the stock market
began to rebound and continued a general pattern of steady growth over the next several
decades
Change
In the early 1970s the growth of technology led to reforms in the United States that
helped to reopen the markets to more liberalized trading In the late 1980s another crash
in the market occurred due to the dropping of prices of stock index futures Much like the
Great Depression this led to a mass selling of these securities causing the stock market to
plummet
Rebound
Stock broking again saw a boom as tighter regulations were put in place following the
1987 crash The markets reached new heights in the late 1990s The terrorist attacks of
September 11 2001 slowed the pattern of growth
Another Crash
In 2008 the largest single-day drop since 1987 occurred as the market lost $12 trillion of
its value on September 29 The drop occurred because of several factors including the
collapse of the mortgage industry and a worsening credit crisis The market has
rebounded only slightly as of mid-20099
223 Salient Features of the Industry in India
On the basis of geographical concentration the west region has the maximum
representation of 52 around 24 firms are located in the North 13 in the South and
10 in the East
9 Source-httpwwweHowcommabout_5208105_history-stockbrokinghtml
3 firms are started broking operations before 1950 65 between 1950-1995 and
32 Post1995
On the basis of terminals 40 are located at Mumbai 12 in Delhi 8 in
Ahmadabad 7 in Kolkata 4 in Chennai and 29 are from other cities
From the study we find that almost 36 firms trade in cash derivatives and
commodities
In the cash market around 34 firms trade at NSE 14 at BSE and 52 trade at
both exchanges In the derivative segment 48 trade at NSE 7 at BSE and 45 at both
whereas in the debt market 31 trade at NSE 26 at BSE and 43 at both Exchanges
Majority of branches are located in the North ie around 40 West has 31 24
are located in South and 5 in East
In terms of Sub brokers around 55 are located in the South 29 in West 11 in
North and 4 in East
Trading IPOs and Mutual funds are the top three products offered with 90 firms
offering trading 67 IPOs and 53 firms offering mutual fund transactions
In terms of various areas of growth 84 firms have expressed interest in
expanding their institutional clients 6 firms intend to increase FII clients and 43 are
interested in setting up JV in India and abroad
In terms of IT penetration 62 firms have provided their website and around 94
firms have E-mail facility10
224 Recent Trends
Equity brokerage industry in India is experiencing rapid growth and diversity Following
the wide range of stock market reforms in the early 2000rsquos brokerage industry underwent
major transformations from being engaged in only brokerage business to offering a wide
range of financial services A modern broking house in India may well be a corporate
entity that offers a wide range of products relies on research for advice uses modern
technology has large distribution network connecting the country provides investor
education and awareness and is compliance focused These developments have resulted
in a huge spurt in business as also growing market share of the large sized brokerage
houses that led to surge in enterprise value thus becoming objects of interest for global
investing In the recent period global and domestic private equity firms have taken stake
10 Source- httpwwwdnbcoinequitybrokingindustry20insightsasp
in brokerage firms such as Anand Rathi (Citigroup) Edelweiss (Lehman Brothers) Geojit
(BNP Paribas) SMC (Millennium India) Motilal Oswal (New Vernon) Marwari Shares
(India Capital Growth Fund) J R G Securities (Barings Pvt Equity) and Network Broking
(Amas Bank of Hindujas) India Infoline (Orient Global) etc Initial Public Offerings of large
firms in2007 such as Motilal Oswal Edelweiss and Religare received huge response from
the markets (over subscription going more than 100) and also high premiums Large
issues of these brokerage firms debuted in the stock exchange with premiums ranging
from 20 to 75 With the stock market momentum likely to continue broking firms
could look forward to scaling up their resource mobilization to fund growing operations
and expansion Brokerages mopping up huge resources from the market are not unusual
even in the emerging markets For instance Citic Securities a Chinese securities firm is
reported to have raised US $ 33 bn last year and other firms such as Haitong and Gold
state are planning to come out with IPOs of US $ 4-5 bn in 2008
In India about 45 equity brokerage houses are at present listed on the stock exchanges
that together reported Rs 35 bn of equity total income of Rs 47 bn and net profit of Rs 3
bn for the second quarter of FY08
Prospects and Outlook
Indian broking houses could look forward to a period of growth and consolidation Indiarsquos
economic growth and deepening of the financial system will present the broking firms
with numerous opportunities for growth and expansion Integration of the financial
markets will enhance the scope of their business and scalability Access to public equity
markets will enable them to raise resources to fund expansion and growths as pursue
useful business acquisitions Growing international investor interest in India will add
newer opportunities to scale up the business as also harmonsing with global standard and
practices Introduction of new products such as mini contracts in the derivatives and other
futures and options products will add new opportunities for creating new business
segments
While opportunities abound there is a great need for reform and restructuring of the
equity broking industry There are about 9000 brokers registered with SEBI but 80
percent of the turnover in NSE and BSE is accounted for by about 100 brokers
Consolidation thus becomes relevant to forge a stronger industry Similarly capital levels
too need to be strengthened The 45 odd listed broking firms in India together have a
meager Rs 35 bn of capital which is far less than what one top broking firm in China
could raise from the capital markets Better performance and practices will enable broking
firms to increase capital levels that will be essential for funding expansion
Investor education and awareness is another aspect broking industry should promote in
the long-term interest of the market As the product mix and risk matrix in financial
markets are continuously changing it becomes imperative for the intermediaries to
educate and create awareness in the clients that would be mutually beneficial Better
understanding of the financial products and associated risks by the investors will be in the
interest of the growth and stability of the markets
The Indian broking industry is coming of age It has enormous opportunities for growth
and diversity As markets expand and get globalised these firms will have increased
opportunity to cater to a large and diverse range of clientele with a wide mix of products
and services Expanding markets offer enhanced opportunities Those who are well
prepared will be in a better position to garner the benefits11
225 Performance Growth Scenario
Some of the major recent developments in the global securities markets have been
summarized below
Equalization
Equity markets have expanded significantly in a large number of countries across the
world The market capitalization of the worldrsquos leading stock exchanges rose from about
USD11 trillion in 1991 to USD35 trillion in 1999 to about USD51 trillion in 2006 The
growth of market capitalization is evident across regions Market capitalization in Asia
nearly doubled from USD68 trillion in 1999 to USD118 trillion in2006 where as in
America it grew from USD179 trillion to USD226 trillion and in EuropeAfricaMiddle
East it rose from USD102 trillion to USD161 trillion Market capitalization as a percent of
GDP witnessed steep growth in several countries during this period
Similarly trading volumes in stock exchanges too has shown rapid growth Value of share
trading in stock exchanges rose from about USD54 trillion in 1991 to USD33 trillion in
1999 to about USD70 trillion in 2006 During the period 1999 and 2006 value of share
trading in Asia Pacific rose from USD42 trillion to USD12 trillion in EuropeAfricaMiddle
11 Source- httpwwwdnbcoinequitybroking2008Emergingtrenasp
East from USD83 trillion to USD218 trillion and in Americas from USD20 trillion to USD35
trillion
Institutional investment
The rapid growth of stock markets in the world to a significant extent could be explained
by the surge in the institutional investors consisting of pension funds insurance
companies and mutual funds During the period 1995 and 2005 the assets under
management of the institutional investors doubled from USD21trillion to USD53 trillion A
large number of institutional investors are moving away from the home bias investing in
outside world Emerging markets with higher economic growth and rapidly growing
financial markets became major centers of destination for the investments of institutional
investors For instance in the US in 1994 pension funds invested 41 of their portfolio in
domestic equity and 7 in international equities where as by 2005 that share rose to 48
in domestic equities and 15 in international equities The portfolio allocation to bond
markets during the same period reduced from 42 to 32 Emerging markets received
sizeable portion of the investments In the US the dedicated emerging markets mutual
funds rose from about USD27 bn in2000 to USD 230 bn in 2006
International listings
On the back of the liberalization of cross border financial flows companies in several
countries are seeking listing in international exchanges to garner benefits from
international investors as also widen their investor base The number of foreign
companies listed in the London Stock Exchange rose from 387 in 1970 to 553 in 1990 to
636 in 2006 The number of foreign companies listed on the NYSE has also risen rapidly in
the 1990s There is a keen competition across the worldrsquos leading stock exchanges to
promote international listing and gain greater influence In the recent period the US
experienced a slowdown in the listing of foreign companies The decline is attributed to
stringent corporate governance norms that were applied following the corporate abuses
found in the beginning of the decade The US is now examining in greater detail measures
to gain the prominence once it enjoyed in the international listings The Alternative
Investment Market of London Stock Exchange attracted huge interest from SMEs from a
large number of countries
Emerging markets as an investment destination
Liberalization of capital flows led to surge in international investment into emerging
economies finding value on the back of huge prospects for growth The flow of net
Foreign Direct Investment (FDI) into developing countries increased from USD170 bn in
1998 to USD325 bn in 2006 and net portfolio equity flows increased from USD6 bn to
USD94 bn during the same period Net debt flows during this period are rather subdued
with net debt flows from official creditors turning negative Net portfolio equity flows to
China between the year 2000 and 2006 rose from USD69 bn to USD32 bn and in India
from USD23 bn to USD87 bn Other emerging markets such as Brazil Mexico South
Africa Thailand and Russia too showed surge in the net portfolio equity flows Emerging
markets showed significant growth in stock prices making them attractive investment
destinations though issues of valuations are beginning to become a concern now
Growing correlation of returns
Greater harmonization of stock markets in mature and emerging markets is in evidence by
the increasing correlation in market returns across different markets The higher
correlation in the stock price movements gained momentum in the late 1990s due to
growing foreign institutional investment in several markets and growth of the technology
sector that pervaded many markets and has driven stock price momentum in the late
1990s
Emerging markets in the new issuance market
Emerging markets also became very active in the new issuance market In 2006 all the ten
largest cross border new capital issues were from the emerging markets These ten issues
were from China Russia Mexico Thailand and Kazakhstan Of these ten issues four each
were listed in London and Hong Kong and only one in the US The value of the new listings
by emerging market companies in the US exchanges declined from USD29 bn in 2004 to
USD27 bn in 2006 where as that of London rose from USD07 bn to USD96 bn and in
Hong Kong from USD72 bn to USD304 bn Emerging markets in the first five months of
2007 have raised USD537 bn in global financial markets which is reported to be the
highest ever amount raised for a year Some of the leading issues during this period
include the USD8 bn IPO by VTB second largest Russian bank USD185 bn by Turkish
financial institution Halk bank and USD14 bn by a Russian real estate company AFI
Development Some of the largest issues from the emerging markets in the recent period
include USD219 bn issue of Chinarsquos ICBC Bank (Oct 2006) USD112 bn issue of Bank of
China (May 06) USD107 bn issue of Russian energy company Ros neft (Jul 06) USD59 bn
pubic issue of Chinarsquos Citic Bank
Alternative markets
In view of the limitations on listing of small and medium scale companies in the big boards
of the main exchanges several stock exchanges have developed alternative markets for
encouraging listing of small and midcap stocks Almost every major exchange has an
alternative platform for listing and trading of small and midcap stocks and new generation
companies without much listing history The market capitalization of the alternative
markets in the year 2006 has grown at an impressive rate of 30 More than 12000
companies are listed in these alternative markets and the value of share trading of these
for SMEs markets rose 15 in 2006 from USD802 bn to USD919 bn New capital (IPOs)
rose in the alternative markets rose 59 in 2006 from USD136 bn to USD216 bn
Growth of Derivatives
The growth of derivatives picked up on the need for risk transfer products The size of
global derivatives industry in 2006 USD370 trillion of notional value and USD10 trillion of
market value in the Over the Counter (OTC) derivative markets and USD84 trillion of
notional value and USD10 trillion market value in the Exchange traded derivative markets
According to the International Swaps and Derivatives Association more than 90 percent
of the global 500 corporations use derivatives for hedging risks in interest rates foreign
exchange and equities In the OTC markets derivative products accounting for large share
of market value include interest rate (785) and Foreign Exchange (114) where as in
the Exchange Traded segment derivative products on interest rate government debt and
equities form the major part of the volumes
Dark Pools and Private Markets
In the third week of May 2007 Goldman Sachs launched GSTrue which is a platform
developed to allow exclusive club of big investors to trade unregistered privately placed
securities which is considered to be a major challenge for the public equity capital
markets in the US Goldman Sachs in that deal helped underwrite the private sale of 15
of hedge fund manager Oak tree Capital Management for USD800 mn The investors in
this sale would be able to buy and sell Oak tree shares through the new Goldman Sachs
Tradable Unregistered Equity System which has its acronym GSTRue
Under the rules of the Securities and Exchange Commission of the US companies can sell
securities without registering them as long as the issues are limited to qualified
institutional buyers which are investors with at least USD100 mn of assets and there are
no more than 500 stockholders Private pools of capital are growing in size and
significance in international markets to overcome the costs and pressures from stringent
regulation According to an estimate of NASDAQ in 2006 companies in the US raised
USD162 bn of capital through unregistered private placements (also known as 144A
private placements) compared with USD154 bn through IPOs which are registered with
the regulator A group of worldrsquos largest banks are developing ldquoProject Turquoiserdquo which
is a hybrid share trading system that allows transactions both on exchange and outside it
(called as dark liquidity pools) where firms with large asset base can buy and sell large
blocks of shares away from the regulatory oversight
Private Equity
Private equity is growing in size and significance In view of the regulatory standards
prevalent in the public equity capital markets several firms seek the private equity option
to raise resources According to Dialogic the top 50 private equity firms raised USD551 bn
out of the USD800 bn estimated to have been raised by the total private equity since Jan
2002 Of the top 50 private equity firms more than 30 are from the US 11 from the UK
five from Western Europe and one from Asia Pacific Private equity is now involved in high
value deals and recent transactions include USD35 bn HCA buyout in the healthcare
industry and bids of USD39 bn and USD41 bn for Equity Office Property Trust a
commercial office real estate trust in the United Trust It is expected that the transaction
values of the private equity may go up to USD50-100 bn in the near future Private equity
market in India raised USD22 bn in 2005 about USD4 bn in 2006 and is expected to raise
about USD10 bn by 2010 according to a recent study
Hedge Funds
Hedge Funds emerged from the need of investors seeking alpha to earn an excess return
and beat the market and the returns from the conventional investments Alpha is a
common measure of assessing an active managerrsquos performance as it is the return in
excess of a benchmark index or ldquorisk-freerdquo investment The difference between the fair
and actually expected rates of return on a stock is called the stockrsquos alpha In view of rapid
growth of hedge funds and their complex nature of operations and lack of adequate
regulatory control these funds became a major concern of global financial regulation
Notwithstanding these concerns hedge funds continue to grow with the size of the
market growing from about USD30 bn in 1990 to more than USD14 trillion in 2005 and
the number of funds rising from about 530 to about 7000 during this period An
interesting development in the recent period is the growing institutional investment in the
hedge funds which is estimated at USD360 bn in 2005 and the rising allocations to these
funds that was evident in the US and XXVII the European markets The investor base of
the hedge funds consists of individualsfamilies fund of funds corporations and
institutions public and private pensions and endowments and foundations in that order
Investor Protection
With democratization of markets leading to greater participation of individuals and
investments and wide choices of asset classes now available issues of investor interest
and protection have assumed centre stage Following the corporate crises in the US that
adversely affected the investor interests extensive federal investigations were launched
that led to imposition of huge penalties and punitive damages leading to billions of
dollars Such actions were taken against a wide spectrum of global investment banks
brokerage firms and other related entities Simultaneously growth of litigation and class
action suits showed significant rise when the market intermediaries failed to meet their
obligations or did not provide all the material facts to the investors that were crucial for
an investment decision
Securities regulators imposed penalties on market participants who were found to have
indulged in market abuses In India disgorgement orders were passed on certain entities
that were found to making money by unfair means and for violating regulatory norms and
procedures Top institutional investors in several countries devised their own review
process for investing in countries and companies that brought into light greater need for
higher standards in corporate governance disclosure and transparency standards and in
some cases concern towards issues such as democracy and social equity environment
economic and political reforms
Surge in Chinese capital markets
A major change in the year 2007 is the sudden leap of China into big league of global stock
markets On 9 May 07 Shanghai Stock Exchange Chinarsquos top stock market recorded
turnover of USD332 bn and Shenzhen Stock Exchange a stock market for SMEs an
equally powerful USD158 bn taking the combined turnover of both these stock
exchanges on that day to USD495 bn In the first three months of the year 2007 value of
share trading in both these Chinese stock markets reached 89 of the whole turnover of
the year 2006 Value of share trading in Shanghai Stock Exchange rose from USD256 bn in
2003 to USD736 bn in 2006 and in the first three months of the year 2007 it already
recorded USD652 bn Market capitalization in China between Apr 2006 and 2007 rose by
almost 4 times pushing it to a position among the top 10 exchanges in the world and
value of share turnover rose 6 times making Shanghai 6 the biggest Main indexes of
Shanghai Stock Exchange and Shenzhen Stock Exchange posted returns of 194 and 204
respectively in the 12 months proceeding Apr 2007
Rise of smaller markets
The growth and momentum of the stock markets is spreading across a large number of
markets big and small Recent evidence of big surge in stock markets include countries in
the Middle East which witnessed exceptional growth in 20052006 China in 2007 and
several smaller European and Latin American countries in the last one year As
international investing is spreading its presence domestic financial institutions and
investors are finding stocks as an important asset class and stock markets all over the
world have experienced rapid growth in the last five years
Stock exchange consolidation
A big wave of stock exchange consolidation is taking place across the global financial
markets The most notable merger in the recent period is that of the New York Stock
Exchange with Archipelago that led to the demutualization of the former which
subsequently acquired Euro next to form NYSE Group that makes it a formidable force in
the North America and the Euro region Another American exchange NASDAQ after the
merger with Instinet announced plans to acquire OMX which is Europersquos leading
exchange as also provider of cutting edge technology solutions for stock exchanges
worldwide Deutsche Borsersquos recent acquisition of International Securities Exchange gives
the former a powerful position in the derivatives markets in Europe and America There
was also sizeable consolidation within the domestic securities markets in several countries
with the merger of equities and derivatives markets in countries such as Korea Malaysia
and Hong Kong In India the issue of appropriate solutions for the 20 odd stock exchanges
that currently lack proper liquidity is engaging the attention of policy and regulation
RECENT DEVELOPMENTS GOVERNING REGULATION OF STOCK MARKETS
Systematic and streamlined regulation is the key strength and sustainability of the
securities markets Though formal regulation of the securities markets is about 70 years
old some of the recent developments in the financial markets are reshaping the scope
and focus of the regulation These include ndash
There is growing harmonization of regulation across different markets Organizations
such as International Organization for Securities Commissions (IOSCO) are playing a very
important role in adoption of uniform principles and guidelines across the markets
The size and scope of the securities markets is rapidly changing from being one or
two product markets to multi product markets with diverse features and different
investor base
Markets have become more democratized with more people and institutions
participating in the market related activities
Rapid increase in the size of the institutional participation in the financial markets
For instance equity markets which in the past were retail investor driven are now
increasingly become institutional induced
Securities markets are transforming from being membership driven to public
corporation following demutualization and corporatization of stock exchanges in mature
and emerging markets
Two most important pieces of regulation that came into being in the recent period are in
the form of market structure reforms in the US known more popularly as regulation NMS
which underlines the promotion of competition across the markets under three major
principles best price open access and transparency Under the new trade-through role in
whichever market a customer placed his order it should be able to access the best price
that is immediately and automatically available anywhere in the national market system
The trade-through rule will not allow markets to ignore better-priced automated quotes
displayed by the competitors Similarly open access to displayed prices will be a major
feature governing the competition of the markets The regulation also stipulates that all
significant markets must display their quotations and trade reports should be available to
all interested parties on fair terms and non-discriminatory manner Another equally
important development is the Markets in Financial Industry Directive (MiFiD) that will
come into force from 1 Nov 2007 and stipulates wide-ranging norms for financial
institutions in the European Union Major features of the MiFiD include wider scope of
coverage of the financial institutions and the related business activities greater degree of
harmonization across the European markets and facilitate cross border business and
stipulated capital requirements
MiFiD is envisaged to bring major changes in the manner financial institutions in the
European Union will be monitored Simultaneous with stringent norms of regulation the
scope of regulation is considerably delegated to the markets and institutions in the form
of self-regulation Self-regulation brings a number of benefits to the business Institutions
such as National Association of Securities Dealers (NASD) have played an important role in
promoting self-regulation However self-regulation has certain limitations it needs to
overcome before it becomes widely accepted across the markets12
225 Top five companies of the industry
Many time new investor or trader gets confusion for open a D Mat and trading account in
broking House Many of broking House promises to you for better service but clients get
problem due to trading session in theirs Broker house firm Here is the list of Indiarsquos top 5
broking House on base of survey of investors and traders of many cities In their views
following Broking Houses gives best and reliable services13
1 ICICI directcom
ICICI Securities empowers over 2 million Indians to seamlessly access the capital market
with ICICIdirectcom an award winning and pioneering online broking platform The
platform not only offers convenient ways to invest in Equity Derivatives Currency
Futures Mutual Funds but also other services Fixed Deposits Loans Tax Services New
Pension Systems and Insurance are available ICICIdirectcom offers a convenient and easy
to use platform to invest in equity and various other financial products using its unique 3-
in-1 account which integrates customerrsquos saving trading and demat accounts
Apart from convenience ICICIdirectcom also offers access to comprehensive research
information stock picks and mutual fund recommendations among other offerings
Tailored services and trading strategies are available to different types of customers long
term investors day traders high-volume traders and derivatives traders to name some
ICICIdirectcom uses the most advanced commercially available 128-bit encryption
technology enabled Secure Socket Layer (SSL) to ensure that the information transmitted
between the client and ICICIdirectcom across the internet is safe and cannot be accessed
by any third party14
2 India Infoline
India Infoline Ltd (India Infoline) established in 1995 is the holding company of the
India Infoline Group It has membership in the cash and derivative segments of both 12 Source- httpwwwdnbcoinequitybrokingglobal20scenarioasp13 Source- Httpwwwindianstockmarketorgindias-top-10-stock-broking-house14 Source-httpwwwicicisecuritiescomOurBusinessSubSubReportID=10223ampshortCode=INST
the NSE and BSE India Infoline is also registered as a DP with NSDL and CDSL India
Infoline through its subsidiary India Infoline Commodities Limited also offers commodity-
trading services which is a registered member with DGCX since 2006 It also operates in
the currency futures market segment India Infoline offers a wide range of products
and services which include investment banking distribution of financial products
demat services private equity PMS institutional broking WMS insurance broking
among others In addition it also offers research services in areas of economy
derivative strategies mutual funds IPO credit policy and various others The company
has 15 domestic subsidiaries and five foreign subsidiaries The company has global
presence through its subsidiaries in New York Singapore and Dubai India Infoline caters
majorly to retail clients During CY09 the company added 303480 client accounts
Address 75 Nirlon Complex Off Western Express Highway Goregaon (East) Mumbai -
400063 Maharashtra
Telephone 91 22 42499000 Fax 91 22 26850451
Email mailindiainfolinecom Website wwwindiainfolinecom
Registration Number NSE - INBINF231097537 BSE - INBINF01109753315
3 Kotak Securities Ltd
Kotak Securities Ltd (Kotak Securities) is the stock-broking and distribution arm of the
Kotak Mahindra Group and a subsidiary of Kotak Mahindra Bank Kotak Securities was
established in 1994 It has memberships in the cash derivatives and currency futures
segments of NSE and BSE Kotak Securities is also a DP with NSDL and CDSL Apart from
stock broking the company is engaged in offering depository services asset management
margin financing PMS and distribution of financial products like IPOrsquos mutual funds and
insurance The company has a full-fledged research division which offers macro
economic sectoral research and company specific equity research Its domestic network
spans over 383 cities and 1048 offices Trading in equities and derivatives contributes to
major part of the companyrsquos revenue During CY09 Kotak Securities added around 62194
accounts of which around 27 are e-broking accounts The companyrsquos overseas
operations include one subsidiary and two associate firms operating in two foreign
locations
15 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndia+Infoline+Limited2Epdf
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF01113323016
4 Share Khan
Sharekhan Ltd (Sharekhan) is one a leading brokerage houses established in 2000
Sharekhan has membership in the cash and derivative segments of both BSE and NSE It
also operates in the debt and currency futures segment The company is registered as a
DP with CDSL and NSDL Besides trading the company also offers PMS demat services and
mutual funds Share khan provides a comprehensive set of research reports relating
to IPO and mutual funds Other value added facilities offered to clients include
online trading dial-n-trade share shops fundamental and technical research The
company serves large number of retail clients with a client network of more than 100000
clients which includes HNIrsquos corporate and other retail customers The company
through its subsidiary Share khan Commodities Ltd provides commodity-trading services
Address A - 206 Phoenix House 2nd Floor Senapati Bapat Marg Lower Parel
Mumbai - 400013 Maharashtra
Telephone 91 22 67482000 Fax 91 22 66104533
Email compliancelpsharekhancom Website wwwsharekhancom
Registration Number NSE - INBINF231073330 BSE - INBINF01107335117
5 Indiabulls
Indiabulls Securities Ltd (Indiabulls) part of Indiabulls Group was established in 1995 The
company is in the business of providing securities and advisory services It is a corporate
member of capital market wholesale debt market and derivative segments of NSE and of
capital market and derivative segments of BSE
Indiabulls also operates in currency futures and is a DP of CDSL and NSDL It provides a
wide range of products and services which include internet trading NRI trading demat
16 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CKotak+Securities+Limited2Epdf17 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CSharekhan+ Limited2Epdf
services margin financing and distribution of financial products like IPO online
mutual funds etc Power Indiabulls (PIB) is the advanced online trading platform offered
by the company Indiabulls also offers research services in the areas of economic equity
mutual fund IPO and others The company operates in commodity segment through its
subsidiary India bulls Commodities Pvt Ltd which is a member of MCX and NCDEX It
is listed on both NSE and BSE
Address F-60 Malhotra Building 2nd Floor Connaught Place New Delhi - 110001 Delhi
Telephone 91 11 41523700 Fax 91 11 41529071
Email helpdeskindiabullscom Website wwwindiabullscom
Registration Number NSE - INBINF230875632 BSE - INBINF01087563218
18 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndiabulls+Securities+Limited2Epdf
22 Company Overview
221 Overview of the Organizations
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited Uday Kotak Sidney A A Pinto and Kotak amp Company promoted this company Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and thats when the company changed its name to Kotak Mahindra Finance Limited Since then its been a steady and confident journey to growth and success
Kotak Securities Ltd is one of Indias largest brokerage and securities distribution house in India Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-ordinates Kotak Securities Ltd offers online (through wwwkotaksecuritiescom) and offline services based on well-researched expertise and financial products to the non-institutional investors Kotak Securities Limited is the world of Capital Markets where everything newsworthy exists only in the present moment and where knowing the importance of timing sentiments and strategic forecasting makes the difference between profit and loss Kotak Securities Limited a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25 - one of the worldrsquos leading investment banks and brokerage firms) is Indiarsquos leading stock broking house with a market share of 7 - 8
Kotak Securities Limited is one of the larger players in distribution of IPOs - it was ranked number One in 2003-04 as Book Running Lead Manager in public equity offerings by PRIME Database It has also won the ldquoBest Equity Houserdquo Award from Finance Asia -April 2004 The Company has a full-fledged Research division involved in macro economic studies Sectoral research and Company specific equity research combined with a strong and well Networked sales force which helps deliver current and up-to-date market information and news
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them Kotak securities provide portfolio Management Services catering to the high end of the market Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market with the backing of an expert Kotak Securities Limited manages assets over Rs 1700 crores through itrsquos Portfolio Management Services (PMS) servicing high net worth clients with a large
investible surplus through its preferred client services in the mass affluent and wealth management segments The company has a full-fledged research division involved in Macro Economic studies Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news
222 MARKET SHARE
Kotak Securities Ltd is Indiarsquos leading stock broking house with a market share of around
85 percent as of March 31 2006 It handles more IPOs than any other brokerage The
company has a full-fledged research division involved in macroeconomic studies sect oral
research and company-specific equity research combined with a strong and well-
networked sales force which helps deliver current market information and news
The firm has 195 branches servicing more than 2200000 customers across 231 cities
Kotaksecuritiescom the online division offers Internet brokerage services and also online
IPO and mutual fund investments Kotak Securities manages over 2500 crores of Assets
under Management (AUM)
223 AWARDS AND RECOGNIZATION
Kotak Securities Ltd 100 subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry The companyrsquos offerings include stock broking
through the branch and Internet Investments in IPO Mutual funds and Portfolio
management service Kotak Securities has a full-fledged research division involved in
Macro Economic studies Sect oral research and Company Specific Equity Research
combined with a strong and well-networked sales force which helps deliver current and
up to date market information and news Kotak Securitiesrsquo network spans over 321 cities
with 877 outlets with an employee workforce beyond 5100
The company is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can avail the companyrsquos brokerage services for executing the
transactions and the depository services for settling them Kotak Securities Ltd processes
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
investors who had borrowed heavily to purchase stocks and began to realize that they
were hugely overvalued and attempted to sell them off resulting in a panic
Securities Act
In an effort to prevent the recurrence of the 1929 crash the Securities Act was
implemented in 1933 as a way to regulate the industry Eventually the stock market
began to rebound and continued a general pattern of steady growth over the next several
decades
Change
In the early 1970s the growth of technology led to reforms in the United States that
helped to reopen the markets to more liberalized trading In the late 1980s another crash
in the market occurred due to the dropping of prices of stock index futures Much like the
Great Depression this led to a mass selling of these securities causing the stock market to
plummet
Rebound
Stock broking again saw a boom as tighter regulations were put in place following the
1987 crash The markets reached new heights in the late 1990s The terrorist attacks of
September 11 2001 slowed the pattern of growth
Another Crash
In 2008 the largest single-day drop since 1987 occurred as the market lost $12 trillion of
its value on September 29 The drop occurred because of several factors including the
collapse of the mortgage industry and a worsening credit crisis The market has
rebounded only slightly as of mid-20099
223 Salient Features of the Industry in India
On the basis of geographical concentration the west region has the maximum
representation of 52 around 24 firms are located in the North 13 in the South and
10 in the East
9 Source-httpwwweHowcommabout_5208105_history-stockbrokinghtml
3 firms are started broking operations before 1950 65 between 1950-1995 and
32 Post1995
On the basis of terminals 40 are located at Mumbai 12 in Delhi 8 in
Ahmadabad 7 in Kolkata 4 in Chennai and 29 are from other cities
From the study we find that almost 36 firms trade in cash derivatives and
commodities
In the cash market around 34 firms trade at NSE 14 at BSE and 52 trade at
both exchanges In the derivative segment 48 trade at NSE 7 at BSE and 45 at both
whereas in the debt market 31 trade at NSE 26 at BSE and 43 at both Exchanges
Majority of branches are located in the North ie around 40 West has 31 24
are located in South and 5 in East
In terms of Sub brokers around 55 are located in the South 29 in West 11 in
North and 4 in East
Trading IPOs and Mutual funds are the top three products offered with 90 firms
offering trading 67 IPOs and 53 firms offering mutual fund transactions
In terms of various areas of growth 84 firms have expressed interest in
expanding their institutional clients 6 firms intend to increase FII clients and 43 are
interested in setting up JV in India and abroad
In terms of IT penetration 62 firms have provided their website and around 94
firms have E-mail facility10
224 Recent Trends
Equity brokerage industry in India is experiencing rapid growth and diversity Following
the wide range of stock market reforms in the early 2000rsquos brokerage industry underwent
major transformations from being engaged in only brokerage business to offering a wide
range of financial services A modern broking house in India may well be a corporate
entity that offers a wide range of products relies on research for advice uses modern
technology has large distribution network connecting the country provides investor
education and awareness and is compliance focused These developments have resulted
in a huge spurt in business as also growing market share of the large sized brokerage
houses that led to surge in enterprise value thus becoming objects of interest for global
investing In the recent period global and domestic private equity firms have taken stake
10 Source- httpwwwdnbcoinequitybrokingindustry20insightsasp
in brokerage firms such as Anand Rathi (Citigroup) Edelweiss (Lehman Brothers) Geojit
(BNP Paribas) SMC (Millennium India) Motilal Oswal (New Vernon) Marwari Shares
(India Capital Growth Fund) J R G Securities (Barings Pvt Equity) and Network Broking
(Amas Bank of Hindujas) India Infoline (Orient Global) etc Initial Public Offerings of large
firms in2007 such as Motilal Oswal Edelweiss and Religare received huge response from
the markets (over subscription going more than 100) and also high premiums Large
issues of these brokerage firms debuted in the stock exchange with premiums ranging
from 20 to 75 With the stock market momentum likely to continue broking firms
could look forward to scaling up their resource mobilization to fund growing operations
and expansion Brokerages mopping up huge resources from the market are not unusual
even in the emerging markets For instance Citic Securities a Chinese securities firm is
reported to have raised US $ 33 bn last year and other firms such as Haitong and Gold
state are planning to come out with IPOs of US $ 4-5 bn in 2008
In India about 45 equity brokerage houses are at present listed on the stock exchanges
that together reported Rs 35 bn of equity total income of Rs 47 bn and net profit of Rs 3
bn for the second quarter of FY08
Prospects and Outlook
Indian broking houses could look forward to a period of growth and consolidation Indiarsquos
economic growth and deepening of the financial system will present the broking firms
with numerous opportunities for growth and expansion Integration of the financial
markets will enhance the scope of their business and scalability Access to public equity
markets will enable them to raise resources to fund expansion and growths as pursue
useful business acquisitions Growing international investor interest in India will add
newer opportunities to scale up the business as also harmonsing with global standard and
practices Introduction of new products such as mini contracts in the derivatives and other
futures and options products will add new opportunities for creating new business
segments
While opportunities abound there is a great need for reform and restructuring of the
equity broking industry There are about 9000 brokers registered with SEBI but 80
percent of the turnover in NSE and BSE is accounted for by about 100 brokers
Consolidation thus becomes relevant to forge a stronger industry Similarly capital levels
too need to be strengthened The 45 odd listed broking firms in India together have a
meager Rs 35 bn of capital which is far less than what one top broking firm in China
could raise from the capital markets Better performance and practices will enable broking
firms to increase capital levels that will be essential for funding expansion
Investor education and awareness is another aspect broking industry should promote in
the long-term interest of the market As the product mix and risk matrix in financial
markets are continuously changing it becomes imperative for the intermediaries to
educate and create awareness in the clients that would be mutually beneficial Better
understanding of the financial products and associated risks by the investors will be in the
interest of the growth and stability of the markets
The Indian broking industry is coming of age It has enormous opportunities for growth
and diversity As markets expand and get globalised these firms will have increased
opportunity to cater to a large and diverse range of clientele with a wide mix of products
and services Expanding markets offer enhanced opportunities Those who are well
prepared will be in a better position to garner the benefits11
225 Performance Growth Scenario
Some of the major recent developments in the global securities markets have been
summarized below
Equalization
Equity markets have expanded significantly in a large number of countries across the
world The market capitalization of the worldrsquos leading stock exchanges rose from about
USD11 trillion in 1991 to USD35 trillion in 1999 to about USD51 trillion in 2006 The
growth of market capitalization is evident across regions Market capitalization in Asia
nearly doubled from USD68 trillion in 1999 to USD118 trillion in2006 where as in
America it grew from USD179 trillion to USD226 trillion and in EuropeAfricaMiddle
East it rose from USD102 trillion to USD161 trillion Market capitalization as a percent of
GDP witnessed steep growth in several countries during this period
Similarly trading volumes in stock exchanges too has shown rapid growth Value of share
trading in stock exchanges rose from about USD54 trillion in 1991 to USD33 trillion in
1999 to about USD70 trillion in 2006 During the period 1999 and 2006 value of share
trading in Asia Pacific rose from USD42 trillion to USD12 trillion in EuropeAfricaMiddle
11 Source- httpwwwdnbcoinequitybroking2008Emergingtrenasp
East from USD83 trillion to USD218 trillion and in Americas from USD20 trillion to USD35
trillion
Institutional investment
The rapid growth of stock markets in the world to a significant extent could be explained
by the surge in the institutional investors consisting of pension funds insurance
companies and mutual funds During the period 1995 and 2005 the assets under
management of the institutional investors doubled from USD21trillion to USD53 trillion A
large number of institutional investors are moving away from the home bias investing in
outside world Emerging markets with higher economic growth and rapidly growing
financial markets became major centers of destination for the investments of institutional
investors For instance in the US in 1994 pension funds invested 41 of their portfolio in
domestic equity and 7 in international equities where as by 2005 that share rose to 48
in domestic equities and 15 in international equities The portfolio allocation to bond
markets during the same period reduced from 42 to 32 Emerging markets received
sizeable portion of the investments In the US the dedicated emerging markets mutual
funds rose from about USD27 bn in2000 to USD 230 bn in 2006
International listings
On the back of the liberalization of cross border financial flows companies in several
countries are seeking listing in international exchanges to garner benefits from
international investors as also widen their investor base The number of foreign
companies listed in the London Stock Exchange rose from 387 in 1970 to 553 in 1990 to
636 in 2006 The number of foreign companies listed on the NYSE has also risen rapidly in
the 1990s There is a keen competition across the worldrsquos leading stock exchanges to
promote international listing and gain greater influence In the recent period the US
experienced a slowdown in the listing of foreign companies The decline is attributed to
stringent corporate governance norms that were applied following the corporate abuses
found in the beginning of the decade The US is now examining in greater detail measures
to gain the prominence once it enjoyed in the international listings The Alternative
Investment Market of London Stock Exchange attracted huge interest from SMEs from a
large number of countries
Emerging markets as an investment destination
Liberalization of capital flows led to surge in international investment into emerging
economies finding value on the back of huge prospects for growth The flow of net
Foreign Direct Investment (FDI) into developing countries increased from USD170 bn in
1998 to USD325 bn in 2006 and net portfolio equity flows increased from USD6 bn to
USD94 bn during the same period Net debt flows during this period are rather subdued
with net debt flows from official creditors turning negative Net portfolio equity flows to
China between the year 2000 and 2006 rose from USD69 bn to USD32 bn and in India
from USD23 bn to USD87 bn Other emerging markets such as Brazil Mexico South
Africa Thailand and Russia too showed surge in the net portfolio equity flows Emerging
markets showed significant growth in stock prices making them attractive investment
destinations though issues of valuations are beginning to become a concern now
Growing correlation of returns
Greater harmonization of stock markets in mature and emerging markets is in evidence by
the increasing correlation in market returns across different markets The higher
