Finance Project Burdwan

8/18/2019 Finance Project Burdwan

1/74

ASUMMER TRAINING PROJECTREPORT

ON

Competitive Analysis ofTrading

In

1


2/74

PREFACE

“A good ro!er system m"st e a le to #ope $it% an e&tremely #omple&

and dynami# environment'(

The microstructure of the stock market in which brokers work is highly

dynamic and volatile. Many stocks are available to be bought and sold, each

exhibiting its own patterns and characteristics that are highly unpredictable.

With so many options and considerations that need to be taken into account, it

is an extremely difficult task for a broker to investigate aspects of the stock

market and consistently provide effective advice to their clients.

Thus, brokers perform their day to day tasks with the aid of a broker system.

!uch a system should provide tools for interacting with exchanges and

performing analysis. "s a conse#uence, these broker systems are #uite large and

complicated by themselves.

This research aims to analysis !tock broker on the basis of their

services, products, growth, and their competitiveness. $ecause !tockbrokers are

one of the main participants in stock exchanges worldwide, they often act as an

agent for their clients, making trades on their behalf. They also act as advisors,

providing suggestions to their clients on what stocks to buy and sell.

2


3/74

EXECUTIVE SUMMARY

There is growing competition between brokerage firms in post reform India.%or investor it is always difficult to decide which brokerage firm to choose.

&esearch was carried out to find which brokerage house people prefer and to

figure out what people prefer while investing in stock market.

This study suggests that people are reluctant while investing in stock and

commodity market due to lack of knowledge.

Main purpose of investment is returns and li#uidity, commodity market is less preferred by investors due to lack of awareness. The ma'or findings of this

study are that people are interested to invest in stock market but they lack

knowledge.

Through this report we were also able to understand, what are our (ompany)s

*&eliance Money+ positive and strong points, on the basis of which I come to

know what can be the basis of pitching to a potential client.

3


4/74

INTRODUCTION TO TOPIC

In most industriali ed countries, a substantial part of financial wealth is not

managed directly by savers, but through a financial intermediary, which implies

the existence of an agency contract between the investor *the principal+ and a

broker or portfolio manager *the agent+. Therefore, delegated brokerage

management is arguably one of the most important agency relationships

intervening in the economy, with a possible impact on financial market and

economic developments at a macro level.

In most of the metros, people like to put their money in stock options instead of

dumping it in the bank lockers. -ow, this trend pick pace in small but fast

developing cities like urgapur, "sansol, &anigun' etc. My research is based on

the residents of Asansol) *"rgap"r and its nearby areas.

"s the per capita income of the city is on the higher side, so it is #uite obvious

that they want to invest their money in profitable ventures. /n the other hand, a

number of brokerage houses make sure the hassle free investment in stocks.

"sset management firms allow investors to estimate both the expected risks and

returns, as measured statistically. There are mainly two types of 0ortfolio

management strategies.

1. 0assive 0ortfolio !trategy

2. "ctive 0ortfolio !trategy

Passive Portfolio Strategy+ " strategy that involves minimal expectation

input, and instead relies on diversification to match the performance of

some market index. " passive strategy assumes that the marketplace will

reflect all available information in the price paid for securities.

A#tive Portfolio Strategy+ " strategy that uses available information

and forecasting techni#ues to seek a better performance than a portfolio

that is simply diversified broadly.

4


5/74

INTRODUCTION TO INDUSTRY

The emergence of stock market can be traced back to 1345. In $ombay,

business passed in the shares of banks like the commercial bank, the chartered

mercantile bank, the chartered bank, the oriental bank and the old bank of

$ombay and shares of cotton presses. In (alcutta, 6nglishman reported the

#uotations of 78, 98, and :8 loans of 6ast India (ompany as well as the

shares of the bank of $engal in 134:. This list was a further broadened in 134;

when the (alcutta newspaper printed the #uotations of banks like union bank

and "gra bank. It also #uoted the prices of business ventures like the $engal

bonded warehouse, the ocking (ompany and the storm tug company.

$etween 1375 and 1395, only half a do en brokers existed for the limited

business. $ut during the share mania of 13:5 :9, the number of brokers

increased considerably. $y 13:5, the number of brokers was about :5 and

during the exciting period of the "merican (ivil war, their number increased to

about 255 to 295. The end of "merican (ivil war brought disillusionment and

many failures and the brokers decreased in number and prosperity. It was in

those troublesome times between 13:3 and 13uly, 13


6/74

established in $ombay on 4rd day of ecember, 133


7/74

S" 1 ro!er

" sub broker acts as agent of stock broker. ?e is not a member

of a stock exchange. ?e assists the investors in buying, selling or dealing in

securities through stockbroker. The broker and sub broker should enter into an

agreement in which obligations of both should be specified. !ub broker must be

registered !6$I for a dealing in securities. %or getting registered with !6$I, he

must fulfill certain rules and regulation.

Mar!et Ma!ers

Market maker is a designated specialist in the specified

securities. They make both bid and offer at the same time. " market maker has

to abide by bye laws, rules regulations of the concerned stock exchange. ?e is

exempt from the margin re#uirements. "s per the listing re#uirements, a

company where the paid up capital is &s. 4 crore but not more than &s. 9 crore

and having a commercial operation for less than 2 years should appoint a

market maker at the time of issue of securities.

Portfolio #ons"ltants

" combination of securities such as stocks, bonds and

money market instruments is collectively called as portfolio. Whereas the

portfolio consultants are the persons, firms or companies who advise, direct or

undertake the management or administration of securities or funds on behalf of

their clients.

