krutik IIP report1

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A

PROJECT REPORT

ON

Industrial Internship Program on

Capital Markets

At

UNDERTAKEN

AT

SHAREKHAN LTD, Anand

DURING FROM: 4

th

February2010 TO 25

th

June2010

SUBMITTED TO:-SEMCOM

SARDAR PATEL UNIVERSITY

IN PARTIALLY FULFILLMENT OF:

Master of E-Business

BY

KRUTIK R SHAH

30


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PREFACE

Master of E-business has long recognized the importance to our

curriculums courses in the areas of management and IT. Master of

E-business is a course which is conducted by S.P.Univesity in over

all Gujarat. The objective of this course is to provide the knowledge

about management and IT. The M.E.B. Programmed of Sardar

Patel University offered by Mr. Nikhil Zaveri from SEMCOM College

is with purpose to develop potential professional management IT

through practical training. This is our Industrial Internship

Program project after 3rd semester. The practical experience will

add our self-awareness in industrial training, and to put theoretical

knowledge in to practical.

In nutshell, the report consists of Share khan working in

mainly financial departments of the stock market. This training given

exposure to enhance & develop in industrial setting.

The experience gained through these esteem organization is

lifetime helpful. The documentation consists of what we learn during

the five months duration from a Share khan.

Personally I felt that this course has providing us very wide

opportunity. Because we can choose our career in any field. Like

either management or it.

The experience gain train practically to us on the stock market

& it has given opportunity to cope up with on the practical situation.


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Acknowledgement

I would like to express my sincere regards to the Unit head, all the

senior employees for giving their precious guidance and sharing theirexperience and knowledge regarding share and online trading.

I would like to give special thanks to my head Mr.Nimish thakrar

(Branch Manager) who guide me personally regarding product

knowledge, how to target the customer for the e-broking services, how

to generate database for new market segment which is providing

financial product such as shares, mutual fund, IPO, margin, margin plus,

KVC, insurance and other investment instruments.

I would also like to give sincere thanks to Mrs.Prapti Joshipura

(Associate Vice President) of Share khan and other staff members for

their timely help.

I am also very thankful to senior Dealer of Share khan security

who give me opportunity to with them in the field and how to treat

various client, how to serve the product knowledge to the customer, how

to convert potential client into confirm client, how to build up personal

relationship with the customer for the future reference of potential

customer etc.

It had absolutely knowledge and good experience to work in

Anand branch with live project of unique financial service online trading.

But my main work was only done through Nimish Thakrar sir. So I am

thankful to Nimish Thakrar sir because he is my head and give me sucha good knowledge in practical field and he is directly report to our

Associate Vice President Mrs.Prapti Joshipura.

Krutik shah


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INDEX

Sr.

No.

Topic Page

No.

1. Introduction about financial Products 7

2. Mutual Fund 13

3. INTRODUCTION OF NAV 21

4. Company Profile 24

5. Products providing by Share khan limited 28

6. Overview of KYC form 33

7. Types of products and services 35

8. Online trading 52

9. Findings and conclusion 59

10. Limitations 61

11. References 63


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EXECUTIVE SUMMARY

Stock market is an important indicator of the Economy of the

country. The Economy of the country depends upon the stock

market. Growing stock market is the healthy economic

condition.

The shares are one of the major portions of the investment of

the general people. The main objective of investment in share

is to get the benefit of the speculation. The returns from the

share are very high compare to other investment like bank

deposit govt. bonds mutual funds etc. The returns quit high in

shares but risk is always there.

Considering the topic we have to generate the awareness and

introduce the facilities and services for the customer

satisfaction to open Demat account in share khan who are

really interested in share trading. To gain profit by using share

khan consultants, knowledge about market fluctuation and also

collect the information about stock market.

I select trading facility at Share khan, because I can include all

the information about trading facilities provided by Share khan

and comparative analysis between Share khan and its

competitors like India Bulls Securities and ICICI diect.com.


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Share khan is really growing company in the stock market and

in online trading facilities. And then focusing about trading

facility at Share khan is suitable to be good project.

I know all the information about product and services offered by

Share Khan, brokerage in intraday and delivery day for trading

purpose. Various facilities provided by share Khan Trade better

in the markets in terms of research team and aware green

product in the market. The number of customer in the market.

Profit is earned by the company, number of retail shop of

company.


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Introduction

Stock market is quite complicated market so to understand the capital

market we must know how market works and transactions took place in

the market. Here is some brief idea about the share market.

Introduction to Share market

Mainly there are two stock market in India one is BSE (Bombay stock

Exchange) and NSE (National Stock Exchange) there are other stock

exchange also like vadodara stock Exchange, pune stock Exchange and

many. But main transactions are done in this two market. It depends

upon the company that in which exchange they wants to be listed. Many

companies are listed in both stock exchanges.

The indicator of the share market is called as share index. The share

index of whole Bombay stock exchange (BSE) is called as SENSEX and

index of National Stock Exchange is called as NIFTY.

The rise and fall in this index decide the indication of the share market.