correlation in the stock price movements gained momentum in the late 1990s due to
growing foreign institutional investment in several markets and growth of the technology
sector that pervaded many markets and has driven stock price momentum in the late
1990s
Emerging markets in the new issuance market
Emerging markets also became very active in the new issuance market In 2006 all the ten
largest cross border new capital issues were from the emerging markets These ten issues
were from China Russia Mexico Thailand and Kazakhstan Of these ten issues four each
were listed in London and Hong Kong and only one in the US The value of the new listings
by emerging market companies in the US exchanges declined from USD29 bn in 2004 to
USD27 bn in 2006 where as that of London rose from USD07 bn to USD96 bn and in
Hong Kong from USD72 bn to USD304 bn Emerging markets in the first five months of
2007 have raised USD537 bn in global financial markets which is reported to be the
highest ever amount raised for a year Some of the leading issues during this period
include the USD8 bn IPO by VTB second largest Russian bank USD185 bn by Turkish
financial institution Halk bank and USD14 bn by a Russian real estate company AFI
Development Some of the largest issues from the emerging markets in the recent period
include USD219 bn issue of Chinarsquos ICBC Bank (Oct 2006) USD112 bn issue of Bank of
China (May 06) USD107 bn issue of Russian energy company Ros neft (Jul 06) USD59 bn
pubic issue of Chinarsquos Citic Bank
Alternative markets
In view of the limitations on listing of small and medium scale companies in the big boards
of the main exchanges several stock exchanges have developed alternative markets for
encouraging listing of small and midcap stocks Almost every major exchange has an
alternative platform for listing and trading of small and midcap stocks and new generation
companies without much listing history The market capitalization of the alternative
markets in the year 2006 has grown at an impressive rate of 30 More than 12000
companies are listed in these alternative markets and the value of share trading of these
for SMEs markets rose 15 in 2006 from USD802 bn to USD919 bn New capital (IPOs)
rose in the alternative markets rose 59 in 2006 from USD136 bn to USD216 bn
Growth of Derivatives
The growth of derivatives picked up on the need for risk transfer products The size of
global derivatives industry in 2006 USD370 trillion of notional value and USD10 trillion of
market value in the Over the Counter (OTC) derivative markets and USD84 trillion of
notional value and USD10 trillion market value in the Exchange traded derivative markets
According to the International Swaps and Derivatives Association more than 90 percent
of the global 500 corporations use derivatives for hedging risks in interest rates foreign
exchange and equities In the OTC markets derivative products accounting for large share
of market value include interest rate (785) and Foreign Exchange (114) where as in
the Exchange Traded segment derivative products on interest rate government debt and
equities form the major part of the volumes
Dark Pools and Private Markets
In the third week of May 2007 Goldman Sachs launched GSTrue which is a platform
developed to allow exclusive club of big investors to trade unregistered privately placed
securities which is considered to be a major challenge for the public equity capital
markets in the US Goldman Sachs in that deal helped underwrite the private sale of 15
of hedge fund manager Oak tree Capital Management for USD800 mn The investors in
this sale would be able to buy and sell Oak tree shares through the new Goldman Sachs
Tradable Unregistered Equity System which has its acronym GSTRue
Under the rules of the Securities and Exchange Commission of the US companies can sell
securities without registering them as long as the issues are limited to qualified
institutional buyers which are investors with at least USD100 mn of assets and there are
no more than 500 stockholders Private pools of capital are growing in size and
significance in international markets to overcome the costs and pressures from stringent
regulation According to an estimate of NASDAQ in 2006 companies in the US raised
USD162 bn of capital through unregistered private placements (also known as 144A
private placements) compared with USD154 bn through IPOs which are registered with
the regulator A group of worldrsquos largest banks are developing ldquoProject Turquoiserdquo which
is a hybrid share trading system that allows transactions both on exchange and outside it
(called as dark liquidity pools) where firms with large asset base can buy and sell large
blocks of shares away from the regulatory oversight
Private Equity
Private equity is growing in size and significance In view of the regulatory standards
prevalent in the public equity capital markets several firms seek the private equity option
to raise resources According to Dialogic the top 50 private equity firms raised USD551 bn
out of the USD800 bn estimated to have been raised by the total private equity since Jan
2002 Of the top 50 private equity firms more than 30 are from the US 11 from the UK
five from Western Europe and one from Asia Pacific Private equity is now involved in high
value deals and recent transactions include USD35 bn HCA buyout in the healthcare
industry and bids of USD39 bn and USD41 bn for Equity Office Property Trust a
commercial office real estate trust in the United Trust It is expected that the transaction
values of the private equity may go up to USD50-100 bn in the near future Private equity
market in India raised USD22 bn in 2005 about USD4 bn in 2006 and is expected to raise
about USD10 bn by 2010 according to a recent study
Hedge Funds
Hedge Funds emerged from the need of investors seeking alpha to earn an excess return
and beat the market and the returns from the conventional investments Alpha is a
common measure of assessing an active managerrsquos performance as it is the return in
excess of a benchmark index or ldquorisk-freerdquo investment The difference between the fair
and actually expected rates of return on a stock is called the stockrsquos alpha In view of rapid
growth of hedge funds and their complex nature of operations and lack of adequate
regulatory control these funds became a major concern of global financial regulation
Notwithstanding these concerns hedge funds continue to grow with the size of the
market growing from about USD30 bn in 1990 to more than USD14 trillion in 2005 and
the number of funds rising from about 530 to about 7000 during this period An
interesting development in the recent period is the growing institutional investment in the
hedge funds which is estimated at USD360 bn in 2005 and the rising allocations to these
funds that was evident in the US and XXVII the European markets The investor base of
the hedge funds consists of individualsfamilies fund of funds corporations and
institutions public and private pensions and endowments and foundations in that order
Investor Protection
With democratization of markets leading to greater participation of individuals and
investments and wide choices of asset classes now available issues of investor interest
and protection have assumed centre stage Following the corporate crises in the US that
adversely affected the investor interests extensive federal investigations were launched
that led to imposition of huge penalties and punitive damages leading to billions of
dollars Such actions were taken against a wide spectrum of global investment banks
brokerage firms and other related entities Simultaneously growth of litigation and class
action suits showed significant rise when the market intermediaries failed to meet their
obligations or did not provide all the material facts to the investors that were crucial for
an investment decision
Securities regulators imposed penalties on market participants who were found to have
indulged in market abuses In India disgorgement orders were passed on certain entities
that were found to making money by unfair means and for violating regulatory norms and
procedures Top institutional investors in several countries devised their own review
process for investing in countries and companies that brought into light greater need for
higher standards in corporate governance disclosure and transparency standards and in
some cases concern towards issues such as democracy and social equity environment
economic and political reforms
Surge in Chinese capital markets
A major change in the year 2007 is the sudden leap of China into big league of global stock
markets On 9 May 07 Shanghai Stock Exchange Chinarsquos top stock market recorded
turnover of USD332 bn and Shenzhen Stock Exchange a stock market for SMEs an
equally powerful USD158 bn taking the combined turnover of both these stock
exchanges on that day to USD495 bn In the first three months of the year 2007 value of
share trading in both these Chinese stock markets reached 89 of the whole turnover of
the year 2006 Value of share trading in Shanghai Stock Exchange rose from USD256 bn in
2003 to USD736 bn in 2006 and in the first three months of the year 2007 it already
recorded USD652 bn Market capitalization in China between Apr 2006 and 2007 rose by
almost 4 times pushing it to a position among the top 10 exchanges in the world and
value of share turnover rose 6 times making Shanghai 6 the biggest Main indexes of
Shanghai Stock Exchange and Shenzhen Stock Exchange posted returns of 194 and 204
respectively in the 12 months proceeding Apr 2007
Rise of smaller markets
The growth and momentum of the stock markets is spreading across a large number of
markets big and small Recent evidence of big surge in stock markets include countries in
the Middle East which witnessed exceptional growth in 20052006 China in 2007 and
several smaller European and Latin American countries in the last one year As
international investing is spreading its presence domestic financial institutions and
investors are finding stocks as an important asset class and stock markets all over the
world have experienced rapid growth in the last five years
Stock exchange consolidation
A big wave of stock exchange consolidation is taking place across the global financial
markets The most notable merger in the recent period is that of the New York Stock
Exchange with Archipelago that led to the demutualization of the former which
subsequently acquired Euro next to form NYSE Group that makes it a formidable force in
the North America and the Euro region Another American exchange NASDAQ after the
merger with Instinet announced plans to acquire OMX which is Europersquos leading
exchange as also provider of cutting edge technology solutions for stock exchanges
worldwide Deutsche Borsersquos recent acquisition of International Securities Exchange gives
the former a powerful position in the derivatives markets in Europe and America There
was also sizeable consolidation within the domestic securities markets in several countries
with the merger of equities and derivatives markets in countries such as Korea Malaysia
and Hong Kong In India the issue of appropriate solutions for the 20 odd stock exchanges
that currently lack proper liquidity is engaging the attention of policy and regulation
RECENT DEVELOPMENTS GOVERNING REGULATION OF STOCK MARKETS
Systematic and streamlined regulation is the key strength and sustainability of the
securities markets Though formal regulation of the securities markets is about 70 years
old some of the recent developments in the financial markets are reshaping the scope
and focus of the regulation These include ndash
There is growing harmonization of regulation across different markets Organizations
such as International Organization for Securities Commissions (IOSCO) are playing a very
important role in adoption of uniform principles and guidelines across the markets
The size and scope of the securities markets is rapidly changing from being one or
two product markets to multi product markets with diverse features and different
investor base
Markets have become more democratized with more people and institutions
participating in the market related activities
Rapid increase in the size of the institutional participation in the financial markets
For instance equity markets which in the past were retail investor driven are now
increasingly become institutional induced
Securities markets are transforming from being membership driven to public
corporation following demutualization and corporatization of stock exchanges in mature
and emerging markets
Two most important pieces of regulation that came into being in the recent period are in
the form of market structure reforms in the US known more popularly as regulation NMS
which underlines the promotion of competition across the markets under three major
principles best price open access and transparency Under the new trade-through role in
whichever market a customer placed his order it should be able to access the best price
that is immediately and automatically available anywhere in the national market system
The trade-through rule will not allow markets to ignore better-priced automated quotes
displayed by the competitors Similarly open access to displayed prices will be a major
feature governing the competition of the markets The regulation also stipulates that all
significant markets must display their quotations and trade reports should be available to
all interested parties on fair terms and non-discriminatory manner Another equally
important development is the Markets in Financial Industry Directive (MiFiD) that will
come into force from 1 Nov 2007 and stipulates wide-ranging norms for financial
institutions in the European Union Major features of the MiFiD include wider scope of
coverage of the financial institutions and the related business activities greater degree of
harmonization across the European markets and facilitate cross border business and
stipulated capital requirements
MiFiD is envisaged to bring major changes in the manner financial institutions in the
European Union will be monitored Simultaneous with stringent norms of regulation the
scope of regulation is considerably delegated to the markets and institutions in the form
of self-regulation Self-regulation brings a number of benefits to the business Institutions
such as National Association of Securities Dealers (NASD) have played an important role in
promoting self-regulation However self-regulation has certain limitations it needs to
overcome before it becomes widely accepted across the markets12
225 Top five companies of the industry
Many time new investor or trader gets confusion for open a D Mat and trading account in
broking House Many of broking House promises to you for better service but clients get
problem due to trading session in theirs Broker house firm Here is the list of Indiarsquos top 5
broking House on base of survey of investors and traders of many cities In their views
following Broking Houses gives best and reliable services13
1 ICICI directcom
ICICI Securities empowers over 2 million Indians to seamlessly access the capital market
with ICICIdirectcom an award winning and pioneering online broking platform The
platform not only offers convenient ways to invest in Equity Derivatives Currency
Futures Mutual Funds but also other services Fixed Deposits Loans Tax Services New
Pension Systems and Insurance are available ICICIdirectcom offers a convenient and easy
to use platform to invest in equity and various other financial products using its unique 3-
in-1 account which integrates customerrsquos saving trading and demat accounts
Apart from convenience ICICIdirectcom also offers access to comprehensive research
information stock picks and mutual fund recommendations among other offerings
Tailored services and trading strategies are available to different types of customers long
term investors day traders high-volume traders and derivatives traders to name some
ICICIdirectcom uses the most advanced commercially available 128-bit encryption
technology enabled Secure Socket Layer (SSL) to ensure that the information transmitted
between the client and ICICIdirectcom across the internet is safe and cannot be accessed
by any third party14
2 India Infoline
India Infoline Ltd (India Infoline) established in 1995 is the holding company of the
India Infoline Group It has membership in the cash and derivative segments of both 12 Source- httpwwwdnbcoinequitybrokingglobal20scenarioasp13 Source- Httpwwwindianstockmarketorgindias-top-10-stock-broking-house14 Source-httpwwwicicisecuritiescomOurBusinessSubSubReportID=10223ampshortCode=INST
the NSE and BSE India Infoline is also registered as a DP with NSDL and CDSL India
Infoline through its subsidiary India Infoline Commodities Limited also offers commodity-
trading services which is a registered member with DGCX since 2006 It also operates in
the currency futures market segment India Infoline offers a wide range of products
and services which include investment banking distribution of financial products
demat services private equity PMS institutional broking WMS insurance broking
among others In addition it also offers research services in areas of economy
derivative strategies mutual funds IPO credit policy and various others The company
has 15 domestic subsidiaries and five foreign subsidiaries The company has global
presence through its subsidiaries in New York Singapore and Dubai India Infoline caters
majorly to retail clients During CY09 the company added 303480 client accounts
Address 75 Nirlon Complex Off Western Express Highway Goregaon (East) Mumbai -
400063 Maharashtra
Telephone 91 22 42499000 Fax 91 22 26850451
Email mailindiainfolinecom Website wwwindiainfolinecom
Registration Number NSE - INBINF231097537 BSE - INBINF01109753315
3 Kotak Securities Ltd
Kotak Securities Ltd (Kotak Securities) is the stock-broking and distribution arm of the
Kotak Mahindra Group and a subsidiary of Kotak Mahindra Bank Kotak Securities was
established in 1994 It has memberships in the cash derivatives and currency futures
segments of NSE and BSE Kotak Securities is also a DP with NSDL and CDSL Apart from
stock broking the company is engaged in offering depository services asset management
margin financing PMS and distribution of financial products like IPOrsquos mutual funds and
insurance The company has a full-fledged research division which offers macro
economic sectoral research and company specific equity research Its domestic network
spans over 383 cities and 1048 offices Trading in equities and derivatives contributes to
major part of the companyrsquos revenue During CY09 Kotak Securities added around 62194
accounts of which around 27 are e-broking accounts The companyrsquos overseas
operations include one subsidiary and two associate firms operating in two foreign
locations
15 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndia+Infoline+Limited2Epdf
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF01113323016
4 Share Khan
Sharekhan Ltd (Sharekhan) is one a leading brokerage houses established in 2000
Sharekhan has membership in the cash and derivative segments of both BSE and NSE It
also operates in the debt and currency futures segment The company is registered as a
DP with CDSL and NSDL Besides trading the company also offers PMS demat services and
mutual funds Share khan provides a comprehensive set of research reports relating
to IPO and mutual funds Other value added facilities offered to clients include
online trading dial-n-trade share shops fundamental and technical research The
company serves large number of retail clients with a client network of more than 100000
clients which includes HNIrsquos corporate and other retail customers The company
through its subsidiary Share khan Commodities Ltd provides commodity-trading services
Address A - 206 Phoenix House 2nd Floor Senapati Bapat Marg Lower Parel
Mumbai - 400013 Maharashtra
Telephone 91 22 67482000 Fax 91 22 66104533
Email compliancelpsharekhancom Website wwwsharekhancom
Registration Number NSE - INBINF231073330 BSE - INBINF01107335117
5 Indiabulls
Indiabulls Securities Ltd (Indiabulls) part of Indiabulls Group was established in 1995 The
company is in the business of providing securities and advisory services It is a corporate
member of capital market wholesale debt market and derivative segments of NSE and of
capital market and derivative segments of BSE
Indiabulls also operates in currency futures and is a DP of CDSL and NSDL It provides a
wide range of products and services which include internet trading NRI trading demat
16 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CKotak+Securities+Limited2Epdf17 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CSharekhan+ Limited2Epdf
services margin financing and distribution of financial products like IPO online
mutual funds etc Power Indiabulls (PIB) is the advanced online trading platform offered
by the company Indiabulls also offers research services in the areas of economic equity
mutual fund IPO and others The company operates in commodity segment through its
subsidiary India bulls Commodities Pvt Ltd which is a member of MCX and NCDEX It
is listed on both NSE and BSE
Address F-60 Malhotra Building 2nd Floor Connaught Place New Delhi - 110001 Delhi
Telephone 91 11 41523700 Fax 91 11 41529071
Email helpdeskindiabullscom Website wwwindiabullscom
Registration Number NSE - INBINF230875632 BSE - INBINF01087563218
18 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndiabulls+Securities+Limited2Epdf
22 Company Overview
221 Overview of the Organizations
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited Uday Kotak Sidney A A Pinto and Kotak amp Company promoted this company Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and thats when the company changed its name to Kotak Mahindra Finance Limited Since then its been a steady and confident journey to growth and success
Kotak Securities Ltd is one of Indias largest brokerage and securities distribution house in India Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-ordinates Kotak Securities Ltd offers online (through wwwkotaksecuritiescom) and offline services based on well-researched expertise and financial products to the non-institutional investors Kotak Securities Limited is the world of Capital Markets where everything newsworthy exists only in the present moment and where knowing the importance of timing sentiments and strategic forecasting makes the difference between profit and loss Kotak Securities Limited a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25 - one of the worldrsquos leading investment banks and brokerage firms) is Indiarsquos leading stock broking house with a market share of 7 - 8
Kotak Securities Limited is one of the larger players in distribution of IPOs - it was ranked number One in 2003-04 as Book Running Lead Manager in public equity offerings by PRIME Database It has also won the ldquoBest Equity Houserdquo Award from Finance Asia -April 2004 The Company has a full-fledged Research division involved in macro economic studies Sectoral research and Company specific equity research combined with a strong and well Networked sales force which helps deliver current and up-to-date market information and news
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them Kotak securities provide portfolio Management Services catering to the high end of the market Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market with the backing of an expert Kotak Securities Limited manages assets over Rs 1700 crores through itrsquos Portfolio Management Services (PMS) servicing high net worth clients with a large
investible surplus through its preferred client services in the mass affluent and wealth management segments The company has a full-fledged research division involved in Macro Economic studies Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news
222 MARKET SHARE
Kotak Securities Ltd is Indiarsquos leading stock broking house with a market share of around
85 percent as of March 31 2006 It handles more IPOs than any other brokerage The
company has a full-fledged research division involved in macroeconomic studies sect oral
research and company-specific equity research combined with a strong and well-
networked sales force which helps deliver current market information and news
The firm has 195 branches servicing more than 2200000 customers across 231 cities
Kotaksecuritiescom the online division offers Internet brokerage services and also online
IPO and mutual fund investments Kotak Securities manages over 2500 crores of Assets
under Management (AUM)
223 AWARDS AND RECOGNIZATION
Kotak Securities Ltd 100 subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry The companyrsquos offerings include stock broking
through the branch and Internet Investments in IPO Mutual funds and Portfolio
management service Kotak Securities has a full-fledged research division involved in
Macro Economic studies Sect oral research and Company Specific Equity Research
combined with a strong and well-networked sales force which helps deliver current and
up to date market information and news Kotak Securitiesrsquo network spans over 321 cities
with 877 outlets with an employee workforce beyond 5100
The company is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can avail the companyrsquos brokerage services for executing the
transactions and the depository services for settling them Kotak Securities Ltd processes
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
3 firms are started broking operations before 1950 65 between 1950-1995 and
32 Post1995
On the basis of terminals 40 are located at Mumbai 12 in Delhi 8 in
Ahmadabad 7 in Kolkata 4 in Chennai and 29 are from other cities
From the study we find that almost 36 firms trade in cash derivatives and
commodities
In the cash market around 34 firms trade at NSE 14 at BSE and 52 trade at
both exchanges In the derivative segment 48 trade at NSE 7 at BSE and 45 at both
whereas in the debt market 31 trade at NSE 26 at BSE and 43 at both Exchanges
Majority of branches are located in the North ie around 40 West has 31 24
are located in South and 5 in East
In terms of Sub brokers around 55 are located in the South 29 in West 11 in
North and 4 in East
Trading IPOs and Mutual funds are the top three products offered with 90 firms
offering trading 67 IPOs and 53 firms offering mutual fund transactions
In terms of various areas of growth 84 firms have expressed interest in
expanding their institutional clients 6 firms intend to increase FII clients and 43 are
interested in setting up JV in India and abroad
In terms of IT penetration 62 firms have provided their website and around 94
firms have E-mail facility10
224 Recent Trends
Equity brokerage industry in India is experiencing rapid growth and diversity Following
the wide range of stock market reforms in the early 2000rsquos brokerage industry underwent
major transformations from being engaged in only brokerage business to offering a wide
range of financial services A modern broking house in India may well be a corporate
entity that offers a wide range of products relies on research for advice uses modern
technology has large distribution network connecting the country provides investor
education and awareness and is compliance focused These developments have resulted
in a huge spurt in business as also growing market share of the large sized brokerage
houses that led to surge in enterprise value thus becoming objects of interest for global
investing In the recent period global and domestic private equity firms have taken stake
10 Source- httpwwwdnbcoinequitybrokingindustry20insightsasp
in brokerage firms such as Anand Rathi (Citigroup) Edelweiss (Lehman Brothers) Geojit
(BNP Paribas) SMC (Millennium India) Motilal Oswal (New Vernon) Marwari Shares
(India Capital Growth Fund) J R G Securities (Barings Pvt Equity) and Network Broking
(Amas Bank of Hindujas) India Infoline (Orient Global) etc Initial Public Offerings of large
firms in2007 such as Motilal Oswal Edelweiss and Religare received huge response from
the markets (over subscription going more than 100) and also high premiums Large
issues of these brokerage firms debuted in the stock exchange with premiums ranging
from 20 to 75 With the stock market momentum likely to continue broking firms
could look forward to scaling up their resource mobilization to fund growing operations
and expansion Brokerages mopping up huge resources from the market are not unusual
even in the emerging markets For instance Citic Securities a Chinese securities firm is
reported to have raised US $ 33 bn last year and other firms such as Haitong and Gold
state are planning to come out with IPOs of US $ 4-5 bn in 2008
In India about 45 equity brokerage houses are at present listed on the stock exchanges
that together reported Rs 35 bn of equity total income of Rs 47 bn and net profit of Rs 3
bn for the second quarter of FY08
Prospects and Outlook
Indian broking houses could look forward to a period of growth and consolidation Indiarsquos
economic growth and deepening of the financial system will present the broking firms
with numerous opportunities for growth and expansion Integration of the financial
markets will enhance the scope of their business and scalability Access to public equity
markets will enable them to raise resources to fund expansion and growths as pursue
useful business acquisitions Growing international investor interest in India will add
newer opportunities to scale up the business as also harmonsing with global standard and
practices Introduction of new products such as mini contracts in the derivatives and other
futures and options products will add new opportunities for creating new business
segments
While opportunities abound there is a great need for reform and restructuring of the
equity broking industry There are about 9000 brokers registered with SEBI but 80
percent of the turnover in NSE and BSE is accounted for by about 100 brokers
Consolidation thus becomes relevant to forge a stronger industry Similarly capital levels
too need to be strengthened The 45 odd listed broking firms in India together have a
meager Rs 35 bn of capital which is far less than what one top broking firm in China
could raise from the capital markets Better performance and practices will enable broking
firms to increase capital levels that will be essential for funding expansion
Investor education and awareness is another aspect broking industry should promote in
the long-term interest of the market As the product mix and risk matrix in financial
markets are continuously changing it becomes imperative for the intermediaries to
educate and create awareness in the clients that would be mutually beneficial Better
understanding of the financial products and associated risks by the investors will be in the
interest of the growth and stability of the markets
The Indian broking industry is coming of age It has enormous opportunities for growth
and diversity As markets expand and get globalised these firms will have increased
opportunity to cater to a large and diverse range of clientele with a wide mix of products
and services Expanding markets offer enhanced opportunities Those who are well
prepared will be in a better position to garner the benefits11
225 Performance Growth Scenario
Some of the major recent developments in the global securities markets have been
summarized below
Equalization
Equity markets have expanded significantly in a large number of countries across the
world The market capitalization of the worldrsquos leading stock exchanges rose from about
USD11 trillion in 1991 to USD35 trillion in 1999 to about USD51 trillion in 2006 The
growth of market capitalization is evident across regions Market capitalization in Asia
nearly doubled from USD68 trillion in 1999 to USD118 trillion in2006 where as in
America it grew from USD179 trillion to USD226 trillion and in EuropeAfricaMiddle
East it rose from USD102 trillion to USD161 trillion Market capitalization as a percent of
GDP witnessed steep growth in several countries during this period
Similarly trading volumes in stock exchanges too has shown rapid growth Value of share
trading in stock exchanges rose from about USD54 trillion in 1991 to USD33 trillion in
1999 to about USD70 trillion in 2006 During the period 1999 and 2006 value of share
trading in Asia Pacific rose from USD42 trillion to USD12 trillion in EuropeAfricaMiddle
11 Source- httpwwwdnbcoinequitybroking2008Emergingtrenasp
East from USD83 trillion to USD218 trillion and in Americas from USD20 trillion to USD35
trillion
Institutional investment
The rapid growth of stock markets in the world to a significant extent could be explained
by the surge in the institutional investors consisting of pension funds insurance
companies and mutual funds During the period 1995 and 2005 the assets under
management of the institutional investors doubled from USD21trillion to USD53 trillion A
large number of institutional investors are moving away from the home bias investing in
outside world Emerging markets with higher economic growth and rapidly growing
financial markets became major centers of destination for the investments of institutional
investors For instance in the US in 1994 pension funds invested 41 of their portfolio in
domestic equity and 7 in international equities where as by 2005 that share rose to 48
in domestic equities and 15 in international equities The portfolio allocation to bond
markets during the same period reduced from 42 to 32 Emerging markets received
sizeable portion of the investments In the US the dedicated emerging markets mutual
funds rose from about USD27 bn in2000 to USD 230 bn in 2006
International listings
On the back of the liberalization of cross border financial flows companies in several
countries are seeking listing in international exchanges to garner benefits from
international investors as also widen their investor base The number of foreign
companies listed in the London Stock Exchange rose from 387 in 1970 to 553 in 1990 to
636 in 2006 The number of foreign companies listed on the NYSE has also risen rapidly in
the 1990s There is a keen competition across the worldrsquos leading stock exchanges to
promote international listing and gain greater influence In the recent period the US
experienced a slowdown in the listing of foreign companies The decline is attributed to
stringent corporate governance norms that were applied following the corporate abuses
found in the beginning of the decade The US is now examining in greater detail measures
to gain the prominence once it enjoyed in the international listings The Alternative
Investment Market of London Stock Exchange attracted huge interest from SMEs from a
large number of countries
Emerging markets as an investment destination
Liberalization of capital flows led to surge in international investment into emerging
economies finding value on the back of huge prospects for growth The flow of net
Foreign Direct Investment (FDI) into developing countries increased from USD170 bn in
1998 to USD325 bn in 2006 and net portfolio equity flows increased from USD6 bn to
USD94 bn during the same period Net debt flows during this period are rather subdued
with net debt flows from official creditors turning negative Net portfolio equity flows to
China between the year 2000 and 2006 rose from USD69 bn to USD32 bn and in India
from USD23 bn to USD87 bn Other emerging markets such as Brazil Mexico South
Africa Thailand and Russia too showed surge in the net portfolio equity flows Emerging
markets showed significant growth in stock prices making them attractive investment
destinations though issues of valuations are beginning to become a concern now
Growing correlation of returns
Greater harmonization of stock markets in mature and emerging markets is in evidence by
the increasing correlation in market returns across different markets The higher
correlation in the stock price movements gained momentum in the late 1990s due to
growing foreign institutional investment in several markets and growth of the technology
sector that pervaded many markets and has driven stock price momentum in the late
1990s
Emerging markets in the new issuance market
Emerging markets also became very active in the new issuance market In 2006 all the ten
largest cross border new capital issues were from the emerging markets These ten issues
were from China Russia Mexico Thailand and Kazakhstan Of these ten issues four each
were listed in London and Hong Kong and only one in the US The value of the new listings
by emerging market companies in the US exchanges declined from USD29 bn in 2004 to
USD27 bn in 2006 where as that of London rose from USD07 bn to USD96 bn and in
Hong Kong from USD72 bn to USD304 bn Emerging markets in the first five months of
2007 have raised USD537 bn in global financial markets which is reported to be the
highest ever amount raised for a year Some of the leading issues during this period
include the USD8 bn IPO by VTB second largest Russian bank USD185 bn by Turkish
financial institution Halk bank and USD14 bn by a Russian real estate company AFI
Development Some of the largest issues from the emerging markets in the recent period
include USD219 bn issue of Chinarsquos ICBC Bank (Oct 2006) USD112 bn issue of Bank of
China (May 06) USD107 bn issue of Russian energy company Ros neft (Jul 06) USD59 bn
pubic issue of Chinarsquos Citic Bank
Alternative markets
In view of the limitations on listing of small and medium scale companies in the big boards
of the main exchanges several stock exchanges have developed alternative markets for
encouraging listing of small and midcap stocks Almost every major exchange has an
alternative platform for listing and trading of small and midcap stocks and new generation
companies without much listing history The market capitalization of the alternative
markets in the year 2006 has grown at an impressive rate of 30 More than 12000
companies are listed in these alternative markets and the value of share trading of these
for SMEs markets rose 15 in 2006 from USD802 bn to USD919 bn New capital (IPOs)
rose in the alternative markets rose 59 in 2006 from USD136 bn to USD216 bn
Growth of Derivatives
The growth of derivatives picked up on the need for risk transfer products The size of
global derivatives industry in 2006 USD370 trillion of notional value and USD10 trillion of
market value in the Over the Counter (OTC) derivative markets and USD84 trillion of
notional value and USD10 trillion market value in the Exchange traded derivative markets
According to the International Swaps and Derivatives Association more than 90 percent
of the global 500 corporations use derivatives for hedging risks in interest rates foreign
exchange and equities In the OTC markets derivative products accounting for large share
of market value include interest rate (785) and Foreign Exchange (114) where as in
the Exchange Traded segment derivative products on interest rate government debt and
equities form the major part of the volumes
Dark Pools and Private Markets
In the third week of May 2007 Goldman Sachs launched GSTrue which is a platform
developed to allow exclusive club of big investors to trade unregistered privately placed
securities which is considered to be a major challenge for the public equity capital
markets in the US Goldman Sachs in that deal helped underwrite the private sale of 15
of hedge fund manager Oak tree Capital Management for USD800 mn The investors in
this sale would be able to buy and sell Oak tree shares through the new Goldman Sachs
Tradable Unregistered Equity System which has its acronym GSTRue
Under the rules of the Securities and Exchange Commission of the US companies can sell
securities without registering them as long as the issues are limited to qualified
institutional buyers which are investors with at least USD100 mn of assets and there are
no more than 500 stockholders Private pools of capital are growing in size and
significance in international markets to overcome the costs and pressures from stringent
regulation According to an estimate of NASDAQ in 2006 companies in the US raised
USD162 bn of capital through unregistered private placements (also known as 144A
private placements) compared with USD154 bn through IPOs which are registered with
the regulator A group of worldrsquos largest banks are developing ldquoProject Turquoiserdquo which
is a hybrid share trading system that allows transactions both on exchange and outside it
(called as dark liquidity pools) where firms with large asset base can buy and sell large
blocks of shares away from the regulatory oversight
Private Equity
Private equity is growing in size and significance In view of the regulatory standards
prevalent in the public equity capital markets several firms seek the private equity option
to raise resources According to Dialogic the top 50 private equity firms raised USD551 bn
out of the USD800 bn estimated to have been raised by the total private equity since Jan
2002 Of the top 50 private equity firms more than 30 are from the US 11 from the UK
five from Western Europe and one from Asia Pacific Private equity is now involved in high
value deals and recent transactions include USD35 bn HCA buyout in the healthcare
industry and bids of USD39 bn and USD41 bn for Equity Office Property Trust a
commercial office real estate trust in the United Trust It is expected that the transaction
values of the private equity may go up to USD50-100 bn in the near future Private equity
market in India raised USD22 bn in 2005 about USD4 bn in 2006 and is expected to raise
about USD10 bn by 2010 according to a recent study
Hedge Funds
Hedge Funds emerged from the need of investors seeking alpha to earn an excess return
and beat the market and the returns from the conventional investments Alpha is a
common measure of assessing an active managerrsquos performance as it is the return in
excess of a benchmark index or ldquorisk-freerdquo investment The difference between the fair
and actually expected rates of return on a stock is called the stockrsquos alpha In view of rapid
growth of hedge funds and their complex nature of operations and lack of adequate
regulatory control these funds became a major concern of global financial regulation
Notwithstanding these concerns hedge funds continue to grow with the size of the
market growing from about USD30 bn in 1990 to more than USD14 trillion in 2005 and
the number of funds rising from about 530 to about 7000 during this period An
interesting development in the recent period is the growing institutional investment in the
hedge funds which is estimated at USD360 bn in 2005 and the rising allocations to these
funds that was evident in the US and XXVII the European markets The investor base of
the hedge funds consists of individualsfamilies fund of funds corporations and
institutions public and private pensions and endowments and foundations in that order
Investor Protection
With democratization of markets leading to greater participation of individuals and
investments and wide choices of asset classes now available issues of investor interest
and protection have assumed centre stage Following the corporate crises in the US that
adversely affected the investor interests extensive federal investigations were launched
that led to imposition of huge penalties and punitive damages leading to billions of
dollars Such actions were taken against a wide spectrum of global investment banks
brokerage firms and other related entities Simultaneously growth of litigation and class
action suits showed significant rise when the market intermediaries failed to meet their
obligations or did not provide all the material facts to the investors that were crucial for
an investment decision
Securities regulators imposed penalties on market participants who were found to have
indulged in market abuses In India disgorgement orders were passed on certain entities
that were found to making money by unfair means and for violating regulatory norms and
procedures Top institutional investors in several countries devised their own review
process for investing in countries and companies that brought into light greater need for
higher standards in corporate governance disclosure and transparency standards and in
some cases concern towards issues such as democracy and social equity environment
economic and political reforms
Surge in Chinese capital markets
A major change in the year 2007 is the sudden leap of China into big league of global stock
markets On 9 May 07 Shanghai Stock Exchange Chinarsquos top stock market recorded
turnover of USD332 bn and Shenzhen Stock Exchange a stock market for SMEs an
equally powerful USD158 bn taking the combined turnover of both these stock
exchanges on that day to USD495 bn In the first three months of the year 2007 value of
share trading in both these Chinese stock markets reached 89 of the whole turnover of
the year 2006 Value of share trading in Shanghai Stock Exchange rose from USD256 bn in
2003 to USD736 bn in 2006 and in the first three months of the year 2007 it already
recorded USD652 bn Market capitalization in China between Apr 2006 and 2007 rose by
almost 4 times pushing it to a position among the top 10 exchanges in the world and
value of share turnover rose 6 times making Shanghai 6 the biggest Main indexes of
Shanghai Stock Exchange and Shenzhen Stock Exchange posted returns of 194 and 204
respectively in the 12 months proceeding Apr 2007
Rise of smaller markets
The growth and momentum of the stock markets is spreading across a large number of
markets big and small Recent evidence of big surge in stock markets include countries in
the Middle East which witnessed exceptional growth in 20052006 China in 2007 and
several smaller European and Latin American countries in the last one year As
international investing is spreading its presence domestic financial institutions and
investors are finding stocks as an important asset class and stock markets all over the
world have experienced rapid growth in the last five years
Stock exchange consolidation
A big wave of stock exchange consolidation is taking place across the global financial
markets The most notable merger in the recent period is that of the New York Stock
Exchange with Archipelago that led to the demutualization of the former which
subsequently acquired Euro next to form NYSE Group that makes it a formidable force in
the North America and the Euro region Another American exchange NASDAQ after the
merger with Instinet announced plans to acquire OMX which is Europersquos leading
exchange as also provider of cutting edge technology solutions for stock exchanges
worldwide Deutsche Borsersquos recent acquisition of International Securities Exchange gives
the former a powerful position in the derivatives markets in Europe and America There
was also sizeable consolidation within the domestic securities markets in several countries
with the merger of equities and derivatives markets in countries such as Korea Malaysia
and Hong Kong In India the issue of appropriate solutions for the 20 odd stock exchanges
that currently lack proper liquidity is engaging the attention of policy and regulation
RECENT DEVELOPMENTS GOVERNING REGULATION OF STOCK MARKETS
Systematic and streamlined regulation is the key strength and sustainability of the
securities markets Though formal regulation of the securities markets is about 70 years
old some of the recent developments in the financial markets are reshaping the scope
and focus of the regulation These include ndash
There is growing harmonization of regulation across different markets Organizations
such as International Organization for Securities Commissions (IOSCO) are playing a very
important role in adoption of uniform principles and guidelines across the markets
The size and scope of the securities markets is rapidly changing from being one or
two product markets to multi product markets with diverse features and different
investor base
Markets have become more democratized with more people and institutions
participating in the market related activities
Rapid increase in the size of the institutional participation in the financial markets
For instance equity markets which in the past were retail investor driven are now
increasingly become institutional induced
Securities markets are transforming from being membership driven to public
corporation following demutualization and corporatization of stock exchanges in mature
and emerging markets
Two most important pieces of regulation that came into being in the recent period are in
the form of market structure reforms in the US known more popularly as regulation NMS
which underlines the promotion of competition across the markets under three major
principles best price open access and transparency Under the new trade-through role in
whichever market a customer placed his order it should be able to access the best price
that is immediately and automatically available anywhere in the national market system
The trade-through rule will not allow markets to ignore better-priced automated quotes
displayed by the competitors Similarly open access to displayed prices will be a major