MAJOR PLAYERS IN THE REGION

1. @arvy

2. I(I(I direct

4. Indiainfoline

7


8/74

7. ? %( security

9. Indiabulls

KARVY

2AR34 is a premier integrated financial services provider, and ranked among

the top five in the country in all its business segments, services over 1: million

individual investors in various capacities, and provides investor services to over

455 corporate, comprising the who is who of (orporate India. @arvy has a

professional management team and ranks among the best in technology,

operations and research of various industrial segments.

History of Karvy

The birth of @arvy was on a modest scale in 1;31. It began with the vision and

enterprise of a small group of practicing (hartered "ccountants who founded

the flagship company, @arvy (onsultants Aimited. They started with consulting

and financial accounting automation and carved inroads into the field of registry

and share accounting by 1;39. !ince then, @arvy utili ed its experience and

superlative expertise to go from strength to strength, to better their services, to

innovate, diversify and in the process, evolved as one of India)s premier

integrated financial service enterprise.

PRO*UCT AN* SER3ICES O5 2AR34 GROUP

8


9/74

@arvy comtrade.

@arvy consultant ltd.

@arvy merchant banking.

@arvy global services ltd.

ICICI DIRECT

I(I(I Web Trade Aimited *IWTA+ maintains www.icicidirect.com *herein after

referred to as the BWebsiteB+ whereas IWTA is an affiliate of I(I(I $ank

Aimited and the Website is owned by I(I(I $ank Aimited. IWTA has launched

and established an online trading service on the Website.

PRODUCTS AND SERVICES OF ICICI DIRECT

Investing in Mutual funds

9


10/74

0ersonal %inance

(ustomer !ervice %eatures

I0/)s

Margin Trading

Margin 0AC! Trading

(all Trade

Trading on -!6D$!6

Trade in derivatives

INDIAINFOLINE SECURITY PRIVATE LTD

10

http://funct2%28%29/http://marginplus%28%29/http://marginplus%28%29/http://funct2%28%29/


11/74

India Infoline.com !ecurities 0vt. Atd. is a wholly owned subsidiary of India

Infoline.com Atd and is the stock broking arm of India Infoline.com. The

subsidiary was formed to comply with regulatory guidelines. $$$'6paisa'#om

is a focused website for online stock market trading. 9paisa.com is a trade name

owned by the India Infoline.com group. IIA!0A has applied for trading

membership of the $!6 under !ecurities and 6xchange $oard of India *!tock

$rokers and !ub $rokers+ &ules 1;;2.

IIA!0A is in the business of providing broking services online via the Internet

*B6 broking !ervicesB+ and has been permitted by the -!6 by way of

registration permission noE -!6IAD(M/DI-6TD1154D2555 dated 0-7J"ly7,000 ,

and will be applying for permission to the $!6, to provide 6 broking !ervices

to its clients. IIA!0A is a T&" I-F M6M$6& of the -ational !tock

6xchange of India.

PRO*UCT O55ERE* 84 II9SP9

Sto#! mar!et E IIA!0A deals in stock market by trading in e#uity and derivatives.

Personal finan#e+1 It eals In Mutual %und "nd Insurance.

Online Trading +1 It provides services in stock and commodity trading *through

Internet+.

11


12/74

HDFC SECURITY

:*5C se#"rity is the subsidiary of ? %( *?ousing evelopment %inancial

(orporation+. www.hdfcsec.com would have an exclusive discretion to decide

the customers who would be entitled to its online investing services.

www.hdfcsec.com also reserves the right to decide on the criteria based on

which customers would be chosen to participate in these services .The presentweb site *www.hdfcsec.com+ contains features of services that they

offerDpropose to offer in due course. The launch of new services is sub'ect to the

clearance of the regulators. i.e. !6$I , -!6 and $!6 .

PRO*UCT O55ERE* 84 :*5C SECURIT4

• /nline trading for &esident G -on &esident Indians.

• (ash n (arry on both -!6 and $!6.

• ay trading on both -!6 and $!6.

• Trade on %utures G /ptions on the -!6.

• /nline I0/Hs.

• Telephone based $roking *6#uity G erivatives+.

12

http://www.sebi.com/http://www.nseindia.com/http://www.bseindia.com/http://www.sebi.com/http://www.nseindia.com/http://www.bseindia.com/


13/74

INDIABULLS SECURITIES LIMITED

Indiabulls !ecurities Aimited was incorporated as F0% !ecurities 0rivate

Aimited on >une ;, 1;;9. The name of the company was changed to /rbis

!ecurities 0rivate Aimited on ecember 19, 1;;9 to change the profile of the

company and subse#uently due to the conversion of the company into a public

limited company the name was further changed to /rbis !ecurities Aimited on

>anuary 9, 2557. The name of the company was again changed to Indiabulls

!ecurities Aimited on %ebruary 1:, 2557 so as to capitali e on the brand image

of the term “Indiabulls= in the company name. I!A is a corporate member of

capital market G derivative segment of The -ational !tock 6xchange of India

Atd. "t present, I!A accounts for approximately 48 of the total daily turnover

of the 6xchange with 42,49; client relationships and


14/74

IN*IA8U99S REA9 ESTATE+1 Indiabulls through its group companies has

entered Indian &eal 6state business in 2559. It is currently evaluating several

large scale pro'ects worth several hundred million dollars. Indiabulls became

the first company to bring % I in Indian &eal 6state through a >J with %arallon

(apital Management, a respected C! based investment firm.

PRODUCT OFFERED BY INDIA BULLS

• 6#uity G ebt !tock $roking• Insurance• (ommodity trading• epository !ervices• erivatives $roking !ervices• 6#uity &esearch !ervices• Mutual %und istribution• I0/ istribution

COMPARISON WITH COMPETITORS

14


15/74

MAR2ET S:ARE

15

RELIANCE MONEY

ICICI DIRECT

HDFC INDIA BULLS

INDIAINFOLINE KARVY

DELIVERY .01% .40-.85

%

. 5-1.0%

.!5% 0.!-0.5% 1%

INTRADAY .01% .0"-.04

%

.05% .0!5% 0.0!-0.05% 0.1%

AMC "00 50 #00 !50-50

500 !50

E$ &'()* 5 4 4-# 4-10 # #

S&+, )* +)** O/ +&)

*',**2*3

/. . 50 .2 .