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Different choices with an investor have to invest ones

saving

Income - Expenses =

Saving

Investment decision by

investor

3. Marketable

assets

-Shares, Bond,

Govt. Securities

etc.

-M.F. Schemes,

UTI schemes etc.

-Primary market

(IPO) OR

secondary market

investment.

1. Financial

Assets

-Cash

-Banks deposit

-

P.F.L.I.C.Schemes

-Post office

Certificates and

Deposits.

2. Physical

assets

-House, land,

building, flat,

shopping mall,

etc.

-Gold, silver and

other

commodities

-Customer

durables etc.


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Is it obvious that if any person is able to save some money from

his income then and only then question of investment decision

will arise? From the above we can see that any person cans

investment in financial asset, physical asset or in marketable

assets. Any accordingly can take and get return.

Types of Trading:

There are mainly three days of trading through which customer

can play in the share market they are as follows.

y Intra Day trading

y Delivery based trading

y Future and option trading.

Intra Day trading

As the name suggest intraday means during the day. The

trader purchases the share on particular day and sells it on

same day it is called intraday trading. For intraday trading

Special 4 times exposure is given by the share khan. It means

if a customer having 50000 Rs in his cash account then he can

purchase the share up to 200000 for intraday thus he can get

the benefit of 4 times exposure of intraday trading.


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If customer purchases the share of any company in the

morning but he fails to sell it till market close then he have to

take delivery of the share by paying full amount of shares. Thus

the holding period in intraday is very less but profit is very high

in intraday trading.

Delivery based trading

It is simple form of trading in which customer can purchase the

shares and sell whenever he wants to sell them out. There is

no any restriction of time period for delivery based trading.

Whether customer wants to sell the share he is free to sell at

any movement. In delivery based the holding period is very

long so it is safer than intraday trading because sooner or later

customer can get good profit.

Future and option Trading

Future and option trading is different from intraday and delivery

based trading. In f&o trading the customer cannot buy 12 or

1200 shares, customers have buy in lot which decided by the

company. Suppose the RIL having lot size of 300 then


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How to take investment decision in share market?

Risk and return relationships:

Risk is inherent in any investment. This risk may

relate to loss or delay in repayment of interest or variability

of return. While some investment are almost risk less like

government securities in risk as between instrument,

which can be represented as a spectrum of risk as in

figure below.

Yield or return is differs from the nature of the

instruments, maturity period and the creditor or debtor

nature of the instrument and a host of other factors. The

most important factors influencing return is risk. Normally,

the higher the risk, the higher is the return. The return is

the income plus capital appreciation in the case of

ownership investment and only yield or investment in the

case of debt instruments like debentures or bonds.

From investor point of view vary small research in

undertaken that what points any new investor should keep

in mind before investing in share market. These are under.

Total 325 investors including CAs, bank mangers,

government officers, high designed corporate officer, retail

investor and high net worth individuals etc. are targeted

for the research and asked them about their choices and

criteria for investment purpose in share market. The result

is as under.


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MUTUAL FUND

Basic Concept of Mutual Fund:

Mutual Funds collects money from a large group of

investor, pool them together and invest in different

securities

Where the professional fund managers manages their

fund and generates returns from it


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Mutual Funds - The Logic behind Investing in Them

Mutual funds are investment companies that pool money frominvestors at large and offer to sell and buy back its shares on a

continuous basis and use the capital thus raised to invest insecurities of different companies. This article helps you to knowin depth on:

y Is it possible to diversify investment if invested in mutualfunds?

y Find more on the working of mutual fund.

y Know more about the legal aspects in relation to themutual funds

At the beginning of this millennium, mutual funds out numberedall the listed securities in New York Stock Exchange. Mutualfunds have an upper hand in terms of diversity and liquidity atlower cost in comparison to bonds and stocks. The popularity ofmutual funds may be relatively new but not their origin whichdates back to 18th century. Holland saw the origination ofmutual funds in 1774 as investment trusts before spreading toAnglo-Saxon countries in its current form by 1868.

We will discuss now as to what are mutual funds before goingon to seeing the advantages of mutual funds. Mutual funds areinvestment companies that pool money from investors at largeand offer to sell and buy back its shares on a continuous basisand use the capital thus raised to invest in securities of differentcompanies. The stocks these mutual funds have are very fluidand are used for buying or redeeming and/or selling shares at anet asset value. Mutual funds posses shares of several

companies and receive dividends in lieu of them and theearnings are distributed among the share holders.

A Brief of How Mutual Funds Work

Mutual funds can be either or both of open ended and closedended investment companies depending on their fundmanagement pattern. An open-end fund offers to sell its shares


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DIFFERENT PLANS OF MUTUAL FUNDS:

1. GROWTH:Where the income generated by way of

capital appreciation stays in the fund and is reflected by risein NAV.

2. BONUS:Where the unit holder receives additional units

as bonus when the value of the fund appreciates.

3. DIVIDEND PAYOUT:Where the capital appreciation is

passed on to the unit holder by way of dividends.

4. DIVIDEND REINVESTMENT:Where the dividends are

reinvested into the fund by buying additional units on therequest of unit holders.