feature governing the competition of the markets The regulation also stipulates that all
significant markets must display their quotations and trade reports should be available to
all interested parties on fair terms and non-discriminatory manner Another equally
important development is the Markets in Financial Industry Directive (MiFiD) that will
come into force from 1 Nov 2007 and stipulates wide-ranging norms for financial
institutions in the European Union Major features of the MiFiD include wider scope of
coverage of the financial institutions and the related business activities greater degree of
harmonization across the European markets and facilitate cross border business and
stipulated capital requirements
MiFiD is envisaged to bring major changes in the manner financial institutions in the
European Union will be monitored Simultaneous with stringent norms of regulation the
scope of regulation is considerably delegated to the markets and institutions in the form
of self-regulation Self-regulation brings a number of benefits to the business Institutions
such as National Association of Securities Dealers (NASD) have played an important role in
promoting self-regulation However self-regulation has certain limitations it needs to
overcome before it becomes widely accepted across the markets12
225 Top five companies of the industry
Many time new investor or trader gets confusion for open a D Mat and trading account in
broking House Many of broking House promises to you for better service but clients get
problem due to trading session in theirs Broker house firm Here is the list of Indiarsquos top 5
broking House on base of survey of investors and traders of many cities In their views
following Broking Houses gives best and reliable services13
1 ICICI directcom
ICICI Securities empowers over 2 million Indians to seamlessly access the capital market
with ICICIdirectcom an award winning and pioneering online broking platform The
platform not only offers convenient ways to invest in Equity Derivatives Currency
Futures Mutual Funds but also other services Fixed Deposits Loans Tax Services New
Pension Systems and Insurance are available ICICIdirectcom offers a convenient and easy
to use platform to invest in equity and various other financial products using its unique 3-
in-1 account which integrates customerrsquos saving trading and demat accounts
Apart from convenience ICICIdirectcom also offers access to comprehensive research
information stock picks and mutual fund recommendations among other offerings
Tailored services and trading strategies are available to different types of customers long
term investors day traders high-volume traders and derivatives traders to name some
ICICIdirectcom uses the most advanced commercially available 128-bit encryption
technology enabled Secure Socket Layer (SSL) to ensure that the information transmitted
between the client and ICICIdirectcom across the internet is safe and cannot be accessed
by any third party14
2 India Infoline
India Infoline Ltd (India Infoline) established in 1995 is the holding company of the
India Infoline Group It has membership in the cash and derivative segments of both 12 Source- httpwwwdnbcoinequitybrokingglobal20scenarioasp13 Source- Httpwwwindianstockmarketorgindias-top-10-stock-broking-house14 Source-httpwwwicicisecuritiescomOurBusinessSubSubReportID=10223ampshortCode=INST
the NSE and BSE India Infoline is also registered as a DP with NSDL and CDSL India
Infoline through its subsidiary India Infoline Commodities Limited also offers commodity-
trading services which is a registered member with DGCX since 2006 It also operates in
the currency futures market segment India Infoline offers a wide range of products
and services which include investment banking distribution of financial products
demat services private equity PMS institutional broking WMS insurance broking
among others In addition it also offers research services in areas of economy
derivative strategies mutual funds IPO credit policy and various others The company
has 15 domestic subsidiaries and five foreign subsidiaries The company has global
presence through its subsidiaries in New York Singapore and Dubai India Infoline caters
majorly to retail clients During CY09 the company added 303480 client accounts
Address 75 Nirlon Complex Off Western Express Highway Goregaon (East) Mumbai -
400063 Maharashtra
Telephone 91 22 42499000 Fax 91 22 26850451
Email mailindiainfolinecom Website wwwindiainfolinecom
Registration Number NSE - INBINF231097537 BSE - INBINF01109753315
3 Kotak Securities Ltd
Kotak Securities Ltd (Kotak Securities) is the stock-broking and distribution arm of the
Kotak Mahindra Group and a subsidiary of Kotak Mahindra Bank Kotak Securities was
established in 1994 It has memberships in the cash derivatives and currency futures
segments of NSE and BSE Kotak Securities is also a DP with NSDL and CDSL Apart from
stock broking the company is engaged in offering depository services asset management
margin financing PMS and distribution of financial products like IPOrsquos mutual funds and
insurance The company has a full-fledged research division which offers macro
economic sectoral research and company specific equity research Its domestic network
spans over 383 cities and 1048 offices Trading in equities and derivatives contributes to
major part of the companyrsquos revenue During CY09 Kotak Securities added around 62194
accounts of which around 27 are e-broking accounts The companyrsquos overseas
operations include one subsidiary and two associate firms operating in two foreign
locations
15 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndia+Infoline+Limited2Epdf
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF01113323016
4 Share Khan
Sharekhan Ltd (Sharekhan) is one a leading brokerage houses established in 2000
Sharekhan has membership in the cash and derivative segments of both BSE and NSE It
also operates in the debt and currency futures segment The company is registered as a
DP with CDSL and NSDL Besides trading the company also offers PMS demat services and
mutual funds Share khan provides a comprehensive set of research reports relating
to IPO and mutual funds Other value added facilities offered to clients include
online trading dial-n-trade share shops fundamental and technical research The
company serves large number of retail clients with a client network of more than 100000
clients which includes HNIrsquos corporate and other retail customers The company
through its subsidiary Share khan Commodities Ltd provides commodity-trading services
Address A - 206 Phoenix House 2nd Floor Senapati Bapat Marg Lower Parel
Mumbai - 400013 Maharashtra
Telephone 91 22 67482000 Fax 91 22 66104533
Email compliancelpsharekhancom Website wwwsharekhancom
Registration Number NSE - INBINF231073330 BSE - INBINF01107335117
5 Indiabulls
Indiabulls Securities Ltd (Indiabulls) part of Indiabulls Group was established in 1995 The
company is in the business of providing securities and advisory services It is a corporate
member of capital market wholesale debt market and derivative segments of NSE and of
capital market and derivative segments of BSE
Indiabulls also operates in currency futures and is a DP of CDSL and NSDL It provides a
wide range of products and services which include internet trading NRI trading demat
16 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CKotak+Securities+Limited2Epdf17 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CSharekhan+ Limited2Epdf
services margin financing and distribution of financial products like IPO online
mutual funds etc Power Indiabulls (PIB) is the advanced online trading platform offered
by the company Indiabulls also offers research services in the areas of economic equity
mutual fund IPO and others The company operates in commodity segment through its
subsidiary India bulls Commodities Pvt Ltd which is a member of MCX and NCDEX It
is listed on both NSE and BSE
Address F-60 Malhotra Building 2nd Floor Connaught Place New Delhi - 110001 Delhi
Telephone 91 11 41523700 Fax 91 11 41529071
Email helpdeskindiabullscom Website wwwindiabullscom
Registration Number NSE - INBINF230875632 BSE - INBINF01087563218
18 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndiabulls+Securities+Limited2Epdf
22 Company Overview
221 Overview of the Organizations
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited Uday Kotak Sidney A A Pinto and Kotak amp Company promoted this company Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and thats when the company changed its name to Kotak Mahindra Finance Limited Since then its been a steady and confident journey to growth and success
Kotak Securities Ltd is one of Indias largest brokerage and securities distribution house in India Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-ordinates Kotak Securities Ltd offers online (through wwwkotaksecuritiescom) and offline services based on well-researched expertise and financial products to the non-institutional investors Kotak Securities Limited is the world of Capital Markets where everything newsworthy exists only in the present moment and where knowing the importance of timing sentiments and strategic forecasting makes the difference between profit and loss Kotak Securities Limited a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25 - one of the worldrsquos leading investment banks and brokerage firms) is Indiarsquos leading stock broking house with a market share of 7 - 8
Kotak Securities Limited is one of the larger players in distribution of IPOs - it was ranked number One in 2003-04 as Book Running Lead Manager in public equity offerings by PRIME Database It has also won the ldquoBest Equity Houserdquo Award from Finance Asia -April 2004 The Company has a full-fledged Research division involved in macro economic studies Sectoral research and Company specific equity research combined with a strong and well Networked sales force which helps deliver current and up-to-date market information and news
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them Kotak securities provide portfolio Management Services catering to the high end of the market Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market with the backing of an expert Kotak Securities Limited manages assets over Rs 1700 crores through itrsquos Portfolio Management Services (PMS) servicing high net worth clients with a large
investible surplus through its preferred client services in the mass affluent and wealth management segments The company has a full-fledged research division involved in Macro Economic studies Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news
222 MARKET SHARE
Kotak Securities Ltd is Indiarsquos leading stock broking house with a market share of around
85 percent as of March 31 2006 It handles more IPOs than any other brokerage The
company has a full-fledged research division involved in macroeconomic studies sect oral
research and company-specific equity research combined with a strong and well-
networked sales force which helps deliver current market information and news
The firm has 195 branches servicing more than 2200000 customers across 231 cities
Kotaksecuritiescom the online division offers Internet brokerage services and also online
IPO and mutual fund investments Kotak Securities manages over 2500 crores of Assets
under Management (AUM)
223 AWARDS AND RECOGNIZATION
Kotak Securities Ltd 100 subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry The companyrsquos offerings include stock broking
through the branch and Internet Investments in IPO Mutual funds and Portfolio
management service Kotak Securities has a full-fledged research division involved in
Macro Economic studies Sect oral research and Company Specific Equity Research
combined with a strong and well-networked sales force which helps deliver current and
up to date market information and news Kotak Securitiesrsquo network spans over 321 cities
with 877 outlets with an employee workforce beyond 5100
The company is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can avail the companyrsquos brokerage services for executing the
transactions and the depository services for settling them Kotak Securities Ltd processes
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
in brokerage firms such as Anand Rathi (Citigroup) Edelweiss (Lehman Brothers) Geojit
(BNP Paribas) SMC (Millennium India) Motilal Oswal (New Vernon) Marwari Shares
(India Capital Growth Fund) J R G Securities (Barings Pvt Equity) and Network Broking
(Amas Bank of Hindujas) India Infoline (Orient Global) etc Initial Public Offerings of large
firms in2007 such as Motilal Oswal Edelweiss and Religare received huge response from
the markets (over subscription going more than 100) and also high premiums Large
issues of these brokerage firms debuted in the stock exchange with premiums ranging
from 20 to 75 With the stock market momentum likely to continue broking firms
could look forward to scaling up their resource mobilization to fund growing operations
and expansion Brokerages mopping up huge resources from the market are not unusual
even in the emerging markets For instance Citic Securities a Chinese securities firm is
reported to have raised US $ 33 bn last year and other firms such as Haitong and Gold
state are planning to come out with IPOs of US $ 4-5 bn in 2008
In India about 45 equity brokerage houses are at present listed on the stock exchanges
that together reported Rs 35 bn of equity total income of Rs 47 bn and net profit of Rs 3
bn for the second quarter of FY08
Prospects and Outlook
Indian broking houses could look forward to a period of growth and consolidation Indiarsquos
economic growth and deepening of the financial system will present the broking firms
with numerous opportunities for growth and expansion Integration of the financial
markets will enhance the scope of their business and scalability Access to public equity
markets will enable them to raise resources to fund expansion and growths as pursue
useful business acquisitions Growing international investor interest in India will add
newer opportunities to scale up the business as also harmonsing with global standard and
practices Introduction of new products such as mini contracts in the derivatives and other
futures and options products will add new opportunities for creating new business
segments
While opportunities abound there is a great need for reform and restructuring of the
equity broking industry There are about 9000 brokers registered with SEBI but 80
percent of the turnover in NSE and BSE is accounted for by about 100 brokers
Consolidation thus becomes relevant to forge a stronger industry Similarly capital levels
too need to be strengthened The 45 odd listed broking firms in India together have a
meager Rs 35 bn of capital which is far less than what one top broking firm in China
could raise from the capital markets Better performance and practices will enable broking
firms to increase capital levels that will be essential for funding expansion
Investor education and awareness is another aspect broking industry should promote in
the long-term interest of the market As the product mix and risk matrix in financial
markets are continuously changing it becomes imperative for the intermediaries to
educate and create awareness in the clients that would be mutually beneficial Better
understanding of the financial products and associated risks by the investors will be in the
interest of the growth and stability of the markets
The Indian broking industry is coming of age It has enormous opportunities for growth
and diversity As markets expand and get globalised these firms will have increased
opportunity to cater to a large and diverse range of clientele with a wide mix of products
and services Expanding markets offer enhanced opportunities Those who are well
prepared will be in a better position to garner the benefits11
225 Performance Growth Scenario
Some of the major recent developments in the global securities markets have been
summarized below
Equalization
Equity markets have expanded significantly in a large number of countries across the
world The market capitalization of the worldrsquos leading stock exchanges rose from about
USD11 trillion in 1991 to USD35 trillion in 1999 to about USD51 trillion in 2006 The
growth of market capitalization is evident across regions Market capitalization in Asia
nearly doubled from USD68 trillion in 1999 to USD118 trillion in2006 where as in
America it grew from USD179 trillion to USD226 trillion and in EuropeAfricaMiddle
East it rose from USD102 trillion to USD161 trillion Market capitalization as a percent of
GDP witnessed steep growth in several countries during this period
Similarly trading volumes in stock exchanges too has shown rapid growth Value of share
trading in stock exchanges rose from about USD54 trillion in 1991 to USD33 trillion in
1999 to about USD70 trillion in 2006 During the period 1999 and 2006 value of share
trading in Asia Pacific rose from USD42 trillion to USD12 trillion in EuropeAfricaMiddle
11 Source- httpwwwdnbcoinequitybroking2008Emergingtrenasp
East from USD83 trillion to USD218 trillion and in Americas from USD20 trillion to USD35
trillion
Institutional investment
The rapid growth of stock markets in the world to a significant extent could be explained
by the surge in the institutional investors consisting of pension funds insurance
companies and mutual funds During the period 1995 and 2005 the assets under
management of the institutional investors doubled from USD21trillion to USD53 trillion A
large number of institutional investors are moving away from the home bias investing in
outside world Emerging markets with higher economic growth and rapidly growing
financial markets became major centers of destination for the investments of institutional
investors For instance in the US in 1994 pension funds invested 41 of their portfolio in
domestic equity and 7 in international equities where as by 2005 that share rose to 48
in domestic equities and 15 in international equities The portfolio allocation to bond
markets during the same period reduced from 42 to 32 Emerging markets received
sizeable portion of the investments In the US the dedicated emerging markets mutual
funds rose from about USD27 bn in2000 to USD 230 bn in 2006
International listings
On the back of the liberalization of cross border financial flows companies in several
countries are seeking listing in international exchanges to garner benefits from
international investors as also widen their investor base The number of foreign
companies listed in the London Stock Exchange rose from 387 in 1970 to 553 in 1990 to
636 in 2006 The number of foreign companies listed on the NYSE has also risen rapidly in
the 1990s There is a keen competition across the worldrsquos leading stock exchanges to
promote international listing and gain greater influence In the recent period the US
experienced a slowdown in the listing of foreign companies The decline is attributed to
stringent corporate governance norms that were applied following the corporate abuses
found in the beginning of the decade The US is now examining in greater detail measures
to gain the prominence once it enjoyed in the international listings The Alternative
Investment Market of London Stock Exchange attracted huge interest from SMEs from a
large number of countries
Emerging markets as an investment destination
Liberalization of capital flows led to surge in international investment into emerging
economies finding value on the back of huge prospects for growth The flow of net
Foreign Direct Investment (FDI) into developing countries increased from USD170 bn in
1998 to USD325 bn in 2006 and net portfolio equity flows increased from USD6 bn to
USD94 bn during the same period Net debt flows during this period are rather subdued
with net debt flows from official creditors turning negative Net portfolio equity flows to
China between the year 2000 and 2006 rose from USD69 bn to USD32 bn and in India
from USD23 bn to USD87 bn Other emerging markets such as Brazil Mexico South
Africa Thailand and Russia too showed surge in the net portfolio equity flows Emerging
markets showed significant growth in stock prices making them attractive investment
destinations though issues of valuations are beginning to become a concern now
Growing correlation of returns
Greater harmonization of stock markets in mature and emerging markets is in evidence by
the increasing correlation in market returns across different markets The higher
correlation in the stock price movements gained momentum in the late 1990s due to
growing foreign institutional investment in several markets and growth of the technology
sector that pervaded many markets and has driven stock price momentum in the late
1990s
Emerging markets in the new issuance market
Emerging markets also became very active in the new issuance market In 2006 all the ten
largest cross border new capital issues were from the emerging markets These ten issues
were from China Russia Mexico Thailand and Kazakhstan Of these ten issues four each
were listed in London and Hong Kong and only one in the US The value of the new listings
by emerging market companies in the US exchanges declined from USD29 bn in 2004 to
USD27 bn in 2006 where as that of London rose from USD07 bn to USD96 bn and in
Hong Kong from USD72 bn to USD304 bn Emerging markets in the first five months of
2007 have raised USD537 bn in global financial markets which is reported to be the
highest ever amount raised for a year Some of the leading issues during this period
include the USD8 bn IPO by VTB second largest Russian bank USD185 bn by Turkish
financial institution Halk bank and USD14 bn by a Russian real estate company AFI
Development Some of the largest issues from the emerging markets in the recent period
include USD219 bn issue of Chinarsquos ICBC Bank (Oct 2006) USD112 bn issue of Bank of
China (May 06) USD107 bn issue of Russian energy company Ros neft (Jul 06) USD59 bn
pubic issue of Chinarsquos Citic Bank
Alternative markets
In view of the limitations on listing of small and medium scale companies in the big boards
of the main exchanges several stock exchanges have developed alternative markets for
encouraging listing of small and midcap stocks Almost every major exchange has an
alternative platform for listing and trading of small and midcap stocks and new generation
companies without much listing history The market capitalization of the alternative
markets in the year 2006 has grown at an impressive rate of 30 More than 12000
companies are listed in these alternative markets and the value of share trading of these
for SMEs markets rose 15 in 2006 from USD802 bn to USD919 bn New capital (IPOs)
rose in the alternative markets rose 59 in 2006 from USD136 bn to USD216 bn
Growth of Derivatives
The growth of derivatives picked up on the need for risk transfer products The size of
global derivatives industry in 2006 USD370 trillion of notional value and USD10 trillion of
market value in the Over the Counter (OTC) derivative markets and USD84 trillion of
notional value and USD10 trillion market value in the Exchange traded derivative markets
According to the International Swaps and Derivatives Association more than 90 percent
of the global 500 corporations use derivatives for hedging risks in interest rates foreign
exchange and equities In the OTC markets derivative products accounting for large share
of market value include interest rate (785) and Foreign Exchange (114) where as in
the Exchange Traded segment derivative products on interest rate government debt and
equities form the major part of the volumes
Dark Pools and Private Markets
In the third week of May 2007 Goldman Sachs launched GSTrue which is a platform
developed to allow exclusive club of big investors to trade unregistered privately placed
securities which is considered to be a major challenge for the public equity capital
markets in the US Goldman Sachs in that deal helped underwrite the private sale of 15
of hedge fund manager Oak tree Capital Management for USD800 mn The investors in
this sale would be able to buy and sell Oak tree shares through the new Goldman Sachs
Tradable Unregistered Equity System which has its acronym GSTRue
Under the rules of the Securities and Exchange Commission of the US companies can sell
securities without registering them as long as the issues are limited to qualified
institutional buyers which are investors with at least USD100 mn of assets and there are
no more than 500 stockholders Private pools of capital are growing in size and
significance in international markets to overcome the costs and pressures from stringent
regulation According to an estimate of NASDAQ in 2006 companies in the US raised
USD162 bn of capital through unregistered private placements (also known as 144A
private placements) compared with USD154 bn through IPOs which are registered with
the regulator A group of worldrsquos largest banks are developing ldquoProject Turquoiserdquo which
is a hybrid share trading system that allows transactions both on exchange and outside it
(called as dark liquidity pools) where firms with large asset base can buy and sell large
blocks of shares away from the regulatory oversight
Private Equity
Private equity is growing in size and significance In view of the regulatory standards
prevalent in the public equity capital markets several firms seek the private equity option
to raise resources According to Dialogic the top 50 private equity firms raised USD551 bn
out of the USD800 bn estimated to have been raised by the total private equity since Jan
2002 Of the top 50 private equity firms more than 30 are from the US 11 from the UK
five from Western Europe and one from Asia Pacific Private equity is now involved in high
value deals and recent transactions include USD35 bn HCA buyout in the healthcare
industry and bids of USD39 bn and USD41 bn for Equity Office Property Trust a
commercial office real estate trust in the United Trust It is expected that the transaction
values of the private equity may go up to USD50-100 bn in the near future Private equity
market in India raised USD22 bn in 2005 about USD4 bn in 2006 and is expected to raise
about USD10 bn by 2010 according to a recent study
Hedge Funds
Hedge Funds emerged from the need of investors seeking alpha to earn an excess return
and beat the market and the returns from the conventional investments Alpha is a
common measure of assessing an active managerrsquos performance as it is the return in
excess of a benchmark index or ldquorisk-freerdquo investment The difference between the fair
and actually expected rates of return on a stock is called the stockrsquos alpha In view of rapid
growth of hedge funds and their complex nature of operations and lack of adequate
regulatory control these funds became a major concern of global financial regulation
Notwithstanding these concerns hedge funds continue to grow with the size of the
market growing from about USD30 bn in 1990 to more than USD14 trillion in 2005 and
the number of funds rising from about 530 to about 7000 during this period An
interesting development in the recent period is the growing institutional investment in the
hedge funds which is estimated at USD360 bn in 2005 and the rising allocations to these
funds that was evident in the US and XXVII the European markets The investor base of
the hedge funds consists of individualsfamilies fund of funds corporations and
institutions public and private pensions and endowments and foundations in that order
Investor Protection
With democratization of markets leading to greater participation of individuals and
investments and wide choices of asset classes now available issues of investor interest
and protection have assumed centre stage Following the corporate crises in the US that
adversely affected the investor interests extensive federal investigations were launched
that led to imposition of huge penalties and punitive damages leading to billions of
dollars Such actions were taken against a wide spectrum of global investment banks
brokerage firms and other related entities Simultaneously growth of litigation and class
action suits showed significant rise when the market intermediaries failed to meet their
obligations or did not provide all the material facts to the investors that were crucial for
an investment decision
Securities regulators imposed penalties on market participants who were found to have
indulged in market abuses In India disgorgement orders were passed on certain entities
that were found to making money by unfair means and for violating regulatory norms and
procedures Top institutional investors in several countries devised their own review
process for investing in countries and companies that brought into light greater need for
higher standards in corporate governance disclosure and transparency standards and in
some cases concern towards issues such as democracy and social equity environment
economic and political reforms
Surge in Chinese capital markets
A major change in the year 2007 is the sudden leap of China into big league of global stock
markets On 9 May 07 Shanghai Stock Exchange Chinarsquos top stock market recorded
turnover of USD332 bn and Shenzhen Stock Exchange a stock market for SMEs an
equally powerful USD158 bn taking the combined turnover of both these stock
exchanges on that day to USD495 bn In the first three months of the year 2007 value of
share trading in both these Chinese stock markets reached 89 of the whole turnover of
the year 2006 Value of share trading in Shanghai Stock Exchange rose from USD256 bn in
2003 to USD736 bn in 2006 and in the first three months of the year 2007 it already
recorded USD652 bn Market capitalization in China between Apr 2006 and 2007 rose by
almost 4 times pushing it to a position among the top 10 exchanges in the world and
value of share turnover rose 6 times making Shanghai 6 the biggest Main indexes of
Shanghai Stock Exchange and Shenzhen Stock Exchange posted returns of 194 and 204
respectively in the 12 months proceeding Apr 2007
Rise of smaller markets
The growth and momentum of the stock markets is spreading across a large number of
markets big and small Recent evidence of big surge in stock markets include countries in
the Middle East which witnessed exceptional growth in 20052006 China in 2007 and
several smaller European and Latin American countries in the last one year As
international investing is spreading its presence domestic financial institutions and
investors are finding stocks as an important asset class and stock markets all over the
world have experienced rapid growth in the last five years
Stock exchange consolidation
A big wave of stock exchange consolidation is taking place across the global financial
markets The most notable merger in the recent period is that of the New York Stock
Exchange with Archipelago that led to the demutualization of the former which
subsequently acquired Euro next to form NYSE Group that makes it a formidable force in
the North America and the Euro region Another American exchange NASDAQ after the
merger with Instinet announced plans to acquire OMX which is Europersquos leading
exchange as also provider of cutting edge technology solutions for stock exchanges
worldwide Deutsche Borsersquos recent acquisition of International Securities Exchange gives
the former a powerful position in the derivatives markets in Europe and America There
was also sizeable consolidation within the domestic securities markets in several countries
with the merger of equities and derivatives markets in countries such as Korea Malaysia
and Hong Kong In India the issue of appropriate solutions for the 20 odd stock exchanges
that currently lack proper liquidity is engaging the attention of policy and regulation
RECENT DEVELOPMENTS GOVERNING REGULATION OF STOCK MARKETS
Systematic and streamlined regulation is the key strength and sustainability of the
securities markets Though formal regulation of the securities markets is about 70 years
old some of the recent developments in the financial markets are reshaping the scope
and focus of the regulation These include ndash
There is growing harmonization of regulation across different markets Organizations
such as International Organization for Securities Commissions (IOSCO) are playing a very
important role in adoption of uniform principles and guidelines across the markets
The size and scope of the securities markets is rapidly changing from being one or
two product markets to multi product markets with diverse features and different
investor base
Markets have become more democratized with more people and institutions
participating in the market related activities
Rapid increase in the size of the institutional participation in the financial markets
For instance equity markets which in the past were retail investor driven are now
increasingly become institutional induced
Securities markets are transforming from being membership driven to public
corporation following demutualization and corporatization of stock exchanges in mature
and emerging markets
Two most important pieces of regulation that came into being in the recent period are in
the form of market structure reforms in the US known more popularly as regulation NMS
which underlines the promotion of competition across the markets under three major
principles best price open access and transparency Under the new trade-through role in
whichever market a customer placed his order it should be able to access the best price
that is immediately and automatically available anywhere in the national market system
The trade-through rule will not allow markets to ignore better-priced automated quotes
displayed by the competitors Similarly open access to displayed prices will be a major
feature governing the competition of the markets The regulation also stipulates that all
significant markets must display their quotations and trade reports should be available to
all interested parties on fair terms and non-discriminatory manner Another equally
important development is the Markets in Financial Industry Directive (MiFiD) that will
come into force from 1 Nov 2007 and stipulates wide-ranging norms for financial
institutions in the European Union Major features of the MiFiD include wider scope of
coverage of the financial institutions and the related business activities greater degree of
harmonization across the European markets and facilitate cross border business and
stipulated capital requirements
MiFiD is envisaged to bring major changes in the manner financial institutions in the
European Union will be monitored Simultaneous with stringent norms of regulation the
scope of regulation is considerably delegated to the markets and institutions in the form
of self-regulation Self-regulation brings a number of benefits to the business Institutions
such as National Association of Securities Dealers (NASD) have played an important role in
promoting self-regulation However self-regulation has certain limitations it needs to
overcome before it becomes widely accepted across the markets12
225 Top five companies of the industry
Many time new investor or trader gets confusion for open a D Mat and trading account in
broking House Many of broking House promises to you for better service but clients get
problem due to trading session in theirs Broker house firm Here is the list of Indiarsquos top 5
broking House on base of survey of investors and traders of many cities In their views
following Broking Houses gives best and reliable services13
1 ICICI directcom
ICICI Securities empowers over 2 million Indians to seamlessly access the capital market
with ICICIdirectcom an award winning and pioneering online broking platform The
platform not only offers convenient ways to invest in Equity Derivatives Currency
Futures Mutual Funds but also other services Fixed Deposits Loans Tax Services New
Pension Systems and Insurance are available ICICIdirectcom offers a convenient and easy
to use platform to invest in equity and various other financial products using its unique 3-
in-1 account which integrates customerrsquos saving trading and demat accounts
Apart from convenience ICICIdirectcom also offers access to comprehensive research
information stock picks and mutual fund recommendations among other offerings
Tailored services and trading strategies are available to different types of customers long
term investors day traders high-volume traders and derivatives traders to name some
ICICIdirectcom uses the most advanced commercially available 128-bit encryption
technology enabled Secure Socket Layer (SSL) to ensure that the information transmitted
between the client and ICICIdirectcom across the internet is safe and cannot be accessed
by any third party14
2 India Infoline
India Infoline Ltd (India Infoline) established in 1995 is the holding company of the
India Infoline Group It has membership in the cash and derivative segments of both 12 Source- httpwwwdnbcoinequitybrokingglobal20scenarioasp13 Source- Httpwwwindianstockmarketorgindias-top-10-stock-broking-house14 Source-httpwwwicicisecuritiescomOurBusinessSubSubReportID=10223ampshortCode=INST
the NSE and BSE India Infoline is also registered as a DP with NSDL and CDSL India
Infoline through its subsidiary India Infoline Commodities Limited also offers commodity-
trading services which is a registered member with DGCX since 2006 It also operates in
the currency futures market segment India Infoline offers a wide range of products
and services which include investment banking distribution of financial products
demat services private equity PMS institutional broking WMS insurance broking
among others In addition it also offers research services in areas of economy
derivative strategies mutual funds IPO credit policy and various others The company
has 15 domestic subsidiaries and five foreign subsidiaries The company has global
presence through its subsidiaries in New York Singapore and Dubai India Infoline caters
majorly to retail clients During CY09 the company added 303480 client accounts
Address 75 Nirlon Complex Off Western Express Highway Goregaon (East) Mumbai -
400063 Maharashtra
Telephone 91 22 42499000 Fax 91 22 26850451
Email mailindiainfolinecom Website wwwindiainfolinecom
Registration Number NSE - INBINF231097537 BSE - INBINF01109753315
3 Kotak Securities Ltd
Kotak Securities Ltd (Kotak Securities) is the stock-broking and distribution arm of the
Kotak Mahindra Group and a subsidiary of Kotak Mahindra Bank Kotak Securities was
established in 1994 It has memberships in the cash derivatives and currency futures
segments of NSE and BSE Kotak Securities is also a DP with NSDL and CDSL Apart from
stock broking the company is engaged in offering depository services asset management
margin financing PMS and distribution of financial products like IPOrsquos mutual funds and
insurance The company has a full-fledged research division which offers macro
economic sectoral research and company specific equity research Its domestic network
spans over 383 cities and 1048 offices Trading in equities and derivatives contributes to
major part of the companyrsquos revenue During CY09 Kotak Securities added around 62194
accounts of which around 27 are e-broking accounts The companyrsquos overseas
operations include one subsidiary and two associate firms operating in two foreign
locations
15 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndia+Infoline+Limited2Epdf
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF01113323016
4 Share Khan
Sharekhan Ltd (Sharekhan) is one a leading brokerage houses established in 2000
Sharekhan has membership in the cash and derivative segments of both BSE and NSE It
also operates in the debt and currency futures segment The company is registered as a
DP with CDSL and NSDL Besides trading the company also offers PMS demat services and
mutual funds Share khan provides a comprehensive set of research reports relating
to IPO and mutual funds Other value added facilities offered to clients include
online trading dial-n-trade share shops fundamental and technical research The
company serves large number of retail clients with a client network of more than 100000
clients which includes HNIrsquos corporate and other retail customers The company
through its subsidiary Share khan Commodities Ltd provides commodity-trading services
Address A - 206 Phoenix House 2nd Floor Senapati Bapat Marg Lower Parel
Mumbai - 400013 Maharashtra
Telephone 91 22 67482000 Fax 91 22 66104533
Email compliancelpsharekhancom Website wwwsharekhancom
Registration Number NSE - INBINF231073330 BSE - INBINF01107335117
5 Indiabulls
Indiabulls Securities Ltd (Indiabulls) part of Indiabulls Group was established in 1995 The
company is in the business of providing securities and advisory services It is a corporate
member of capital market wholesale debt market and derivative segments of NSE and of
capital market and derivative segments of BSE
Indiabulls also operates in currency futures and is a DP of CDSL and NSDL It provides a
wide range of products and services which include internet trading NRI trading demat
16 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CKotak+Securities+Limited2Epdf17 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CSharekhan+ Limited2Epdf
services margin financing and distribution of financial products like IPO online
mutual funds etc Power Indiabulls (PIB) is the advanced online trading platform offered
by the company Indiabulls also offers research services in the areas of economic equity
mutual fund IPO and others The company operates in commodity segment through its
subsidiary India bulls Commodities Pvt Ltd which is a member of MCX and NCDEX It
is listed on both NSE and BSE
Address F-60 Malhotra Building 2nd Floor Connaught Place New Delhi - 110001 Delhi
Telephone 91 11 41523700 Fax 91 11 41529071
Email helpdeskindiabullscom Website wwwindiabullscom
Registration Number NSE - INBINF230875632 BSE - INBINF01087563218
18 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndiabulls+Securities+Limited2Epdf
22 Company Overview
221 Overview of the Organizations
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited Uday Kotak Sidney A A Pinto and Kotak amp Company promoted this company Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and thats when the company changed its name to Kotak Mahindra Finance Limited Since then its been a steady and confident journey to growth and success
Kotak Securities Ltd is one of Indias largest brokerage and securities distribution house in India Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-ordinates Kotak Securities Ltd offers online (through wwwkotaksecuritiescom) and offline services based on well-researched expertise and financial products to the non-institutional investors Kotak Securities Limited is the world of Capital Markets where everything newsworthy exists only in the present moment and where knowing the importance of timing sentiments and strategic forecasting makes the difference between profit and loss Kotak Securities Limited a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25 - one of the worldrsquos leading investment banks and brokerage firms) is Indiarsquos leading stock broking house with a market share of 7 - 8
Kotak Securities Limited is one of the larger players in distribution of IPOs - it was ranked number One in 2003-04 as Book Running Lead Manager in public equity offerings by PRIME Database It has also won the ldquoBest Equity Houserdquo Award from Finance Asia -April 2004 The Company has a full-fledged Research division involved in macro economic studies Sectoral research and Company specific equity research combined with a strong and well Networked sales force which helps deliver current and up-to-date market information and news
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them Kotak securities provide portfolio Management Services catering to the high end of the market Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market with the backing of an expert Kotak Securities Limited manages assets over Rs 1700 crores through itrsquos Portfolio Management Services (PMS) servicing high net worth clients with a large
investible surplus through its preferred client services in the mass affluent and wealth management segments The company has a full-fledged research division involved in Macro Economic studies Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news
222 MARKET SHARE
Kotak Securities Ltd is Indiarsquos leading stock broking house with a market share of around
85 percent as of March 31 2006 It handles more IPOs than any other brokerage The
company has a full-fledged research division involved in macroeconomic studies sect oral
research and company-specific equity research combined with a strong and well-
networked sales force which helps deliver current market information and news
The firm has 195 branches servicing more than 2200000 customers across 231 cities
Kotaksecuritiescom the online division offers Internet brokerage services and also online
IPO and mutual fund investments Kotak Securities manages over 2500 crores of Assets
under Management (AUM)
223 AWARDS AND RECOGNIZATION
Kotak Securities Ltd 100 subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry The companyrsquos offerings include stock broking
through the branch and Internet Investments in IPO Mutual funds and Portfolio
management service Kotak Securities has a full-fledged research division involved in
Macro Economic studies Sect oral research and Company Specific Equity Research
combined with a strong and well-networked sales force which helps deliver current and
up to date market information and news Kotak Securitiesrsquo network spans over 321 cities
with 877 outlets with an employee workforce beyond 5100
The company is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can avail the companyrsquos brokerage services for executing the
transactions and the depository services for settling them Kotak Securities Ltd processes
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
meager Rs 35 bn of capital which is far less than what one top broking firm in China
could raise from the capital markets Better performance and practices will enable broking
firms to increase capital levels that will be essential for funding expansion
Investor education and awareness is another aspect broking industry should promote in
the long-term interest of the market As the product mix and risk matrix in financial
markets are continuously changing it becomes imperative for the intermediaries to
educate and create awareness in the clients that would be mutually beneficial Better
understanding of the financial products and associated risks by the investors will be in the
interest of the growth and stability of the markets
The Indian broking industry is coming of age It has enormous opportunities for growth
and diversity As markets expand and get globalised these firms will have increased
opportunity to cater to a large and diverse range of clientele with a wide mix of products
and services Expanding markets offer enhanced opportunities Those who are well
prepared will be in a better position to garner the benefits11
225 Performance Growth Scenario
Some of the major recent developments in the global securities markets have been
summarized below
Equalization
Equity markets have expanded significantly in a large number of countries across the
world The market capitalization of the worldrsquos leading stock exchanges rose from about
USD11 trillion in 1991 to USD35 trillion in 1999 to about USD51 trillion in 2006 The
growth of market capitalization is evident across regions Market capitalization in Asia
nearly doubled from USD68 trillion in 1999 to USD118 trillion in2006 where as in
America it grew from USD179 trillion to USD226 trillion and in EuropeAfricaMiddle
East it rose from USD102 trillion to USD161 trillion Market capitalization as a percent of
GDP witnessed steep growth in several countries during this period
Similarly trading volumes in stock exchanges too has shown rapid growth Value of share
trading in stock exchanges rose from about USD54 trillion in 1991 to USD33 trillion in
1999 to about USD70 trillion in 2006 During the period 1999 and 2006 value of share
trading in Asia Pacific rose from USD42 trillion to USD12 trillion in EuropeAfricaMiddle
11 Source- httpwwwdnbcoinequitybroking2008Emergingtrenasp
East from USD83 trillion to USD218 trillion and in Americas from USD20 trillion to USD35
trillion
Institutional investment
The rapid growth of stock markets in the world to a significant extent could be explained
by the surge in the institutional investors consisting of pension funds insurance
companies and mutual funds During the period 1995 and 2005 the assets under
management of the institutional investors doubled from USD21trillion to USD53 trillion A
large number of institutional investors are moving away from the home bias investing in
outside world Emerging markets with higher economic growth and rapidly growing
financial markets became major centers of destination for the investments of institutional
investors For instance in the US in 1994 pension funds invested 41 of their portfolio in
domestic equity and 7 in international equities where as by 2005 that share rose to 48