1000 1800 . .

O/ /*,) 3 /6

*' Y*' *' *' *' *'

M /. 7 / * / 50009:; 5000 /. . 5000 5000


16/74

i !ia"#$$s% &'(

i)i)i% &*(

i !iai fo$i +% ,&(-!f) s+).% '(

/arvy% 0(

Reliance Money; 4% ot-+rs% ,( i !ia"#$$si)i)ii !iai fo$i +-!f) s+)./arvyR+$ia )+ Mo +yot-+rs

Indiabulls is the market leader about 4


17/74

INTRODUCTION TO THE COMPANY

The Relian#e K Anil *%ir" %ai Am ani Gro"p is among India)s top three

private sector business houses on all ma'or financial parameters, with a market

capitalisation of &s 155,555 crore *C!L 22 billion+, net assets in excess of &s

41,955 crore *C!L < billion+, and net worth to the tune of &s 2


18/74

of choice by leveraging our superior expertise, best in class service delivery

and state of the art technology.

Smit%a S"d%eendra Business Head

!mitha !udheendra is the ?ead K istribution at &eliance Money.

!mitha is primarily responsible for building and expanding the distribution set

up through our existing channels, creating new channels and build up sell and

cross sell synergies across the group.

" $usiness Management graduate from A&I >amshedpur, !mitha has over 13years experience in building and managing the retail sales.

0rior to &eliance Money, !mitha has worked with I(I(I !ecurities, "$- "mro

and @otak Aife Insurance.

Re lian#e Capital 9td

&eliance (apital is one of India)s leading and fastest growing private sector

financial services companies, and ranks among the top 4 private sector financial

services and banking companies, in terms of net worth.

&eliance (apital has interests in asset management and mutual funds, life and

general insurance, private e#uity and proprietary investments, stock broking and

other activities in financial services.

&eliance (apital entered into lucrative online trading business with &eliance

money. There are mixed reports about this online trading platform. It shook up

online trading business with cheap brokerage charge offer.

B#si +ss Ov+rvi+1

18


19/74

&(A is registered as a depository participant with -ational !ecurities

epository Atd *-! A+ and (entral epository !ervices Atd *( !A+ under the

!ecurities and 6xchange $oard of India * epositories and 0articipants+

&egulations, 1;;:. &(A has sponsored the &eliance Mutual %und within the

framework of the !ecurities and 6xchange $oard of India *Mutual %und+

&egulations, 1;;:.&(A primarily focuses on funding pro'ects in the

infrastructure sector and supports the growth of its subsidiary companies,

&eliance (apital "sset Management Aimited, &eliance (apital Trustee (o.

Aimited, &eliance Feneral Insurance (ompany Aimited and &eliance Aife

Insurance (ompany Aimited. "s of March 41, 2559, the company)s investmentin infrastructure pro'ects stood at &s. 15


20/74

Insurance and Fold (oins. (ustomers can also avail Aoans, (redit (ard, Money

Transfer and Money (hanging services.

The largest broking house in India with over 2.9 million customers and a widenetwork of over 15,555 outlets and 25,555 touch points in 9,555N locations.

&eliance Money endeavors to change the way investors transact in financial

markets and avails financial services. The average daily volume on the stock

exchanges is &s. 2,555 crores, representing approximately 48 of the total stock

exchange volume. &eliance (apital is one of IndiaHs leading and fastest growing

private sector financial services companies, and ranks among the top 4 private

sector financial services and banking groups, in terms of net worth.

H )3 &)@> H&2*

&)@> T* 2 &)@ > L* )/ /6 /3 I//& , &/> E2 , /3 H(2 , /3

', 7(, /&, , * * ', , ' , * N*, &)@ .

VISION OF RELIANCE MONEY

To a#%ieve ; s"stain mar!et leaders%ip) Relian#e Money s%all aim for

#omplete #"stomer satisfa#tion) y #om ining its %"man and te#%nologi#al

reso"r#es) to provide $orld #lass


21/74

MISSION STATEMENT

/3 * 2 ,& * * , ' * 3*)' &' , &/ 7 7( 3 /6 /

//& , *> */,*) ) ' /6 > /3 ,* /& &6 3) */ &)6 / , &/ '*,

, * 6 *', ', /3 )3' &+ '*) * /3 7(' /*'' *, '.?

Hi2-$i2-ts of R+$ia )+ Mo +y

The highlights of &eliance moneyHs offerings areE

1. Cost1effe#tive

The fee charged by the affiliates of &eliance Money, through whom the

transactions can be placed, is among the lowest charged in the present

scenario. 0ay a flat fee of 'ust &s. 955D valid for 2 months or specified

transactional value. The facility of trading is sub'ect to expiry of the validity

period or value limit, whichever comes first.

Ill"strations depi#ting fee str"#t"re and validity limits

♦ "ccess fee &s. 955

Jalidity Time validity of 2 months or Turnover validity of &s. 1 cr., whichever

is earlier

Turnover limit -on delivery turnover of &s. ;5 lakh, elivery turnover of &s.

15 lakh.


Jalidity Time validity of : months or Turnover validity of &s. 4 cr., whichever

is earlier

21


22/74

Turnover limit -on delivery turnover of &s. 2.< cr., elivery turnover of &s.

45 lakh


Jalidity Time validity of 12 months or Turnover validity of &s. : cr.,

whichever is earlier.

Turnover limit -on delivery turnover of &s. 9.7 cr., elivery turnover of &s.

:5 lakh.

