9212400259 Project Report on Broking Firms

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Contents

S/N

O.

TOPICS PAGE NO.

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1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Acknowledgement

Declaration

Objectives

Introduction

Company Profile

Different players in the

Industry

Activation and Other Charges

Of Different Co.

Data Analysis

Findings

Annexure

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4

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8

12

13

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20

21

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11. Bibliography 22

Acknowledgement

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Preservation, inspiration and motivation have always

played a key role in the success of any venture. In the present

world of competition and success understanding of theoretical

and practical working makes you aware about the real

Business; willingly I prepared this particular project.

I would like to thank our faculty Prof. Nandish Hiremath to give

us the opportunity to do this project.

I would also like to thank the Edelweiss broking ltd. for

helping us to provide the information about their broking firm.

And finally, I would like to thank IIBS for providing me the

platform to do this project and to learn about the different

broking firms.

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Declaration

I am the student of Eastern Institute for International Instituteof business studies, Bangalore , declare that this project report

title ACOMPARITEIVE STUDY OF VARIOUS BROKING FIRMS

submitted, is my original work and has not been previously

submitted as a part of any other degree or diploma of another

Business school or University.

The findings and conclusions of this report are based on my

personal study and experience.

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Objectives

1. To know the customers preference in different sector ofinvestment and to know what are the factors consider

most important in order to choose their broking firm.

2. To know the different companies Activation and Other

charges.

3. To know about the different broking firms and to make

a comparison between them with the help of primary

and Secondary Data.

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Introduction

The Bombay Stock Exchange

(BSE) and the National Stock Exchangeof India Limited (NSE) are the twoprimary exchanges in India. In addition, there are 22 RegionalStock Exchanges. However, the BSE and NSE have establishedthemselves as the two leading exchanges and account forabout 80% of the equity volume traded in India. The NSE andBSE are equal in size in terms of daily traded volume.

The average daily turnover at the exchanges hasincreased from Rs851crore in 1997-98 to Rs1284crore in 1998-99 and further to Rs2273crore in 1999-2000. NSE has around1500 shares listed with the total market capitalization ofaround Rs9, 21,500crore.

The BSE has over 6000 stocks listed and has a marketcapitalization of around Rs9, 68,000crore. Most key stocks aretraded on both the exchanges and hence the investor couldbuy on either of the exchanges. Both exchanges have adifferent settlement cycle, which allows investors to shift theirposition on the bourses. The primary index of BSE in BSESensex comprises 30 stocks. NSE has the S&P NSE 50 Index(Nifty), which consists of fifty stocks. The BSE Sensex is theolder and most widely followed index. Both these indices arecalculated on the basis of market capitalization and contain theheavily traded shares from key sectors.

The markets are closed on Saturdays andSundays. Both the exchanges have switchedover from the open outcry trading system to afully automated computerized mode of trading

known as BOLT (BSE On Line Trading) and NEAT(National Exchange Automated Trading) system.It facilitates more efficient processing,automatic order matching, faster execution oftrades and transparency.

The scrip traded on the BSE has been classified into A, B1,B2, C, F, and Z groups. The A group shares representthose, which are in the carry forward system (Badla). The F

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group represents the dept market (fixed income securities)segment. The Z group scrip is the blacklisted companies. TheC group covers the odd lot securities in A, B1, & B2 groupsand Rights renunciations. The key regulator governing StockExchanges, Brokers, Depositories, Depository participants,Mutual Funds, FIIs and other participants in Indian secondaryand primary market is the Securities and Exchange Board ofIndia (SEBI) Limited.

Financial Market

MONEY MARKET:

The Money Market refers to the market where borrowersand lenders exchange short-term funds to solve their liquidity

needs.

CAPITAL MARKET:

The Capital Market is a market for financial investments

that are direct or indirect claims to capital (Gart, 1988).

SECURITIES MARKET:It refers to the markets for those financial

instruments/claims/obligations that are commonly and readily

transferable by sale. It has two inter-dependent and

inseparable segments, the new issues (primary) market and the

stock (secondary) market.

Primary Market

Securities generally have two stages in their lifespan. Thefirst stage is when the company initially issues the securitydirectly from its treasury at a predetermined offering price.

This is a primary market offering. It is referred to as theInitial Public Offering (IPO). In Primary market, securities areoffered to public for subscription for the purpose of raisingcapital or fund.

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Secondary Market

Secondary market refers to a market where securities aretraded after being initially offered to the public in theprimary market and listed on the Stock Exchange. Majority ofthe trading is done in the secondary market. Secondary

market comprises of equity markets and the debt markets.

Company Profile of Microsec

Microsec endeavors to provide services in the arena of

Financial Services which includes Equity & Derivatives Trading

on NSE and BSE, Commodities Trading on MCX & NCDEX,

Investment Banking, Insurance, Depository Services, Portfolio

Management Services, Mutual funds-SIP, Mediclaim.

Microsec Capital Limited has its principal offices in Kolkata andMumbai with another 250(app.) business locations in 49 IndianCities/Towns in 13 States. It is an ISO 9000 Certified Process.

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EQUITIES

Microsec Capital Limited is a member of National StockExchange of India and Bombay Stock Exchange and is in thebusiness of distribution of financial savings products to itsclients.

Microsec Group provides services to a wide range of clients.In order to keep the pace going we have developed our equitybroking team which is equipped with research team,relationship manager, dealers and round the clock back office.

Microsec add value to people by:

Providing data source from Bloomberg

Research Team

Online Back office support

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Transaction mailed on daily basis & also through SMS.