in domestic equities and 15 in international equities The portfolio allocation to bond
markets during the same period reduced from 42 to 32 Emerging markets received
sizeable portion of the investments In the US the dedicated emerging markets mutual
funds rose from about USD27 bn in2000 to USD 230 bn in 2006
International listings
On the back of the liberalization of cross border financial flows companies in several
countries are seeking listing in international exchanges to garner benefits from
international investors as also widen their investor base The number of foreign
companies listed in the London Stock Exchange rose from 387 in 1970 to 553 in 1990 to
636 in 2006 The number of foreign companies listed on the NYSE has also risen rapidly in
the 1990s There is a keen competition across the worldrsquos leading stock exchanges to
promote international listing and gain greater influence In the recent period the US
experienced a slowdown in the listing of foreign companies The decline is attributed to
stringent corporate governance norms that were applied following the corporate abuses
found in the beginning of the decade The US is now examining in greater detail measures
to gain the prominence once it enjoyed in the international listings The Alternative
Investment Market of London Stock Exchange attracted huge interest from SMEs from a
large number of countries
Emerging markets as an investment destination
Liberalization of capital flows led to surge in international investment into emerging
economies finding value on the back of huge prospects for growth The flow of net
Foreign Direct Investment (FDI) into developing countries increased from USD170 bn in
1998 to USD325 bn in 2006 and net portfolio equity flows increased from USD6 bn to
USD94 bn during the same period Net debt flows during this period are rather subdued
with net debt flows from official creditors turning negative Net portfolio equity flows to
China between the year 2000 and 2006 rose from USD69 bn to USD32 bn and in India
from USD23 bn to USD87 bn Other emerging markets such as Brazil Mexico South
Africa Thailand and Russia too showed surge in the net portfolio equity flows Emerging
markets showed significant growth in stock prices making them attractive investment
destinations though issues of valuations are beginning to become a concern now
Growing correlation of returns
Greater harmonization of stock markets in mature and emerging markets is in evidence by
the increasing correlation in market returns across different markets The higher
correlation in the stock price movements gained momentum in the late 1990s due to
growing foreign institutional investment in several markets and growth of the technology
sector that pervaded many markets and has driven stock price momentum in the late
1990s
Emerging markets in the new issuance market
Emerging markets also became very active in the new issuance market In 2006 all the ten
largest cross border new capital issues were from the emerging markets These ten issues
were from China Russia Mexico Thailand and Kazakhstan Of these ten issues four each
were listed in London and Hong Kong and only one in the US The value of the new listings
by emerging market companies in the US exchanges declined from USD29 bn in 2004 to
USD27 bn in 2006 where as that of London rose from USD07 bn to USD96 bn and in
Hong Kong from USD72 bn to USD304 bn Emerging markets in the first five months of
2007 have raised USD537 bn in global financial markets which is reported to be the
highest ever amount raised for a year Some of the leading issues during this period
include the USD8 bn IPO by VTB second largest Russian bank USD185 bn by Turkish
financial institution Halk bank and USD14 bn by a Russian real estate company AFI
Development Some of the largest issues from the emerging markets in the recent period
include USD219 bn issue of Chinarsquos ICBC Bank (Oct 2006) USD112 bn issue of Bank of
China (May 06) USD107 bn issue of Russian energy company Ros neft (Jul 06) USD59 bn
pubic issue of Chinarsquos Citic Bank
Alternative markets
In view of the limitations on listing of small and medium scale companies in the big boards
of the main exchanges several stock exchanges have developed alternative markets for
encouraging listing of small and midcap stocks Almost every major exchange has an
alternative platform for listing and trading of small and midcap stocks and new generation
companies without much listing history The market capitalization of the alternative
markets in the year 2006 has grown at an impressive rate of 30 More than 12000
companies are listed in these alternative markets and the value of share trading of these
for SMEs markets rose 15 in 2006 from USD802 bn to USD919 bn New capital (IPOs)
rose in the alternative markets rose 59 in 2006 from USD136 bn to USD216 bn
Growth of Derivatives
The growth of derivatives picked up on the need for risk transfer products The size of
global derivatives industry in 2006 USD370 trillion of notional value and USD10 trillion of
market value in the Over the Counter (OTC) derivative markets and USD84 trillion of
notional value and USD10 trillion market value in the Exchange traded derivative markets
According to the International Swaps and Derivatives Association more than 90 percent
of the global 500 corporations use derivatives for hedging risks in interest rates foreign
exchange and equities In the OTC markets derivative products accounting for large share
of market value include interest rate (785) and Foreign Exchange (114) where as in
the Exchange Traded segment derivative products on interest rate government debt and
equities form the major part of the volumes
Dark Pools and Private Markets
In the third week of May 2007 Goldman Sachs launched GSTrue which is a platform
developed to allow exclusive club of big investors to trade unregistered privately placed
securities which is considered to be a major challenge for the public equity capital
markets in the US Goldman Sachs in that deal helped underwrite the private sale of 15
of hedge fund manager Oak tree Capital Management for USD800 mn The investors in
this sale would be able to buy and sell Oak tree shares through the new Goldman Sachs
Tradable Unregistered Equity System which has its acronym GSTRue
Under the rules of the Securities and Exchange Commission of the US companies can sell
securities without registering them as long as the issues are limited to qualified
institutional buyers which are investors with at least USD100 mn of assets and there are
no more than 500 stockholders Private pools of capital are growing in size and
significance in international markets to overcome the costs and pressures from stringent
regulation According to an estimate of NASDAQ in 2006 companies in the US raised
USD162 bn of capital through unregistered private placements (also known as 144A
private placements) compared with USD154 bn through IPOs which are registered with
the regulator A group of worldrsquos largest banks are developing ldquoProject Turquoiserdquo which
is a hybrid share trading system that allows transactions both on exchange and outside it
(called as dark liquidity pools) where firms with large asset base can buy and sell large
blocks of shares away from the regulatory oversight
Private Equity
Private equity is growing in size and significance In view of the regulatory standards
prevalent in the public equity capital markets several firms seek the private equity option
to raise resources According to Dialogic the top 50 private equity firms raised USD551 bn
out of the USD800 bn estimated to have been raised by the total private equity since Jan
2002 Of the top 50 private equity firms more than 30 are from the US 11 from the UK
five from Western Europe and one from Asia Pacific Private equity is now involved in high
value deals and recent transactions include USD35 bn HCA buyout in the healthcare
industry and bids of USD39 bn and USD41 bn for Equity Office Property Trust a
commercial office real estate trust in the United Trust It is expected that the transaction
values of the private equity may go up to USD50-100 bn in the near future Private equity
market in India raised USD22 bn in 2005 about USD4 bn in 2006 and is expected to raise
about USD10 bn by 2010 according to a recent study
Hedge Funds
Hedge Funds emerged from the need of investors seeking alpha to earn an excess return
and beat the market and the returns from the conventional investments Alpha is a
common measure of assessing an active managerrsquos performance as it is the return in
excess of a benchmark index or ldquorisk-freerdquo investment The difference between the fair
and actually expected rates of return on a stock is called the stockrsquos alpha In view of rapid
growth of hedge funds and their complex nature of operations and lack of adequate
regulatory control these funds became a major concern of global financial regulation
Notwithstanding these concerns hedge funds continue to grow with the size of the
market growing from about USD30 bn in 1990 to more than USD14 trillion in 2005 and
the number of funds rising from about 530 to about 7000 during this period An
interesting development in the recent period is the growing institutional investment in the
hedge funds which is estimated at USD360 bn in 2005 and the rising allocations to these
funds that was evident in the US and XXVII the European markets The investor base of
the hedge funds consists of individualsfamilies fund of funds corporations and
institutions public and private pensions and endowments and foundations in that order
Investor Protection
With democratization of markets leading to greater participation of individuals and
investments and wide choices of asset classes now available issues of investor interest
and protection have assumed centre stage Following the corporate crises in the US that
adversely affected the investor interests extensive federal investigations were launched
that led to imposition of huge penalties and punitive damages leading to billions of
dollars Such actions were taken against a wide spectrum of global investment banks
brokerage firms and other related entities Simultaneously growth of litigation and class
action suits showed significant rise when the market intermediaries failed to meet their
obligations or did not provide all the material facts to the investors that were crucial for
an investment decision
Securities regulators imposed penalties on market participants who were found to have
indulged in market abuses In India disgorgement orders were passed on certain entities
that were found to making money by unfair means and for violating regulatory norms and
procedures Top institutional investors in several countries devised their own review
process for investing in countries and companies that brought into light greater need for
higher standards in corporate governance disclosure and transparency standards and in
some cases concern towards issues such as democracy and social equity environment
economic and political reforms
Surge in Chinese capital markets
A major change in the year 2007 is the sudden leap of China into big league of global stock
markets On 9 May 07 Shanghai Stock Exchange Chinarsquos top stock market recorded
turnover of USD332 bn and Shenzhen Stock Exchange a stock market for SMEs an
equally powerful USD158 bn taking the combined turnover of both these stock
exchanges on that day to USD495 bn In the first three months of the year 2007 value of
share trading in both these Chinese stock markets reached 89 of the whole turnover of
the year 2006 Value of share trading in Shanghai Stock Exchange rose from USD256 bn in
2003 to USD736 bn in 2006 and in the first three months of the year 2007 it already
recorded USD652 bn Market capitalization in China between Apr 2006 and 2007 rose by
almost 4 times pushing it to a position among the top 10 exchanges in the world and
value of share turnover rose 6 times making Shanghai 6 the biggest Main indexes of
Shanghai Stock Exchange and Shenzhen Stock Exchange posted returns of 194 and 204
respectively in the 12 months proceeding Apr 2007
Rise of smaller markets
The growth and momentum of the stock markets is spreading across a large number of
markets big and small Recent evidence of big surge in stock markets include countries in
the Middle East which witnessed exceptional growth in 20052006 China in 2007 and
several smaller European and Latin American countries in the last one year As
international investing is spreading its presence domestic financial institutions and
investors are finding stocks as an important asset class and stock markets all over the
world have experienced rapid growth in the last five years
Stock exchange consolidation
A big wave of stock exchange consolidation is taking place across the global financial
markets The most notable merger in the recent period is that of the New York Stock
Exchange with Archipelago that led to the demutualization of the former which
subsequently acquired Euro next to form NYSE Group that makes it a formidable force in
the North America and the Euro region Another American exchange NASDAQ after the
merger with Instinet announced plans to acquire OMX which is Europersquos leading
exchange as also provider of cutting edge technology solutions for stock exchanges
worldwide Deutsche Borsersquos recent acquisition of International Securities Exchange gives
the former a powerful position in the derivatives markets in Europe and America There
was also sizeable consolidation within the domestic securities markets in several countries
with the merger of equities and derivatives markets in countries such as Korea Malaysia
and Hong Kong In India the issue of appropriate solutions for the 20 odd stock exchanges
that currently lack proper liquidity is engaging the attention of policy and regulation
RECENT DEVELOPMENTS GOVERNING REGULATION OF STOCK MARKETS
Systematic and streamlined regulation is the key strength and sustainability of the
securities markets Though formal regulation of the securities markets is about 70 years
old some of the recent developments in the financial markets are reshaping the scope
and focus of the regulation These include ndash
There is growing harmonization of regulation across different markets Organizations
such as International Organization for Securities Commissions (IOSCO) are playing a very
important role in adoption of uniform principles and guidelines across the markets
The size and scope of the securities markets is rapidly changing from being one or
two product markets to multi product markets with diverse features and different
investor base
Markets have become more democratized with more people and institutions
participating in the market related activities
Rapid increase in the size of the institutional participation in the financial markets
For instance equity markets which in the past were retail investor driven are now
increasingly become institutional induced
Securities markets are transforming from being membership driven to public
corporation following demutualization and corporatization of stock exchanges in mature
and emerging markets
Two most important pieces of regulation that came into being in the recent period are in
the form of market structure reforms in the US known more popularly as regulation NMS
which underlines the promotion of competition across the markets under three major
principles best price open access and transparency Under the new trade-through role in
whichever market a customer placed his order it should be able to access the best price
that is immediately and automatically available anywhere in the national market system
The trade-through rule will not allow markets to ignore better-priced automated quotes
displayed by the competitors Similarly open access to displayed prices will be a major
feature governing the competition of the markets The regulation also stipulates that all
significant markets must display their quotations and trade reports should be available to
all interested parties on fair terms and non-discriminatory manner Another equally
important development is the Markets in Financial Industry Directive (MiFiD) that will
come into force from 1 Nov 2007 and stipulates wide-ranging norms for financial
institutions in the European Union Major features of the MiFiD include wider scope of
coverage of the financial institutions and the related business activities greater degree of
harmonization across the European markets and facilitate cross border business and
stipulated capital requirements
MiFiD is envisaged to bring major changes in the manner financial institutions in the
European Union will be monitored Simultaneous with stringent norms of regulation the
scope of regulation is considerably delegated to the markets and institutions in the form
of self-regulation Self-regulation brings a number of benefits to the business Institutions
such as National Association of Securities Dealers (NASD) have played an important role in
promoting self-regulation However self-regulation has certain limitations it needs to
overcome before it becomes widely accepted across the markets12
225 Top five companies of the industry
Many time new investor or trader gets confusion for open a D Mat and trading account in
broking House Many of broking House promises to you for better service but clients get
problem due to trading session in theirs Broker house firm Here is the list of Indiarsquos top 5
broking House on base of survey of investors and traders of many cities In their views
following Broking Houses gives best and reliable services13
1 ICICI directcom
ICICI Securities empowers over 2 million Indians to seamlessly access the capital market
with ICICIdirectcom an award winning and pioneering online broking platform The
platform not only offers convenient ways to invest in Equity Derivatives Currency
Futures Mutual Funds but also other services Fixed Deposits Loans Tax Services New
Pension Systems and Insurance are available ICICIdirectcom offers a convenient and easy
to use platform to invest in equity and various other financial products using its unique 3-
in-1 account which integrates customerrsquos saving trading and demat accounts
Apart from convenience ICICIdirectcom also offers access to comprehensive research
information stock picks and mutual fund recommendations among other offerings
Tailored services and trading strategies are available to different types of customers long
term investors day traders high-volume traders and derivatives traders to name some
ICICIdirectcom uses the most advanced commercially available 128-bit encryption
technology enabled Secure Socket Layer (SSL) to ensure that the information transmitted
between the client and ICICIdirectcom across the internet is safe and cannot be accessed
by any third party14
2 India Infoline
India Infoline Ltd (India Infoline) established in 1995 is the holding company of the
India Infoline Group It has membership in the cash and derivative segments of both 12 Source- httpwwwdnbcoinequitybrokingglobal20scenarioasp13 Source- Httpwwwindianstockmarketorgindias-top-10-stock-broking-house14 Source-httpwwwicicisecuritiescomOurBusinessSubSubReportID=10223ampshortCode=INST
the NSE and BSE India Infoline is also registered as a DP with NSDL and CDSL India
Infoline through its subsidiary India Infoline Commodities Limited also offers commodity-
trading services which is a registered member with DGCX since 2006 It also operates in
the currency futures market segment India Infoline offers a wide range of products
and services which include investment banking distribution of financial products
demat services private equity PMS institutional broking WMS insurance broking
among others In addition it also offers research services in areas of economy
derivative strategies mutual funds IPO credit policy and various others The company
has 15 domestic subsidiaries and five foreign subsidiaries The company has global
presence through its subsidiaries in New York Singapore and Dubai India Infoline caters
majorly to retail clients During CY09 the company added 303480 client accounts
Address 75 Nirlon Complex Off Western Express Highway Goregaon (East) Mumbai -
400063 Maharashtra
Telephone 91 22 42499000 Fax 91 22 26850451
Email mailindiainfolinecom Website wwwindiainfolinecom
Registration Number NSE - INBINF231097537 BSE - INBINF01109753315
3 Kotak Securities Ltd
Kotak Securities Ltd (Kotak Securities) is the stock-broking and distribution arm of the
Kotak Mahindra Group and a subsidiary of Kotak Mahindra Bank Kotak Securities was
established in 1994 It has memberships in the cash derivatives and currency futures
segments of NSE and BSE Kotak Securities is also a DP with NSDL and CDSL Apart from
stock broking the company is engaged in offering depository services asset management
margin financing PMS and distribution of financial products like IPOrsquos mutual funds and
insurance The company has a full-fledged research division which offers macro
economic sectoral research and company specific equity research Its domestic network
spans over 383 cities and 1048 offices Trading in equities and derivatives contributes to
major part of the companyrsquos revenue During CY09 Kotak Securities added around 62194
accounts of which around 27 are e-broking accounts The companyrsquos overseas
operations include one subsidiary and two associate firms operating in two foreign
locations
15 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndia+Infoline+Limited2Epdf
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF01113323016
4 Share Khan
Sharekhan Ltd (Sharekhan) is one a leading brokerage houses established in 2000
Sharekhan has membership in the cash and derivative segments of both BSE and NSE It
also operates in the debt and currency futures segment The company is registered as a
DP with CDSL and NSDL Besides trading the company also offers PMS demat services and
mutual funds Share khan provides a comprehensive set of research reports relating
to IPO and mutual funds Other value added facilities offered to clients include
online trading dial-n-trade share shops fundamental and technical research The
company serves large number of retail clients with a client network of more than 100000
clients which includes HNIrsquos corporate and other retail customers The company
through its subsidiary Share khan Commodities Ltd provides commodity-trading services
Address A - 206 Phoenix House 2nd Floor Senapati Bapat Marg Lower Parel
Mumbai - 400013 Maharashtra
Telephone 91 22 67482000 Fax 91 22 66104533
Email compliancelpsharekhancom Website wwwsharekhancom
Registration Number NSE - INBINF231073330 BSE - INBINF01107335117
5 Indiabulls
Indiabulls Securities Ltd (Indiabulls) part of Indiabulls Group was established in 1995 The
company is in the business of providing securities and advisory services It is a corporate
member of capital market wholesale debt market and derivative segments of NSE and of
capital market and derivative segments of BSE
Indiabulls also operates in currency futures and is a DP of CDSL and NSDL It provides a
wide range of products and services which include internet trading NRI trading demat
16 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CKotak+Securities+Limited2Epdf17 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CSharekhan+ Limited2Epdf
services margin financing and distribution of financial products like IPO online
mutual funds etc Power Indiabulls (PIB) is the advanced online trading platform offered
by the company Indiabulls also offers research services in the areas of economic equity
mutual fund IPO and others The company operates in commodity segment through its
subsidiary India bulls Commodities Pvt Ltd which is a member of MCX and NCDEX It
is listed on both NSE and BSE
Address F-60 Malhotra Building 2nd Floor Connaught Place New Delhi - 110001 Delhi
Telephone 91 11 41523700 Fax 91 11 41529071
Email helpdeskindiabullscom Website wwwindiabullscom
Registration Number NSE - INBINF230875632 BSE - INBINF01087563218
18 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndiabulls+Securities+Limited2Epdf
22 Company Overview
221 Overview of the Organizations
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited Uday Kotak Sidney A A Pinto and Kotak amp Company promoted this company Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and thats when the company changed its name to Kotak Mahindra Finance Limited Since then its been a steady and confident journey to growth and success
Kotak Securities Ltd is one of Indias largest brokerage and securities distribution house in India Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-ordinates Kotak Securities Ltd offers online (through wwwkotaksecuritiescom) and offline services based on well-researched expertise and financial products to the non-institutional investors Kotak Securities Limited is the world of Capital Markets where everything newsworthy exists only in the present moment and where knowing the importance of timing sentiments and strategic forecasting makes the difference between profit and loss Kotak Securities Limited a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25 - one of the worldrsquos leading investment banks and brokerage firms) is Indiarsquos leading stock broking house with a market share of 7 - 8
Kotak Securities Limited is one of the larger players in distribution of IPOs - it was ranked number One in 2003-04 as Book Running Lead Manager in public equity offerings by PRIME Database It has also won the ldquoBest Equity Houserdquo Award from Finance Asia -April 2004 The Company has a full-fledged Research division involved in macro economic studies Sectoral research and Company specific equity research combined with a strong and well Networked sales force which helps deliver current and up-to-date market information and news
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them Kotak securities provide portfolio Management Services catering to the high end of the market Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market with the backing of an expert Kotak Securities Limited manages assets over Rs 1700 crores through itrsquos Portfolio Management Services (PMS) servicing high net worth clients with a large
investible surplus through its preferred client services in the mass affluent and wealth management segments The company has a full-fledged research division involved in Macro Economic studies Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news
222 MARKET SHARE
Kotak Securities Ltd is Indiarsquos leading stock broking house with a market share of around
85 percent as of March 31 2006 It handles more IPOs than any other brokerage The
company has a full-fledged research division involved in macroeconomic studies sect oral
research and company-specific equity research combined with a strong and well-
networked sales force which helps deliver current market information and news
The firm has 195 branches servicing more than 2200000 customers across 231 cities
Kotaksecuritiescom the online division offers Internet brokerage services and also online
IPO and mutual fund investments Kotak Securities manages over 2500 crores of Assets
under Management (AUM)
223 AWARDS AND RECOGNIZATION
Kotak Securities Ltd 100 subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry The companyrsquos offerings include stock broking
through the branch and Internet Investments in IPO Mutual funds and Portfolio
management service Kotak Securities has a full-fledged research division involved in
Macro Economic studies Sect oral research and Company Specific Equity Research
combined with a strong and well-networked sales force which helps deliver current and
up to date market information and news Kotak Securitiesrsquo network spans over 321 cities
with 877 outlets with an employee workforce beyond 5100
The company is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can avail the companyrsquos brokerage services for executing the
transactions and the depository services for settling them Kotak Securities Ltd processes
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
East from USD83 trillion to USD218 trillion and in Americas from USD20 trillion to USD35
trillion
Institutional investment
The rapid growth of stock markets in the world to a significant extent could be explained
by the surge in the institutional investors consisting of pension funds insurance
companies and mutual funds During the period 1995 and 2005 the assets under
management of the institutional investors doubled from USD21trillion to USD53 trillion A
large number of institutional investors are moving away from the home bias investing in
outside world Emerging markets with higher economic growth and rapidly growing
financial markets became major centers of destination for the investments of institutional
investors For instance in the US in 1994 pension funds invested 41 of their portfolio in
domestic equity and 7 in international equities where as by 2005 that share rose to 48
in domestic equities and 15 in international equities The portfolio allocation to bond
markets during the same period reduced from 42 to 32 Emerging markets received
sizeable portion of the investments In the US the dedicated emerging markets mutual
funds rose from about USD27 bn in2000 to USD 230 bn in 2006
International listings
On the back of the liberalization of cross border financial flows companies in several
countries are seeking listing in international exchanges to garner benefits from
international investors as also widen their investor base The number of foreign
companies listed in the London Stock Exchange rose from 387 in 1970 to 553 in 1990 to
636 in 2006 The number of foreign companies listed on the NYSE has also risen rapidly in
the 1990s There is a keen competition across the worldrsquos leading stock exchanges to
promote international listing and gain greater influence In the recent period the US
experienced a slowdown in the listing of foreign companies The decline is attributed to
stringent corporate governance norms that were applied following the corporate abuses
found in the beginning of the decade The US is now examining in greater detail measures
to gain the prominence once it enjoyed in the international listings The Alternative
Investment Market of London Stock Exchange attracted huge interest from SMEs from a
large number of countries
Emerging markets as an investment destination
Liberalization of capital flows led to surge in international investment into emerging
economies finding value on the back of huge prospects for growth The flow of net
Foreign Direct Investment (FDI) into developing countries increased from USD170 bn in
1998 to USD325 bn in 2006 and net portfolio equity flows increased from USD6 bn to
USD94 bn during the same period Net debt flows during this period are rather subdued
with net debt flows from official creditors turning negative Net portfolio equity flows to
China between the year 2000 and 2006 rose from USD69 bn to USD32 bn and in India
from USD23 bn to USD87 bn Other emerging markets such as Brazil Mexico South
Africa Thailand and Russia too showed surge in the net portfolio equity flows Emerging
markets showed significant growth in stock prices making them attractive investment
destinations though issues of valuations are beginning to become a concern now
Growing correlation of returns
Greater harmonization of stock markets in mature and emerging markets is in evidence by
the increasing correlation in market returns across different markets The higher
correlation in the stock price movements gained momentum in the late 1990s due to
growing foreign institutional investment in several markets and growth of the technology
sector that pervaded many markets and has driven stock price momentum in the late
1990s
Emerging markets in the new issuance market
Emerging markets also became very active in the new issuance market In 2006 all the ten
largest cross border new capital issues were from the emerging markets These ten issues
were from China Russia Mexico Thailand and Kazakhstan Of these ten issues four each
were listed in London and Hong Kong and only one in the US The value of the new listings
by emerging market companies in the US exchanges declined from USD29 bn in 2004 to
USD27 bn in 2006 where as that of London rose from USD07 bn to USD96 bn and in
Hong Kong from USD72 bn to USD304 bn Emerging markets in the first five months of
2007 have raised USD537 bn in global financial markets which is reported to be the
highest ever amount raised for a year Some of the leading issues during this period
include the USD8 bn IPO by VTB second largest Russian bank USD185 bn by Turkish
financial institution Halk bank and USD14 bn by a Russian real estate company AFI
Development Some of the largest issues from the emerging markets in the recent period
include USD219 bn issue of Chinarsquos ICBC Bank (Oct 2006) USD112 bn issue of Bank of
China (May 06) USD107 bn issue of Russian energy company Ros neft (Jul 06) USD59 bn
pubic issue of Chinarsquos Citic Bank
Alternative markets
In view of the limitations on listing of small and medium scale companies in the big boards
of the main exchanges several stock exchanges have developed alternative markets for
encouraging listing of small and midcap stocks Almost every major exchange has an
alternative platform for listing and trading of small and midcap stocks and new generation
companies without much listing history The market capitalization of the alternative
markets in the year 2006 has grown at an impressive rate of 30 More than 12000
companies are listed in these alternative markets and the value of share trading of these
for SMEs markets rose 15 in 2006 from USD802 bn to USD919 bn New capital (IPOs)
rose in the alternative markets rose 59 in 2006 from USD136 bn to USD216 bn
Growth of Derivatives
The growth of derivatives picked up on the need for risk transfer products The size of
global derivatives industry in 2006 USD370 trillion of notional value and USD10 trillion of
market value in the Over the Counter (OTC) derivative markets and USD84 trillion of
notional value and USD10 trillion market value in the Exchange traded derivative markets
According to the International Swaps and Derivatives Association more than 90 percent
of the global 500 corporations use derivatives for hedging risks in interest rates foreign
exchange and equities In the OTC markets derivative products accounting for large share
of market value include interest rate (785) and Foreign Exchange (114) where as in
the Exchange Traded segment derivative products on interest rate government debt and
equities form the major part of the volumes
Dark Pools and Private Markets
In the third week of May 2007 Goldman Sachs launched GSTrue which is a platform
developed to allow exclusive club of big investors to trade unregistered privately placed
securities which is considered to be a major challenge for the public equity capital
markets in the US Goldman Sachs in that deal helped underwrite the private sale of 15
of hedge fund manager Oak tree Capital Management for USD800 mn The investors in
this sale would be able to buy and sell Oak tree shares through the new Goldman Sachs
Tradable Unregistered Equity System which has its acronym GSTRue
Under the rules of the Securities and Exchange Commission of the US companies can sell
securities without registering them as long as the issues are limited to qualified
institutional buyers which are investors with at least USD100 mn of assets and there are
no more than 500 stockholders Private pools of capital are growing in size and
significance in international markets to overcome the costs and pressures from stringent
regulation According to an estimate of NASDAQ in 2006 companies in the US raised
USD162 bn of capital through unregistered private placements (also known as 144A
private placements) compared with USD154 bn through IPOs which are registered with
the regulator A group of worldrsquos largest banks are developing ldquoProject Turquoiserdquo which
is a hybrid share trading system that allows transactions both on exchange and outside it
(called as dark liquidity pools) where firms with large asset base can buy and sell large
blocks of shares away from the regulatory oversight
Private Equity
Private equity is growing in size and significance In view of the regulatory standards
prevalent in the public equity capital markets several firms seek the private equity option
to raise resources According to Dialogic the top 50 private equity firms raised USD551 bn
out of the USD800 bn estimated to have been raised by the total private equity since Jan
2002 Of the top 50 private equity firms more than 30 are from the US 11 from the UK
five from Western Europe and one from Asia Pacific Private equity is now involved in high
value deals and recent transactions include USD35 bn HCA buyout in the healthcare
industry and bids of USD39 bn and USD41 bn for Equity Office Property Trust a
commercial office real estate trust in the United Trust It is expected that the transaction
values of the private equity may go up to USD50-100 bn in the near future Private equity
market in India raised USD22 bn in 2005 about USD4 bn in 2006 and is expected to raise
about USD10 bn by 2010 according to a recent study
Hedge Funds
Hedge Funds emerged from the need of investors seeking alpha to earn an excess return
and beat the market and the returns from the conventional investments Alpha is a
common measure of assessing an active managerrsquos performance as it is the return in
excess of a benchmark index or ldquorisk-freerdquo investment The difference between the fair
and actually expected rates of return on a stock is called the stockrsquos alpha In view of rapid
growth of hedge funds and their complex nature of operations and lack of adequate
regulatory control these funds became a major concern of global financial regulation
Notwithstanding these concerns hedge funds continue to grow with the size of the
market growing from about USD30 bn in 1990 to more than USD14 trillion in 2005 and
the number of funds rising from about 530 to about 7000 during this period An
interesting development in the recent period is the growing institutional investment in the
hedge funds which is estimated at USD360 bn in 2005 and the rising allocations to these
funds that was evident in the US and XXVII the European markets The investor base of
the hedge funds consists of individualsfamilies fund of funds corporations and
institutions public and private pensions and endowments and foundations in that order
Investor Protection
With democratization of markets leading to greater participation of individuals and
investments and wide choices of asset classes now available issues of investor interest
and protection have assumed centre stage Following the corporate crises in the US that
adversely affected the investor interests extensive federal investigations were launched
that led to imposition of huge penalties and punitive damages leading to billions of
dollars Such actions were taken against a wide spectrum of global investment banks
brokerage firms and other related entities Simultaneously growth of litigation and class
action suits showed significant rise when the market intermediaries failed to meet their
obligations or did not provide all the material facts to the investors that were crucial for
an investment decision
Securities regulators imposed penalties on market participants who were found to have
indulged in market abuses In India disgorgement orders were passed on certain entities
that were found to making money by unfair means and for violating regulatory norms and
procedures Top institutional investors in several countries devised their own review
process for investing in countries and companies that brought into light greater need for
higher standards in corporate governance disclosure and transparency standards and in
some cases concern towards issues such as democracy and social equity environment
economic and political reforms
Surge in Chinese capital markets
A major change in the year 2007 is the sudden leap of China into big league of global stock
markets On 9 May 07 Shanghai Stock Exchange Chinarsquos top stock market recorded
turnover of USD332 bn and Shenzhen Stock Exchange a stock market for SMEs an
equally powerful USD158 bn taking the combined turnover of both these stock
exchanges on that day to USD495 bn In the first three months of the year 2007 value of
share trading in both these Chinese stock markets reached 89 of the whole turnover of
the year 2006 Value of share trading in Shanghai Stock Exchange rose from USD256 bn in
2003 to USD736 bn in 2006 and in the first three months of the year 2007 it already
recorded USD652 bn Market capitalization in China between Apr 2006 and 2007 rose by
almost 4 times pushing it to a position among the top 10 exchanges in the world and
value of share turnover rose 6 times making Shanghai 6 the biggest Main indexes of
Shanghai Stock Exchange and Shenzhen Stock Exchange posted returns of 194 and 204
respectively in the 12 months proceeding Apr 2007
Rise of smaller markets
The growth and momentum of the stock markets is spreading across a large number of
markets big and small Recent evidence of big surge in stock markets include countries in
the Middle East which witnessed exceptional growth in 20052006 China in 2007 and
several smaller European and Latin American countries in the last one year As
international investing is spreading its presence domestic financial institutions and
investors are finding stocks as an important asset class and stock markets all over the
world have experienced rapid growth in the last five years
Stock exchange consolidation
A big wave of stock exchange consolidation is taking place across the global financial
markets The most notable merger in the recent period is that of the New York Stock
Exchange with Archipelago that led to the demutualization of the former which
subsequently acquired Euro next to form NYSE Group that makes it a formidable force in
the North America and the Euro region Another American exchange NASDAQ after the
merger with Instinet announced plans to acquire OMX which is Europersquos leading
exchange as also provider of cutting edge technology solutions for stock exchanges
worldwide Deutsche Borsersquos recent acquisition of International Securities Exchange gives
the former a powerful position in the derivatives markets in Europe and America There
was also sizeable consolidation within the domestic securities markets in several countries
with the merger of equities and derivatives markets in countries such as Korea Malaysia
and Hong Kong In India the issue of appropriate solutions for the 20 odd stock exchanges
that currently lack proper liquidity is engaging the attention of policy and regulation
RECENT DEVELOPMENTS GOVERNING REGULATION OF STOCK MARKETS
Systematic and streamlined regulation is the key strength and sustainability of the
securities markets Though formal regulation of the securities markets is about 70 years
old some of the recent developments in the financial markets are reshaping the scope
and focus of the regulation These include ndash
There is growing harmonization of regulation across different markets Organizations
such as International Organization for Securities Commissions (IOSCO) are playing a very
important role in adoption of uniform principles and guidelines across the markets
The size and scope of the securities markets is rapidly changing from being one or
two product markets to multi product markets with diverse features and different
investor base
Markets have become more democratized with more people and institutions
participating in the market related activities
Rapid increase in the size of the institutional participation in the financial markets
For instance equity markets which in the past were retail investor driven are now
increasingly become institutional induced
Securities markets are transforming from being membership driven to public
corporation following demutualization and corporatization of stock exchanges in mature
and emerging markets
Two most important pieces of regulation that came into being in the recent period are in
the form of market structure reforms in the US known more popularly as regulation NMS
which underlines the promotion of competition across the markets under three major
principles best price open access and transparency Under the new trade-through role in
whichever market a customer placed his order it should be able to access the best price
that is immediately and automatically available anywhere in the national market system
The trade-through rule will not allow markets to ignore better-priced automated quotes
displayed by the competitors Similarly open access to displayed prices will be a major
feature governing the competition of the markets The regulation also stipulates that all
significant markets must display their quotations and trade reports should be available to
all interested parties on fair terms and non-discriminatory manner Another equally
important development is the Markets in Financial Industry Directive (MiFiD) that will
come into force from 1 Nov 2007 and stipulates wide-ranging norms for financial
institutions in the European Union Major features of the MiFiD include wider scope of
coverage of the financial institutions and the related business activities greater degree of
harmonization across the European markets and facilitate cross border business and
stipulated capital requirements
MiFiD is envisaged to bring major changes in the manner financial institutions in the
European Union will be monitored Simultaneous with stringent norms of regulation the
scope of regulation is considerably delegated to the markets and institutions in the form
of self-regulation Self-regulation brings a number of benefits to the business Institutions
such as National Association of Securities Dealers (NASD) have played an important role in
promoting self-regulation However self-regulation has certain limitations it needs to
overcome before it becomes widely accepted across the markets12
225 Top five companies of the industry
Many time new investor or trader gets confusion for open a D Mat and trading account in
broking House Many of broking House promises to you for better service but clients get
problem due to trading session in theirs Broker house firm Here is the list of Indiarsquos top 5
broking House on base of survey of investors and traders of many cities In their views
following Broking Houses gives best and reliable services13
1 ICICI directcom
ICICI Securities empowers over 2 million Indians to seamlessly access the capital market
with ICICIdirectcom an award winning and pioneering online broking platform The
platform not only offers convenient ways to invest in Equity Derivatives Currency
Futures Mutual Funds but also other services Fixed Deposits Loans Tax Services New
Pension Systems and Insurance are available ICICIdirectcom offers a convenient and easy
to use platform to invest in equity and various other financial products using its unique 3-
in-1 account which integrates customerrsquos saving trading and demat accounts
Apart from convenience ICICIdirectcom also offers access to comprehensive research
information stock picks and mutual fund recommendations among other offerings
Tailored services and trading strategies are available to different types of customers long
term investors day traders high-volume traders and derivatives traders to name some
ICICIdirectcom uses the most advanced commercially available 128-bit encryption
technology enabled Secure Socket Layer (SSL) to ensure that the information transmitted
between the client and ICICIdirectcom across the internet is safe and cannot be accessed
by any third party14
2 India Infoline
India Infoline Ltd (India Infoline) established in 1995 is the holding company of the
India Infoline Group It has membership in the cash and derivative segments of both 12 Source- httpwwwdnbcoinequitybrokingglobal20scenarioasp13 Source- Httpwwwindianstockmarketorgindias-top-10-stock-broking-house14 Source-httpwwwicicisecuritiescomOurBusinessSubSubReportID=10223ampshortCode=INST
the NSE and BSE India Infoline is also registered as a DP with NSDL and CDSL India
Infoline through its subsidiary India Infoline Commodities Limited also offers commodity-
trading services which is a registered member with DGCX since 2006 It also operates in
the currency futures market segment India Infoline offers a wide range of products
and services which include investment banking distribution of financial products
demat services private equity PMS institutional broking WMS insurance broking
among others In addition it also offers research services in areas of economy
derivative strategies mutual funds IPO credit policy and various others The company
has 15 domestic subsidiaries and five foreign subsidiaries The company has global
presence through its subsidiaries in New York Singapore and Dubai India Infoline caters
majorly to retail clients During CY09 the company added 303480 client accounts
Address 75 Nirlon Complex Off Western Express Highway Goregaon (East) Mumbai -
400063 Maharashtra
Telephone 91 22 42499000 Fax 91 22 26850451
Email mailindiainfolinecom Website wwwindiainfolinecom