Cnutili ed delivery limit may be added to -on delivery limit.

2. Convenien#e

Oou have the flexibility to access &eliance Money services in multiple

waysE through the Internet, Transaction @iosks, (all G Transact *phone+ or

seek assistance through our $usiness 0artners.

4. Se#"rity

&eliance Money provides secure access through an electronic token thatflashes a uni#ue security number every 42 seconds *and ensures that the

number used for earlier transaction is discarded+. This number works as a

third level password that keeps your account extra safe.

22


23/74

>' Single $indo$ for m"ltiple prod"#ts

&eliance Money, through its affiliatesDpartners, facilitates transactions in 6#uity,

6#uity G (ommodity erivatives, /ffshore Investments, Mutual %unds, I0/s,

Aife Insurance and Feneral Insurance products. "ll overseas investments are

sub'ect to rules, regulations and guidelines of the &eserve $ank of India as lay

down from time to time.

6' - in ? integrated a##ess

&eliance Money offers integrated access to your banking, trading and demat

account. Oou can transact without the hassle of writing che#ues emat account

with &eliance (apital ?assles free demat account with &eliance (apital. The

"nnual Maintenance (harge for the emat "ccount is 'ust &s. 95D per annum.

/' Ot%er Servi#es

Through the portal www.reliancemoney.com, &eliance Money providesE

a' &eliable research, including views of external experts with an enviable track

record

' Aive news from &euters and ow >ones

#' (6/sHDexpertsH views on the economy and financial markets

d' The 0ersonal finance section provides tools that help you plan your

investments, retirement, tax, etc

e' "naly e your risk profile through the &isk "naly er

f' Fet a suitable investment portfolio using the "sset "llocator.

23


24/74

2E4 8ENE5ITS O5 RE9IANCE MONE4

6#uity is a share in the ownership of a company. It represents a claim on the

company)s assets and earnings. "s you ac#uire more stock, your ownershipstake in the company increases. The terms share, e#uity and stock mean the

same thing and can be used interchangeably.

?olding a company)s stock means that you are one of the many owners

*shareholders+ of a company, and, as such, you have a claim *to the extent of

your holding+ to everything the company owns. Oes, this means that technically,

you own a portion of every piece of furniture every trademark every contract,

etc. of the company.

"s an owner, you are entitled to your share of the company)s earnings as well as

any voting rights attached to the stock.

"nother extremely important feature of e#uity is its limited liability, which

means that, as a part owner of the company, you are not personally liable if the

company is not able to pay its debts. In case of other entities such as

partnerships, if the partnership goes bankrupt, the partners are personally liable

towards the creditorsDlenders and they may have to sell off their personal assets

like their house, car, furniture, etc., to make good the loss. In case of holding

e#uity shares, the maximum value you can lose is the value of your investment.

6ven if a company of which you are a shareholder goes bankrupt, you can never

lose your personal assets.

&eliance Money gives you the access to /ver 9555 !chemes of 23 "ssets

Management (ompanies *"M(s+ with 'ust one account. !ome of them included

are.

Portfolio Tra#!er

24


25/74

Manage your mutual fund portfolio from the &eliance Money account. $enefit

from live valuation and alerts and also track -"Js of any scheme online.

C%oi#e of investment strategies

%rom 'ust two scheme types *e#uity scheme and debt scheme+ offered when the

mutual fund industry was conceived more than four decades ago, today, mutual

funds offer a plethora of scheme types with different investment strategies.

9ife Ins"ran#e

&eliance Money "ccount gives you the advantage of buying policies from 12

different Aife Insurance companies, helping you get unbiased opinion.

General Ins"ran#e

&eliance Money "ccount also extends the product offerings from 15 Feneral

Insurance (ompanies with exhaustive range of insurance products that covers

most risks including Motor, ?ealth, 0roperty, Marine, (asualty and Aiability.

O3ER T:E COUNTER PRO*UCTS

Oour &eliance Money "ccount makes it so simple for you to buy insurance

products that it)s as easy as buying something over the counter.

&elianceMoney.com is offering most dynamic web based trading environment

to its customers. The new trading platform has many new features which

basically fill up the gap between old online trading companies in India and their

customers.

The &eliance Money trading websites comes with special security features

!ecurity Token, which makes you online trading experience more secure

without complexity.

!tock Trading is available in $!6 and -!6. /ffline trading is also available

through &eliance Money partners in your city and through phone by dialing

522 4;33:555.

25


26/74

T4PE O5 ACCOUNT

&eliance money is offering 4 types of accounts to its customers. "ccount for

beginners, for meddlers and for experts.

:o$ to open a##o"nt $it% Relian#e Money@

"ccount opening with &eliance Money is easy. !imply fill a form online at

below address and somebody from &eliance Money will contact you soon.

Advantages of Relian#e Money

1. 6xtra security features with H!ecurity which is the most secures and tested

technology in computer world.

2. !imple, easy and fast online stock trading.

4. "lmost all investment options are available under one account including

6#uity Trading, erivatives, %orex, (ommodity, I0/, Mutual %unds and

Insurance.

7. $ranches are now available in all ma'or cities and the number is growing.

$ranches are open from ;am to ;pm.

/nline trading is presently at its nascent stage and is not the most preferred

option for financial transactions owing to security concerns and lack of

accessibility points. &eliance Money through this hi speed, technologically

secure kiosks will therefore be able to reach out to all its existing and potential

customers at even the remotest locations in the country without compromising

on the security of its customer)s funds.

%y s%o"ld yo" #%oose Relian#e Money@

1. $ecause it is from &eliance. &eliance capital has big plans regarding this

business. It may announce attractive offers to gain market share. &eliance

will never enter into a business with small plans.

2. Its brokerage charges are lowest in the country among ma'or providers. With

&s 2955 prepaid amount, you can trade for &s 9 crore.