5. SYSTEMATIC WITHDRAWAL PLAN:SWP enables

one to withdraw a fixed amount according to apredetermined frequency that you specify to the fund.

6. SYSTEMATIC TRANSFER PLAN:STP allows one to

transfer a fixed amount of money from one scheme to theother.

7. SYSTEMATIC INVESTMENT PLAN:

SIP lets youinvest in parts instead of one single lump-sum amount.


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Learn the Types before Investing in Mutual Funds

There is no one method of classifying mutual funds risk free oradvantageous. However we can do the same by way of

classifying mutual funds as per their functioning and the type offunds they offer to investors. This article makes you aware on:y What are the reasons that make the close ended mutual

finds more attractive?

y What are the factors that determine the prices ofexchange traded funds?

y Find out the features of open ended mutual funds

There is no one method of classifying mutual funds risk free or

advantageous. However we can do the same by way ofclassifying mutual funds as per their functioning and the type offunds they offer to investors. If we took the middle path andclassify broadly we get the following list.

Open End Mutual Funds

All mutual funds by default and by definition are open endfunds. Here an investor can buy the shares at any point of timeand exit from it at any time of his choice. Both buying and

selling will be at the current NAV subject to load factors whereever applicable. Though this is a very broad category, one caneasily say this is the most popular of the lot looking at the easewith which one can liquidate his holding (exit from position byselling or redemption to the trust/fund). Affordability is anotherkey factor that decides the popularity of open end funds. Thosewho cannot afford high initial prices can buy with low dollarvalues and even on a monthly basis.

Closed End Mutual FundsSelling off of a specified and limited number of shares by themutual funds at an initial public offering is known as closed endmutual fund. However one important difference between openend fund and closed end mutual fund is that the price of thelatter is decided by demand and supply of the stock in the


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market and not by NAVs unlike in the former case. The pooledfunds are utilized as per the mandate of the fund and Securitiesand Exchange Commission's regulations. They are traded morelike the general stocks. Some of the reasons to invest in this

categoryy Prices are determined by market demands and thus

closed end funds trade at lower than the offer price moreoften than not which is a perfect time for buying (atdiscounted prices)

y Like in the open end funds there are wide options for youto choose from. Like stock funds, balanced funds that givefull asset allocation benefit and thirdly the bond funds.

Exchange Traded FundsThe Exchange Traded Funds are a basket of stocks and tradelike a normal security on exchanges tracking index much likeindex funds. The prices of the ETFs are determined by marketforces and thus no NAVs can be fixed. The advantages ofETFs include buying and selling like you can do with any stocktraded on the exchange not excluding short selling while youenjoy the diversification of an index fund. There no fees/loadson these funds other than the commission you pay to thebroker. There are many popular funds in this class and one ofthem is SPDR that tracks S&P 500 index.


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SOME OF THE TERMINOLOGIES USED IN THE MUTUALFUNDS:

1. N.A.V.:Net asset value is the market value of the assets

of the schemes minus its liabilities divided by the unitsoutstanding. Simply put, if the fund is dissolved or liquidated,by selling off all the assets in the fund, this is the amount thatthe unit holders would collectively own. The NAV is used tocalculate the value of your investments and to determine theprice of per unit for buying or selling.2. PORTFOLIO:

Combined holdings of many kinds offinancial securities like shares, debentures and bonds. The

objective is risk diversification and maximization of gain ofgroup of assets.3. CORPUS:

The total amount of money that a fund has atany point of time.4. UNIT:

A unit represents an investors share in the assetsof the schemes s/he has invested.5. LOAD:

A load is a one-time sales charge paid by aninvestor while buying or selling units of a scheme. An entryload is charged at the time of purchase of units and an exitload is charged at the time of redemption.6. EXPENSE RATIOS:

Expense ratio is defined as the ratioof total expenses to the net assets of the fund. It is theannual percentage of the funds assets that is paid out inexpenses. Expenses include management fees and all the

fees associated with the funds daily operations. The ratio islisted in a funds offer document. The expense allowed for afund is a percentage of the weekly average net assetsoutstanding.


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Top 5 Mutual Fund Houses:

Top 5 MF

houses1 Reliance

MF

2 UTI MF

3 ICICIPrudential

4 HDFC MF

5 Franklin

Templeton


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INTRODUCTION OF NAV

The net asset value of the fund is the cumulative market valueof the assets fund net of its liabilities. In other words, if the fundis dissolved or liquidated, by selling off all the assets in thefund, this is the amount that the shareholders would collectivelyown. This gives rise to the concept of net asset value per unit,which is the value, represented by the ownership of one unit inthe fund. It is calculated simply by dividing the net asset valueof the fund by the number of units. However, most people referloosely to the NAV per unit as NAV, ignoring the "per unit". Wealso abide by the same convention.

Calculation of NAV

The most important part of the calculation is the valuation of theassets owned by the fund. Once it is calculated, the NAV issimply the net value of assets divided by the number of unitsoutstanding. The detailed methodology for the calculation of theasset value is given below.