Registration Number NSE - INBINF231097537 BSE - INBINF01109753315
3 Kotak Securities Ltd
Kotak Securities Ltd (Kotak Securities) is the stock-broking and distribution arm of the
Kotak Mahindra Group and a subsidiary of Kotak Mahindra Bank Kotak Securities was
established in 1994 It has memberships in the cash derivatives and currency futures
segments of NSE and BSE Kotak Securities is also a DP with NSDL and CDSL Apart from
stock broking the company is engaged in offering depository services asset management
margin financing PMS and distribution of financial products like IPOrsquos mutual funds and
insurance The company has a full-fledged research division which offers macro
economic sectoral research and company specific equity research Its domestic network
spans over 383 cities and 1048 offices Trading in equities and derivatives contributes to
major part of the companyrsquos revenue During CY09 Kotak Securities added around 62194
accounts of which around 27 are e-broking accounts The companyrsquos overseas
operations include one subsidiary and two associate firms operating in two foreign
locations
15 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndia+Infoline+Limited2Epdf
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF01113323016
4 Share Khan
Sharekhan Ltd (Sharekhan) is one a leading brokerage houses established in 2000
Sharekhan has membership in the cash and derivative segments of both BSE and NSE It
also operates in the debt and currency futures segment The company is registered as a
DP with CDSL and NSDL Besides trading the company also offers PMS demat services and
mutual funds Share khan provides a comprehensive set of research reports relating
to IPO and mutual funds Other value added facilities offered to clients include
online trading dial-n-trade share shops fundamental and technical research The
company serves large number of retail clients with a client network of more than 100000
clients which includes HNIrsquos corporate and other retail customers The company
through its subsidiary Share khan Commodities Ltd provides commodity-trading services
Address A - 206 Phoenix House 2nd Floor Senapati Bapat Marg Lower Parel
Mumbai - 400013 Maharashtra
Telephone 91 22 67482000 Fax 91 22 66104533
Email compliancelpsharekhancom Website wwwsharekhancom
Registration Number NSE - INBINF231073330 BSE - INBINF01107335117
5 Indiabulls
Indiabulls Securities Ltd (Indiabulls) part of Indiabulls Group was established in 1995 The
company is in the business of providing securities and advisory services It is a corporate
member of capital market wholesale debt market and derivative segments of NSE and of
capital market and derivative segments of BSE
Indiabulls also operates in currency futures and is a DP of CDSL and NSDL It provides a
wide range of products and services which include internet trading NRI trading demat
16 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CKotak+Securities+Limited2Epdf17 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CSharekhan+ Limited2Epdf
services margin financing and distribution of financial products like IPO online
mutual funds etc Power Indiabulls (PIB) is the advanced online trading platform offered
by the company Indiabulls also offers research services in the areas of economic equity
mutual fund IPO and others The company operates in commodity segment through its
subsidiary India bulls Commodities Pvt Ltd which is a member of MCX and NCDEX It
is listed on both NSE and BSE
Address F-60 Malhotra Building 2nd Floor Connaught Place New Delhi - 110001 Delhi
Telephone 91 11 41523700 Fax 91 11 41529071
Email helpdeskindiabullscom Website wwwindiabullscom
Registration Number NSE - INBINF230875632 BSE - INBINF01087563218
18 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndiabulls+Securities+Limited2Epdf
22 Company Overview
221 Overview of the Organizations
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited Uday Kotak Sidney A A Pinto and Kotak amp Company promoted this company Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and thats when the company changed its name to Kotak Mahindra Finance Limited Since then its been a steady and confident journey to growth and success
Kotak Securities Ltd is one of Indias largest brokerage and securities distribution house in India Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-ordinates Kotak Securities Ltd offers online (through wwwkotaksecuritiescom) and offline services based on well-researched expertise and financial products to the non-institutional investors Kotak Securities Limited is the world of Capital Markets where everything newsworthy exists only in the present moment and where knowing the importance of timing sentiments and strategic forecasting makes the difference between profit and loss Kotak Securities Limited a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25 - one of the worldrsquos leading investment banks and brokerage firms) is Indiarsquos leading stock broking house with a market share of 7 - 8
Kotak Securities Limited is one of the larger players in distribution of IPOs - it was ranked number One in 2003-04 as Book Running Lead Manager in public equity offerings by PRIME Database It has also won the ldquoBest Equity Houserdquo Award from Finance Asia -April 2004 The Company has a full-fledged Research division involved in macro economic studies Sectoral research and Company specific equity research combined with a strong and well Networked sales force which helps deliver current and up-to-date market information and news
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them Kotak securities provide portfolio Management Services catering to the high end of the market Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market with the backing of an expert Kotak Securities Limited manages assets over Rs 1700 crores through itrsquos Portfolio Management Services (PMS) servicing high net worth clients with a large
investible surplus through its preferred client services in the mass affluent and wealth management segments The company has a full-fledged research division involved in Macro Economic studies Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news
222 MARKET SHARE
Kotak Securities Ltd is Indiarsquos leading stock broking house with a market share of around
85 percent as of March 31 2006 It handles more IPOs than any other brokerage The
company has a full-fledged research division involved in macroeconomic studies sect oral
research and company-specific equity research combined with a strong and well-
networked sales force which helps deliver current market information and news
The firm has 195 branches servicing more than 2200000 customers across 231 cities
Kotaksecuritiescom the online division offers Internet brokerage services and also online
IPO and mutual fund investments Kotak Securities manages over 2500 crores of Assets
under Management (AUM)
223 AWARDS AND RECOGNIZATION
Kotak Securities Ltd 100 subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry The companyrsquos offerings include stock broking
through the branch and Internet Investments in IPO Mutual funds and Portfolio
management service Kotak Securities has a full-fledged research division involved in
Macro Economic studies Sect oral research and Company Specific Equity Research
combined with a strong and well-networked sales force which helps deliver current and
up to date market information and news Kotak Securitiesrsquo network spans over 321 cities
with 877 outlets with an employee workforce beyond 5100
The company is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can avail the companyrsquos brokerage services for executing the
transactions and the depository services for settling them Kotak Securities Ltd processes
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Foreign Direct Investment (FDI) into developing countries increased from USD170 bn in
1998 to USD325 bn in 2006 and net portfolio equity flows increased from USD6 bn to
USD94 bn during the same period Net debt flows during this period are rather subdued
with net debt flows from official creditors turning negative Net portfolio equity flows to
China between the year 2000 and 2006 rose from USD69 bn to USD32 bn and in India
from USD23 bn to USD87 bn Other emerging markets such as Brazil Mexico South
Africa Thailand and Russia too showed surge in the net portfolio equity flows Emerging
markets showed significant growth in stock prices making them attractive investment
destinations though issues of valuations are beginning to become a concern now
Growing correlation of returns
Greater harmonization of stock markets in mature and emerging markets is in evidence by
the increasing correlation in market returns across different markets The higher
correlation in the stock price movements gained momentum in the late 1990s due to
growing foreign institutional investment in several markets and growth of the technology
sector that pervaded many markets and has driven stock price momentum in the late
1990s
Emerging markets in the new issuance market
Emerging markets also became very active in the new issuance market In 2006 all the ten
largest cross border new capital issues were from the emerging markets These ten issues
were from China Russia Mexico Thailand and Kazakhstan Of these ten issues four each
were listed in London and Hong Kong and only one in the US The value of the new listings
by emerging market companies in the US exchanges declined from USD29 bn in 2004 to
USD27 bn in 2006 where as that of London rose from USD07 bn to USD96 bn and in
Hong Kong from USD72 bn to USD304 bn Emerging markets in the first five months of
2007 have raised USD537 bn in global financial markets which is reported to be the
highest ever amount raised for a year Some of the leading issues during this period
include the USD8 bn IPO by VTB second largest Russian bank USD185 bn by Turkish
financial institution Halk bank and USD14 bn by a Russian real estate company AFI
Development Some of the largest issues from the emerging markets in the recent period
include USD219 bn issue of Chinarsquos ICBC Bank (Oct 2006) USD112 bn issue of Bank of
China (May 06) USD107 bn issue of Russian energy company Ros neft (Jul 06) USD59 bn
pubic issue of Chinarsquos Citic Bank
Alternative markets
In view of the limitations on listing of small and medium scale companies in the big boards
of the main exchanges several stock exchanges have developed alternative markets for
encouraging listing of small and midcap stocks Almost every major exchange has an
alternative platform for listing and trading of small and midcap stocks and new generation
companies without much listing history The market capitalization of the alternative
markets in the year 2006 has grown at an impressive rate of 30 More than 12000
companies are listed in these alternative markets and the value of share trading of these
for SMEs markets rose 15 in 2006 from USD802 bn to USD919 bn New capital (IPOs)
rose in the alternative markets rose 59 in 2006 from USD136 bn to USD216 bn
Growth of Derivatives
The growth of derivatives picked up on the need for risk transfer products The size of
global derivatives industry in 2006 USD370 trillion of notional value and USD10 trillion of
market value in the Over the Counter (OTC) derivative markets and USD84 trillion of
notional value and USD10 trillion market value in the Exchange traded derivative markets
According to the International Swaps and Derivatives Association more than 90 percent
of the global 500 corporations use derivatives for hedging risks in interest rates foreign
exchange and equities In the OTC markets derivative products accounting for large share
of market value include interest rate (785) and Foreign Exchange (114) where as in
the Exchange Traded segment derivative products on interest rate government debt and
equities form the major part of the volumes
Dark Pools and Private Markets
In the third week of May 2007 Goldman Sachs launched GSTrue which is a platform
developed to allow exclusive club of big investors to trade unregistered privately placed
securities which is considered to be a major challenge for the public equity capital
markets in the US Goldman Sachs in that deal helped underwrite the private sale of 15
of hedge fund manager Oak tree Capital Management for USD800 mn The investors in
this sale would be able to buy and sell Oak tree shares through the new Goldman Sachs
Tradable Unregistered Equity System which has its acronym GSTRue
Under the rules of the Securities and Exchange Commission of the US companies can sell
securities without registering them as long as the issues are limited to qualified
institutional buyers which are investors with at least USD100 mn of assets and there are
no more than 500 stockholders Private pools of capital are growing in size and
significance in international markets to overcome the costs and pressures from stringent
regulation According to an estimate of NASDAQ in 2006 companies in the US raised
USD162 bn of capital through unregistered private placements (also known as 144A
private placements) compared with USD154 bn through IPOs which are registered with
the regulator A group of worldrsquos largest banks are developing ldquoProject Turquoiserdquo which
is a hybrid share trading system that allows transactions both on exchange and outside it
(called as dark liquidity pools) where firms with large asset base can buy and sell large
blocks of shares away from the regulatory oversight
Private Equity
Private equity is growing in size and significance In view of the regulatory standards
prevalent in the public equity capital markets several firms seek the private equity option
to raise resources According to Dialogic the top 50 private equity firms raised USD551 bn
out of the USD800 bn estimated to have been raised by the total private equity since Jan
2002 Of the top 50 private equity firms more than 30 are from the US 11 from the UK
five from Western Europe and one from Asia Pacific Private equity is now involved in high
value deals and recent transactions include USD35 bn HCA buyout in the healthcare
industry and bids of USD39 bn and USD41 bn for Equity Office Property Trust a
commercial office real estate trust in the United Trust It is expected that the transaction
values of the private equity may go up to USD50-100 bn in the near future Private equity
market in India raised USD22 bn in 2005 about USD4 bn in 2006 and is expected to raise
about USD10 bn by 2010 according to a recent study
Hedge Funds
Hedge Funds emerged from the need of investors seeking alpha to earn an excess return
and beat the market and the returns from the conventional investments Alpha is a
common measure of assessing an active managerrsquos performance as it is the return in
excess of a benchmark index or ldquorisk-freerdquo investment The difference between the fair
and actually expected rates of return on a stock is called the stockrsquos alpha In view of rapid
growth of hedge funds and their complex nature of operations and lack of adequate
regulatory control these funds became a major concern of global financial regulation
Notwithstanding these concerns hedge funds continue to grow with the size of the
market growing from about USD30 bn in 1990 to more than USD14 trillion in 2005 and
the number of funds rising from about 530 to about 7000 during this period An
interesting development in the recent period is the growing institutional investment in the
hedge funds which is estimated at USD360 bn in 2005 and the rising allocations to these
funds that was evident in the US and XXVII the European markets The investor base of
the hedge funds consists of individualsfamilies fund of funds corporations and
institutions public and private pensions and endowments and foundations in that order
Investor Protection
With democratization of markets leading to greater participation of individuals and
investments and wide choices of asset classes now available issues of investor interest
and protection have assumed centre stage Following the corporate crises in the US that
adversely affected the investor interests extensive federal investigations were launched
that led to imposition of huge penalties and punitive damages leading to billions of
dollars Such actions were taken against a wide spectrum of global investment banks
brokerage firms and other related entities Simultaneously growth of litigation and class
action suits showed significant rise when the market intermediaries failed to meet their
obligations or did not provide all the material facts to the investors that were crucial for
an investment decision
Securities regulators imposed penalties on market participants who were found to have
indulged in market abuses In India disgorgement orders were passed on certain entities
that were found to making money by unfair means and for violating regulatory norms and
procedures Top institutional investors in several countries devised their own review
process for investing in countries and companies that brought into light greater need for
higher standards in corporate governance disclosure and transparency standards and in
some cases concern towards issues such as democracy and social equity environment
economic and political reforms
Surge in Chinese capital markets
A major change in the year 2007 is the sudden leap of China into big league of global stock
markets On 9 May 07 Shanghai Stock Exchange Chinarsquos top stock market recorded
turnover of USD332 bn and Shenzhen Stock Exchange a stock market for SMEs an
equally powerful USD158 bn taking the combined turnover of both these stock
exchanges on that day to USD495 bn In the first three months of the year 2007 value of
share trading in both these Chinese stock markets reached 89 of the whole turnover of
the year 2006 Value of share trading in Shanghai Stock Exchange rose from USD256 bn in
2003 to USD736 bn in 2006 and in the first three months of the year 2007 it already
recorded USD652 bn Market capitalization in China between Apr 2006 and 2007 rose by
almost 4 times pushing it to a position among the top 10 exchanges in the world and
value of share turnover rose 6 times making Shanghai 6 the biggest Main indexes of
Shanghai Stock Exchange and Shenzhen Stock Exchange posted returns of 194 and 204
respectively in the 12 months proceeding Apr 2007
Rise of smaller markets
The growth and momentum of the stock markets is spreading across a large number of
markets big and small Recent evidence of big surge in stock markets include countries in
the Middle East which witnessed exceptional growth in 20052006 China in 2007 and
several smaller European and Latin American countries in the last one year As
international investing is spreading its presence domestic financial institutions and
investors are finding stocks as an important asset class and stock markets all over the
world have experienced rapid growth in the last five years
Stock exchange consolidation
A big wave of stock exchange consolidation is taking place across the global financial
markets The most notable merger in the recent period is that of the New York Stock
Exchange with Archipelago that led to the demutualization of the former which
subsequently acquired Euro next to form NYSE Group that makes it a formidable force in
the North America and the Euro region Another American exchange NASDAQ after the
merger with Instinet announced plans to acquire OMX which is Europersquos leading
exchange as also provider of cutting edge technology solutions for stock exchanges
worldwide Deutsche Borsersquos recent acquisition of International Securities Exchange gives
the former a powerful position in the derivatives markets in Europe and America There
was also sizeable consolidation within the domestic securities markets in several countries
with the merger of equities and derivatives markets in countries such as Korea Malaysia
and Hong Kong In India the issue of appropriate solutions for the 20 odd stock exchanges
that currently lack proper liquidity is engaging the attention of policy and regulation
RECENT DEVELOPMENTS GOVERNING REGULATION OF STOCK MARKETS
Systematic and streamlined regulation is the key strength and sustainability of the
securities markets Though formal regulation of the securities markets is about 70 years
old some of the recent developments in the financial markets are reshaping the scope
and focus of the regulation These include ndash
There is growing harmonization of regulation across different markets Organizations
such as International Organization for Securities Commissions (IOSCO) are playing a very
important role in adoption of uniform principles and guidelines across the markets
The size and scope of the securities markets is rapidly changing from being one or
two product markets to multi product markets with diverse features and different
investor base
Markets have become more democratized with more people and institutions
participating in the market related activities
Rapid increase in the size of the institutional participation in the financial markets
For instance equity markets which in the past were retail investor driven are now
increasingly become institutional induced
Securities markets are transforming from being membership driven to public
corporation following demutualization and corporatization of stock exchanges in mature
and emerging markets
Two most important pieces of regulation that came into being in the recent period are in
the form of market structure reforms in the US known more popularly as regulation NMS
which underlines the promotion of competition across the markets under three major
principles best price open access and transparency Under the new trade-through role in
whichever market a customer placed his order it should be able to access the best price
that is immediately and automatically available anywhere in the national market system
The trade-through rule will not allow markets to ignore better-priced automated quotes
displayed by the competitors Similarly open access to displayed prices will be a major
feature governing the competition of the markets The regulation also stipulates that all
significant markets must display their quotations and trade reports should be available to
all interested parties on fair terms and non-discriminatory manner Another equally
important development is the Markets in Financial Industry Directive (MiFiD) that will
come into force from 1 Nov 2007 and stipulates wide-ranging norms for financial
institutions in the European Union Major features of the MiFiD include wider scope of
coverage of the financial institutions and the related business activities greater degree of
harmonization across the European markets and facilitate cross border business and
stipulated capital requirements
MiFiD is envisaged to bring major changes in the manner financial institutions in the
European Union will be monitored Simultaneous with stringent norms of regulation the
scope of regulation is considerably delegated to the markets and institutions in the form
of self-regulation Self-regulation brings a number of benefits to the business Institutions
such as National Association of Securities Dealers (NASD) have played an important role in
promoting self-regulation However self-regulation has certain limitations it needs to
overcome before it becomes widely accepted across the markets12
225 Top five companies of the industry
Many time new investor or trader gets confusion for open a D Mat and trading account in
broking House Many of broking House promises to you for better service but clients get
problem due to trading session in theirs Broker house firm Here is the list of Indiarsquos top 5
broking House on base of survey of investors and traders of many cities In their views
following Broking Houses gives best and reliable services13
1 ICICI directcom
ICICI Securities empowers over 2 million Indians to seamlessly access the capital market
with ICICIdirectcom an award winning and pioneering online broking platform The
platform not only offers convenient ways to invest in Equity Derivatives Currency
Futures Mutual Funds but also other services Fixed Deposits Loans Tax Services New
Pension Systems and Insurance are available ICICIdirectcom offers a convenient and easy
to use platform to invest in equity and various other financial products using its unique 3-
in-1 account which integrates customerrsquos saving trading and demat accounts
Apart from convenience ICICIdirectcom also offers access to comprehensive research
information stock picks and mutual fund recommendations among other offerings
Tailored services and trading strategies are available to different types of customers long
term investors day traders high-volume traders and derivatives traders to name some
ICICIdirectcom uses the most advanced commercially available 128-bit encryption
technology enabled Secure Socket Layer (SSL) to ensure that the information transmitted
between the client and ICICIdirectcom across the internet is safe and cannot be accessed
by any third party14
2 India Infoline
India Infoline Ltd (India Infoline) established in 1995 is the holding company of the
India Infoline Group It has membership in the cash and derivative segments of both 12 Source- httpwwwdnbcoinequitybrokingglobal20scenarioasp13 Source- Httpwwwindianstockmarketorgindias-top-10-stock-broking-house14 Source-httpwwwicicisecuritiescomOurBusinessSubSubReportID=10223ampshortCode=INST
the NSE and BSE India Infoline is also registered as a DP with NSDL and CDSL India
Infoline through its subsidiary India Infoline Commodities Limited also offers commodity-
trading services which is a registered member with DGCX since 2006 It also operates in
the currency futures market segment India Infoline offers a wide range of products
and services which include investment banking distribution of financial products
demat services private equity PMS institutional broking WMS insurance broking
among others In addition it also offers research services in areas of economy
derivative strategies mutual funds IPO credit policy and various others The company
has 15 domestic subsidiaries and five foreign subsidiaries The company has global
presence through its subsidiaries in New York Singapore and Dubai India Infoline caters
majorly to retail clients During CY09 the company added 303480 client accounts
Address 75 Nirlon Complex Off Western Express Highway Goregaon (East) Mumbai -
400063 Maharashtra
Telephone 91 22 42499000 Fax 91 22 26850451
Email mailindiainfolinecom Website wwwindiainfolinecom
Registration Number NSE - INBINF231097537 BSE - INBINF01109753315
3 Kotak Securities Ltd
Kotak Securities Ltd (Kotak Securities) is the stock-broking and distribution arm of the
Kotak Mahindra Group and a subsidiary of Kotak Mahindra Bank Kotak Securities was
established in 1994 It has memberships in the cash derivatives and currency futures
segments of NSE and BSE Kotak Securities is also a DP with NSDL and CDSL Apart from
stock broking the company is engaged in offering depository services asset management
margin financing PMS and distribution of financial products like IPOrsquos mutual funds and
insurance The company has a full-fledged research division which offers macro
economic sectoral research and company specific equity research Its domestic network
spans over 383 cities and 1048 offices Trading in equities and derivatives contributes to
major part of the companyrsquos revenue During CY09 Kotak Securities added around 62194
accounts of which around 27 are e-broking accounts The companyrsquos overseas
operations include one subsidiary and two associate firms operating in two foreign
locations
15 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndia+Infoline+Limited2Epdf
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF01113323016
4 Share Khan
Sharekhan Ltd (Sharekhan) is one a leading brokerage houses established in 2000
Sharekhan has membership in the cash and derivative segments of both BSE and NSE It
also operates in the debt and currency futures segment The company is registered as a
DP with CDSL and NSDL Besides trading the company also offers PMS demat services and
mutual funds Share khan provides a comprehensive set of research reports relating
to IPO and mutual funds Other value added facilities offered to clients include
online trading dial-n-trade share shops fundamental and technical research The
company serves large number of retail clients with a client network of more than 100000
clients which includes HNIrsquos corporate and other retail customers The company
through its subsidiary Share khan Commodities Ltd provides commodity-trading services
Address A - 206 Phoenix House 2nd Floor Senapati Bapat Marg Lower Parel
Mumbai - 400013 Maharashtra
Telephone 91 22 67482000 Fax 91 22 66104533
Email compliancelpsharekhancom Website wwwsharekhancom
Registration Number NSE - INBINF231073330 BSE - INBINF01107335117
5 Indiabulls
Indiabulls Securities Ltd (Indiabulls) part of Indiabulls Group was established in 1995 The
company is in the business of providing securities and advisory services It is a corporate
member of capital market wholesale debt market and derivative segments of NSE and of
capital market and derivative segments of BSE
Indiabulls also operates in currency futures and is a DP of CDSL and NSDL It provides a
wide range of products and services which include internet trading NRI trading demat
16 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CKotak+Securities+Limited2Epdf17 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CSharekhan+ Limited2Epdf
services margin financing and distribution of financial products like IPO online
mutual funds etc Power Indiabulls (PIB) is the advanced online trading platform offered
by the company Indiabulls also offers research services in the areas of economic equity
mutual fund IPO and others The company operates in commodity segment through its
subsidiary India bulls Commodities Pvt Ltd which is a member of MCX and NCDEX It
is listed on both NSE and BSE
Address F-60 Malhotra Building 2nd Floor Connaught Place New Delhi - 110001 Delhi
Telephone 91 11 41523700 Fax 91 11 41529071
Email helpdeskindiabullscom Website wwwindiabullscom
Registration Number NSE - INBINF230875632 BSE - INBINF01087563218
18 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndiabulls+Securities+Limited2Epdf
22 Company Overview
221 Overview of the Organizations
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited Uday Kotak Sidney A A Pinto and Kotak amp Company promoted this company Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and thats when the company changed its name to Kotak Mahindra Finance Limited Since then its been a steady and confident journey to growth and success
Kotak Securities Ltd is one of Indias largest brokerage and securities distribution house in India Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-ordinates Kotak Securities Ltd offers online (through wwwkotaksecuritiescom) and offline services based on well-researched expertise and financial products to the non-institutional investors Kotak Securities Limited is the world of Capital Markets where everything newsworthy exists only in the present moment and where knowing the importance of timing sentiments and strategic forecasting makes the difference between profit and loss Kotak Securities Limited a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25 - one of the worldrsquos leading investment banks and brokerage firms) is Indiarsquos leading stock broking house with a market share of 7 - 8
Kotak Securities Limited is one of the larger players in distribution of IPOs - it was ranked number One in 2003-04 as Book Running Lead Manager in public equity offerings by PRIME Database It has also won the ldquoBest Equity Houserdquo Award from Finance Asia -April 2004 The Company has a full-fledged Research division involved in macro economic studies Sectoral research and Company specific equity research combined with a strong and well Networked sales force which helps deliver current and up-to-date market information and news
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them Kotak securities provide portfolio Management Services catering to the high end of the market Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market with the backing of an expert Kotak Securities Limited manages assets over Rs 1700 crores through itrsquos Portfolio Management Services (PMS) servicing high net worth clients with a large
investible surplus through its preferred client services in the mass affluent and wealth management segments The company has a full-fledged research division involved in Macro Economic studies Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news
222 MARKET SHARE
Kotak Securities Ltd is Indiarsquos leading stock broking house with a market share of around
85 percent as of March 31 2006 It handles more IPOs than any other brokerage The
company has a full-fledged research division involved in macroeconomic studies sect oral
research and company-specific equity research combined with a strong and well-
networked sales force which helps deliver current market information and news
The firm has 195 branches servicing more than 2200000 customers across 231 cities
Kotaksecuritiescom the online division offers Internet brokerage services and also online
IPO and mutual fund investments Kotak Securities manages over 2500 crores of Assets
under Management (AUM)
223 AWARDS AND RECOGNIZATION
Kotak Securities Ltd 100 subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry The companyrsquos offerings include stock broking
through the branch and Internet Investments in IPO Mutual funds and Portfolio
management service Kotak Securities has a full-fledged research division involved in
Macro Economic studies Sect oral research and Company Specific Equity Research
combined with a strong and well-networked sales force which helps deliver current and
up to date market information and news Kotak Securitiesrsquo network spans over 321 cities
with 877 outlets with an employee workforce beyond 5100
The company is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can avail the companyrsquos brokerage services for executing the
transactions and the depository services for settling them Kotak Securities Ltd processes
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Alternative markets
In view of the limitations on listing of small and medium scale companies in the big boards
of the main exchanges several stock exchanges have developed alternative markets for
encouraging listing of small and midcap stocks Almost every major exchange has an
alternative platform for listing and trading of small and midcap stocks and new generation
companies without much listing history The market capitalization of the alternative
markets in the year 2006 has grown at an impressive rate of 30 More than 12000
companies are listed in these alternative markets and the value of share trading of these
for SMEs markets rose 15 in 2006 from USD802 bn to USD919 bn New capital (IPOs)
rose in the alternative markets rose 59 in 2006 from USD136 bn to USD216 bn
Growth of Derivatives
The growth of derivatives picked up on the need for risk transfer products The size of
global derivatives industry in 2006 USD370 trillion of notional value and USD10 trillion of
market value in the Over the Counter (OTC) derivative markets and USD84 trillion of
notional value and USD10 trillion market value in the Exchange traded derivative markets
According to the International Swaps and Derivatives Association more than 90 percent
of the global 500 corporations use derivatives for hedging risks in interest rates foreign
exchange and equities In the OTC markets derivative products accounting for large share
of market value include interest rate (785) and Foreign Exchange (114) where as in
the Exchange Traded segment derivative products on interest rate government debt and
equities form the major part of the volumes
Dark Pools and Private Markets
In the third week of May 2007 Goldman Sachs launched GSTrue which is a platform
developed to allow exclusive club of big investors to trade unregistered privately placed
securities which is considered to be a major challenge for the public equity capital
markets in the US Goldman Sachs in that deal helped underwrite the private sale of 15
of hedge fund manager Oak tree Capital Management for USD800 mn The investors in
this sale would be able to buy and sell Oak tree shares through the new Goldman Sachs
Tradable Unregistered Equity System which has its acronym GSTRue
Under the rules of the Securities and Exchange Commission of the US companies can sell
securities without registering them as long as the issues are limited to qualified
institutional buyers which are investors with at least USD100 mn of assets and there are
no more than 500 stockholders Private pools of capital are growing in size and
significance in international markets to overcome the costs and pressures from stringent
regulation According to an estimate of NASDAQ in 2006 companies in the US raised
USD162 bn of capital through unregistered private placements (also known as 144A
private placements) compared with USD154 bn through IPOs which are registered with
the regulator A group of worldrsquos largest banks are developing ldquoProject Turquoiserdquo which
is a hybrid share trading system that allows transactions both on exchange and outside it
(called as dark liquidity pools) where firms with large asset base can buy and sell large
blocks of shares away from the regulatory oversight
Private Equity
Private equity is growing in size and significance In view of the regulatory standards
prevalent in the public equity capital markets several firms seek the private equity option
to raise resources According to Dialogic the top 50 private equity firms raised USD551 bn
out of the USD800 bn estimated to have been raised by the total private equity since Jan
2002 Of the top 50 private equity firms more than 30 are from the US 11 from the UK
five from Western Europe and one from Asia Pacific Private equity is now involved in high
value deals and recent transactions include USD35 bn HCA buyout in the healthcare
industry and bids of USD39 bn and USD41 bn for Equity Office Property Trust a
commercial office real estate trust in the United Trust It is expected that the transaction
values of the private equity may go up to USD50-100 bn in the near future Private equity
market in India raised USD22 bn in 2005 about USD4 bn in 2006 and is expected to raise
about USD10 bn by 2010 according to a recent study
Hedge Funds
Hedge Funds emerged from the need of investors seeking alpha to earn an excess return
and beat the market and the returns from the conventional investments Alpha is a
common measure of assessing an active managerrsquos performance as it is the return in
excess of a benchmark index or ldquorisk-freerdquo investment The difference between the fair
and actually expected rates of return on a stock is called the stockrsquos alpha In view of rapid
growth of hedge funds and their complex nature of operations and lack of adequate
regulatory control these funds became a major concern of global financial regulation
Notwithstanding these concerns hedge funds continue to grow with the size of the
market growing from about USD30 bn in 1990 to more than USD14 trillion in 2005 and
the number of funds rising from about 530 to about 7000 during this period An
interesting development in the recent period is the growing institutional investment in the
hedge funds which is estimated at USD360 bn in 2005 and the rising allocations to these
funds that was evident in the US and XXVII the European markets The investor base of
the hedge funds consists of individualsfamilies fund of funds corporations and
institutions public and private pensions and endowments and foundations in that order
Investor Protection
With democratization of markets leading to greater participation of individuals and
investments and wide choices of asset classes now available issues of investor interest
and protection have assumed centre stage Following the corporate crises in the US that
adversely affected the investor interests extensive federal investigations were launched
that led to imposition of huge penalties and punitive damages leading to billions of
dollars Such actions were taken against a wide spectrum of global investment banks
brokerage firms and other related entities Simultaneously growth of litigation and class
action suits showed significant rise when the market intermediaries failed to meet their
obligations or did not provide all the material facts to the investors that were crucial for
an investment decision
Securities regulators imposed penalties on market participants who were found to have
indulged in market abuses In India disgorgement orders were passed on certain entities
that were found to making money by unfair means and for violating regulatory norms and
procedures Top institutional investors in several countries devised their own review
process for investing in countries and companies that brought into light greater need for
higher standards in corporate governance disclosure and transparency standards and in
some cases concern towards issues such as democracy and social equity environment
economic and political reforms
Surge in Chinese capital markets
A major change in the year 2007 is the sudden leap of China into big league of global stock
markets On 9 May 07 Shanghai Stock Exchange Chinarsquos top stock market recorded
turnover of USD332 bn and Shenzhen Stock Exchange a stock market for SMEs an
equally powerful USD158 bn taking the combined turnover of both these stock
exchanges on that day to USD495 bn In the first three months of the year 2007 value of
share trading in both these Chinese stock markets reached 89 of the whole turnover of
the year 2006 Value of share trading in Shanghai Stock Exchange rose from USD256 bn in
2003 to USD736 bn in 2006 and in the first three months of the year 2007 it already
recorded USD652 bn Market capitalization in China between Apr 2006 and 2007 rose by
almost 4 times pushing it to a position among the top 10 exchanges in the world and
value of share turnover rose 6 times making Shanghai 6 the biggest Main indexes of
Shanghai Stock Exchange and Shenzhen Stock Exchange posted returns of 194 and 204
respectively in the 12 months proceeding Apr 2007
Rise of smaller markets
The growth and momentum of the stock markets is spreading across a large number of
markets big and small Recent evidence of big surge in stock markets include countries in
the Middle East which witnessed exceptional growth in 20052006 China in 2007 and
several smaller European and Latin American countries in the last one year As
international investing is spreading its presence domestic financial institutions and
investors are finding stocks as an important asset class and stock markets all over the
world have experienced rapid growth in the last five years
Stock exchange consolidation
A big wave of stock exchange consolidation is taking place across the global financial
markets The most notable merger in the recent period is that of the New York Stock
Exchange with Archipelago that led to the demutualization of the former which
subsequently acquired Euro next to form NYSE Group that makes it a formidable force in
the North America and the Euro region Another American exchange NASDAQ after the
merger with Instinet announced plans to acquire OMX which is Europersquos leading
exchange as also provider of cutting edge technology solutions for stock exchanges
worldwide Deutsche Borsersquos recent acquisition of International Securities Exchange gives
the former a powerful position in the derivatives markets in Europe and America There
was also sizeable consolidation within the domestic securities markets in several countries
with the merger of equities and derivatives markets in countries such as Korea Malaysia
and Hong Kong In India the issue of appropriate solutions for the 20 odd stock exchanges
that currently lack proper liquidity is engaging the attention of policy and regulation
RECENT DEVELOPMENTS GOVERNING REGULATION OF STOCK MARKETS
Systematic and streamlined regulation is the key strength and sustainability of the
securities markets Though formal regulation of the securities markets is about 70 years
old some of the recent developments in the financial markets are reshaping the scope
and focus of the regulation These include ndash
There is growing harmonization of regulation across different markets Organizations
such as International Organization for Securities Commissions (IOSCO) are playing a very
important role in adoption of uniform principles and guidelines across the markets
The size and scope of the securities markets is rapidly changing from being one or
two product markets to multi product markets with diverse features and different
investor base
Markets have become more democratized with more people and institutions
participating in the market related activities
Rapid increase in the size of the institutional participation in the financial markets
For instance equity markets which in the past were retail investor driven are now
increasingly become institutional induced
Securities markets are transforming from being membership driven to public
corporation following demutualization and corporatization of stock exchanges in mature
and emerging markets
Two most important pieces of regulation that came into being in the recent period are in
the form of market structure reforms in the US known more popularly as regulation NMS
which underlines the promotion of competition across the markets under three major
principles best price open access and transparency Under the new trade-through role in
whichever market a customer placed his order it should be able to access the best price
that is immediately and automatically available anywhere in the national market system
The trade-through rule will not allow markets to ignore better-priced automated quotes
displayed by the competitors Similarly open access to displayed prices will be a major
feature governing the competition of the markets The regulation also stipulates that all
significant markets must display their quotations and trade reports should be available to
all interested parties on fair terms and non-discriminatory manner Another equally
important development is the Markets in Financial Industry Directive (MiFiD) that will
come into force from 1 Nov 2007 and stipulates wide-ranging norms for financial
institutions in the European Union Major features of the MiFiD include wider scope of
coverage of the financial institutions and the related business activities greater degree of
harmonization across the European markets and facilitate cross border business and
stipulated capital requirements
MiFiD is envisaged to bring major changes in the manner financial institutions in the
European Union will be monitored Simultaneous with stringent norms of regulation the
scope of regulation is considerably delegated to the markets and institutions in the form
of self-regulation Self-regulation brings a number of benefits to the business Institutions
such as National Association of Securities Dealers (NASD) have played an important role in
promoting self-regulation However self-regulation has certain limitations it needs to
overcome before it becomes widely accepted across the markets12
225 Top five companies of the industry
Many time new investor or trader gets confusion for open a D Mat and trading account in
broking House Many of broking House promises to you for better service but clients get
problem due to trading session in theirs Broker house firm Here is the list of Indiarsquos top 5
broking House on base of survey of investors and traders of many cities In their views
following Broking Houses gives best and reliable services13
1 ICICI directcom
ICICI Securities empowers over 2 million Indians to seamlessly access the capital market
with ICICIdirectcom an award winning and pioneering online broking platform The
platform not only offers convenient ways to invest in Equity Derivatives Currency
Futures Mutual Funds but also other services Fixed Deposits Loans Tax Services New
Pension Systems and Insurance are available ICICIdirectcom offers a convenient and easy
to use platform to invest in equity and various other financial products using its unique 3-
in-1 account which integrates customerrsquos saving trading and demat accounts
Apart from convenience ICICIdirectcom also offers access to comprehensive research
information stock picks and mutual fund recommendations among other offerings
Tailored services and trading strategies are available to different types of customers long
term investors day traders high-volume traders and derivatives traders to name some
ICICIdirectcom uses the most advanced commercially available 128-bit encryption
technology enabled Secure Socket Layer (SSL) to ensure that the information transmitted
between the client and ICICIdirectcom across the internet is safe and cannot be accessed
by any third party14
2 India Infoline
India Infoline Ltd (India Infoline) established in 1995 is the holding company of the