26


27/74

4. !ite is simple in design, fast to access and easy to find re#uired information.

7. Its daily reports on market trends and technical breakouts are very useful.

9. Website content is divided according to the re#uirements of experts and

beginners.

:. Oou can trade in %orex, erivatives, Mutual funds, I0/ and buy Insurance.

%y s%o"ld yo" stay a$ay from relian#e Money@

1. The trading platform is still in development stage. There are many bugs

needs to be rectified.

2. Its “Insta trade= service is not up to the standard. &eliance Money software

is a 'ava based simple software. It should provide advanced software to

meet the needs of advanced traders.

4. Its system is sometimes very slow and orders are not placed at the time.

7. Its market watch solution is a way behind its competitors like Money

control and I(I(I direct.

9. Its service people are not as efficient as competitors.

:. It is still not providing options to buy 0ost office savings.


28/74

CEO

Deputy CEO

National

e

a!

"ON#$

E#D

"ON#$

E#D

"ON#$

E#D

RE%&ON#$

E#D

RE%&ON#$

E#D

RE%&ON#$

E#D

C$'( )ER

E

#D

C$'( )ER

E

#D

C$'( )ER

E

#D

CEN )ER

M#N

#%E

CEN )ER

M#N

#%E

*DE+

*DE+

*DE+

RE9IANCE A*A GROUP STRUCTURE

28


29/74

PRODUCTS

PRODUCTS &++*)*3 7 R* / * M&/* )* -? ' Trading Porta l *with almost negligible brokerage +

29


30/74

• 6#uity $roking

• (ommodity $roking

• erivatives * %utures G /ptions +

• /ffshore Investments *(ontract %or ifferences+

• Mat "ccount.

, ' 5 inan#ial Prod"#ts

• Mutual %unds

• Aife Insurance

o ULIP plan

o Term Plan

o Money Back Plan

General Ins"ran#e

o Vehicle/Motor Insuranc e

o

Health Insuranceo House insurance

IPO s

N5Os

-' 3al"e1Added S ervi#es

• &etirement 0lanning

• %inancial 0lanning

• Tax !aving

• (hildren %uture 0lanning

>' Credit Cards

6' Gold #oins retai ling

LITERATURE REVIE3

30


31/74

*r' Jayanta 2"mar Seal explore e#uity trading in India was basically a floor

based activity in the $!6. Traditionally, stock trading was done through stock

brokers, personally or through telephones. "s the no. of people trading in stock

market increased enormously in last few years, a no. of stock brokers comes in

the field, thus increasing further competition. ue to this, there come new

innovations in trading. In this scenario, the existing players are left with two

options either to change their product offerings or to perish.

Ravinder 2"mar ; Nid%i alia found Indian investors are more

conservative they do not adopt any change easily. Till now 'ust few investors

can be recogni ed who are using technology for online stock trading.

Traditional traders still prefer to choose broker as a stock trading mechanism

because they are more loyal to their broker. /nline trading empowers educated

investors to make their own decisions with close watch on market sensitivity by

browsing through various sites.

Ms' Nid%i alia explores that with IT fueling economy, internet is adopted as

effective tool in cataly ing the business activities. Aatest developments in

information technology have altogether changed business done traditionally. "s

financial system is becoming more complex it has become need of hour, where

investor should comprehend the data and understand recent intricacies of onlinetrading. In Indian context, e trading is relatively new concept, which has yet to

gain some significant meaning. In the past, investor had no option to get

market information except to contact local broker. $ut internet trading in stock

trading is becoming medium of exchange whereby investor can order stock

exchange on simple mouse click sitting at his place. @eeping in view current

31


32/74

market re#uirement an attempt has been made in this research paper to analy e

current status of online trading in Indian scenario.

Mr' ADay 2"mar through this research finds which brokerage house people

prefer and to figure out what people prefer while investing in stock market. This

study suggests that people are reluctant while investing in stock and commodity

market due to lack of knowledge. Main purpose of investment is returns and

li#uidity, commodity market is less preferred by investors due to lack of

awareness. The ma'or findings of this study are that people are interested to

invest in stock market but they lack knowledge.

32


33/74

OBJECTIVE OF THE STUDY

6ach research study has its own specific purpose. It is like to discover to

Puestion through the application of scientific procedure. $ut the main aim of

our research to find out the truth that is hidden and which has not been

discovered as yet. This research study has following ob'ectivesE

Primary O De#tive+ 1 To know about the competitive position of the &eliance

Money in competitive market.

Se#ondary O De#tives+ 1

?' To know the market share of different players in !hare Market.

,' To study the services offered by different players to the customer.

-' To access how &eliance Money is better than others competitors.

>' To analysis the financial market condition of &eliance Money.

33


34/74

LIMITATIONS OF THE STUDY

• "s only Asansol and *"rgap"r dealt in survey so it does not representthe view of the total Indian market.

• !i e of the research may not be substantial.

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

• The survey was carried through #uestionnaire and the #uestions were based on perception.

• There may be biasness in information by market participant.

• (omplete data was not available due to company privacy and secrecy.

• (ustomer dissatisfied with the services.

• 0eople fear that as &eliance Money is a 0rivate company so their moneyis not secured.

• -ot much of importance was attached to this task by some of the

&espondents.

• The sample si e of the respondents is very small.

• The method of sampling is 'udgment sampling.

34


35/74

RESEARCH METHODOLO4Y

Meaning of Research:

&esearch in common parlance refers to a search for knowledge. /ne can also

define research as a scientific and systematic search for pertinent information on

a specific topic. In fact, research is an act of scientific investigation. The

advanced learner s ictionary of (urrent 6nglish lays down the meaning of

research as a careful investigation or in#uiry especially through search for new

facts in any branch of knowledge. &edman and Mory define research as a

systemati ed effort to gain new knowledge.