Asset value is equal to

Sum of market value of shares/debentures

+ Liquid assets/cash held, if any

+ Dividends/interest accrued

Amount due on unpaid assets

Expenses accrued but not paid


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Details on the above items

For liquid shares/debentures, valuation is done on the basis ofthe last or closing market price on the principal exchangewhere the security is traded

For illiquid and unlisted and/or thinly traded shares/debentures,the value has to be estimated. For shares, this could be thebook value per share or an estimated market price if suitablebenchmarks are available. For debentures and bonds, value isestimated on the basis of yields of comparable liquid securitiesafter adjusting for illiquidity. The value of fixed interest bearingsecurities moves in a direction opposite to interest rate changesValuation of debentures and bonds is a big problem since mostof them are unlisted and thinly traded. This gives considerableleeway to the AMCs on valuation and some of the AMCs arebelieved to take advantage of this and adopt flexible valuationpolicies depending on the situation.

Interest is payable on debentures/bonds on a periodic basissay every 6 months. But, with every passing day, interest issaid to be accrued, at the daily interest rate, which is calculatedby dividing the periodic interest payment with the number of

days in each period. Thus, accrued interest on a particular dayis equal to the daily interest rate multiplied by the number ofdays since the last interest payment date.

Usually, dividends are proposed at the time of the AnnualGeneral meeting and become due on the record date. There isa gap between the dates on which it becomes due and theactual payment date. In the intermediate period, it is deemed tobe "accrued". Expenses including management fees, custody

charges etc. are calculated on a daily basis.


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ADVANTAGES OF MUTUAL FUND

SMALL INVESTMENT:

DIVERSIFICATION:

PROFESSIONAL MANAGEMENT:

LIQUIDITY:

TAX BREAKS:

CONVENIENCE:

Type of the scheme: Open-ended and Closed-ended

Basic options of the scheme:

Growth

Dividend Payout

Dividend Reinvestment

Growth and dividend are based on Net asset value. And

dividend and growth have different NAV.


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Company Profile

Share khan is one of the leading broking houses providing a

complete life of investment solution like equities and derivative

trading, commodities trading, depository service, portfolio

management service, mutual funds etc.IPO service,

fundamental and technical research and on line trading.

Share khan was registered under the SSKI group, but now its

with ContiGroup. Share khan successful among the 3 large

players in India, Share khan is working in 900 + shop office and

in 130 cities share khan is one of the most important and

successful broker in the share market and share khan is also

present in internet through www.sharekhan.com an

organization has over 8 decades of stock broking experience.

Share khan can offer trade execution facilities on BSE andNSE, for cash derivative markets, depository service and most

important investment advice tempered by 80 years of research

and broking experience, Share khan offers multi channel

access to the stock market.


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Brokerage details

Brokerage change for delivery trade 0.5%

Brokerage for intraday trade is 0.1%

Brokerage for F & 0.01 % (0/02%) is charged in case of

intraday squaring)

All brokerage is exclusive of taxes.

Service tax of 10.20% of brokerage is charged additionally.

Securities transaction tax STT at the rate of 0.1% of turnover

will be charged in addition to the brokerage on all delivery

trades.

STT at the rate of 0.02% of turnover will be charged in

addition to the brokerage on sell leg of all non delivery

(intraday) trade.

Market research

Share khan can provide news letter and analytical reports to

help you decide which share to select when to buy or sell,

accounts holders get research based investments advice with

recommendation to buy share of the companies. Whose

prospects store good, these recommendation are termed as

stock ideas.


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Research team

All this is made possible by a team dedicated to analysis that

have years or working experience in the industries that they

track, and a proven track record in using their knowledge of the

investment science to deliver result.

Share khan in Anand

Share khan has good reputation in Anand. Share khan has

more than 2500 satisfied customer in Anand.

y Out of 2500 customers, 25% customer is dealing in

intraday.

y 50% customers are dealing in delivery day.

y 12% customer is dealing in future and opinion

y And 8% are dealing in commodities.

y 5% are trade in HNI


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Products and Services providing by Share khan ltd:-

A product for every need: Sharekhan.com is the mostcomprehensive website, which allows you to invest in Shares,

Mutual funds, Derivatives (Futures and Options) and otherfinancial products. Simply put we offer you a product for everyinvestment need of yours.

1. Trading in shares:

Sharekhan.com offers you various options whiletrading in shares.

Cash Trading : This is a delivery based trading system, which isgenerally done with the

Intention of taking delivery of shares or monies.

Margin Trading :

You can also do an intra-settlement trading up to 4 times youravailable funds, wherein you take long buy/ short sell positionsin stocks with the intention of squaring off the position within the

same day settlement cycle.

Margin PLUS Trading

Through Margin PLUS you can do an intra-settlement tradingup to 25 times your available funds, wherein you take long buy/short sell positions in stocks with the intention of squaring offthe position within the same day settlement cycle. Margin PLUSwill give a much higher leverage in your account against yourlimits.

Spot Trading :

This facility can be used only for selling your Demat stockswhich already exist in your Demat account. When you arelooking at an immediate liquidity option, 'Cash on Spot' maywork the best for you, On selling shares through "cash on spot",


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money is credited to your bank a/c the same evening & not onthe exchange payout date.