India Infoline Group It has membership in the cash and derivative segments of both 12 Source- httpwwwdnbcoinequitybrokingglobal20scenarioasp13 Source- Httpwwwindianstockmarketorgindias-top-10-stock-broking-house14 Source-httpwwwicicisecuritiescomOurBusinessSubSubReportID=10223ampshortCode=INST
the NSE and BSE India Infoline is also registered as a DP with NSDL and CDSL India
Infoline through its subsidiary India Infoline Commodities Limited also offers commodity-
trading services which is a registered member with DGCX since 2006 It also operates in
the currency futures market segment India Infoline offers a wide range of products
and services which include investment banking distribution of financial products
demat services private equity PMS institutional broking WMS insurance broking
among others In addition it also offers research services in areas of economy
derivative strategies mutual funds IPO credit policy and various others The company
has 15 domestic subsidiaries and five foreign subsidiaries The company has global
presence through its subsidiaries in New York Singapore and Dubai India Infoline caters
majorly to retail clients During CY09 the company added 303480 client accounts
Address 75 Nirlon Complex Off Western Express Highway Goregaon (East) Mumbai -
400063 Maharashtra
Telephone 91 22 42499000 Fax 91 22 26850451
Email mailindiainfolinecom Website wwwindiainfolinecom
Registration Number NSE - INBINF231097537 BSE - INBINF01109753315
3 Kotak Securities Ltd
Kotak Securities Ltd (Kotak Securities) is the stock-broking and distribution arm of the
Kotak Mahindra Group and a subsidiary of Kotak Mahindra Bank Kotak Securities was
established in 1994 It has memberships in the cash derivatives and currency futures
segments of NSE and BSE Kotak Securities is also a DP with NSDL and CDSL Apart from
stock broking the company is engaged in offering depository services asset management
margin financing PMS and distribution of financial products like IPOrsquos mutual funds and
insurance The company has a full-fledged research division which offers macro
economic sectoral research and company specific equity research Its domestic network
spans over 383 cities and 1048 offices Trading in equities and derivatives contributes to
major part of the companyrsquos revenue During CY09 Kotak Securities added around 62194
accounts of which around 27 are e-broking accounts The companyrsquos overseas
operations include one subsidiary and two associate firms operating in two foreign
locations
15 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndia+Infoline+Limited2Epdf
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF01113323016
4 Share Khan
Sharekhan Ltd (Sharekhan) is one a leading brokerage houses established in 2000
Sharekhan has membership in the cash and derivative segments of both BSE and NSE It
also operates in the debt and currency futures segment The company is registered as a
DP with CDSL and NSDL Besides trading the company also offers PMS demat services and
mutual funds Share khan provides a comprehensive set of research reports relating
to IPO and mutual funds Other value added facilities offered to clients include
online trading dial-n-trade share shops fundamental and technical research The
company serves large number of retail clients with a client network of more than 100000
clients which includes HNIrsquos corporate and other retail customers The company
through its subsidiary Share khan Commodities Ltd provides commodity-trading services
Address A - 206 Phoenix House 2nd Floor Senapati Bapat Marg Lower Parel
Mumbai - 400013 Maharashtra
Telephone 91 22 67482000 Fax 91 22 66104533
Email compliancelpsharekhancom Website wwwsharekhancom
Registration Number NSE - INBINF231073330 BSE - INBINF01107335117
5 Indiabulls
Indiabulls Securities Ltd (Indiabulls) part of Indiabulls Group was established in 1995 The
company is in the business of providing securities and advisory services It is a corporate
member of capital market wholesale debt market and derivative segments of NSE and of
capital market and derivative segments of BSE
Indiabulls also operates in currency futures and is a DP of CDSL and NSDL It provides a
wide range of products and services which include internet trading NRI trading demat
16 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CKotak+Securities+Limited2Epdf17 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CSharekhan+ Limited2Epdf
services margin financing and distribution of financial products like IPO online
mutual funds etc Power Indiabulls (PIB) is the advanced online trading platform offered
by the company Indiabulls also offers research services in the areas of economic equity
mutual fund IPO and others The company operates in commodity segment through its
subsidiary India bulls Commodities Pvt Ltd which is a member of MCX and NCDEX It
is listed on both NSE and BSE
Address F-60 Malhotra Building 2nd Floor Connaught Place New Delhi - 110001 Delhi
Telephone 91 11 41523700 Fax 91 11 41529071
Email helpdeskindiabullscom Website wwwindiabullscom
Registration Number NSE - INBINF230875632 BSE - INBINF01087563218
18 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndiabulls+Securities+Limited2Epdf
22 Company Overview
221 Overview of the Organizations
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited Uday Kotak Sidney A A Pinto and Kotak amp Company promoted this company Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and thats when the company changed its name to Kotak Mahindra Finance Limited Since then its been a steady and confident journey to growth and success
Kotak Securities Ltd is one of Indias largest brokerage and securities distribution house in India Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-ordinates Kotak Securities Ltd offers online (through wwwkotaksecuritiescom) and offline services based on well-researched expertise and financial products to the non-institutional investors Kotak Securities Limited is the world of Capital Markets where everything newsworthy exists only in the present moment and where knowing the importance of timing sentiments and strategic forecasting makes the difference between profit and loss Kotak Securities Limited a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25 - one of the worldrsquos leading investment banks and brokerage firms) is Indiarsquos leading stock broking house with a market share of 7 - 8
Kotak Securities Limited is one of the larger players in distribution of IPOs - it was ranked number One in 2003-04 as Book Running Lead Manager in public equity offerings by PRIME Database It has also won the ldquoBest Equity Houserdquo Award from Finance Asia -April 2004 The Company has a full-fledged Research division involved in macro economic studies Sectoral research and Company specific equity research combined with a strong and well Networked sales force which helps deliver current and up-to-date market information and news
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them Kotak securities provide portfolio Management Services catering to the high end of the market Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market with the backing of an expert Kotak Securities Limited manages assets over Rs 1700 crores through itrsquos Portfolio Management Services (PMS) servicing high net worth clients with a large
investible surplus through its preferred client services in the mass affluent and wealth management segments The company has a full-fledged research division involved in Macro Economic studies Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news
222 MARKET SHARE
Kotak Securities Ltd is Indiarsquos leading stock broking house with a market share of around
85 percent as of March 31 2006 It handles more IPOs than any other brokerage The
company has a full-fledged research division involved in macroeconomic studies sect oral
research and company-specific equity research combined with a strong and well-
networked sales force which helps deliver current market information and news
The firm has 195 branches servicing more than 2200000 customers across 231 cities
Kotaksecuritiescom the online division offers Internet brokerage services and also online
IPO and mutual fund investments Kotak Securities manages over 2500 crores of Assets
under Management (AUM)
223 AWARDS AND RECOGNIZATION
Kotak Securities Ltd 100 subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry The companyrsquos offerings include stock broking
through the branch and Internet Investments in IPO Mutual funds and Portfolio
management service Kotak Securities has a full-fledged research division involved in
Macro Economic studies Sect oral research and Company Specific Equity Research
combined with a strong and well-networked sales force which helps deliver current and
up to date market information and news Kotak Securitiesrsquo network spans over 321 cities
with 877 outlets with an employee workforce beyond 5100
The company is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can avail the companyrsquos brokerage services for executing the
transactions and the depository services for settling them Kotak Securities Ltd processes
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
regulation According to an estimate of NASDAQ in 2006 companies in the US raised
USD162 bn of capital through unregistered private placements (also known as 144A
private placements) compared with USD154 bn through IPOs which are registered with
the regulator A group of worldrsquos largest banks are developing ldquoProject Turquoiserdquo which
is a hybrid share trading system that allows transactions both on exchange and outside it
(called as dark liquidity pools) where firms with large asset base can buy and sell large
blocks of shares away from the regulatory oversight
Private Equity
Private equity is growing in size and significance In view of the regulatory standards
prevalent in the public equity capital markets several firms seek the private equity option
to raise resources According to Dialogic the top 50 private equity firms raised USD551 bn
out of the USD800 bn estimated to have been raised by the total private equity since Jan
2002 Of the top 50 private equity firms more than 30 are from the US 11 from the UK
five from Western Europe and one from Asia Pacific Private equity is now involved in high
value deals and recent transactions include USD35 bn HCA buyout in the healthcare
industry and bids of USD39 bn and USD41 bn for Equity Office Property Trust a
commercial office real estate trust in the United Trust It is expected that the transaction
values of the private equity may go up to USD50-100 bn in the near future Private equity
market in India raised USD22 bn in 2005 about USD4 bn in 2006 and is expected to raise
about USD10 bn by 2010 according to a recent study
Hedge Funds
Hedge Funds emerged from the need of investors seeking alpha to earn an excess return
and beat the market and the returns from the conventional investments Alpha is a
common measure of assessing an active managerrsquos performance as it is the return in
excess of a benchmark index or ldquorisk-freerdquo investment The difference between the fair
and actually expected rates of return on a stock is called the stockrsquos alpha In view of rapid
growth of hedge funds and their complex nature of operations and lack of adequate
regulatory control these funds became a major concern of global financial regulation
Notwithstanding these concerns hedge funds continue to grow with the size of the
market growing from about USD30 bn in 1990 to more than USD14 trillion in 2005 and
the number of funds rising from about 530 to about 7000 during this period An
interesting development in the recent period is the growing institutional investment in the
hedge funds which is estimated at USD360 bn in 2005 and the rising allocations to these
funds that was evident in the US and XXVII the European markets The investor base of
the hedge funds consists of individualsfamilies fund of funds corporations and
institutions public and private pensions and endowments and foundations in that order
Investor Protection
With democratization of markets leading to greater participation of individuals and
investments and wide choices of asset classes now available issues of investor interest
and protection have assumed centre stage Following the corporate crises in the US that
adversely affected the investor interests extensive federal investigations were launched
that led to imposition of huge penalties and punitive damages leading to billions of
dollars Such actions were taken against a wide spectrum of global investment banks
brokerage firms and other related entities Simultaneously growth of litigation and class
action suits showed significant rise when the market intermediaries failed to meet their
obligations or did not provide all the material facts to the investors that were crucial for
an investment decision
Securities regulators imposed penalties on market participants who were found to have
indulged in market abuses In India disgorgement orders were passed on certain entities
that were found to making money by unfair means and for violating regulatory norms and
procedures Top institutional investors in several countries devised their own review
process for investing in countries and companies that brought into light greater need for
higher standards in corporate governance disclosure and transparency standards and in
some cases concern towards issues such as democracy and social equity environment
economic and political reforms
Surge in Chinese capital markets
A major change in the year 2007 is the sudden leap of China into big league of global stock
markets On 9 May 07 Shanghai Stock Exchange Chinarsquos top stock market recorded
turnover of USD332 bn and Shenzhen Stock Exchange a stock market for SMEs an
equally powerful USD158 bn taking the combined turnover of both these stock
exchanges on that day to USD495 bn In the first three months of the year 2007 value of
share trading in both these Chinese stock markets reached 89 of the whole turnover of
the year 2006 Value of share trading in Shanghai Stock Exchange rose from USD256 bn in
2003 to USD736 bn in 2006 and in the first three months of the year 2007 it already
recorded USD652 bn Market capitalization in China between Apr 2006 and 2007 rose by
almost 4 times pushing it to a position among the top 10 exchanges in the world and
value of share turnover rose 6 times making Shanghai 6 the biggest Main indexes of
Shanghai Stock Exchange and Shenzhen Stock Exchange posted returns of 194 and 204
respectively in the 12 months proceeding Apr 2007
Rise of smaller markets
The growth and momentum of the stock markets is spreading across a large number of
markets big and small Recent evidence of big surge in stock markets include countries in
the Middle East which witnessed exceptional growth in 20052006 China in 2007 and
several smaller European and Latin American countries in the last one year As
international investing is spreading its presence domestic financial institutions and
investors are finding stocks as an important asset class and stock markets all over the
world have experienced rapid growth in the last five years
Stock exchange consolidation
A big wave of stock exchange consolidation is taking place across the global financial
markets The most notable merger in the recent period is that of the New York Stock
Exchange with Archipelago that led to the demutualization of the former which
subsequently acquired Euro next to form NYSE Group that makes it a formidable force in
the North America and the Euro region Another American exchange NASDAQ after the
merger with Instinet announced plans to acquire OMX which is Europersquos leading
exchange as also provider of cutting edge technology solutions for stock exchanges
worldwide Deutsche Borsersquos recent acquisition of International Securities Exchange gives
the former a powerful position in the derivatives markets in Europe and America There
was also sizeable consolidation within the domestic securities markets in several countries
with the merger of equities and derivatives markets in countries such as Korea Malaysia
and Hong Kong In India the issue of appropriate solutions for the 20 odd stock exchanges
that currently lack proper liquidity is engaging the attention of policy and regulation
RECENT DEVELOPMENTS GOVERNING REGULATION OF STOCK MARKETS
Systematic and streamlined regulation is the key strength and sustainability of the
securities markets Though formal regulation of the securities markets is about 70 years
old some of the recent developments in the financial markets are reshaping the scope
and focus of the regulation These include ndash
There is growing harmonization of regulation across different markets Organizations
such as International Organization for Securities Commissions (IOSCO) are playing a very
important role in adoption of uniform principles and guidelines across the markets
The size and scope of the securities markets is rapidly changing from being one or
two product markets to multi product markets with diverse features and different
investor base
Markets have become more democratized with more people and institutions
participating in the market related activities
Rapid increase in the size of the institutional participation in the financial markets
For instance equity markets which in the past were retail investor driven are now
increasingly become institutional induced
Securities markets are transforming from being membership driven to public
corporation following demutualization and corporatization of stock exchanges in mature
and emerging markets
Two most important pieces of regulation that came into being in the recent period are in
the form of market structure reforms in the US known more popularly as regulation NMS
which underlines the promotion of competition across the markets under three major
principles best price open access and transparency Under the new trade-through role in
whichever market a customer placed his order it should be able to access the best price
that is immediately and automatically available anywhere in the national market system
The trade-through rule will not allow markets to ignore better-priced automated quotes
displayed by the competitors Similarly open access to displayed prices will be a major
feature governing the competition of the markets The regulation also stipulates that all
significant markets must display their quotations and trade reports should be available to
all interested parties on fair terms and non-discriminatory manner Another equally
important development is the Markets in Financial Industry Directive (MiFiD) that will
come into force from 1 Nov 2007 and stipulates wide-ranging norms for financial
institutions in the European Union Major features of the MiFiD include wider scope of
coverage of the financial institutions and the related business activities greater degree of
harmonization across the European markets and facilitate cross border business and
stipulated capital requirements
MiFiD is envisaged to bring major changes in the manner financial institutions in the
European Union will be monitored Simultaneous with stringent norms of regulation the
scope of regulation is considerably delegated to the markets and institutions in the form
of self-regulation Self-regulation brings a number of benefits to the business Institutions
such as National Association of Securities Dealers (NASD) have played an important role in
promoting self-regulation However self-regulation has certain limitations it needs to
overcome before it becomes widely accepted across the markets12
225 Top five companies of the industry
Many time new investor or trader gets confusion for open a D Mat and trading account in
broking House Many of broking House promises to you for better service but clients get
problem due to trading session in theirs Broker house firm Here is the list of Indiarsquos top 5
broking House on base of survey of investors and traders of many cities In their views
following Broking Houses gives best and reliable services13
1 ICICI directcom
ICICI Securities empowers over 2 million Indians to seamlessly access the capital market
with ICICIdirectcom an award winning and pioneering online broking platform The
platform not only offers convenient ways to invest in Equity Derivatives Currency
Futures Mutual Funds but also other services Fixed Deposits Loans Tax Services New
Pension Systems and Insurance are available ICICIdirectcom offers a convenient and easy
to use platform to invest in equity and various other financial products using its unique 3-
in-1 account which integrates customerrsquos saving trading and demat accounts
Apart from convenience ICICIdirectcom also offers access to comprehensive research
information stock picks and mutual fund recommendations among other offerings
Tailored services and trading strategies are available to different types of customers long
term investors day traders high-volume traders and derivatives traders to name some
ICICIdirectcom uses the most advanced commercially available 128-bit encryption
technology enabled Secure Socket Layer (SSL) to ensure that the information transmitted
between the client and ICICIdirectcom across the internet is safe and cannot be accessed
by any third party14
2 India Infoline
India Infoline Ltd (India Infoline) established in 1995 is the holding company of the
India Infoline Group It has membership in the cash and derivative segments of both 12 Source- httpwwwdnbcoinequitybrokingglobal20scenarioasp13 Source- Httpwwwindianstockmarketorgindias-top-10-stock-broking-house14 Source-httpwwwicicisecuritiescomOurBusinessSubSubReportID=10223ampshortCode=INST
the NSE and BSE India Infoline is also registered as a DP with NSDL and CDSL India
Infoline through its subsidiary India Infoline Commodities Limited also offers commodity-
trading services which is a registered member with DGCX since 2006 It also operates in
the currency futures market segment India Infoline offers a wide range of products
and services which include investment banking distribution of financial products
demat services private equity PMS institutional broking WMS insurance broking
among others In addition it also offers research services in areas of economy
derivative strategies mutual funds IPO credit policy and various others The company
has 15 domestic subsidiaries and five foreign subsidiaries The company has global
presence through its subsidiaries in New York Singapore and Dubai India Infoline caters
majorly to retail clients During CY09 the company added 303480 client accounts
Address 75 Nirlon Complex Off Western Express Highway Goregaon (East) Mumbai -
400063 Maharashtra
Telephone 91 22 42499000 Fax 91 22 26850451
Email mailindiainfolinecom Website wwwindiainfolinecom
Registration Number NSE - INBINF231097537 BSE - INBINF01109753315
3 Kotak Securities Ltd
Kotak Securities Ltd (Kotak Securities) is the stock-broking and distribution arm of the
Kotak Mahindra Group and a subsidiary of Kotak Mahindra Bank Kotak Securities was
established in 1994 It has memberships in the cash derivatives and currency futures
segments of NSE and BSE Kotak Securities is also a DP with NSDL and CDSL Apart from
stock broking the company is engaged in offering depository services asset management
margin financing PMS and distribution of financial products like IPOrsquos mutual funds and
insurance The company has a full-fledged research division which offers macro
economic sectoral research and company specific equity research Its domestic network
spans over 383 cities and 1048 offices Trading in equities and derivatives contributes to
major part of the companyrsquos revenue During CY09 Kotak Securities added around 62194
accounts of which around 27 are e-broking accounts The companyrsquos overseas
operations include one subsidiary and two associate firms operating in two foreign
locations
15 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndia+Infoline+Limited2Epdf
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF01113323016
4 Share Khan
Sharekhan Ltd (Sharekhan) is one a leading brokerage houses established in 2000
Sharekhan has membership in the cash and derivative segments of both BSE and NSE It
also operates in the debt and currency futures segment The company is registered as a
DP with CDSL and NSDL Besides trading the company also offers PMS demat services and
mutual funds Share khan provides a comprehensive set of research reports relating
to IPO and mutual funds Other value added facilities offered to clients include
online trading dial-n-trade share shops fundamental and technical research The
company serves large number of retail clients with a client network of more than 100000
clients which includes HNIrsquos corporate and other retail customers The company
through its subsidiary Share khan Commodities Ltd provides commodity-trading services
Address A - 206 Phoenix House 2nd Floor Senapati Bapat Marg Lower Parel
Mumbai - 400013 Maharashtra
Telephone 91 22 67482000 Fax 91 22 66104533
Email compliancelpsharekhancom Website wwwsharekhancom
Registration Number NSE - INBINF231073330 BSE - INBINF01107335117
5 Indiabulls
Indiabulls Securities Ltd (Indiabulls) part of Indiabulls Group was established in 1995 The
company is in the business of providing securities and advisory services It is a corporate
member of capital market wholesale debt market and derivative segments of NSE and of
capital market and derivative segments of BSE
Indiabulls also operates in currency futures and is a DP of CDSL and NSDL It provides a
wide range of products and services which include internet trading NRI trading demat
16 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CKotak+Securities+Limited2Epdf17 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CSharekhan+ Limited2Epdf
services margin financing and distribution of financial products like IPO online
mutual funds etc Power Indiabulls (PIB) is the advanced online trading platform offered
by the company Indiabulls also offers research services in the areas of economic equity
mutual fund IPO and others The company operates in commodity segment through its
subsidiary India bulls Commodities Pvt Ltd which is a member of MCX and NCDEX It
is listed on both NSE and BSE
Address F-60 Malhotra Building 2nd Floor Connaught Place New Delhi - 110001 Delhi
Telephone 91 11 41523700 Fax 91 11 41529071
Email helpdeskindiabullscom Website wwwindiabullscom
Registration Number NSE - INBINF230875632 BSE - INBINF01087563218
18 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndiabulls+Securities+Limited2Epdf
22 Company Overview
221 Overview of the Organizations
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited Uday Kotak Sidney A A Pinto and Kotak amp Company promoted this company Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and thats when the company changed its name to Kotak Mahindra Finance Limited Since then its been a steady and confident journey to growth and success
Kotak Securities Ltd is one of Indias largest brokerage and securities distribution house in India Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-ordinates Kotak Securities Ltd offers online (through wwwkotaksecuritiescom) and offline services based on well-researched expertise and financial products to the non-institutional investors Kotak Securities Limited is the world of Capital Markets where everything newsworthy exists only in the present moment and where knowing the importance of timing sentiments and strategic forecasting makes the difference between profit and loss Kotak Securities Limited a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25 - one of the worldrsquos leading investment banks and brokerage firms) is Indiarsquos leading stock broking house with a market share of 7 - 8
Kotak Securities Limited is one of the larger players in distribution of IPOs - it was ranked number One in 2003-04 as Book Running Lead Manager in public equity offerings by PRIME Database It has also won the ldquoBest Equity Houserdquo Award from Finance Asia -April 2004 The Company has a full-fledged Research division involved in macro economic studies Sectoral research and Company specific equity research combined with a strong and well Networked sales force which helps deliver current and up-to-date market information and news
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them Kotak securities provide portfolio Management Services catering to the high end of the market Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market with the backing of an expert Kotak Securities Limited manages assets over Rs 1700 crores through itrsquos Portfolio Management Services (PMS) servicing high net worth clients with a large
investible surplus through its preferred client services in the mass affluent and wealth management segments The company has a full-fledged research division involved in Macro Economic studies Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news
222 MARKET SHARE
Kotak Securities Ltd is Indiarsquos leading stock broking house with a market share of around
85 percent as of March 31 2006 It handles more IPOs than any other brokerage The
company has a full-fledged research division involved in macroeconomic studies sect oral
research and company-specific equity research combined with a strong and well-
networked sales force which helps deliver current market information and news
The firm has 195 branches servicing more than 2200000 customers across 231 cities
Kotaksecuritiescom the online division offers Internet brokerage services and also online
IPO and mutual fund investments Kotak Securities manages over 2500 crores of Assets
under Management (AUM)
223 AWARDS AND RECOGNIZATION
Kotak Securities Ltd 100 subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry The companyrsquos offerings include stock broking
through the branch and Internet Investments in IPO Mutual funds and Portfolio
management service Kotak Securities has a full-fledged research division involved in
Macro Economic studies Sect oral research and Company Specific Equity Research
combined with a strong and well-networked sales force which helps deliver current and
up to date market information and news Kotak Securitiesrsquo network spans over 321 cities
with 877 outlets with an employee workforce beyond 5100
The company is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can avail the companyrsquos brokerage services for executing the
transactions and the depository services for settling them Kotak Securities Ltd processes
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
the hedge funds consists of individualsfamilies fund of funds corporations and
institutions public and private pensions and endowments and foundations in that order
Investor Protection
With democratization of markets leading to greater participation of individuals and
investments and wide choices of asset classes now available issues of investor interest
and protection have assumed centre stage Following the corporate crises in the US that
adversely affected the investor interests extensive federal investigations were launched
that led to imposition of huge penalties and punitive damages leading to billions of
dollars Such actions were taken against a wide spectrum of global investment banks
brokerage firms and other related entities Simultaneously growth of litigation and class
action suits showed significant rise when the market intermediaries failed to meet their
obligations or did not provide all the material facts to the investors that were crucial for
an investment decision
Securities regulators imposed penalties on market participants who were found to have
indulged in market abuses In India disgorgement orders were passed on certain entities
that were found to making money by unfair means and for violating regulatory norms and
procedures Top institutional investors in several countries devised their own review
process for investing in countries and companies that brought into light greater need for
higher standards in corporate governance disclosure and transparency standards and in
some cases concern towards issues such as democracy and social equity environment
economic and political reforms
Surge in Chinese capital markets
A major change in the year 2007 is the sudden leap of China into big league of global stock
markets On 9 May 07 Shanghai Stock Exchange Chinarsquos top stock market recorded
turnover of USD332 bn and Shenzhen Stock Exchange a stock market for SMEs an
equally powerful USD158 bn taking the combined turnover of both these stock
exchanges on that day to USD495 bn In the first three months of the year 2007 value of
share trading in both these Chinese stock markets reached 89 of the whole turnover of
the year 2006 Value of share trading in Shanghai Stock Exchange rose from USD256 bn in
2003 to USD736 bn in 2006 and in the first three months of the year 2007 it already
recorded USD652 bn Market capitalization in China between Apr 2006 and 2007 rose by
almost 4 times pushing it to a position among the top 10 exchanges in the world and
value of share turnover rose 6 times making Shanghai 6 the biggest Main indexes of
Shanghai Stock Exchange and Shenzhen Stock Exchange posted returns of 194 and 204
respectively in the 12 months proceeding Apr 2007
Rise of smaller markets
The growth and momentum of the stock markets is spreading across a large number of
markets big and small Recent evidence of big surge in stock markets include countries in
the Middle East which witnessed exceptional growth in 20052006 China in 2007 and
several smaller European and Latin American countries in the last one year As
international investing is spreading its presence domestic financial institutions and
investors are finding stocks as an important asset class and stock markets all over the
world have experienced rapid growth in the last five years
Stock exchange consolidation
A big wave of stock exchange consolidation is taking place across the global financial
markets The most notable merger in the recent period is that of the New York Stock
Exchange with Archipelago that led to the demutualization of the former which
subsequently acquired Euro next to form NYSE Group that makes it a formidable force in
the North America and the Euro region Another American exchange NASDAQ after the
merger with Instinet announced plans to acquire OMX which is Europersquos leading
exchange as also provider of cutting edge technology solutions for stock exchanges
worldwide Deutsche Borsersquos recent acquisition of International Securities Exchange gives
the former a powerful position in the derivatives markets in Europe and America There
was also sizeable consolidation within the domestic securities markets in several countries
with the merger of equities and derivatives markets in countries such as Korea Malaysia
and Hong Kong In India the issue of appropriate solutions for the 20 odd stock exchanges
that currently lack proper liquidity is engaging the attention of policy and regulation
RECENT DEVELOPMENTS GOVERNING REGULATION OF STOCK MARKETS
Systematic and streamlined regulation is the key strength and sustainability of the
securities markets Though formal regulation of the securities markets is about 70 years
old some of the recent developments in the financial markets are reshaping the scope
and focus of the regulation These include ndash
There is growing harmonization of regulation across different markets Organizations
such as International Organization for Securities Commissions (IOSCO) are playing a very
important role in adoption of uniform principles and guidelines across the markets
The size and scope of the securities markets is rapidly changing from being one or
two product markets to multi product markets with diverse features and different
investor base
Markets have become more democratized with more people and institutions
participating in the market related activities
Rapid increase in the size of the institutional participation in the financial markets
For instance equity markets which in the past were retail investor driven are now
increasingly become institutional induced
Securities markets are transforming from being membership driven to public
corporation following demutualization and corporatization of stock exchanges in mature
and emerging markets
Two most important pieces of regulation that came into being in the recent period are in
the form of market structure reforms in the US known more popularly as regulation NMS
which underlines the promotion of competition across the markets under three major
principles best price open access and transparency Under the new trade-through role in
whichever market a customer placed his order it should be able to access the best price
that is immediately and automatically available anywhere in the national market system
The trade-through rule will not allow markets to ignore better-priced automated quotes
displayed by the competitors Similarly open access to displayed prices will be a major
feature governing the competition of the markets The regulation also stipulates that all
significant markets must display their quotations and trade reports should be available to
all interested parties on fair terms and non-discriminatory manner Another equally
important development is the Markets in Financial Industry Directive (MiFiD) that will
come into force from 1 Nov 2007 and stipulates wide-ranging norms for financial
institutions in the European Union Major features of the MiFiD include wider scope of
coverage of the financial institutions and the related business activities greater degree of
harmonization across the European markets and facilitate cross border business and
stipulated capital requirements
MiFiD is envisaged to bring major changes in the manner financial institutions in the
European Union will be monitored Simultaneous with stringent norms of regulation the
scope of regulation is considerably delegated to the markets and institutions in the form
of self-regulation Self-regulation brings a number of benefits to the business Institutions
such as National Association of Securities Dealers (NASD) have played an important role in
promoting self-regulation However self-regulation has certain limitations it needs to
overcome before it becomes widely accepted across the markets12
225 Top five companies of the industry
Many time new investor or trader gets confusion for open a D Mat and trading account in
broking House Many of broking House promises to you for better service but clients get
problem due to trading session in theirs Broker house firm Here is the list of Indiarsquos top 5
broking House on base of survey of investors and traders of many cities In their views
following Broking Houses gives best and reliable services13
1 ICICI directcom
ICICI Securities empowers over 2 million Indians to seamlessly access the capital market
with ICICIdirectcom an award winning and pioneering online broking platform The
platform not only offers convenient ways to invest in Equity Derivatives Currency
Futures Mutual Funds but also other services Fixed Deposits Loans Tax Services New
Pension Systems and Insurance are available ICICIdirectcom offers a convenient and easy
to use platform to invest in equity and various other financial products using its unique 3-
in-1 account which integrates customerrsquos saving trading and demat accounts
Apart from convenience ICICIdirectcom also offers access to comprehensive research
information stock picks and mutual fund recommendations among other offerings
Tailored services and trading strategies are available to different types of customers long
term investors day traders high-volume traders and derivatives traders to name some
ICICIdirectcom uses the most advanced commercially available 128-bit encryption
technology enabled Secure Socket Layer (SSL) to ensure that the information transmitted
between the client and ICICIdirectcom across the internet is safe and cannot be accessed
by any third party14
2 India Infoline
India Infoline Ltd (India Infoline) established in 1995 is the holding company of the
India Infoline Group It has membership in the cash and derivative segments of both 12 Source- httpwwwdnbcoinequitybrokingglobal20scenarioasp13 Source- Httpwwwindianstockmarketorgindias-top-10-stock-broking-house14 Source-httpwwwicicisecuritiescomOurBusinessSubSubReportID=10223ampshortCode=INST
the NSE and BSE India Infoline is also registered as a DP with NSDL and CDSL India
Infoline through its subsidiary India Infoline Commodities Limited also offers commodity-
trading services which is a registered member with DGCX since 2006 It also operates in
the currency futures market segment India Infoline offers a wide range of products
and services which include investment banking distribution of financial products
demat services private equity PMS institutional broking WMS insurance broking
among others In addition it also offers research services in areas of economy
derivative strategies mutual funds IPO credit policy and various others The company
has 15 domestic subsidiaries and five foreign subsidiaries The company has global
presence through its subsidiaries in New York Singapore and Dubai India Infoline caters
majorly to retail clients During CY09 the company added 303480 client accounts
Address 75 Nirlon Complex Off Western Express Highway Goregaon (East) Mumbai -
400063 Maharashtra
Telephone 91 22 42499000 Fax 91 22 26850451
Email mailindiainfolinecom Website wwwindiainfolinecom
Registration Number NSE - INBINF231097537 BSE - INBINF01109753315
3 Kotak Securities Ltd
Kotak Securities Ltd (Kotak Securities) is the stock-broking and distribution arm of the
Kotak Mahindra Group and a subsidiary of Kotak Mahindra Bank Kotak Securities was
established in 1994 It has memberships in the cash derivatives and currency futures
segments of NSE and BSE Kotak Securities is also a DP with NSDL and CDSL Apart from
stock broking the company is engaged in offering depository services asset management
margin financing PMS and distribution of financial products like IPOrsquos mutual funds and
insurance The company has a full-fledged research division which offers macro
economic sectoral research and company specific equity research Its domestic network
spans over 383 cities and 1048 offices Trading in equities and derivatives contributes to
major part of the companyrsquos revenue During CY09 Kotak Securities added around 62194
accounts of which around 27 are e-broking accounts The companyrsquos overseas
operations include one subsidiary and two associate firms operating in two foreign
locations
15 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndia+Infoline+Limited2Epdf
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF01113323016
4 Share Khan
Sharekhan Ltd (Sharekhan) is one a leading brokerage houses established in 2000
Sharekhan has membership in the cash and derivative segments of both BSE and NSE It
also operates in the debt and currency futures segment The company is registered as a
DP with CDSL and NSDL Besides trading the company also offers PMS demat services and
mutual funds Share khan provides a comprehensive set of research reports relating
to IPO and mutual funds Other value added facilities offered to clients include
online trading dial-n-trade share shops fundamental and technical research The
company serves large number of retail clients with a client network of more than 100000
clients which includes HNIrsquos corporate and other retail customers The company
through its subsidiary Share khan Commodities Ltd provides commodity-trading services
Address A - 206 Phoenix House 2nd Floor Senapati Bapat Marg Lower Parel
Mumbai - 400013 Maharashtra
Telephone 91 22 67482000 Fax 91 22 66104533
Email compliancelpsharekhancom Website wwwsharekhancom
Registration Number NSE - INBINF231073330 BSE - INBINF01107335117
5 Indiabulls
Indiabulls Securities Ltd (Indiabulls) part of Indiabulls Group was established in 1995 The
company is in the business of providing securities and advisory services It is a corporate
member of capital market wholesale debt market and derivative segments of NSE and of
capital market and derivative segments of BSE
Indiabulls also operates in currency futures and is a DP of CDSL and NSDL It provides a
wide range of products and services which include internet trading NRI trading demat
16 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CKotak+Securities+Limited2Epdf17 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CSharekhan+ Limited2Epdf
services margin financing and distribution of financial products like IPO online
mutual funds etc Power Indiabulls (PIB) is the advanced online trading platform offered
by the company Indiabulls also offers research services in the areas of economic equity
mutual fund IPO and others The company operates in commodity segment through its
subsidiary India bulls Commodities Pvt Ltd which is a member of MCX and NCDEX It
is listed on both NSE and BSE
Address F-60 Malhotra Building 2nd Floor Connaught Place New Delhi - 110001 Delhi
Telephone 91 11 41523700 Fax 91 11 41529071
Email helpdeskindiabullscom Website wwwindiabullscom
Registration Number NSE - INBINF230875632 BSE - INBINF01087563218
18 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndiabulls+Securities+Limited2Epdf
22 Company Overview
221 Overview of the Organizations
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited Uday Kotak Sidney A A Pinto and Kotak amp Company promoted this company Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and thats when the company changed its name to Kotak Mahindra Finance Limited Since then its been a steady and confident journey to growth and success
Kotak Securities Ltd is one of Indias largest brokerage and securities distribution house in India Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-ordinates Kotak Securities Ltd offers online (through wwwkotaksecuritiescom) and offline services based on well-researched expertise and financial products to the non-institutional investors Kotak Securities Limited is the world of Capital Markets where everything newsworthy exists only in the present moment and where knowing the importance of timing sentiments and strategic forecasting makes the difference between profit and loss Kotak Securities Limited a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25 - one of the worldrsquos leading investment banks and brokerage firms) is Indiarsquos leading stock broking house with a market share of 7 - 8
Kotak Securities Limited is one of the larger players in distribution of IPOs - it was ranked number One in 2003-04 as Book Running Lead Manager in public equity offerings by PRIME Database It has also won the ldquoBest Equity Houserdquo Award from Finance Asia -April 2004 The Company has a full-fledged Research division involved in macro economic studies Sectoral research and Company specific equity research combined with a strong and well Networked sales force which helps deliver current and up-to-date market information and news
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them Kotak securities provide portfolio Management Services catering to the high end of the market Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market with the backing of an expert Kotak Securities Limited manages assets over Rs 1700 crores through itrsquos Portfolio Management Services (PMS) servicing high net worth clients with a large
investible surplus through its preferred client services in the mass affluent and wealth management segments The company has a full-fledged research division involved in Macro Economic studies Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news
222 MARKET SHARE
Kotak Securities Ltd is Indiarsquos leading stock broking house with a market share of around
85 percent as of March 31 2006 It handles more IPOs than any other brokerage The
company has a full-fledged research division involved in macroeconomic studies sect oral
research and company-specific equity research combined with a strong and well-
networked sales force which helps deliver current market information and news
The firm has 195 branches servicing more than 2200000 customers across 231 cities
Kotaksecuritiescom the online division offers Internet brokerage services and also online
IPO and mutual fund investments Kotak Securities manages over 2500 crores of Assets
under Management (AUM)
223 AWARDS AND RECOGNIZATION
Kotak Securities Ltd 100 subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry The companyrsquos offerings include stock broking
through the branch and Internet Investments in IPO Mutual funds and Portfolio
management service Kotak Securities has a full-fledged research division involved in
Macro Economic studies Sect oral research and Company Specific Equity Research
combined with a strong and well-networked sales force which helps deliver current and
up to date market information and news Kotak Securitiesrsquo network spans over 321 cities
with 877 outlets with an employee workforce beyond 5100
The company is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can avail the companyrsquos brokerage services for executing the
transactions and the depository services for settling them Kotak Securities Ltd processes
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Shanghai Stock Exchange and Shenzhen Stock Exchange posted returns of 194 and 204
respectively in the 12 months proceeding Apr 2007