&esearch is an academic activity and as such the term should be used in a

technical sense. "ccording to (lifford Woody research comprises defining and

redefining problems, formulating hypothesis or suggested solution collecting,

organi ing and evaluating data making deductions and reaching conclusions

and at last carefully testing the conclusion to determine whether they fit the

formulating hypothesis. It is the pursuit of truth with the help of study,

observation, comparison and experiment. In short, the search for knowledge

through ob'ective and systematic method finding solution to problem is

research.

O8JECTI3ES O5 RESEARC:+

35


36/74

The purpose of research is to discover answer to #uestions through the

application of scientific procedures. Through each research study has its own

specific purpose, we may think of research ob'ectives as falling into a number

of following groupsE

1. To gain familiarity with a phenomenon or archive new insights into it.

2. To portray accurately the characteristics of a particular individual, situation or

a group.

Meaning of research methodology:

&esearch methodology is a way to systematically solve the research problem. It

may be understood as science of studying how research is done scientifically. In

it we study various steps that are generally adopted by a researcher in studying

his research problem along with logic behind them. It is necessary for

researcher to know not only the research methodsD techni#ues but also the

methodology. &esearch methodology has many dimensions and research

methods do constitutes a part of the research methodology. Thus when we talk

of research methodology we not only talk of research methods but also consider

logic behind the methods we use in context of our research study and explain

why we are using a particular method or techni#ue and why we are not using

others so that research result is capable of being evaluated either by the

researcher himself or by others.

Research process:

$efore embarking on the details of research methodology and techni#ues, it

seems appropriate to present a brief overview of research process. &esearch

process consists of a series of action or steps necessary to effectively carry out

research and the desires se#uencing of these steps. The following order

36


37/74

concerning various steps provides a useful procedural guideline regarding the

research processE

1. %ormulating the research problem.

2. 6xtensive literature survey.

4. evelopment of working hypothesis.

7. 0reparing the research design.

9. etermining sample si e.

:. (ollecting the data.

$y observation.

Through personal interview.

Through telephone interview.

$y mailing of #uestionnaires.

Through schedules.


38/74


39/74

SI E OF SAMPLE

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

constitute a sample=

In the present research sample si.e is ?00'

$ut the research also study the 9 stock broker companies related to security G

commodity market like India infoline, I(I(I direct, ? %( securities, @arvy

consultant ltd. and indiabulls for the appropriate collection of the information.

Pro5otio a$ A)tiviti+s

39


40/74

DATA ANALYSIS

40


41/74

The data after collection has proposed G analy ed in accordance with the

outline laid down for the purpose at the time of developing the research plan.

The data collected in the stated manner tabulated according to the

corresponding variables. The table thus prepared were analy ed G interpreted to

draw the meaning, out of the study.

? *o yo" !no$ a o"t investment options availa le@

Y+s% 67(

No% *7(

Y+sNo

INTERPRETATION

Today scenario is changed so that most area covered by the securities and

commodity market. It is 278 of the total population.

41

2NO 9E*GE FOes 358

-o 258TOTA9 ?00


42/74

2+ Most prefera le investment s#enario'

Investment s#enario F

!hares 278Mutual %unds 258$onds 138$anks 178&eal 6state 158Insurance :8(ommodity market 78/thers 78

S-ar+s% *8(Mutual ,un!+; 20%

Bo !s% ,6( Ba /s% ,8(

R+a$ Estat+% ,7(&n+u-ance; 6%

Co55o!ity 5ar/+t% 8( Ot.e-+; 4%S-ar+s M#t#a$ F# !sBo !s Ba /sR+a$ Estat+ I s#ra )+Co55o!ity5ar/+t

Ot-+rs

INTERPRETATION

/nly 358 people know the exact meaning of investment. $ecause of remaining

258 take hisDher residential property as an investment. "ccording to law purpose this is not an investment because of it is not create any profit for the

owner.

42


43/74

- ' %at is t%e asi# p"rpose of yo"r investment@

IN3ESTMENT PURPOSE FAi#uidity 458&eturns 298(apital appreciation 258Tax benefits 158&isk covering 98/thers 158

Li9#i!ity% &7(

R+t#r s% *:(Ca;ita$ a;;r+)iatio % *7(

Ta< "+ +=ts% ,7(Ot-+rs% ,7(

Ris/ )ov+ri 2% :(

Li9#i!ity R+t#r s Ca;ita$ a;;r+)iatio

Ta< "+ +=ts Ot-+rs Ris/ )ov+ri 2

INTERPRETATION

458 people are interested in li#uidity, 298 in returns and 158 tax benefits.

"nd remaining 258 are interested in capital appreciations, 198 in risk covering

and others.

43


44/74

> 5rom $%i#% option yo" $ill get t%e est ret"rns@

IN3ESTMENT SCENARIO F

!hares 1


45/74

INTERPRETATION

Most of the people say that Mutual fund gives satisfactory result following itare bonds, shares and banks.

6 Most important t%ings yo" ta!e into yo"r mind $%ile ma!ing

investments@

5ACTOR FAGE&isk 38&eturns 1


46/74

INTERPRETATION


47/74

%rom the above chart it is show that 2


48/74

INTERPRETATION

Ma'ority of people are in losses and hence they are getting no results.

H Are yo" a$are of online S%are trading@

2NO 9E*GE FOes


49/74

Y+s% '*(

No% *6(

Y+sNo

INTERPRETATION


50/74

:eard a o"t Relian#e money@

2NO 9E*GE F

Oes 328 -o 138TOTA9 ?00

82%

18%

e+No

INTERPRETATION

Ma'ority of people are aware about the &eliance Money, this shows thatmarketing strategy are good.