BTST:

Buy Today Sell Tomorrow (BTST) is a facility that allows youto sell shares even on 1st and 2nd day after the buy order date,without you having to wait for the receipt of shares into yourDemat account.

Call Trade :- (telephonic trading)

Call Trade allows you to call on a localnumber in your city & trade on the telephone through our

Customer Service Executives. This facility is currently availablein over all branches across India.

Trading on NSE/BSE:-

Through sharekhan.com, you can trade on NSEas well as BSE.

Market Order:-

You could trade by placing market orders during market hoursthat allows you to trade at the best obtainable price in themarket at the time of execution of the order.

Limit Order:-

Allows you to place a buy/sell order at a price defined by you.The execution can happen at a price more favorable than theprice, which is defined by you, limit orders can be placed byyou during holidays & non market hours too.


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2. TRADE IN DERIVATIVES:

FUTURES:-

Through sharekhan.com, you can now trade in indexand stock futures on the NSE. In futures trading, you takebuy/sell positions in index or stock(s) contracts having a longercontract period of up to 3 months.

Trading in FUTURES is simple! If, during the course of thecontract life, the price moves in your favors (i.e. rises in caseyou have a buy position or falls in case you have a sellposition), you make a profit.

Presently only selected stocks, which meet the criteria onliquidity and volume, have been enabled for futures trading.

Calculate Index and Know your Margin are tools to help you incalculating your margin requirements and also the index &stock price movements. The Share khan Company on theHOME page is a comprehensive guide on futures and optionstrading.

OPTIONS:-

An option is a contract, which gives the buyer the right to buy orsell shares at a specific price, on or before a specific date. Forthis, the buyer has to pay to the seller some money, which iscalled premium. There is no obligation on the buyer to completethe transaction if the price is not favorable to him.

To take the buy/sell position on index/stock options, you haveto place certain % of order value as margin. With optionstrading, you can leverage on your trading limit by taking buy/sellpositions much more than what you could have taken in cashsegment.

The Buyer of a Call Option has the Right but not the Obligationto Purchase the Underlying Asset at the specified strike price


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by paying a premium whereas the Seller of the Call has theobligation of selling the Underlying Asset at the specified Strikeprice.

The Buyer of a Put Option has the Right but not the Obligationto Sell the Underlying Asset at the specified strike price bypaying a premium whereas the Seller of the Put has theobligation of buying the Underlying Asset at the specified Strikeprice.

By paying lesser amount of premium, you can create positionsunder OPTIONS and take advantage of more tradingopportunities.


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3. Investing in Mutual funds:

Sharekhan.com brings you the same convenience whileinvesting in Mutual funds also - Hassle free and Paperless

Investing.

With the inclusion of Fidelity MF, you can now invest on-line inmutual Funds through sharekhan.com. Prudential ICICI MF, JMMF, Alliance MF, Franklin Templeton MF, Sundaram MF, BirlaSun Life MF, HDFC MF, Principal MF, UTI MF, Reliance MF,Kotak MF, Tata MF, DSP Merrill Lynch MF, ING Vysya MF,CHOLA MF, Deutsche MF, HSBC MF, Lotus MF and StandardChartered MF are the Mutual Funds available for investment.

You can invest in mutual funds without the hassles of fillingapplication forms or any other paperwork. You need nosignatures or proof of identity for investing.

Once you place a request for investing in a particular fund,there are no manual processes involved. Your bank funds areautomatically debited or credited while simultaneously creditingor debiting your unit holdings.

You also get control over your investments with online order

confirmations and order status tracking. Get to know theperformance of your investments through online updating ofM`F portfolio with current NAV.

To trade with BSE, NSE & DP, IPO and MF client have to fill upa KYC (know your customer) form.


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An overview of KYC form

Individual accounts constitute around 95% of the accountopened with Share khan all details of the clients must be written

on the KYC by the client himself. A client is required to signwith 17 signatures & 17 initials. (For branch clients) & 19signatures and 29 initials (for business partner clients) acrossvarious documents and agreements contained in the KYCaccount open form.

Share khan having both facility online trading and offlinetrading. For more convenient and easy trading if client wants toconvert their offline trading to online trading so that is also

possible trough Share khan. And for that client have to go verysimple formality.

If any NRI wants to invest in Indian market that is also possiblethrough Share khan

The procedure for an NRI to start investing in Indian stockmarket is as follows.

1) Open a bank account with an approved designated

branch.2) Get approval of designated bank for investment in Indian

stock market. The designated branches of leadingcommercial bank are authorized for issuing RBI approvedwhich is called portfolio investment scheme.

3) Open a Demat account with a depository participant.4) Appoint a broker to execute trades on his or broker to

execute trades on his or her behalf on the exchange. AnNRI is investment in the secondary will be routed through

his or her PIS account would be PIS NRE or PIS NROdepending on the source of funds, that from NRE savingsaccount or NRO saving account respectively.

His or Her other investment including IPOs and MF will berouted directly from or her NRE or NRO savings account nottrough the PIS account.