Rise of smaller markets
The growth and momentum of the stock markets is spreading across a large number of
markets big and small Recent evidence of big surge in stock markets include countries in
the Middle East which witnessed exceptional growth in 20052006 China in 2007 and
several smaller European and Latin American countries in the last one year As
international investing is spreading its presence domestic financial institutions and
investors are finding stocks as an important asset class and stock markets all over the
world have experienced rapid growth in the last five years
Stock exchange consolidation
A big wave of stock exchange consolidation is taking place across the global financial
markets The most notable merger in the recent period is that of the New York Stock
Exchange with Archipelago that led to the demutualization of the former which
subsequently acquired Euro next to form NYSE Group that makes it a formidable force in
the North America and the Euro region Another American exchange NASDAQ after the
merger with Instinet announced plans to acquire OMX which is Europersquos leading
exchange as also provider of cutting edge technology solutions for stock exchanges
worldwide Deutsche Borsersquos recent acquisition of International Securities Exchange gives
the former a powerful position in the derivatives markets in Europe and America There
was also sizeable consolidation within the domestic securities markets in several countries
with the merger of equities and derivatives markets in countries such as Korea Malaysia
and Hong Kong In India the issue of appropriate solutions for the 20 odd stock exchanges
that currently lack proper liquidity is engaging the attention of policy and regulation
RECENT DEVELOPMENTS GOVERNING REGULATION OF STOCK MARKETS
Systematic and streamlined regulation is the key strength and sustainability of the
securities markets Though formal regulation of the securities markets is about 70 years
old some of the recent developments in the financial markets are reshaping the scope
and focus of the regulation These include ndash
There is growing harmonization of regulation across different markets Organizations
such as International Organization for Securities Commissions (IOSCO) are playing a very
important role in adoption of uniform principles and guidelines across the markets
The size and scope of the securities markets is rapidly changing from being one or
two product markets to multi product markets with diverse features and different
investor base
Markets have become more democratized with more people and institutions
participating in the market related activities
Rapid increase in the size of the institutional participation in the financial markets
For instance equity markets which in the past were retail investor driven are now
increasingly become institutional induced
Securities markets are transforming from being membership driven to public
corporation following demutualization and corporatization of stock exchanges in mature
and emerging markets
Two most important pieces of regulation that came into being in the recent period are in
the form of market structure reforms in the US known more popularly as regulation NMS
which underlines the promotion of competition across the markets under three major
principles best price open access and transparency Under the new trade-through role in
whichever market a customer placed his order it should be able to access the best price
that is immediately and automatically available anywhere in the national market system
The trade-through rule will not allow markets to ignore better-priced automated quotes
displayed by the competitors Similarly open access to displayed prices will be a major
feature governing the competition of the markets The regulation also stipulates that all
significant markets must display their quotations and trade reports should be available to
all interested parties on fair terms and non-discriminatory manner Another equally
important development is the Markets in Financial Industry Directive (MiFiD) that will
come into force from 1 Nov 2007 and stipulates wide-ranging norms for financial
institutions in the European Union Major features of the MiFiD include wider scope of
coverage of the financial institutions and the related business activities greater degree of
harmonization across the European markets and facilitate cross border business and
stipulated capital requirements
MiFiD is envisaged to bring major changes in the manner financial institutions in the
European Union will be monitored Simultaneous with stringent norms of regulation the
scope of regulation is considerably delegated to the markets and institutions in the form
of self-regulation Self-regulation brings a number of benefits to the business Institutions
such as National Association of Securities Dealers (NASD) have played an important role in
promoting self-regulation However self-regulation has certain limitations it needs to
overcome before it becomes widely accepted across the markets12
225 Top five companies of the industry
Many time new investor or trader gets confusion for open a D Mat and trading account in
broking House Many of broking House promises to you for better service but clients get
problem due to trading session in theirs Broker house firm Here is the list of Indiarsquos top 5
broking House on base of survey of investors and traders of many cities In their views
following Broking Houses gives best and reliable services13
1 ICICI directcom
ICICI Securities empowers over 2 million Indians to seamlessly access the capital market
with ICICIdirectcom an award winning and pioneering online broking platform The
platform not only offers convenient ways to invest in Equity Derivatives Currency
Futures Mutual Funds but also other services Fixed Deposits Loans Tax Services New
Pension Systems and Insurance are available ICICIdirectcom offers a convenient and easy
to use platform to invest in equity and various other financial products using its unique 3-
in-1 account which integrates customerrsquos saving trading and demat accounts
Apart from convenience ICICIdirectcom also offers access to comprehensive research
information stock picks and mutual fund recommendations among other offerings
Tailored services and trading strategies are available to different types of customers long
term investors day traders high-volume traders and derivatives traders to name some
ICICIdirectcom uses the most advanced commercially available 128-bit encryption
technology enabled Secure Socket Layer (SSL) to ensure that the information transmitted
between the client and ICICIdirectcom across the internet is safe and cannot be accessed
by any third party14
2 India Infoline
India Infoline Ltd (India Infoline) established in 1995 is the holding company of the
India Infoline Group It has membership in the cash and derivative segments of both 12 Source- httpwwwdnbcoinequitybrokingglobal20scenarioasp13 Source- Httpwwwindianstockmarketorgindias-top-10-stock-broking-house14 Source-httpwwwicicisecuritiescomOurBusinessSubSubReportID=10223ampshortCode=INST
the NSE and BSE India Infoline is also registered as a DP with NSDL and CDSL India
Infoline through its subsidiary India Infoline Commodities Limited also offers commodity-
trading services which is a registered member with DGCX since 2006 It also operates in
the currency futures market segment India Infoline offers a wide range of products
and services which include investment banking distribution of financial products
demat services private equity PMS institutional broking WMS insurance broking
among others In addition it also offers research services in areas of economy
derivative strategies mutual funds IPO credit policy and various others The company
has 15 domestic subsidiaries and five foreign subsidiaries The company has global
presence through its subsidiaries in New York Singapore and Dubai India Infoline caters
majorly to retail clients During CY09 the company added 303480 client accounts
Address 75 Nirlon Complex Off Western Express Highway Goregaon (East) Mumbai -
400063 Maharashtra
Telephone 91 22 42499000 Fax 91 22 26850451
Email mailindiainfolinecom Website wwwindiainfolinecom
Registration Number NSE - INBINF231097537 BSE - INBINF01109753315
3 Kotak Securities Ltd
Kotak Securities Ltd (Kotak Securities) is the stock-broking and distribution arm of the
Kotak Mahindra Group and a subsidiary of Kotak Mahindra Bank Kotak Securities was
established in 1994 It has memberships in the cash derivatives and currency futures
segments of NSE and BSE Kotak Securities is also a DP with NSDL and CDSL Apart from
stock broking the company is engaged in offering depository services asset management
margin financing PMS and distribution of financial products like IPOrsquos mutual funds and
insurance The company has a full-fledged research division which offers macro
economic sectoral research and company specific equity research Its domestic network
spans over 383 cities and 1048 offices Trading in equities and derivatives contributes to
major part of the companyrsquos revenue During CY09 Kotak Securities added around 62194
accounts of which around 27 are e-broking accounts The companyrsquos overseas
operations include one subsidiary and two associate firms operating in two foreign
locations
15 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndia+Infoline+Limited2Epdf
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF01113323016
4 Share Khan
Sharekhan Ltd (Sharekhan) is one a leading brokerage houses established in 2000
Sharekhan has membership in the cash and derivative segments of both BSE and NSE It
also operates in the debt and currency futures segment The company is registered as a
DP with CDSL and NSDL Besides trading the company also offers PMS demat services and
mutual funds Share khan provides a comprehensive set of research reports relating
to IPO and mutual funds Other value added facilities offered to clients include
online trading dial-n-trade share shops fundamental and technical research The
company serves large number of retail clients with a client network of more than 100000
clients which includes HNIrsquos corporate and other retail customers The company
through its subsidiary Share khan Commodities Ltd provides commodity-trading services
Address A - 206 Phoenix House 2nd Floor Senapati Bapat Marg Lower Parel
Mumbai - 400013 Maharashtra
Telephone 91 22 67482000 Fax 91 22 66104533
Email compliancelpsharekhancom Website wwwsharekhancom
Registration Number NSE - INBINF231073330 BSE - INBINF01107335117
5 Indiabulls
Indiabulls Securities Ltd (Indiabulls) part of Indiabulls Group was established in 1995 The
company is in the business of providing securities and advisory services It is a corporate
member of capital market wholesale debt market and derivative segments of NSE and of
capital market and derivative segments of BSE
Indiabulls also operates in currency futures and is a DP of CDSL and NSDL It provides a
wide range of products and services which include internet trading NRI trading demat
16 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CKotak+Securities+Limited2Epdf17 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CSharekhan+ Limited2Epdf
services margin financing and distribution of financial products like IPO online
mutual funds etc Power Indiabulls (PIB) is the advanced online trading platform offered
by the company Indiabulls also offers research services in the areas of economic equity
mutual fund IPO and others The company operates in commodity segment through its
subsidiary India bulls Commodities Pvt Ltd which is a member of MCX and NCDEX It
is listed on both NSE and BSE
Address F-60 Malhotra Building 2nd Floor Connaught Place New Delhi - 110001 Delhi
Telephone 91 11 41523700 Fax 91 11 41529071
Email helpdeskindiabullscom Website wwwindiabullscom
Registration Number NSE - INBINF230875632 BSE - INBINF01087563218
18 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndiabulls+Securities+Limited2Epdf
22 Company Overview
221 Overview of the Organizations
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited Uday Kotak Sidney A A Pinto and Kotak amp Company promoted this company Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and thats when the company changed its name to Kotak Mahindra Finance Limited Since then its been a steady and confident journey to growth and success
Kotak Securities Ltd is one of Indias largest brokerage and securities distribution house in India Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-ordinates Kotak Securities Ltd offers online (through wwwkotaksecuritiescom) and offline services based on well-researched expertise and financial products to the non-institutional investors Kotak Securities Limited is the world of Capital Markets where everything newsworthy exists only in the present moment and where knowing the importance of timing sentiments and strategic forecasting makes the difference between profit and loss Kotak Securities Limited a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25 - one of the worldrsquos leading investment banks and brokerage firms) is Indiarsquos leading stock broking house with a market share of 7 - 8
Kotak Securities Limited is one of the larger players in distribution of IPOs - it was ranked number One in 2003-04 as Book Running Lead Manager in public equity offerings by PRIME Database It has also won the ldquoBest Equity Houserdquo Award from Finance Asia -April 2004 The Company has a full-fledged Research division involved in macro economic studies Sectoral research and Company specific equity research combined with a strong and well Networked sales force which helps deliver current and up-to-date market information and news
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them Kotak securities provide portfolio Management Services catering to the high end of the market Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market with the backing of an expert Kotak Securities Limited manages assets over Rs 1700 crores through itrsquos Portfolio Management Services (PMS) servicing high net worth clients with a large
investible surplus through its preferred client services in the mass affluent and wealth management segments The company has a full-fledged research division involved in Macro Economic studies Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news
222 MARKET SHARE
Kotak Securities Ltd is Indiarsquos leading stock broking house with a market share of around
85 percent as of March 31 2006 It handles more IPOs than any other brokerage The
company has a full-fledged research division involved in macroeconomic studies sect oral
research and company-specific equity research combined with a strong and well-
networked sales force which helps deliver current market information and news
The firm has 195 branches servicing more than 2200000 customers across 231 cities
Kotaksecuritiescom the online division offers Internet brokerage services and also online
IPO and mutual fund investments Kotak Securities manages over 2500 crores of Assets
under Management (AUM)
223 AWARDS AND RECOGNIZATION
Kotak Securities Ltd 100 subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry The companyrsquos offerings include stock broking
through the branch and Internet Investments in IPO Mutual funds and Portfolio
management service Kotak Securities has a full-fledged research division involved in
Macro Economic studies Sect oral research and Company Specific Equity Research
combined with a strong and well-networked sales force which helps deliver current and
up to date market information and news Kotak Securitiesrsquo network spans over 321 cities
with 877 outlets with an employee workforce beyond 5100
The company is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can avail the companyrsquos brokerage services for executing the
transactions and the depository services for settling them Kotak Securities Ltd processes
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
The size and scope of the securities markets is rapidly changing from being one or
two product markets to multi product markets with diverse features and different
investor base
Markets have become more democratized with more people and institutions
participating in the market related activities
Rapid increase in the size of the institutional participation in the financial markets
For instance equity markets which in the past were retail investor driven are now
increasingly become institutional induced
Securities markets are transforming from being membership driven to public
corporation following demutualization and corporatization of stock exchanges in mature
and emerging markets
Two most important pieces of regulation that came into being in the recent period are in
the form of market structure reforms in the US known more popularly as regulation NMS
which underlines the promotion of competition across the markets under three major
principles best price open access and transparency Under the new trade-through role in
whichever market a customer placed his order it should be able to access the best price
that is immediately and automatically available anywhere in the national market system
The trade-through rule will not allow markets to ignore better-priced automated quotes
displayed by the competitors Similarly open access to displayed prices will be a major
feature governing the competition of the markets The regulation also stipulates that all
significant markets must display their quotations and trade reports should be available to
all interested parties on fair terms and non-discriminatory manner Another equally
important development is the Markets in Financial Industry Directive (MiFiD) that will
come into force from 1 Nov 2007 and stipulates wide-ranging norms for financial
institutions in the European Union Major features of the MiFiD include wider scope of
coverage of the financial institutions and the related business activities greater degree of
harmonization across the European markets and facilitate cross border business and
stipulated capital requirements
MiFiD is envisaged to bring major changes in the manner financial institutions in the
European Union will be monitored Simultaneous with stringent norms of regulation the
scope of regulation is considerably delegated to the markets and institutions in the form
of self-regulation Self-regulation brings a number of benefits to the business Institutions
such as National Association of Securities Dealers (NASD) have played an important role in
promoting self-regulation However self-regulation has certain limitations it needs to
overcome before it becomes widely accepted across the markets12
225 Top five companies of the industry
Many time new investor or trader gets confusion for open a D Mat and trading account in
broking House Many of broking House promises to you for better service but clients get
problem due to trading session in theirs Broker house firm Here is the list of Indiarsquos top 5
broking House on base of survey of investors and traders of many cities In their views
following Broking Houses gives best and reliable services13
1 ICICI directcom
ICICI Securities empowers over 2 million Indians to seamlessly access the capital market
with ICICIdirectcom an award winning and pioneering online broking platform The
platform not only offers convenient ways to invest in Equity Derivatives Currency
Futures Mutual Funds but also other services Fixed Deposits Loans Tax Services New
Pension Systems and Insurance are available ICICIdirectcom offers a convenient and easy
to use platform to invest in equity and various other financial products using its unique 3-
in-1 account which integrates customerrsquos saving trading and demat accounts
Apart from convenience ICICIdirectcom also offers access to comprehensive research
information stock picks and mutual fund recommendations among other offerings
Tailored services and trading strategies are available to different types of customers long
term investors day traders high-volume traders and derivatives traders to name some
ICICIdirectcom uses the most advanced commercially available 128-bit encryption
technology enabled Secure Socket Layer (SSL) to ensure that the information transmitted
between the client and ICICIdirectcom across the internet is safe and cannot be accessed
by any third party14
2 India Infoline
India Infoline Ltd (India Infoline) established in 1995 is the holding company of the
India Infoline Group It has membership in the cash and derivative segments of both 12 Source- httpwwwdnbcoinequitybrokingglobal20scenarioasp13 Source- Httpwwwindianstockmarketorgindias-top-10-stock-broking-house14 Source-httpwwwicicisecuritiescomOurBusinessSubSubReportID=10223ampshortCode=INST
the NSE and BSE India Infoline is also registered as a DP with NSDL and CDSL India
Infoline through its subsidiary India Infoline Commodities Limited also offers commodity-
trading services which is a registered member with DGCX since 2006 It also operates in
the currency futures market segment India Infoline offers a wide range of products
and services which include investment banking distribution of financial products
demat services private equity PMS institutional broking WMS insurance broking
among others In addition it also offers research services in areas of economy
derivative strategies mutual funds IPO credit policy and various others The company
has 15 domestic subsidiaries and five foreign subsidiaries The company has global
presence through its subsidiaries in New York Singapore and Dubai India Infoline caters
majorly to retail clients During CY09 the company added 303480 client accounts
Address 75 Nirlon Complex Off Western Express Highway Goregaon (East) Mumbai -
400063 Maharashtra
Telephone 91 22 42499000 Fax 91 22 26850451
Email mailindiainfolinecom Website wwwindiainfolinecom
Registration Number NSE - INBINF231097537 BSE - INBINF01109753315
3 Kotak Securities Ltd
Kotak Securities Ltd (Kotak Securities) is the stock-broking and distribution arm of the
Kotak Mahindra Group and a subsidiary of Kotak Mahindra Bank Kotak Securities was
established in 1994 It has memberships in the cash derivatives and currency futures
segments of NSE and BSE Kotak Securities is also a DP with NSDL and CDSL Apart from
stock broking the company is engaged in offering depository services asset management
margin financing PMS and distribution of financial products like IPOrsquos mutual funds and
insurance The company has a full-fledged research division which offers macro
economic sectoral research and company specific equity research Its domestic network
spans over 383 cities and 1048 offices Trading in equities and derivatives contributes to
major part of the companyrsquos revenue During CY09 Kotak Securities added around 62194
accounts of which around 27 are e-broking accounts The companyrsquos overseas
operations include one subsidiary and two associate firms operating in two foreign
locations
15 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndia+Infoline+Limited2Epdf
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF01113323016
4 Share Khan
Sharekhan Ltd (Sharekhan) is one a leading brokerage houses established in 2000
Sharekhan has membership in the cash and derivative segments of both BSE and NSE It
also operates in the debt and currency futures segment The company is registered as a
DP with CDSL and NSDL Besides trading the company also offers PMS demat services and
mutual funds Share khan provides a comprehensive set of research reports relating
to IPO and mutual funds Other value added facilities offered to clients include
online trading dial-n-trade share shops fundamental and technical research The
company serves large number of retail clients with a client network of more than 100000
clients which includes HNIrsquos corporate and other retail customers The company
through its subsidiary Share khan Commodities Ltd provides commodity-trading services
Address A - 206 Phoenix House 2nd Floor Senapati Bapat Marg Lower Parel
Mumbai - 400013 Maharashtra
Telephone 91 22 67482000 Fax 91 22 66104533
Email compliancelpsharekhancom Website wwwsharekhancom
Registration Number NSE - INBINF231073330 BSE - INBINF01107335117
5 Indiabulls
Indiabulls Securities Ltd (Indiabulls) part of Indiabulls Group was established in 1995 The
company is in the business of providing securities and advisory services It is a corporate
member of capital market wholesale debt market and derivative segments of NSE and of
capital market and derivative segments of BSE
Indiabulls also operates in currency futures and is a DP of CDSL and NSDL It provides a
wide range of products and services which include internet trading NRI trading demat
16 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CKotak+Securities+Limited2Epdf17 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CSharekhan+ Limited2Epdf
services margin financing and distribution of financial products like IPO online
mutual funds etc Power Indiabulls (PIB) is the advanced online trading platform offered
by the company Indiabulls also offers research services in the areas of economic equity
mutual fund IPO and others The company operates in commodity segment through its
subsidiary India bulls Commodities Pvt Ltd which is a member of MCX and NCDEX It
is listed on both NSE and BSE
Address F-60 Malhotra Building 2nd Floor Connaught Place New Delhi - 110001 Delhi
Telephone 91 11 41523700 Fax 91 11 41529071
Email helpdeskindiabullscom Website wwwindiabullscom
Registration Number NSE - INBINF230875632 BSE - INBINF01087563218
18 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndiabulls+Securities+Limited2Epdf
22 Company Overview
221 Overview of the Organizations
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited Uday Kotak Sidney A A Pinto and Kotak amp Company promoted this company Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and thats when the company changed its name to Kotak Mahindra Finance Limited Since then its been a steady and confident journey to growth and success
Kotak Securities Ltd is one of Indias largest brokerage and securities distribution house in India Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-ordinates Kotak Securities Ltd offers online (through wwwkotaksecuritiescom) and offline services based on well-researched expertise and financial products to the non-institutional investors Kotak Securities Limited is the world of Capital Markets where everything newsworthy exists only in the present moment and where knowing the importance of timing sentiments and strategic forecasting makes the difference between profit and loss Kotak Securities Limited a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25 - one of the worldrsquos leading investment banks and brokerage firms) is Indiarsquos leading stock broking house with a market share of 7 - 8
Kotak Securities Limited is one of the larger players in distribution of IPOs - it was ranked number One in 2003-04 as Book Running Lead Manager in public equity offerings by PRIME Database It has also won the ldquoBest Equity Houserdquo Award from Finance Asia -April 2004 The Company has a full-fledged Research division involved in macro economic studies Sectoral research and Company specific equity research combined with a strong and well Networked sales force which helps deliver current and up-to-date market information and news
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them Kotak securities provide portfolio Management Services catering to the high end of the market Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market with the backing of an expert Kotak Securities Limited manages assets over Rs 1700 crores through itrsquos Portfolio Management Services (PMS) servicing high net worth clients with a large
investible surplus through its preferred client services in the mass affluent and wealth management segments The company has a full-fledged research division involved in Macro Economic studies Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news
222 MARKET SHARE
Kotak Securities Ltd is Indiarsquos leading stock broking house with a market share of around
85 percent as of March 31 2006 It handles more IPOs than any other brokerage The
company has a full-fledged research division involved in macroeconomic studies sect oral
research and company-specific equity research combined with a strong and well-
networked sales force which helps deliver current market information and news
The firm has 195 branches servicing more than 2200000 customers across 231 cities
Kotaksecuritiescom the online division offers Internet brokerage services and also online
IPO and mutual fund investments Kotak Securities manages over 2500 crores of Assets
under Management (AUM)
223 AWARDS AND RECOGNIZATION
Kotak Securities Ltd 100 subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry The companyrsquos offerings include stock broking
through the branch and Internet Investments in IPO Mutual funds and Portfolio
management service Kotak Securities has a full-fledged research division involved in
Macro Economic studies Sect oral research and Company Specific Equity Research
combined with a strong and well-networked sales force which helps deliver current and
up to date market information and news Kotak Securitiesrsquo network spans over 321 cities
with 877 outlets with an employee workforce beyond 5100
The company is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can avail the companyrsquos brokerage services for executing the
transactions and the depository services for settling them Kotak Securities Ltd processes
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
of self-regulation Self-regulation brings a number of benefits to the business Institutions
such as National Association of Securities Dealers (NASD) have played an important role in
promoting self-regulation However self-regulation has certain limitations it needs to
overcome before it becomes widely accepted across the markets12
225 Top five companies of the industry
Many time new investor or trader gets confusion for open a D Mat and trading account in
broking House Many of broking House promises to you for better service but clients get
problem due to trading session in theirs Broker house firm Here is the list of Indiarsquos top 5
broking House on base of survey of investors and traders of many cities In their views
following Broking Houses gives best and reliable services13
1 ICICI directcom
ICICI Securities empowers over 2 million Indians to seamlessly access the capital market
with ICICIdirectcom an award winning and pioneering online broking platform The
platform not only offers convenient ways to invest in Equity Derivatives Currency
Futures Mutual Funds but also other services Fixed Deposits Loans Tax Services New
Pension Systems and Insurance are available ICICIdirectcom offers a convenient and easy
to use platform to invest in equity and various other financial products using its unique 3-
in-1 account which integrates customerrsquos saving trading and demat accounts
Apart from convenience ICICIdirectcom also offers access to comprehensive research
information stock picks and mutual fund recommendations among other offerings
Tailored services and trading strategies are available to different types of customers long
term investors day traders high-volume traders and derivatives traders to name some
ICICIdirectcom uses the most advanced commercially available 128-bit encryption
technology enabled Secure Socket Layer (SSL) to ensure that the information transmitted
between the client and ICICIdirectcom across the internet is safe and cannot be accessed
by any third party14
2 India Infoline
India Infoline Ltd (India Infoline) established in 1995 is the holding company of the
India Infoline Group It has membership in the cash and derivative segments of both 12 Source- httpwwwdnbcoinequitybrokingglobal20scenarioasp13 Source- Httpwwwindianstockmarketorgindias-top-10-stock-broking-house14 Source-httpwwwicicisecuritiescomOurBusinessSubSubReportID=10223ampshortCode=INST
the NSE and BSE India Infoline is also registered as a DP with NSDL and CDSL India
Infoline through its subsidiary India Infoline Commodities Limited also offers commodity-
trading services which is a registered member with DGCX since 2006 It also operates in
the currency futures market segment India Infoline offers a wide range of products
and services which include investment banking distribution of financial products
demat services private equity PMS institutional broking WMS insurance broking
among others In addition it also offers research services in areas of economy
derivative strategies mutual funds IPO credit policy and various others The company
has 15 domestic subsidiaries and five foreign subsidiaries The company has global
presence through its subsidiaries in New York Singapore and Dubai India Infoline caters
majorly to retail clients During CY09 the company added 303480 client accounts
Address 75 Nirlon Complex Off Western Express Highway Goregaon (East) Mumbai -
400063 Maharashtra
Telephone 91 22 42499000 Fax 91 22 26850451
Email mailindiainfolinecom Website wwwindiainfolinecom
Registration Number NSE - INBINF231097537 BSE - INBINF01109753315
3 Kotak Securities Ltd
Kotak Securities Ltd (Kotak Securities) is the stock-broking and distribution arm of the
Kotak Mahindra Group and a subsidiary of Kotak Mahindra Bank Kotak Securities was
established in 1994 It has memberships in the cash derivatives and currency futures
segments of NSE and BSE Kotak Securities is also a DP with NSDL and CDSL Apart from
stock broking the company is engaged in offering depository services asset management
margin financing PMS and distribution of financial products like IPOrsquos mutual funds and
insurance The company has a full-fledged research division which offers macro
economic sectoral research and company specific equity research Its domestic network
spans over 383 cities and 1048 offices Trading in equities and derivatives contributes to
major part of the companyrsquos revenue During CY09 Kotak Securities added around 62194
accounts of which around 27 are e-broking accounts The companyrsquos overseas
operations include one subsidiary and two associate firms operating in two foreign
locations
15 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndia+Infoline+Limited2Epdf
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF01113323016
4 Share Khan
Sharekhan Ltd (Sharekhan) is one a leading brokerage houses established in 2000
Sharekhan has membership in the cash and derivative segments of both BSE and NSE It
also operates in the debt and currency futures segment The company is registered as a
DP with CDSL and NSDL Besides trading the company also offers PMS demat services and
mutual funds Share khan provides a comprehensive set of research reports relating
to IPO and mutual funds Other value added facilities offered to clients include
online trading dial-n-trade share shops fundamental and technical research The
company serves large number of retail clients with a client network of more than 100000
clients which includes HNIrsquos corporate and other retail customers The company
through its subsidiary Share khan Commodities Ltd provides commodity-trading services
Address A - 206 Phoenix House 2nd Floor Senapati Bapat Marg Lower Parel
Mumbai - 400013 Maharashtra
Telephone 91 22 67482000 Fax 91 22 66104533
Email compliancelpsharekhancom Website wwwsharekhancom
Registration Number NSE - INBINF231073330 BSE - INBINF01107335117
5 Indiabulls
Indiabulls Securities Ltd (Indiabulls) part of Indiabulls Group was established in 1995 The
company is in the business of providing securities and advisory services It is a corporate
member of capital market wholesale debt market and derivative segments of NSE and of
capital market and derivative segments of BSE
Indiabulls also operates in currency futures and is a DP of CDSL and NSDL It provides a
wide range of products and services which include internet trading NRI trading demat
16 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CKotak+Securities+Limited2Epdf17 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CSharekhan+ Limited2Epdf
services margin financing and distribution of financial products like IPO online
mutual funds etc Power Indiabulls (PIB) is the advanced online trading platform offered
by the company Indiabulls also offers research services in the areas of economic equity
mutual fund IPO and others The company operates in commodity segment through its
subsidiary India bulls Commodities Pvt Ltd which is a member of MCX and NCDEX It
is listed on both NSE and BSE
Address F-60 Malhotra Building 2nd Floor Connaught Place New Delhi - 110001 Delhi
Telephone 91 11 41523700 Fax 91 11 41529071
Email helpdeskindiabullscom Website wwwindiabullscom
Registration Number NSE - INBINF230875632 BSE - INBINF01087563218
18 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndiabulls+Securities+Limited2Epdf
22 Company Overview
221 Overview of the Organizations
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited Uday Kotak Sidney A A Pinto and Kotak amp Company promoted this company Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and thats when the company changed its name to Kotak Mahindra Finance Limited Since then its been a steady and confident journey to growth and success
Kotak Securities Ltd is one of Indias largest brokerage and securities distribution house in India Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-ordinates Kotak Securities Ltd offers online (through wwwkotaksecuritiescom) and offline services based on well-researched expertise and financial products to the non-institutional investors Kotak Securities Limited is the world of Capital Markets where everything newsworthy exists only in the present moment and where knowing the importance of timing sentiments and strategic forecasting makes the difference between profit and loss Kotak Securities Limited a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25 - one of the worldrsquos leading investment banks and brokerage firms) is Indiarsquos leading stock broking house with a market share of 7 - 8
Kotak Securities Limited is one of the larger players in distribution of IPOs - it was ranked number One in 2003-04 as Book Running Lead Manager in public equity offerings by PRIME Database It has also won the ldquoBest Equity Houserdquo Award from Finance Asia -April 2004 The Company has a full-fledged Research division involved in macro economic studies Sectoral research and Company specific equity research combined with a strong and well Networked sales force which helps deliver current and up-to-date market information and news
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them Kotak securities provide portfolio Management Services catering to the high end of the market Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market with the backing of an expert Kotak Securities Limited manages assets over Rs 1700 crores through itrsquos Portfolio Management Services (PMS) servicing high net worth clients with a large
investible surplus through its preferred client services in the mass affluent and wealth management segments The company has a full-fledged research division involved in Macro Economic studies Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news
222 MARKET SHARE
Kotak Securities Ltd is Indiarsquos leading stock broking house with a market share of around
85 percent as of March 31 2006 It handles more IPOs than any other brokerage The
company has a full-fledged research division involved in macroeconomic studies sect oral
research and company-specific equity research combined with a strong and well-
networked sales force which helps deliver current market information and news
The firm has 195 branches servicing more than 2200000 customers across 231 cities
Kotaksecuritiescom the online division offers Internet brokerage services and also online
IPO and mutual fund investments Kotak Securities manages over 2500 crores of Assets
under Management (AUM)
223 AWARDS AND RECOGNIZATION
Kotak Securities Ltd 100 subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry The companyrsquos offerings include stock broking
through the branch and Internet Investments in IPO Mutual funds and Portfolio
management service Kotak Securities has a full-fledged research division involved in
Macro Economic studies Sect oral research and Company Specific Equity Research
combined with a strong and well-networked sales force which helps deliver current and
up to date market information and news Kotak Securitiesrsquo network spans over 321 cities
with 877 outlets with an employee workforce beyond 5100
The company is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can avail the companyrsquos brokerage services for executing the
transactions and the depository services for settling them Kotak Securities Ltd processes
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
the NSE and BSE India Infoline is also registered as a DP with NSDL and CDSL India
Infoline through its subsidiary India Infoline Commodities Limited also offers commodity-
trading services which is a registered member with DGCX since 2006 It also operates in
the currency futures market segment India Infoline offers a wide range of products
and services which include investment banking distribution of financial products
demat services private equity PMS institutional broking WMS insurance broking
among others In addition it also offers research services in areas of economy
derivative strategies mutual funds IPO credit policy and various others The company
has 15 domestic subsidiaries and five foreign subsidiaries The company has global
presence through its subsidiaries in New York Singapore and Dubai India Infoline caters
majorly to retail clients During CY09 the company added 303480 client accounts
Address 75 Nirlon Complex Off Western Express Highway Goregaon (East) Mumbai -
400063 Maharashtra
Telephone 91 22 42499000 Fax 91 22 26850451
Email mailindiainfolinecom Website wwwindiainfolinecom
Registration Number NSE - INBINF231097537 BSE - INBINF01109753315
3 Kotak Securities Ltd
Kotak Securities Ltd (Kotak Securities) is the stock-broking and distribution arm of the
Kotak Mahindra Group and a subsidiary of Kotak Mahindra Bank Kotak Securities was
established in 1994 It has memberships in the cash derivatives and currency futures
segments of NSE and BSE Kotak Securities is also a DP with NSDL and CDSL Apart from
stock broking the company is engaged in offering depository services asset management
margin financing PMS and distribution of financial products like IPOrsquos mutual funds and
insurance The company has a full-fledged research division which offers macro
economic sectoral research and company specific equity research Its domestic network
spans over 383 cities and 1048 offices Trading in equities and derivatives contributes to
major part of the companyrsquos revenue During CY09 Kotak Securities added around 62194
accounts of which around 27 are e-broking accounts The companyrsquos overseas
operations include one subsidiary and two associate firms operating in two foreign
locations
15 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndia+Infoline+Limited2Epdf
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF01113323016
4 Share Khan
Sharekhan Ltd (Sharekhan) is one a leading brokerage houses established in 2000
Sharekhan has membership in the cash and derivative segments of both BSE and NSE It
also operates in the debt and currency futures segment The company is registered as a
DP with CDSL and NSDL Besides trading the company also offers PMS demat services and
mutual funds Share khan provides a comprehensive set of research reports relating
to IPO and mutual funds Other value added facilities offered to clients include
online trading dial-n-trade share shops fundamental and technical research The
company serves large number of retail clients with a client network of more than 100000
clients which includes HNIrsquos corporate and other retail customers The company
through its subsidiary Share khan Commodities Ltd provides commodity-trading services
Address A - 206 Phoenix House 2nd Floor Senapati Bapat Marg Lower Parel
Mumbai - 400013 Maharashtra
Telephone 91 22 67482000 Fax 91 22 66104533
Email compliancelpsharekhancom Website wwwsharekhancom
Registration Number NSE - INBINF231073330 BSE - INBINF01107335117
5 Indiabulls
Indiabulls Securities Ltd (Indiabulls) part of Indiabulls Group was established in 1995 The
company is in the business of providing securities and advisory services It is a corporate
member of capital market wholesale debt market and derivative segments of NSE and of
capital market and derivative segments of BSE
Indiabulls also operates in currency futures and is a DP of CDSL and NSDL It provides a
wide range of products and services which include internet trading NRI trading demat
16 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CKotak+Securities+Limited2Epdf17 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CSharekhan+ Limited2Epdf
services margin financing and distribution of financial products like IPO online
mutual funds etc Power Indiabulls (PIB) is the advanced online trading platform offered
by the company Indiabulls also offers research services in the areas of economic equity
mutual fund IPO and others The company operates in commodity segment through its
subsidiary India bulls Commodities Pvt Ltd which is a member of MCX and NCDEX It
is listed on both NSE and BSE
Address F-60 Malhotra Building 2nd Floor Connaught Place New Delhi - 110001 Delhi
Telephone 91 11 41523700 Fax 91 11 41529071
Email helpdeskindiabullscom Website wwwindiabullscom
Registration Number NSE - INBINF230875632 BSE - INBINF01087563218
18 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndiabulls+Securities+Limited2Epdf
22 Company Overview
221 Overview of the Organizations
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited Uday Kotak Sidney A A Pinto and Kotak amp Company promoted this company Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and thats when the company changed its name to Kotak Mahindra Finance Limited Since then its been a steady and confident journey to growth and success
Kotak Securities Ltd is one of Indias largest brokerage and securities distribution house in India Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-ordinates Kotak Securities Ltd offers online (through wwwkotaksecuritiescom) and offline services based on well-researched expertise and financial products to the non-institutional investors Kotak Securities Limited is the world of Capital Markets where everything newsworthy exists only in the present moment and where knowing the importance of timing sentiments and strategic forecasting makes the difference between profit and loss Kotak Securities Limited a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25 - one of the worldrsquos leading investment banks and brokerage firms) is Indiarsquos leading stock broking house with a market share of 7 - 8
Kotak Securities Limited is one of the larger players in distribution of IPOs - it was ranked number One in 2003-04 as Book Running Lead Manager in public equity offerings by PRIME Database It has also won the ldquoBest Equity Houserdquo Award from Finance Asia -April 2004 The Company has a full-fledged Research division involved in macro economic studies Sectoral research and Company specific equity research combined with a strong and well Networked sales force which helps deliver current and up-to-date market information and news
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them Kotak securities provide portfolio Management Services catering to the high end of the market Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market with the backing of an expert Kotak Securities Limited manages assets over Rs 1700 crores through itrsquos Portfolio Management Services (PMS) servicing high net worth clients with a large
investible surplus through its preferred client services in the mass affluent and wealth management segments The company has a full-fledged research division involved in Macro Economic studies Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news
222 MARKET SHARE
Kotak Securities Ltd is Indiarsquos leading stock broking house with a market share of around
85 percent as of March 31 2006 It handles more IPOs than any other brokerage The
company has a full-fledged research division involved in macroeconomic studies sect oral
research and company-specific equity research combined with a strong and well-
networked sales force which helps deliver current market information and news
The firm has 195 branches servicing more than 2200000 customers across 231 cities
Kotaksecuritiescom the online division offers Internet brokerage services and also online
IPO and mutual fund investments Kotak Securities manages over 2500 crores of Assets
under Management (AUM)
223 AWARDS AND RECOGNIZATION
Kotak Securities Ltd 100 subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry The companyrsquos offerings include stock broking
through the branch and Internet Investments in IPO Mutual funds and Portfolio
management service Kotak Securities has a full-fledged research division involved in