50


51/74


52/74

?? *o yo" %ave any *e1mat ; trading a##o"nt@

ACCOUNTS PERCENTAGEOes


53/74

?, In $%i#% #ompany yo" %ave *e1mat and trading a##o"nt@

COMPAN4 F

I(I(I I&6(T 2:8I- I"I-%/AI-6 298I- I" $CAA! 228&eliance Money 1:8@"&JO


54/74

INTERPRETATION

In &eliance Money 1:8 respondents have e mat G trading account because of better services and min. annual maintenance and other charges.

?- %at differentiates yo"r S%are trading #ompany from ot%ers@

Options F$rokerage 24/perating expanses 29!ervices 250roducts 1<

!oftware 19Total 155

54


55/74

*&(

*:(*7(

,'(

,:(Bro/+ra2+O;+rati 2+ %i#% S%are trading #ompany provides good e&pos"re@

55


56/74

r+$ia )+ 5o +y i)i)i -!f) s+).7(

,7(

*7(

&7(87(

:7(

07(

'7(

67(

>7(

,77(

1010

60

1030

15 15

25

25

6070

65

15

60

15 10 20

80

v+ry -i2-

-i2-5+!i#5

$o1v+ry $o1

INTERPRETATION

Ma'ority of clients of indiabulls feels that the exposure provided by them is

neither high nor low, while some believe it is enough. $ut in I(I(I it is

contrary. & Money gets positive response from ma'ority of clients.

56


57/74

?6 %i#% S%are trading #ompany provides its Soft$are to #"stomers@

r+$ia )+ 5o +y i)i)i -!f) s+).7(

,7(

*7(

&7(

87(

:7(

07('7(

67(

>7(

,77(

202 0 0 0 0

57

0

53

81 8066

18

0

42

14 15

10

0

51

0 0 0 0

v+ry $o1$o15+!i#5-i2-v+ry -i2-

57


58/74

INTERPRETATION

"s far as software is concerned, & Money dominates, followed by indiainfoline.

?/ %i#% S%are trading #ompany #%arges fair 8ro!erage@

58


59/74

r+$ia )+ 5o +y i)i)i -!f) s+).0%

10%

20%

30%

40%

50%60%

70%

80%

90%

100%

12 2010 18 30

6040

70

85

45

25

25

9 10

30

16

65

e-y .i .

.i ./e!iu/lo

e-y lo

INTERPRETATION

"lthough ma'ority of customers of all the firms feel that brokerage charged is

neither high nor low, customers of & Money are highly satisfied. /n the other

hand, customers of I(I(I are most dissatisfied. "nd about 758 of customers of

indiabulls consider it to be -?-A, and another 758 rate it as good, while 258feel that it is not #uite low.

? %i#% S%are trading #ompany provides fair operating e&penses@

59


60/74

0%10%20%30%

40%50%60%70%80%90%

100%

50

22

2541

32

47 6044

58

59

13

34 7 10

37 36

2 3

e-y .i ..i .

/e!iu/lo

e-y lo

INTERPRETATION

"s per operating charges, comparison among the firms clearly points out that

there is not much difference among the firms. %irst is & money, followed by

indiabulls.

60


61/74

?H Are yo" satisfied $it% yo"r present S%are trading #ompany@

7(,7(*7(&7(87(:7(

07('7(67(>7(

,77(

23 3153

37 46 32

45 35

44

4542

23

32 34

318 12

45

# satis=+!

+#tra$satis=+!

INTERPRETATION

61


62/74

The above chart shows that customers of &eliance money are not satisfied while

Indiainfoline is stood first in this parameter.

FINDIN4S

Ma'ority of clients of indiabulls feels that the exposure provided by them

is neither high nor low, while some believe it is enough. $ut in I(I(I it is

contrary. & Money gets positive response from ma'ority of clients.

"lthough ma'ority of customers of all the firms feel that brokerage

charged is neither high nor low, customers of & Money are highly

satisfied. /n the other hand, customers of I(I(I are most dissatisfied.

62


63/74

"nd about 758 of customers of indiabulls consider it to be -?-A, and

another 758 rate it as good, while 258 feel that it is not #uite low.

"s far as software is concerned, & Money dominates, followed by

indiabulls.

"s per charges, comparison among the firms clearly points out that there

is not much difference among the firms. %irst is & money, followed by

indiabulls.

/n the basis of call and trade facility, there is again not much differences.

(omparison among I(I(I and indiabulls shows that icici has less no. of

customers who rated it low as compared to indiabulls and also higher no.

of customers rate it good, but indiabulls has the edge over the rest when it

comes to customers who rate it very high.

(ustomer)s feedback regarding the &esearch Tips parameter shows that

the competition is primarily between three firms Indiabulls, icici and

Indiainfoline.

&eliance Money is gaining its share which is currently at 4.;8 market

share by providing better offerings, less brokerage and other services,

indiabulls is the market leader.

"pprox. 1:8 respondents have e mat G trading account because min.

annual maintenance and other charges.

63


64/74

& Money brought many innovations in products which are liked by

customers.

& Money)s offerings are very competitive.

Though reliance money is working very hard in order to meet the

competition but there is a gap between the expectations and the

experiences of the customers which is widening regularly.

This gap has emerged because of the sales oriented focus of reliance

money.

In order to increase the sales figures, the company has somewhere

ignored the service delivery and left the customer on his own.

R+)o55+ !atio s

$uild relationship with the customers to keep them retained.

64


65/74

(ompany should start a system of filling up of feedbacks and complaints

online so that rectification of errors can be done easily.

(ompany should start a kind of soft skill training program for all of its

distributors so that the customers feel the same level of satisfaction as they

feel while transacting with the company.

Though the service #uality is good but it should become better consistently

as good service and better relationships are the key success factors of

current market situations.

The process of documentation is a hassle for customers as it is not at all

user friendly. (ompany should take care of user friendliness of the system.