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Portfolio investment schemes (PIS):-

PIS is a scheme of RBI under which NRIs and PIOs canpurchase and sell shares and convertible debentures of

Indian companies on a recognized stock exchange in Indiaby routing all such purchase or sale transactions throughtheir account held with a designated bank branch.

RBI has authorized a few main branches of majorcommercial banks as authorized dealers to offer PIS.


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TYPES OF ACCOUNTS

(1)

CLASSIC ACCOUNT

Classic Account is suggested for those investors whose trading

volume is low, who do not trade frequently. This is web base

service which provides easy trading to the customers.

Classic Account Includes;-

y Demat Account

y Trading account

y Cash Account

Features;-

1 The web site is meant for customers who invest in

equities.

2 Facilities to integrate choose of 4 bank /DP/ trading

account

3 Instant credit for share sold from DP

4 4 times leverage of margin trade.

5 Margin trading available for entire market session

6 Free calls for order placement on tall free number

7 Daily research news letter.

8 Advance portfolio monitoring tools


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9 Cash and derivative trading in a single account.

10 Access to IPO without any paper work.

11 E-mail conformation for all transitions.

12 Choice of linking 4 banks to trading account for online

payment.

SAILENT FEATUERS OF CLASSIC ACCOUNT

Classic facilities of instant order execution and confirmation

both for trades in case as well as the derivatives segment.

It enables access to live rates, through not streaming for case &

derivatives segment.

It facilitates you with important market statistics such as

technical custom, trends in the various indices & volumes in

different scripts and other relevant statistics.

It also allows you to view customized market statistics for your

selected scripts in both the segments by allowing you to create

customize market watch folders of your choice.

It allows you to create your own portfolios to monitor & manage

your equity & mutual fund investment.

It allows you a back up facilities to place the trades on a tele-

broking facility named dial n trade & also an access to the

applet based online facility named fast trade. It also provides

access to various research products of share khan.


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It also provides other facilities like online IPO, mutual fund

application trading limit against DP holdings, short selling,

BTST, dedicated customer service & so on.

COMPLEATE CLASSIC ACCOUNT FEATERS

LOGIN PROCEDERS IN CLASSIC A/C

HEADER SECTION IN CLASSIC A/C

HOME/ OTHERS

ACCOUNTS

MY PROFILE

TRADING IN CASE SEGMENT

TRADING IN F& O SEGMENT

REPORTS FOR CASE SEGMENT

RESEARCH

MARKET WATCH IN CLASSIC A/C

ONLINE IPO APPLICATION & OTHER TRAKINGIPO FUND TRANSFER & ALLOCATION A/C TRAKING

MUTUAL (ORDERS)

MUTAL FUND (ACCOUNTS)

MUTUAL FUND (REPORTS)

MUTUAL FUND (KNOWLEDGE CENTRE)


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Benefits:-

y Live terminal of NSE, BSE, F & O

y 5 times credit limit

y Buy today sell tomorrow facility

y Suitable for high volume and intraday traders.

y One sided brokerage one intraday trading.

y Phone trading from toll free numbers.

y Advice by highly qualified portfolio managers

y Digital contact

y Quarterly Transaction statement.

Charges:-

RS 530 Charges on 10000rs margin.

Account opening free if 25000rs margin


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(2)

FAST TRADE (TRADE TIGER)Share khan can provide speed trade account for the

customers whose turnover is quit high compare to classic

customer they are the daily intraday traders. These

customers need fast access of terminal and better service.

So this product is design for HNI clients.


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Features:-

1 Software based product.

2 Live terminal

3 Nil paper work

4 Instant access

5 Online banking facilities.

6 Toll free trading facility

7 After market hours orders.

SAILENT FEATUERS OF FAST TRADE:

1. It enables access to the real time streaming quotes &offers a single screen interface to the case & derivative

segment.

2. It facilitates you with the important statistics such as

custom, trend in the various indices & customize in the

customize scripts, market-depth & other relevant statistics.

3. It also allows you customized market statistics for your

selected scripts in both the segment by allowing you to

create separate market watch folders of your choice.

4. It allows you a back up facility to place the traders on a

browser based facility, i.e. classic a/c & dial & trade.

5. Software based product.

6. Live terminal

7. Nil paper work

8. Instant access

9. Online banking facilities.

10. Toll free trading facility

11. after market hours orders.


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Benefits:-

y Real time steaming quotes using 2 markets

y Trade execution in 2-3 seconds

y Instant order/ trade conformation in the same window.

y Hot keys available

y Multiple tic- by the intraday chart with multiple

indicators.


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Fast and Reliable execution

This is a fast trade product for HNI client. This is very latest

software for trading includes equities, mutual fund, IPO,

commodities, Derivatives with graph analysis.


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Features:-

1.) Software based product.

2.) Live terminal

3.) Nil paper work

4.) Instant access

5.) Online banking facilities.

6.) Toll free trading facility

7.) After market hours orders.8.) Trade in MF, IPO, derivatives, and commodities.

9.) Technical analysis.