Macro Economic studies Sect oral research and Company Specific Equity Research
combined with a strong and well-networked sales force which helps deliver current and
up to date market information and news Kotak Securitiesrsquo network spans over 321 cities
with 877 outlets with an employee workforce beyond 5100
The company is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can avail the companyrsquos brokerage services for executing the
transactions and the depository services for settling them Kotak Securities Ltd processes
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF01113323016
4 Share Khan
Sharekhan Ltd (Sharekhan) is one a leading brokerage houses established in 2000
Sharekhan has membership in the cash and derivative segments of both BSE and NSE It
also operates in the debt and currency futures segment The company is registered as a
DP with CDSL and NSDL Besides trading the company also offers PMS demat services and
mutual funds Share khan provides a comprehensive set of research reports relating
to IPO and mutual funds Other value added facilities offered to clients include
online trading dial-n-trade share shops fundamental and technical research The
company serves large number of retail clients with a client network of more than 100000
clients which includes HNIrsquos corporate and other retail customers The company
through its subsidiary Share khan Commodities Ltd provides commodity-trading services
Address A - 206 Phoenix House 2nd Floor Senapati Bapat Marg Lower Parel
Mumbai - 400013 Maharashtra
Telephone 91 22 67482000 Fax 91 22 66104533
Email compliancelpsharekhancom Website wwwsharekhancom
Registration Number NSE - INBINF231073330 BSE - INBINF01107335117
5 Indiabulls
Indiabulls Securities Ltd (Indiabulls) part of Indiabulls Group was established in 1995 The
company is in the business of providing securities and advisory services It is a corporate
member of capital market wholesale debt market and derivative segments of NSE and of
capital market and derivative segments of BSE
Indiabulls also operates in currency futures and is a DP of CDSL and NSDL It provides a
wide range of products and services which include internet trading NRI trading demat
16 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CKotak+Securities+Limited2Epdf17 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CSharekhan+ Limited2Epdf
services margin financing and distribution of financial products like IPO online
mutual funds etc Power Indiabulls (PIB) is the advanced online trading platform offered
by the company Indiabulls also offers research services in the areas of economic equity
mutual fund IPO and others The company operates in commodity segment through its
subsidiary India bulls Commodities Pvt Ltd which is a member of MCX and NCDEX It
is listed on both NSE and BSE
Address F-60 Malhotra Building 2nd Floor Connaught Place New Delhi - 110001 Delhi
Telephone 91 11 41523700 Fax 91 11 41529071
Email helpdeskindiabullscom Website wwwindiabullscom
Registration Number NSE - INBINF230875632 BSE - INBINF01087563218
18 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndiabulls+Securities+Limited2Epdf
22 Company Overview
221 Overview of the Organizations
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited Uday Kotak Sidney A A Pinto and Kotak amp Company promoted this company Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and thats when the company changed its name to Kotak Mahindra Finance Limited Since then its been a steady and confident journey to growth and success
Kotak Securities Ltd is one of Indias largest brokerage and securities distribution house in India Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-ordinates Kotak Securities Ltd offers online (through wwwkotaksecuritiescom) and offline services based on well-researched expertise and financial products to the non-institutional investors Kotak Securities Limited is the world of Capital Markets where everything newsworthy exists only in the present moment and where knowing the importance of timing sentiments and strategic forecasting makes the difference between profit and loss Kotak Securities Limited a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25 - one of the worldrsquos leading investment banks and brokerage firms) is Indiarsquos leading stock broking house with a market share of 7 - 8
Kotak Securities Limited is one of the larger players in distribution of IPOs - it was ranked number One in 2003-04 as Book Running Lead Manager in public equity offerings by PRIME Database It has also won the ldquoBest Equity Houserdquo Award from Finance Asia -April 2004 The Company has a full-fledged Research division involved in macro economic studies Sectoral research and Company specific equity research combined with a strong and well Networked sales force which helps deliver current and up-to-date market information and news
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them Kotak securities provide portfolio Management Services catering to the high end of the market Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market with the backing of an expert Kotak Securities Limited manages assets over Rs 1700 crores through itrsquos Portfolio Management Services (PMS) servicing high net worth clients with a large
investible surplus through its preferred client services in the mass affluent and wealth management segments The company has a full-fledged research division involved in Macro Economic studies Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news
222 MARKET SHARE
Kotak Securities Ltd is Indiarsquos leading stock broking house with a market share of around
85 percent as of March 31 2006 It handles more IPOs than any other brokerage The
company has a full-fledged research division involved in macroeconomic studies sect oral
research and company-specific equity research combined with a strong and well-
networked sales force which helps deliver current market information and news
The firm has 195 branches servicing more than 2200000 customers across 231 cities
Kotaksecuritiescom the online division offers Internet brokerage services and also online
IPO and mutual fund investments Kotak Securities manages over 2500 crores of Assets
under Management (AUM)
223 AWARDS AND RECOGNIZATION
Kotak Securities Ltd 100 subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry The companyrsquos offerings include stock broking
through the branch and Internet Investments in IPO Mutual funds and Portfolio
management service Kotak Securities has a full-fledged research division involved in
Macro Economic studies Sect oral research and Company Specific Equity Research
combined with a strong and well-networked sales force which helps deliver current and
up to date market information and news Kotak Securitiesrsquo network spans over 321 cities
with 877 outlets with an employee workforce beyond 5100
The company is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can avail the companyrsquos brokerage services for executing the
transactions and the depository services for settling them Kotak Securities Ltd processes
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
services margin financing and distribution of financial products like IPO online
mutual funds etc Power Indiabulls (PIB) is the advanced online trading platform offered
by the company Indiabulls also offers research services in the areas of economic equity
mutual fund IPO and others The company operates in commodity segment through its
subsidiary India bulls Commodities Pvt Ltd which is a member of MCX and NCDEX It
is listed on both NSE and BSE
Address F-60 Malhotra Building 2nd Floor Connaught Place New Delhi - 110001 Delhi
Telephone 91 11 41523700 Fax 91 11 41529071
Email helpdeskindiabullscom Website wwwindiabullscom
Registration Number NSE - INBINF230875632 BSE - INBINF01087563218
18 Source-httpwwwdnbcoinEquityBroking2010showpdfasppath=Profile5CIndiabulls+Securities+Limited2Epdf
22 Company Overview
221 Overview of the Organizations
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited Uday Kotak Sidney A A Pinto and Kotak amp Company promoted this company Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and thats when the company changed its name to Kotak Mahindra Finance Limited Since then its been a steady and confident journey to growth and success
Kotak Securities Ltd is one of Indias largest brokerage and securities distribution house in India Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-ordinates Kotak Securities Ltd offers online (through wwwkotaksecuritiescom) and offline services based on well-researched expertise and financial products to the non-institutional investors Kotak Securities Limited is the world of Capital Markets where everything newsworthy exists only in the present moment and where knowing the importance of timing sentiments and strategic forecasting makes the difference between profit and loss Kotak Securities Limited a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25 - one of the worldrsquos leading investment banks and brokerage firms) is Indiarsquos leading stock broking house with a market share of 7 - 8
Kotak Securities Limited is one of the larger players in distribution of IPOs - it was ranked number One in 2003-04 as Book Running Lead Manager in public equity offerings by PRIME Database It has also won the ldquoBest Equity Houserdquo Award from Finance Asia -April 2004 The Company has a full-fledged Research division involved in macro economic studies Sectoral research and Company specific equity research combined with a strong and well Networked sales force which helps deliver current and up-to-date market information and news
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them Kotak securities provide portfolio Management Services catering to the high end of the market Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market with the backing of an expert Kotak Securities Limited manages assets over Rs 1700 crores through itrsquos Portfolio Management Services (PMS) servicing high net worth clients with a large
investible surplus through its preferred client services in the mass affluent and wealth management segments The company has a full-fledged research division involved in Macro Economic studies Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news
222 MARKET SHARE
Kotak Securities Ltd is Indiarsquos leading stock broking house with a market share of around
85 percent as of March 31 2006 It handles more IPOs than any other brokerage The
company has a full-fledged research division involved in macroeconomic studies sect oral
research and company-specific equity research combined with a strong and well-
networked sales force which helps deliver current market information and news
The firm has 195 branches servicing more than 2200000 customers across 231 cities
Kotaksecuritiescom the online division offers Internet brokerage services and also online
IPO and mutual fund investments Kotak Securities manages over 2500 crores of Assets
under Management (AUM)
223 AWARDS AND RECOGNIZATION
Kotak Securities Ltd 100 subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry The companyrsquos offerings include stock broking
through the branch and Internet Investments in IPO Mutual funds and Portfolio
management service Kotak Securities has a full-fledged research division involved in
Macro Economic studies Sect oral research and Company Specific Equity Research
combined with a strong and well-networked sales force which helps deliver current and
up to date market information and news Kotak Securitiesrsquo network spans over 321 cities
with 877 outlets with an employee workforce beyond 5100
The company is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can avail the companyrsquos brokerage services for executing the
transactions and the depository services for settling them Kotak Securities Ltd processes
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
22 Company Overview
221 Overview of the Organizations
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited Uday Kotak Sidney A A Pinto and Kotak amp Company promoted this company Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and thats when the company changed its name to Kotak Mahindra Finance Limited Since then its been a steady and confident journey to growth and success
Kotak Securities Ltd is one of Indias largest brokerage and securities distribution house in India Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-ordinates Kotak Securities Ltd offers online (through wwwkotaksecuritiescom) and offline services based on well-researched expertise and financial products to the non-institutional investors Kotak Securities Limited is the world of Capital Markets where everything newsworthy exists only in the present moment and where knowing the importance of timing sentiments and strategic forecasting makes the difference between profit and loss Kotak Securities Limited a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25 - one of the worldrsquos leading investment banks and brokerage firms) is Indiarsquos leading stock broking house with a market share of 7 - 8
Kotak Securities Limited is one of the larger players in distribution of IPOs - it was ranked number One in 2003-04 as Book Running Lead Manager in public equity offerings by PRIME Database It has also won the ldquoBest Equity Houserdquo Award from Finance Asia -April 2004 The Company has a full-fledged Research division involved in macro economic studies Sectoral research and Company specific equity research combined with a strong and well Networked sales force which helps deliver current and up-to-date market information and news
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them Kotak securities provide portfolio Management Services catering to the high end of the market Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market with the backing of an expert Kotak Securities Limited manages assets over Rs 1700 crores through itrsquos Portfolio Management Services (PMS) servicing high net worth clients with a large
investible surplus through its preferred client services in the mass affluent and wealth management segments The company has a full-fledged research division involved in Macro Economic studies Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news
222 MARKET SHARE
Kotak Securities Ltd is Indiarsquos leading stock broking house with a market share of around
85 percent as of March 31 2006 It handles more IPOs than any other brokerage The
company has a full-fledged research division involved in macroeconomic studies sect oral
research and company-specific equity research combined with a strong and well-
networked sales force which helps deliver current market information and news
The firm has 195 branches servicing more than 2200000 customers across 231 cities
Kotaksecuritiescom the online division offers Internet brokerage services and also online
IPO and mutual fund investments Kotak Securities manages over 2500 crores of Assets
under Management (AUM)
223 AWARDS AND RECOGNIZATION
Kotak Securities Ltd 100 subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry The companyrsquos offerings include stock broking
through the branch and Internet Investments in IPO Mutual funds and Portfolio
management service Kotak Securities has a full-fledged research division involved in
Macro Economic studies Sect oral research and Company Specific Equity Research
combined with a strong and well-networked sales force which helps deliver current and
up to date market information and news Kotak Securitiesrsquo network spans over 321 cities
with 877 outlets with an employee workforce beyond 5100
The company is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can avail the companyrsquos brokerage services for executing the
transactions and the depository services for settling them Kotak Securities Ltd processes
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
investible surplus through its preferred client services in the mass affluent and wealth management segments The company has a full-fledged research division involved in Macro Economic studies Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news
222 MARKET SHARE
Kotak Securities Ltd is Indiarsquos leading stock broking house with a market share of around
85 percent as of March 31 2006 It handles more IPOs than any other brokerage The
company has a full-fledged research division involved in macroeconomic studies sect oral
research and company-specific equity research combined with a strong and well-
networked sales force which helps deliver current market information and news
The firm has 195 branches servicing more than 2200000 customers across 231 cities
Kotaksecuritiescom the online division offers Internet brokerage services and also online
IPO and mutual fund investments Kotak Securities manages over 2500 crores of Assets
under Management (AUM)
223 AWARDS AND RECOGNIZATION
Kotak Securities Ltd 100 subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry The companyrsquos offerings include stock broking
through the branch and Internet Investments in IPO Mutual funds and Portfolio
management service Kotak Securities has a full-fledged research division involved in
Macro Economic studies Sect oral research and Company Specific Equity Research
combined with a strong and well-networked sales force which helps deliver current and
up to date market information and news Kotak Securitiesrsquo network spans over 321 cities
with 877 outlets with an employee workforce beyond 5100
The company is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can avail the companyrsquos brokerage services for executing the
transactions and the depository services for settling them Kotak Securities Ltd processes
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
more than 4 00000 trades a day which is much higher even than some of the renowned
international brokers
Kotak Securities Limited has over Rs 3300 crore of Assets under Management (AUM) as of
31st March 2008 The portfolio Management Service provides top class service catering
to the high end of the market Portfolio Management from Kotak Securities comes as an
answer to those who would like to grow exponentially on the crest of the stock market
with the backing of an expert Unlike many other companies Kotak Securities Ltd has a
Centralized Risk Management System and an in-house Research Team which allows it to
offer the same levels of service to customers across all locations Kotak Securities was
awarded as the most customer responsive company in the Financial Institution sector by
AVAYA Global Connect Award both in 2006 and in 2007
Kotak Securities Ltd has been the first in providing many products and services which
have now become industry standards Some of them are
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest ndash A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the customerrsquos
Demat account
Kotak Securitiesrsquo Accolades include
Best Brokerage Firm in India by Asia money in 2008 2007 amp 2006
Best Performing Equity Broker in India ndash CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 amp 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euro money Award (2007 amp 2006) ndash Best Provider of Portfolio Management Equities
Euro money Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- Indiarsquos best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPOrsquos
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
22 KOTAK SECURITIES RESEARCH CENTER
Kotak Securities Research Center is a special research cell where some of Indias finest financial analysts bring you intensive research reports on how the stock market is faring when is the right time to invest when to execute your order and more KSL provides both types of research reports
Fundamental Research reportsA Intraday callsB Special ReportsC Market MorningsD Daily Market BriefE Sectoral ReportF Stock IdeasG Derivatives ReportsH Portfolio Advices
Technical Research reportsA Weekly Technical Analysis
Depending on what kind of investor you are Kotak Securities Ltd (KSL) brings customers from fundamental or basic research and technical research As an investor with Kotak Securities Customers get access to these research reports exclusively Customers get access to the following reports Research process is given below
224 PRODUCTS OFFERED BY KOTAK SECURITIES LIMITED
1) Portfolio Management Services [PMS]
Managing investments in equities requires time knowledge experience and constant
monitoring of stock market Those who need an expert to help to manage their
investments portfolio management services (PMS) comes as an answer
The business of portfolio management has never been an easy one Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a
task fraught with complexities Given the unpredictable nature of the share market it
requires solid experience and strong research to make the right decision In the end it
boils down to make the right move in the right direction at the right time That is where
the expert comes in Kotak Securities is one of Indiarsquos oldest portfolio management
companies with over a decade of experience It is also one of the largest with Assets
under Management of over Rs 3300 Crores Kotak Portfolio Management comes as an
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
answer to those who would like to grow exponentially on the crest of stock market with
backing of an expert We at Kotak measure our success through the success of our
clients Whatever be your requirement we will tailor your stock market portfolio to your
specific investment need At the very base of a financially sound portfolio lies the
identification of ones investment objective We help you identify your investment
objectives also outline important requirements like liquidity capital appreciation current
income time span and fiscal implications and then suggest an appropriate scheme19
2) Equities-
The term equity trading and stock trading are sometimes used synonymously however
there are a few minor differences between the two Let us start with the basic definition
equity trading is essentially the purchase or sale of company stock through one of the
major stock exchanges just as stock trading is An equity trade can be placed by the
owner of the shares through a brokerage account or through an agent or broker again
similar to stock trading
The key difference between equity trading and stock trading lies in their investment
options and management firms Equity trading firms specialize in offering in-depth market
research trading expertise unique trading systems (even algorithmic) and have direct
access to the trading floor for better executions These equities trading firms
predominately exist in the form of hedge funds and are setup to trade within a larger
investment bank such as Morgan Stanley Goldman Sachs JPMorgan and Bank of
America to name a few20
3) Derivatives
Commodities whose value is derived from the price of some underlying asset like
securities commodities bullion currency interest level stock market index or anything
else are known as ldquoDerivativesrdquo In simpler form derivatives are financial security such as
an option or future whose value is derived in part from the value and characteristics of
another security the underlying asset
19 Source-httpwwwkotaksecuritiescomwhatweofferportfoliomanagementhtml
20 Source- httptradingsimcomblogequity-trading
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
It is a generic term for a variety of financial instruments Essentially this means you buy a
promise to convey ownership of the asset rather than the asset itself The legal terms of a
contract are much more varied and flexible than the terms of property ownership In fact
this flexibility appeals to investors
When a person invests in derivative the underlying asset is usually a commodity bond
stock or currency He bet that the value derived from the underlying asset will increase or
decrease by a certain amount within a certain fixed period lsquoFuturesrsquo and lsquooptionsrsquo are
two commodity traded types of derivatives An lsquooptionsrsquo contract gives the owner the
right to buy or sell an asset at a set price on or before a given date On the other hand the
owner of a lsquofuturesrsquo contract is obligated to buy or sell the asset
The other examples of derivatives are warrants and convertible bonds (similar to shares in
that they are assets) But derivatives are usually contracts Beyond this the derivatives
range is only limited by the imagination of investment banks It is likely that any person
who has funds invested an insurance policy or a pension fund that they are investing in
and exposed to derivatives ndash wittingly or unwittingly21
4) IPOs
An initial public offering or Initial Purchase Offer (IPO) referred to simply as an offering
or flotation is when a company (called the issuer) issues common stock or shares to the
public for the first time They are often issued by smaller younger companies
seeking capital to expand but can also be done by large privately owned
companies looking to become publicly traded In an IPO the issuer obtains the assistance of
an underwriting firm which helps determine what type of security to issue (common
or preferred) best offering price and time to bring it to market22
5) Mutual Funds
A mutual fund is made up of money that is pooled together by a large number of investors
who give their money to a fund manager to invest in a large portfolio of stocks and or
bonds Mutual fund is a kind of trust that manages the pool of money collected from
various investors and it is managed by a team of professional fund managers (usually
21 Source - httpfinanceindiamartcommarketscommodityderivativeshtml
22 Source- httpenwikipediaorgwikiInitial_public_offering
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
called an Asset Management Company) for a small fee The investments by the Mutual
Funds are made in equities bonds debentures call money etc depending on the terms
of each scheme floated by the Fund The current value of such investments is now a days
is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV)
declared by the funds from time to time This NAV keeps on changing with the changes in
the equity and bond market Therefore the investments in Mutual Funds is not risk free
but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc23
6) Structured Products
Structured products are synthetic investment instruments specially created to meet
specific needs that cannot be met from the standardized financial instruments available in
the markets Structured products can be used as an alternative to a direct investment as
part of the asset allocation process to reduce risk exposure of a portfolio or to utilize the
current market trend24
225 Main office amp Branch Offices
Registered Office
Address 1st Floor Bakhatawar Nariman Point Mumbai - 400021 Maharashtra
Telephone 91 22 66529191 Fax 91 22 66617041
Email servicesecuritieskotakcom
Website wwwkotakcom
Registration Number NSE - INBINF230808130 BSE - INB010808153 INF011133230
Branch Offices
Address Kotak Securities Ltd Near New Liberty Showroom Town Hall Link Road Udaipur-313001
226 ORGANIZATIONAL STRUCTURE
23 Source- httpwwwallbankingsolutionscomMutual-fund-definition-basics-for-dummieshtm
24 Source- httpwwwhedgefund-indexcomd_structuredasp
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
MR DHEERAJ PUROHIT(AVP)
MR SHAKTI SINGH (BRANCH HEAD)
ONLINE DEALER
NAMITA GUPTA
VERTIKA SHARMA
DEALER
SHYAM SHARMA
PRABHU DAYAL
SHREYASI DIWEDI
GUNJAN KURKUREJA
VED PRAKASH SHARMA
NKKHANDELWA
KAVITA BUDANIA
VIKAS MEHRA
MAHESH KHANDELWAL
LABHANKUR SONI
OPERATION
ASHU SHARMA
PRIYANKA SHARMA
YOGENDRA RANKAWAT
ANIL AUDITCHYA
RISK MGMT
YOGENDRA TIWARI
SALES TEAM
PANKAJ SHARMA
ABHISHEK SHARMA
RAJEEV SHANKAR
DURGA NARAYAN
DEELIP JAIN
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Chapter3PROJECT PROFILE
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
31 PROJECT PROFILE
The objective of the project was to analyze ldquoEffective Customer Relationship Managementrdquo for Kotak Securities Ltd Udaipur for that we have to understand current CRM System and Services provided from the company and its effect on Customer Needs Satisfaction Level their response and emotions The objective of this study to analyze existing customer satisfaction as those customers are the key sources to new customers with respect to the performance sales efforts and sales service
As the company stands first in India in aspect of turnover its clear that it has very strong Customer Relationship Management System and perfect people to handle it properly for the benefit of customers and company as well Actual and personal meeting with existing customers and employees has brought me to the reality of the effectiveness of the system and their success For analyzing the same factor I staked my whole duration of the project and simultaneously for internal study and market watch and other group assignments
Scope the this study is it will assist Kotak Securities ltd to get its own Customer Relationship
Management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and to get new customers to be served
I have chosen to do research project on customer relationship management with Kotak securities because we can find problem and solutions of customerrsquos problem We all know that research work is better then you write a project in training Reason behind choosing this topics was as follows-
Maintain current existing customers
Achieve new potential customers
Retain all the customers
Profitability Increment
Reputation and credibility Increment etc
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Chapter4RESEARCH MEHODOLOGY
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
40 RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data It helps the
researcher to conduct the study in an economical method and relevant to the problem Research
methodology is a systematic way to solve a research problem The methodology should combine
economy with efficiency
41 PROBLEM DEFINITION
How companies makes relationship with customers and what they do for achieve more
and more customers
42 OBJECTIVES OF THE STUDY
This study has been conducted with crystal clear objectives and with a view to learn a few
things that are listed below
1 To study the customer relationship of company
2 To have a good experience in marketing department
3 To know how company make new-new innovation for achieving customer
4 To know the corporate world
43 RESEARCH DESIGN
The study conducted here is exploratory cum descriptive
44 METHODOLOGY OF THE STUDY
The sources for the information and data in this report have been classified into two
broad groups
Primary data - I used a well-devised Questionnaire to try to attempt to get to the
crux of what consumer expects For our research we used the following methods to get
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Information
Questionnaire for customers- I have developed a questionnaire to collect the
demographic data (ordinal category) amp nominal data about their preference about
Customer Relationship In my questionnaire there are 13 questions Some are
dichotomous and have multiple choices
Data collected from the customer of Kotak securities ltd and from some
professionals of different organizations My area of research is limited to Udaipur city
only
Secondary data - As for the secondary data I got hold of some of the Research
Reports available on different well-known websites to understand some complex issues I
also found very good information on the Internet from various sites and different
magazines
45 SAMPLING PLAN
Sample Type
I have selected people of the Udaipur Society and some professionals of different
organizations as a sample population
Sample Size
Our sample size is 100 which comprises of persons of the two age groupsmdash20to 40and 41
to 75 (Both Male and Female)
Sample Frame
Since our Research is being conducted on a small scale and the population is considerably
large we could not obtain the Sample Frame
Area of Research
Our Area of Research is Udaipur city only
Time Period
The Time Period of our Research is July-August 2011
Sampling Technique
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
I have used convenience-sampling technique
46 SCOPE AND LIMITATIONS OF THE STUDY
The Scope of the project is limited to Udaipur as the research has been carried out on the
customers residing in Udaipur only
The various constraints or limitations which may have affected our project can be
summarized as follows
1 Some kind of misled or misguided information may have adversely affected
our findings
2 Sample size is very small(only 100)
3 The scope of the project is limited to Udaipur
4 Though the sample has been taken from different regions but doesrsquont represent
the complete Indian scenario
5 The time for study and survey was very limited
6 The population could not represent the people from various occupations and
cultures
7 Inadequate disclosure of information is also the problem8 Financial problem is also there in completing this project in a proper way
47 QUESTIONNAIRE DESIGN
What comes to our mind initially is that we could have selected just one survey for
consumers The survey questions have been designed taking into consideration that the
data collected should answer questions mentioned in Objectives of this research project
We have selected all questions that would directly answer those questions in Objectives
and questions which are close but not directly answering questions in Objectives All of
our questions are both multiple choices and open-ended questions The questionnaire
used was a printed well structured formalized schedule to obtain and record
specified and relevant information with fair accuracy and completeness The
questioning process was face to face interviews and the questionnaire was design
in such a way that it could be understood and answered easily by the
respondents
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Chapter5DATA INTERPRETATION AND ANALYSIS
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1 Age group
Age Frequency 20 to 30 year 15
31 to 40 year 40 41 to 50 year 30 Above 51 year 15
20-30 years 15
31-40 years 40
41-50 years 30
above 51 years 15
Age Group
Interpretation
According to the above diagram 40 customer comes into age group 31 to 40 who deals more in stock broking Followed by 30 customer whose age 41 to 50 and 15 customer are age of 20 to 30 and above 51 year
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
2 Gender compositions
Gender FrequencyMale 95
Female 5Total 100
male95
female 5
Gender composition
Interpretation
It is evident from the above graph that out of the sample of 100 respondents 95 were males and 5 female This reflects a male majority in the sample taken
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
3 Respondents Occupations
Respondentrsquos frequencyBusiness Man 30Proprietor 24HNIs 8
Individuals 38
Business Man30
Proprietors24HNIs
8
Individuals38
Respondents Occupation
Interpretation
Above pie chart represents that research contains 100 respondents which are Businessmen HNIs Proprietors and Individuals and they are 30 8 24 38 respectively in numbers and percentages
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
4 Monthly Income
Monthly Income FrequencyLess then RS 10000 15Rs 11000-Rs 20000 35Rs 21000-Rs 30000 30Rs 31000-Rs 40000 13Above Rs 41000 7
Less then RS 10000
15
Rs 11000-Rs 2000035Rs 21000-Rs 30000
30
Rs 31000-Rs 40000
13
Above Rs 410007
Monthly Income
Interpretation
Above pie chart represents that the research contained 100 investors and customers of Kotak Securities Ltd All the people were from different Income group which are in numbers shown above W e can clearly see sample includes more customers from second income group ie INR Rs 11000 to Rs 20000
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
5 Company Interaction via Email and Telephone Calls
Degree frequencyPoor 2Fair 11
Good 59Very Good 18
Poor2
Fair12
Good66
Very Good20
Interaction via E-mail and Phone Calls
Interpretation
From the above result of Company Interaction via Email and Telephone calls we can imagine the satisfaction level of customers and accordingly Customer Relationship is managed through electronic media to maximize the wealth of customers In Kotak Securities ltd mostly dealers are in touch of regular traders customers and customers also get loyal to the company through this practice Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
6 Do you find companyrsquos investment tips useful and beneficial
Response FrequencyYes 96No 1
Cant Say 3
Yes 96
No1 Cant Say
3
Companys investment tips are useful or not
InterpretationWhen it was asked sudden and on the time answer was the same of maximum people it means the credibility and trustworthiness of the company is on the height It is nothing but the result of Relationship Management It is said that Share Market means bdquoWell of Loss nevertheless Kotak Securities ltd Customer donrsquot have any tension in investing because they believe in Companies Researchers and Analysts and their investment tips too
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
7 Where do you rate Kotak Securities Ltd in terms of Services
Scale of 1 to 10 FrequencyPoor 4Fair 14
Good 40Very Good 42
Poor 4
Fair14
Good40
Very Good42
Rate Kotak Securities on the Scale of 10 in terms of service
InterpretationFrom the above answers Customer Relationship can be very well highlighted because out of 100 43 people have rated Kotak Securities ltd on the scale of 1 to 10 and again in remaining maximum customers say that they rate Kotak Securities ltd at on the scale of 1 to 10 Every customer has his own value and consideration about Kotak Securities ltd because they invest their Hard Earned money and take risk to earn more cause of Kotak Securities ltdrsquos Services and Attachment and it is all the output of Customer Relationship Management
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
8 Where do you invest trade mostly
Where Customer invest Mostly FrequencyEquity 66
Commodity 19Currency 15
Equity
66
Commodity 19
Currency 15
InvestTrade mostely
InterpretationOne general question was asked in questionnaire to know the investment flow of customers towards Kotak Securities ltdrsquos Services When it was asked why they invest in specific area mostly then it was answered by many people that liquidity market is easy to make money out of investment and take money out whenever we feel not to put Moreover other reason many customers do not want to invest for long time In addition about currency some people were not interested
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Where do you trade mostly
Trade Mostly FrequencyIntraday 48Delivery 37
Both 15
Intraday 48
Delivery37
Both15
Where do you trade mostely
InterpretationFrom the above view of graph we come to know that maximum people 61 customers trade in Intraday Trading On this customers say they like to trade in Intraday because of Short-term investment and high level of excitement and sometimes they feel their money seems to sink In Delivery people say here is bdquoNo Low Risk More Money‟ in this people say if scrip goes down like bdquoSatyam‟ then also we get chance to book profit buying current stocks in low price and putting old stock aside temporarily Here we find people hesitate to invest in Intraday and confident to trade in Delivery trading Very less traders population do trade in both area for few people its nothing but fund managing if one finds difficulty in making money in Intraday they simultaneously manage their fund for Delivery but very few people feel do this type of management Eventually Kotak Securities ltd is the Broking firm and it does not lose its attention from making money for its customers and lose its attention from Customer Relationship Management
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
10 Do you trade in any other broking firm
Response FrequencyYes 69No 27
Cant Say 4
Yes69
No27
Cant Say4
Trade in any other Broking firm
InterpretationAbove pie chart represents the maximum people have their D‟mat Ac and Trading Ac somewhere else also nevertheless they say they trade from Kotak Securities Ltdrsquos only and few of their other ACs are put Non-Operating by them Here we get a fact that Kotak Securities Ltdrsquos Customer Relationship Management really has something very attractive and attachable to emotions cause of services Few of them were hesitating while answering this question
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the services provided by Kotak Securities ltd
Satisfying Level frequencyStrongly Yes 64Slightly yes 35
No 1Slightly No 0
Strongly NO 0
Strongly Yes64
Slightly yes35
No1
Satisfied with the Service provided by Kotak Securities Ltd
InterpretationAbove chart represents us the output of Customer Relationship Management with the help of the services and customers satisfaction can show a mirror of the efforts of the company towards making their customers loyal to them Here 64 customers have selected and stated that they are fully satisfied with the services that they are getting from Kotak Securities Ltd
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Chapter6OBSERVATIONS AND FINDINGS
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Observations
1) Many consultants vendors and analysts today define CRM in terms of
being a customer-centric business strategy that is enabled by a set of
applications that support customer-facing functions and management
decision making That may capture the essence of what CRM is but while
it does not concentrate on the extra expenses occurring on Companies
Ac due to increment in expenses in serving customers all the ways and
Return on investment means consideration may not be more than
expected Customer may not give that much business transactions which is
estimated or expected
2) It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take
care of their dealings and also to accomplish their additional responsibilities
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Findings
Many consultants vendors and analysts today define CRM in terms of being
a customer-centric business strategy that is enabled by a set of applications that
support customer-facing functions and management decision making That
may capture the essence of what CRM is but while it does not concentrate
on the extra expenses occurring on Companies Ac due to increment in expenses
in serving customers all the ways and Return on investment means consideration
may not be more than expected Customer may not give that much business
transactions which is estimated or expected
It needs specific staffs to handle all the tasks of Customer Relationship
Management because the data that is feed in system cannot be handled
merely by Relationship Managers who has to make new customers and take care
of their dealings and also to accomplish their additional responsibilities
It empowers management with a real-time pipelines and forecasting so they can
build and focus on high profit sustainable relationships
It increases customers acquisition retention loyalty and profitability by
integrating information across the enterprise
It enables executive and management to gain customer insight
Generally people whom I have contacted they were from different domains
like Business Proprietors High Net worth Income Group (HNIs) and students
Their responses may not be proper because of their ldquoBusynessrdquo in Dealing Room
This data is called Primary Data which is considered very genuine but is this case it
misrepresents the Reality and Credibility
Some people its felt that they gave fake response with impression that this
questionnaire is from Kotak Securities internal
Some people did not take it serious because this was not important to them as
they are busy for trading at dealing Room
Every data interpretation and statistics cannot be think worthy from their
results because this study is for only two months altogether
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Conclusions
From this study it can be concluded that the customer relationship management
in Company is satisfactory The company is using various CRM practices like
customization of the product maintaining interaction with the customers regularly
and providing good quality product etc Customer relationship management has a
certain impact on the profitability of the company Average investment per
customer has increased 15 over the last two years Customer response rate
towards marketing activities is also improving There are various factors affecting
the customer relationship management like working environment of the company
support from top management and coordination among the departments of the
company Information technology is not used as much as it should be The
company is using traditional tools of CRM like quantitative research personal
interviews The company should modern tools like data mining contact center e-
CRM and web based survey tools
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services If the customerrsquos complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers
Different customers have different requirements Therefore the company
customizes its product accordingly to satisfy the customers It also gives more
choice to the customers
To get the information about the customers and to measure the satisfaction the
company conducts surveys Because of the expertise needed in the research the
company should give this work to research agencies like AC NILSON
The company maintains frequent communication with the customers As soon as
the product is ready or a new service is launched the information is provided to
the customers Communication is also necessary to maintain the interest of the
customers in the company
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Learning Outcome
Learning any thing in our life is such an amazing experience which give us a self-confident feeling when we learn by practically doing a work In working life we meet everyday to many new people and share our information always inspire us to do something more well in future While doing a work we already decide which type of work we are going to do after finishing the collage because now we have collected lot of practical idea about doing a work In collage we always set in the class and passed our time by talking to our friends and making fun of other persons but we always have some fear from our future because we were not sure that what we have to do in our future That types feeling I felt while doing
summer internship Some learning outcomes are as follows
The right way to approach different consumer classes The beginning one and after
that gradually telling the customer about the product and convinced them
The perfect way to solve the queries of the customers
The sincerity of doing work in the right time by which creating a good impression
to staff persons as well as high-level executives
I got clear idea to attend customers by telephone by appointments
I would be able to know the working condition and practical knowledge of
completing work
I got a clear idea about the complaints handling
I got a clear view of how to interact with other people customer
I got a clear idea about problems faced by the organization
I got a clear idea about problems faced by the customer
I got a clear idea about how to solve these problems
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Bibliography
httpwwwcrm-software-guidecom
httpwwwezinarticlescom
httpwwwstockbrokingcoin
httpwwwgascicom
httpwwwaumassociatecoin
httpwwwindiacomcom
httpwwwstockbrokingcoin
httpwwweHowcom
httpwwwdnbcoin
Httpwwwindianstockmarketorg
httpwwwicicisecuritiescom
httpwwwkotaksecuritiescom
httptradingsimcom
httpfinanceindiamartcom
httpenwikipediaorg
httpwwwallbankingsolutionscom
httpwwwhedgefund-indexcom
httpwwwscribddocumentswordpresscom
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Questionnaire
On Customer Relationship Management at Kotak Securities ltd
Personal Information-
1 Name________________________________________________
2 Age
Less than 20 years 20-30 years 30-40 years above 40 years
3 Gender
Male Female
3 Occupation
Businessman Proprietor Professional Other
4 Monthly Income
Less than Rs 10000 Rs 11000 ndash Rs 20000 Rs 21000 ndash Rs
30000
Rs 31000 ndash Rs 40000 above Rs 41000
Answer the Following Questions-
5 How do you find Company Interaction via Email and Telephone Calls
Poor Fair Good Very Good
6 Do you find companyrsquos investment tips useful and beneficial
Yes No Canrsquot Say
7 Where do you rate Kotak Securities Ltd on the scale of 10 in terms of Services
4 6 8 10
8 Where do you invest trade mostly
Equity Commodity Currency
9 Where do you trade mostly
Intraday trading Delivery Trading Both
10 Do you trade in any other broking firm
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Yes No Canrsquot say
If yes name of the broking
firm_______________________________________________________________________
11 Are you satisfied with the services provided by Kotak Securities ltd
Strongly Yes
Slightly yes
No
Slightly No
Strongly NO
12 What improvement do you want be done in companyrsquos services
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 Which service do you like most in Kotak Securities Ltd
helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Recommended