In order to fill the gap between actual and expected, company needs to

customi e its services as it is dealing into financial instruments.

These financial instruments are risky and it is very essential to make the

customer feel that you are taking care of his money.

This can be done only if all the services are customi ed and the system is

made transparent for the customer as well as for the employees.

0roper financial analysis should be done for any kinds of newly launched

services.

Insurance means AI( for maximum people. &eliance Money should make

proper awareness about their facilities among people.

"gents and $rokers should be trained properly by the company.

65


66/74

0romotional activities and proper assured security for the customers may

motivate the people to go for & money.

CONC$'(&ON

The expectations of the customers are regularly increasing because of the

increasing competition and emergence of global market. In such conditions it

66


67/74

becomes very necessary for a company to fulfill all the expectations of the

customers and give them a delightful experience.

&eliance Money aims to provide better services by consistently improvement.

The study concludedE

• &eliance Money Atd. has better 0ortfolio Management services

than /ther (ompanies.

• &eliance Money Atd. keeps its process more transparent.

• &eliance Money Atd. is giving more returns to its investors.

• &eliance Money charges are less than other stock brokers.

• &eliance Money is providing daily updates about the stocks

information.

• Investors are looking for those investment options where they

get maximum returns with less costs.

• Market is becoming complex G it means that the individual

investor will not have the time to play stock game on his own.

• 0eople are less aware about the !ervices provided by &eliance

Money.

67


68/74

BIBLIOGRAPHY

BOOKS: -

*1+ 0unithawati 0andiyan, “!ecurity "nalysis G 0ortfolio Management=,

Jikas 0ublishing ?ouse, -ew delhi.

*2+ %inancial Markets, The Icfai Cniversity press, ?yderabad, 255. >ordan, “!ecurity "nalysis G 0ortfolio

Management=, 0rentice ?all of India, -ew elhi.

*7+ Qikmund, “$usiness &esearch Methodology=

*9+ @othari (.&., “&esearch Methodology E Methods and Techni#ues=,

Wishwa 0rkashan, -ew elhi, 2551.

MAGAZINES:-

*1+ /mkar Foswami, “-ew 6ntrants in !ock Trading=, $usiness Week.

*2+ &a'esh Fa'ra, “!ebi)s Wake Cp call=, $usiness World.

*4+!rikanth !rinivas, “Increasing competition in /nline Trading=, $usiness

Today.

JOURNALS:-

*1+-idhi Walia and &avinder @umar, “/nline !tock Trading in IndiaE an

empirical investigation=, Indian >ournal of marketing.

*2+>ayanta @umar !eal, “(hanging ynamics of !tock Trading=, 0ortfolio

/rgani er, page 1< 29.

*4+"ggarwal !an'iv, “!tock Trading o -et=, $usiness Aine, "ug. 2515, page

41 4


69/74

*9+-idhi Walia, “/nline !tock Trading in IndiaE on the road of progress=,

"pplied finance, page 21 2:.

*:+-ay %u (hen, &ichard &oll and !tephen ". &oss, “6conomic %orces and

the !tock Market=, The >ournal of $usiness, Jol. 9;.

INTERNET:-

• httpEDDen.wikipedia.orgDwikiD!tockRMarket

• httpEDDsurfindia.comDfinanceDstock market.html

• httpEDDwww.moneycontrol.com

• httpEDDwww.reliancemoney.com

• httpEDDwww.sebi.gov.in

• httpEDDwww.reliancecapital.com

• httpEDDwww.indiainfoine.com• httpEDDwww.icicidierct.com

• httpEDDwww.hdfcsecurity.com

• httpEDDwww.karvy.com

• httpEDDnseindia.com

• httpEDDbseindia.com

69

http://en.wikipedia.org/wiki/Stock_Markethttp://surfindia.com/finance/stock-market.htmlhttp://www.moneycontrol.com/http://www.reliancemoney.com/http://www.sebi.gov.in/http://www.reliancecapital.com/http://www.indiainfoine.com/http://www.icicidierct.com/http://www.hdfcsecurity.com/http://www.karvy.com/http://en.wikipedia.org/wiki/Stock_Markethttp://surfindia.com/finance/stock-market.htmlhttp://www.moneycontrol.com/http://www.reliancemoney.com/http://www.sebi.gov.in/http://www.reliancecapital.com/http://www.indiainfoine.com/http://www.icicidierct.com/http://www.hdfcsecurity.com/http://www.karvy.com/


70/74

QUESTIONNAIRE

Name+ 1Age+ 1 Se&+ 1 Male %emale

P%one No+ 1

1+ o you know about Investment options availableS

a+ Oes b+ -o

2+ In which of these %inancial Instruments do you invest intoS a+ !hares b+ $onds c+ (ommodity market

d+ Insurance e+ Mutual %unds f+ $anks

g+ &eal 6state i+ /thers

4+ What is the basic purpose of your investmentS

a+ Ai#uidity b+ &eturns

c+ (apital appreciation d+ &isk covering

e+ Tax benefits

7+ %rom which option you will get the best returnsS

70


71/74

a+ !hares b+ $onds c+ (ommodity marketd+ Insurance e+ Mutual %unds f+ $anks

g+ &eal 6state i+ /thers

9+ What are the most important things you take into account, while making any investmentS

a+ &isk b+ &eturns c+ $oth

:+ o you have any knowledge of share marketsS

a+ 0artial b+ (omplete c+ -il


72/74

a+ $rokerage b+ /perating 6xpanses

c+ !ervices d+ 0roducts

e+ !oftware

17+ Which !hare trading company provides good exposureS

19+ Which !hare trading company provides its !oftware to customersS

1:+ Which !hare trading company charges fair $rokerageS

72


73/74

1


74/74

Documents

Finance Project Burdwan