Features of D n T

1. Dedicated Toll-Free number for order placements

2. Automatic fund transfer with phone banking

3. Simple an secure IVR based for authentication

4. No, wait time. On entry of phone ID & TPIN, the call is

transferred.

5. Trusted, professional advice of Tel- brokers who after

undiluted share khan research inputs.

6. After- hours order placements facility.

7. PAN India accessibility.

8. Back up numbers

9. Unlimited number of calls

10. Complete recording infrastructure


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11. Timely execution of orders

12. Latest markets & company updates

13. Complete customer orientation

Benefits:-

y Real time steaming quotes using 2 markets

y Trade execution in 2-3 seconds

y Instant order/ trade conformation in the same window.

y Hot keys available

y Multiple tic- by the intraday chart with multiple

indicators.

Online Portfolio Management service.

Technical

Fundamental

Under Technical products

Short-Term Planning

Future and option(Nifty)

Nifty and derivatives both are same product means

in future and option we dont buy stock of future

but a Future and option depends on index.

Under Fundamental Products

o Long Term Planning

o Delivery base buying


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o Pro prime (pro prime define that which has highest

goodwill they can only buy the products.)

o Derivative Portfolio: - It manages through local

branch broker through advice of a research team.


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Portfolio manager:

Sharekhan.ltd has expert and qualified portfolio manager who

guide investor and according their need they can frame ones

portfolio with maximum return and minimum risk. The analyst

mainly holds certificates like AMFI, NCFK etc. and they have

good experience and expertise.

You can keep track of all the stock you own and even

those you dont with Share khan manager. Every time you log

on, youll be getting the present value of your holdings, as ofthat instant.

Call and Trade: Sharekhan.com also provides you call and

trade facilities to their investors. This feature is also adapted by

icicisecurities.com, Kotak Securities and others. The main aim

to facilitate the client and to increase the market area. People

can able to a month (generally market is 22 days open inmonth) then Rs. 25. Is charged to every call.


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SHAREHOLDERS HOLDING %

CITI VENTURE CAPITAL AND OTHER

PRIVATE EQUITY FIRMS

81

IDFC 9

EMPLOYEES 10

Share khan Key Team Members

Tarun P. Shah

CEO

Education B.Sc.

Experience: 16 years

Previous company

Been with SSKI Group

Shankar Vaitya

Director operations

Education: CA

Experience- 16 years

Previous company:

Been with SSKI group


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Jaideep Arora

Director product & technology

Education: MBA

Experience: 11 years

Previous company

ICICI

And 750 more .


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25 ANALYSTS FOR FUNDAMENTAL, TECHNICAL AND

DERIVATIVES RESEARCH

PRODUCTS FOR DIVERSE CUSTOMERS

RETAIL FRIENDLY & DEJARGONISED

ABILITY TO DELIVER IN REAL TIME


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ONLINE TRADING:

It is a concept whereby an individual can enjoy the working ofstock market on his own just by surfing a particular sight. There

are no complexities of paperwork and thus it becomes veryconvenient to operate without laborious task.

This concept is growing very fast thanks to the awareness ofthe people using internet and it is expected to grow even fasterin coming years with fast changing world and as part of a bettercustomer service.

One can easily trade even when he/she is traveling. This is the

level of flexibility it provides. One just needs to have an internetconnection with him.

With a Share khan online trading account, you can buy and sellshares in an instant! Anytime you like and from anywhere youlike!

You can choose the online trading account that suits yourtrading habits and preferences - the Classic Account for most

investors and Trade tigerfor active day traders. Your ClassicAccount also comes with Dial-n-Trade completely free, which isan exclusive service for trading shares by using your telephone.


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BENEFITS OF ONLINE TRADING:

1. FREEDOM FROM PAPERWORK:Integrated trading, bank

and Demat account (auto paying & payout of securities) withdigital contracts removes all paperwork.

2. INSTANT CREDIT AND TRANSFER:Instant transfer of

funds from any bank accounts to trading account.

3. TRADE ANYWHERE:One can enjoy the ease of trading

from any part of the world in a completely secure environment.

4. DIAL n TRADE:A Person can call on the particular number

to place orders through the teleprocess.

5. TIMELY ADVICE:An individual can make informed

decisions with expert advice, investment calls and live market

commentary.

6. REAL-TIME PORTFOLIO TRACKING:Benefit from real-

time information of investment and current portfolio value.

7. AFTER-HOUR ORDER:This can be considered one of the

main advantages online trading because it helps placing orders

even after market hours which get executed as soon asmarkets open.

Thus online trading has some very unique features andadvantages of its own and hence it is very flexible and useful.


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With a Share khan online trading account, you can buy and sellshares in an instant! Anytime you like and from anywhere youlike!

You can choose the online trading account that suits yourtrading habits and preferences - the Classic Account for mostinvestors and Trade tigerfor active day traders. Your ClassicAccount also comes with Dial-n-Trade completely free, which isan exclusive service for trading shares by using your telephone.