Margin Trading

Man to man interaction

In house DP

PRODUCT AND SERVICES PROVIDE BY MICROSECCAPITAL LTD.

Equity & Derivatives Trading on NSE and BSE

Commodities Trading on MCX & NCDEX

Investment Banking

Insurance

Depository Services

Portfolio Management Services

Mutual funds-SIP

Mediclaim

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DE-MAT ACCOUNT

Definition:

De-mat account is a safe and convenient means of holdingsecurities just like a bank account is for funds. Today,practically 99.9% settlement (of shares) takes place on De-matmode only. Thus, it is advisable to have a Beneficiary Owner(BO) account to trade at the exchanges.

Benefits Of De-mat Account:

1. A safe and convenient way of holding securities. (equity and debtinstruments both).

2. Transactions involving physical securities are costlier than thoseinvolving dematerialized securities (just like the transactions througha bank teller are costlier than ATM transactions). Therefore, charges

applicable to an investor are lesser for each transaction.

3. Securities can be transferred at an instruction immediately.

4. Increased liquidity, as securities can be sold at any time during thetrading hours (between 9:00 AM to 3:30 PM on all working days), andpayment can be received in a very short period of time.

5. No stamp duty charges.

6. Risks like forgery, thefts, bad delivery, delays in transfer etc,associated with physical certificates, are eliminated.

7. Pledging of securities in a short period of time.8. Reduced paper work and transaction cost.

9. Odd-lot shares can also be traded (can be even 1 share).

10.Nomination facility available.

11.Any change in address or bank account details can be electronicallyintimated to all companies in which investor holds any securities,without having to inform each of them separately.

12.Securities are transferred by the DP itself, so no need to correspond

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with the companies.

13.Shares arising out of bonus, split, consolidation, merger etc. areautomatically credited into the De-mat account of the investor.

14.Shares allotted in public issues are directly credited into De-mat

account of the applicants in quick time.

Is a demat account a must?Now a day, practically all trades have to be settled in

dematerialized form. Although the market regulator, the

Securities and Exchange Board of India (SEBI), has allowed

trades of up to 500 shares to be settled in physical form,

nobody wants physical shares any more. So a de-mat account

is a must for trading and investing.

Different Players in the

Industry

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Activation and other Charges of

firms

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http://www.angelbroking.com/


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Data Analysis

Primary Data collection

Structured questionnaire for customer.

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COMPANY

A/cOpenin

gCharge

s

Brokerage(Intraday,Delivery)

AMC TradingExposur

e

Interest

Rate

DebitPerio

d

Modeof

Trading

MarginMoney

Softwareused

Microsec

CapitalLtd

NIL 3p,30p Rs350p

a

5 times 18% T+2 Online

/

Offline

Rs500

0

NOW

Sharekha

n

NIL 5p,50p 1st yr

free, 2nd

yr

Rs400

4-6

times

19% T+4 Online

/

Offline

Rs500

0

ICICI

Direct

Rs750 50p,75p Rs500p

a

3-4

times

18% T+2 Online

/

Offline

NIL Accesed

through

net

Indiabulls

Rs900 3-4p,

30-40p

NIL 4-5

times

17% T+2 Online

/

Offline

NIL Power

India

Bulls

Angel

broking

Rs660 3p,20p Rs225 4-6

times

18% T+2 Both

online/

Offline

Rs500

0/10,0

00
http://h/collected%20%20primary%20data.xlsxhttp://h/collected%20%20primary%20data.xlsx


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Secondary Data Collection

Journals

Websites

News papers

Research Approach

Descriptive approach

Techniques to be used in Research Approach

Survey and Intervie

Data Findings

Total Sample Size : 82

Male : 47

Female : 35

Online/Offline Trading

Iinvestment Product Preference

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Mode Of Awareness

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Preference for Broking Firm

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Fac

FACTORS 1 2

Lowbrokerage 2.44%

Brand loyalty3.65%

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Findings According to the data that have been collected all the

people who were surveyed are aware of share market and

trading.

Survey shows that the nearly 79% people prefer the online

trading rather than that of offline trading through broker.

People like to invest more in equity rather than other

investment sectors.

The best preferred broking firm among the people is ICICI

direct with 22% rather than other broking firms.

Friends, News paper and Internet are the most preferredmode for awareness of the broking firms and share trading

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Annexure

QUESTIONAIRE

1. Are you interested in share trading?

a) Yes b) No

2. Which mode of trading would you prefer?

a) Online b) Offline

3. Which type of product do you invest in?

a) Mutual fund b) Equity c) Commodity d) Insurance e) Others

4. If you trade in future, which broking firm would you prefer?

a) Share khan b) India Bulls c) Angel broking d) ICICI Direct e) Microsec f)Others

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

a) Newspaper b) Journals c)TV Advertisement d) Friends e)Internet f) Others

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

firm?

(Select one)

a) Low brokerage

Not very important 1 2 3 4 5 Extremely important

b) Better customer service


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c) Brand loyalty


d) Margin money


e) Good trading tips


f) Timely research report


g) Friends recommendations


NAME:

AGE:

GENDER: MALE/FEMALE

CONTACT NO:

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Bibliography

Internet Referrals:

www.sharekhan.comwww.icicidirect.comwww.nseindia.comwww.google.com

www.indiabulls.comwww.angelbroking.com

25
http://www.nseindia.com/http://www.google.com/http://www.nseindia.com/http://www.google.com/

Documents

9212400259 Project Report on Broking Firms