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SHAREKHAN.COM

Parameters Sharekhan.com

Charges A/C opening charges 530.00Brokerage

-derivatives 0.20%-Intraday 0.10%

Equity delivery 0.30% slab wiseDP charges 0.04% or Rs.25whichever is higher.Demat account maintenance charges 430

Margin Money 10000 Rs.FacilitiesThree in one account yesK.E.A.T. YesCharts YesRecommendations

-Daily Yes-Weekly Yes-Monthly Yes

Margin-Cash Yes-Intraday Yes

Call and trade yesBuy now sell tomorrow guarantee yesTransaction speed FASTVarious financial products:

Mutual fund YesIPO Yes

Derivatives YesIntraday YesA different equity product choice is with investors.


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Other benefits:

Market coverage DevelopedBanking tie up choice more than 5banks

Customer care services Personal level After sales services Personal levelDocumentation procedure shortTimeliness in activation of broking 3-4days.Facilities Employment level

Benefits to employee Primarylevel

Career building of employees Very goodBrand image BEST

Advisory services StandardPortfolio management services Standard


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Customer care or after sale services.

Online account activation services:

The company doing account activation activity andfor that special trained executives are there who are expert atcomputer knowledge and activation procedures. So now itbecomes very easy for the client to activate and work withones own terminal. Activation will take hardly 15 minutes.

E-broking service knowledge:

Once account is open then demonstration team will

go to client and give the explanation or the sharekhan.comsites and trade tigers software knowledge. Generallydemonstration term go with the activation team so they can dotheir work simultaneously. Executives gives sheer knowledgeabout the site and how every feature helpful to the client andremove their confusion regarding online trading.

Daily calling for trading:-

Sharekhan.com has their own telecalling team whichdaily call to their client who have no computer facility and guidethem to buy or sell the stocks. The main aim to use thesetelesales is to enhance the knowledge and awareness in clientabout the market trend as well as to increase brokerage bymaking client trading.

Weekend tuitions for new investors:-

Sharekhan.com also started weekend tuition for newinvestors who dont know how to trade online or how to operateK.E.A.T so this is very unique strategy of customer care andafter sale services. Experts give demonstration of the site andtell about every features and usage of the sharekhan.com aswell as clear their all doubts share market.


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Special guidance and portfolio management:-Sharekhan.com has also give guidance online as

well as on telephone to their customers about any future aboutany panic rumor, technical problem has online system. The

company is also guiding to their clients to frame portfolio orwork as ones investment manager. Thus they are providingafter sale services at personal level.


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FINDINGS & CONCLUSION

During five months of industrial internship program there are

many things which come in light about the financial market.

There are many different findings of the project which are as

follows.

During the program it is found that in stock market the customer

is very rational. Customer wants high profit but he does not

want to take high risk. As in share market the risk is very high

so general people dont dare to invest in shares, but systematic

study of market gives good idea about the trend of share

market so that customer can get some good idea about stock

so the risk can be minimizing to some extent.

Previously to purchase & sell the shares the customer has to

go to the broker. Broker has his own trading account through

which he can purchase or sell shares on behalf of his client.

Broker open Demat Account for his clients and shares are

transfer in clients account after the trade. This type of trading is

called as off line trading. In offline trading broker plays an

important role. In offline trading the customer have seat with

broker or have continuously touched with broker for trading. So

people who are busy in their work cannot concentrate on the

market regularly.

But after the introduction of online trading facilities the trading

become very easy and very convenient to everyone. Now


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customer can keep watch on market even in their office, shop,

house with the help of internet, and phone, so after the

introduction of online trading account the invest in share has

increase which has positive effect on the share index.

After the comparative analysis of the online trading account of

different securities company it is found that share khan has

very good market share in Anand. Share khan has good market

reputation in Anand because of its better services, high return

stock ideas, and regular tips for share. Because of these 42%

online share traders in Anand. Use the online trading account

of share khan. And they are very satisfied with the service

provided by the company.


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Limitations

Limitation mean various obstacles which occur during the

project as Stock market is always fluctuating so it biggest

limitation in the marketing of securities. It is very difficult to

convince the customer to invest his valuable saving in risky

market.

Researcher starts his project work in 1st June 2008. There was

big collapse in share market in May 2008 when the sensex falls

from 22,000 points to 12,000 points. So it becomes very difficult

to convince the customer to open an online trading account and

invest in shares in falling market. The funds of the customer

were blocked because of market fall so they are no more

interested to invest more in the shares.

Some customers are willing to open online trading account but

they are waiting for further falls in the market so that they can

purchase the shares in low prices.

Some major limitations which were face by the researcher

during the project work as follows.

y Sudden fall in sensex in May 2008 creates panic in the

share market.


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y Due to market fall customers funds were blocked and

customers were no more interested to invest more.

y Future expectation about fall the prices of share, the

customer tend to wait for fall in prices.


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ReferencesWeb site & Magazine,

1. sharekhan.com

2. sharekhanlearning.com

3. NSEindia.com

4. BSEindia.com

5. Value guide.

Branch Manager of Share khan: -Mr. Nimish thakrar.

Associate vice President of Share khan: -Mrs.Prapti Joshipura

Documents

krutik IIP report1