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SUMMER TRANNING PROJECT REPORT
on
TOPIC
INVESTOR BEHAVIOUR ANALYSIS WITH REFERENCE TO SHAREKHAN (for
DEMAT Account)
A Project report submitted in partial fulfillment for the Award of the
Master of Business Administration (MBA)
Submitted to:- Submitted by:-
Controller of Examination Name of Candidate : Devender sehgal
MDU Rohtak Roll No. : 09/MBA/012
B.S.A. Institute of Technology & Management
Alampur,Ballabgarh-Sohna Road, Faridabad.
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PREFACE
Share trading in India is undergoing a transition and consolidation phase witnessed never
before. The competition is likely to become so severe after the entry of many players, retaining a
customer is most difficult practice for any service provider.
Though India has a very big untapped market but the players will not flourish unless they
change the way the customers are being served. Given the awareness level of today customers
every player has to treat with care and make the customer feel that he is the king. Number of
Online Share trader in India has crossed the line. More and more customers are coming under
this umbrella and many of the existing one are changing pavilion. So customer retention and
satisfaction is now more important as it was never before. Players keep coming with new
schemes in order to attract new customers and retain the existing one. This is being
supplemented with increased advertising and brand building efforts. Success of any organization
depends upon its being proactive.
I am very lucky as I got an opportunity to work with SHARE KHAN LTD which is
showing phenomenal growth and success in the Securities.
My topic of study was studying the working process of share khan ltd. This project is an effort
to do a depth study and analysis of various known and unknown reasons for customer
satisfaction and retention. To err is human and I am not an exception, valuable comments are
always welcomed since it will motivate to work with greater zeal and efficiency in the future.
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ACKNOWLEDGEMENT
In this present world of competition there is a race of existence in which those who are having
will to come forward will succeed. The research project is a bridge between practical and
theoretical working, with this will I have started on the same. I really wish to express my
gratitude towards all those people who have helped me.
I am also very thankful to Mr. Narender Tanwar,(HOD MBA) for his timely guidance,
supervision & encouragement that have helped me to get this golden opportunity and who
provided me his expert advise, inspiration & moral support in spite of his busy schedule &
assignments, has mainly provided my understanding of this research project.
I am also very thankful to Mr.Rajan kumar (Assitant sales manager) , Sharekhan Ltd for
their support and guidance.
Last , but not the least, I say only this much that all are not to be mentioned but none is forgotten
and I will like to extend my special thanks and gratitude to my parents who always encourage me
in pursuit of excellence.
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TABLE OF CONTENT
Chapter No. Title Page No.1. INTRODUCTION OF THE COMPANY
2. INTRODUCTION OF THE TOPIC
3. RESEARCH METHODOLOGY
Introduction
Research type
Research Design
Sample size
Data collection methods
Objectives of the study
Scope of the study
Limitations of the study
4. DATA COLLECTION AND ANALYSIS
5. FINDINGS OF THE STUDY
6. CONCLUSIONS AND SUGGISTIONS
7. APPENDIX
Questionnaire Biblography
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CHAPTER 1
INTRODUCTION OF THE COMPANY
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SHARE KHAN LTD.
Sharekhan is online stock trading company ofSSKI Group, provider of India-based investment
banking and corporate finance service. ShareKhan is one of the largest stock broking houses in
the country. S.S. Kantilal Ishwarlal Securities Limited (SSKI) has been among Indias leading
broking houses for more than a century.
Sharekhan's equity related services include trade execution on BSE, NSE, Derivatives,
commodities, depository services, online trading and investment advice. Trading is available in
BSE and NSE. Along with Sharekhan.com website, ShareKhan has around 510 offices (share
shops) in 170 cities around the country.
Share khan has one of the best state of art web portal providing fundamental and statisticalinformation across equity, mutual funds and IPOs. You can surf across 5,500 companies for in-
depth information, details about more than 1,500 mutual fund schemes and IPO data. You can
also access other market related details such as board meetings, result announcements, FII
transactions, buying/selling by mutual funds and much more.
Sharekhan Ltd. is one of the leading retail stock broking house of SSKI Group which is running
successfully since 1922 in the country. It is the retail broking arm of the Mumbai-based SSKI
Group, which has over eight decades of experience in the stock broking business. Sharekhan
offers its customers a wide range of equity related services including trade execution on BSE,
NSE, Derivatives, depository services, online trading, investment advice etc.
The firms online trading and investment site - www.sharekhan.com - was launched on Feb 8,
2000. The site gives access to superior content and transaction facility to retail customers across
the country. Known for its jargon-free, investor friendly language and high quality research, the
site has a registered base of over one lakh customers. The content-rich and research oriented
portal has stood out among its contemporaries because of its steadfast dedication to offeringcustomers best-of-breed technology and superior market information. The objective has been to
let customers make informed decisions and to simplify the process of investing in stocks. On
April 17, 2002 Sharekhan launched Speed Trade, a net-based executable application that
emulates the broker terminals along with host of other information relevant to the Day Traders.
This was for the first time that a net-based trading station of this caliber was offered to the
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traders. In the last six months Speed Trade has become a de facto standard for the Day Trading
community over the net. Share khans ground network includes over 1288 centers in 325 cities in
India which provide a host of trading related services. Sharekhan has always believed in
investing in technology to build its business. The company has used some of the best-known
names in the IT industry, like Sun Microsystems, Oracle, Microsoft, Cambridge Technologies,
Nexgenix, Vignette, Verisign Financial Technologies India Ltd, Spider Software Pvt Ltd. to
build its trading engine and content. The Morakhiya family holds a majority stake in the
company. HSBC, Intel & Carlyle are the other investors. With a legacy of more than 80 years in
the stock markets, the SSKI group ventured into institutional broking and corporate finance 18
years ago. Presently SSKI is one of the eading players in institutional broking and corporate
finance activities. SSKI holds a sizeable portion of the market in each of these segments. SSKIs
institutional broking arm accounts for 7% of the market for Foreign Institutional portfolio
investment and 5% of all Domestic Institutional portfolio investment in the country. It has 60
institutional clients spread over India, Far East, UK and US. Foreign Institutional Investors
generate about 65% of the organizations revenue, with a daily turnover of over US$ 2 million.
The Corporate Finance section has a list of very prestigious clients and has many firsts to its
credit, in terms of the size of deal, sector tapped etc. The group has placed over US$ 1 billion in
private equity deals. Some of the clients include BPL Cellular Holding, Gujarat Pipavav, Essar,
Hutchison, Planetasia, and Shoppers Stop.
PROFILE OF THE COMPANY
Name of the company: Sharekhan ltd.
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EXPERIENCE
SSKI has more than eight decades of trust and credibility in the Indian stock market. In the Asia
Money broker's poll held recently, SSKI won the for 2004' award. Ever since it launched
Sharekhan as its retail broking division in February 2000, it has been providing institutional
individual investors.
TECHNOLOGY
With its online trading account one can buy and sell with an internet connection. One can get
access to its powerful online trading tools that will help him take complete control over his
investment in shares.
ACCESSIBILITY
Sharekhan provides ADVICE, EDUCATION, TOOLS AND EXE investors. These services are
accessible through its centers across the country over the internet (through the website
www.sharekhan.com) as well as over the Voice Tool.
KNOWLEDGE
In a business where the right information at the right profits, one can get access to a wide range
of information on Sharekhan limiteds content-rich portal. One can
empower him to take informed decisions.
CONVENIENCE
One can call its Dial-N-Trade number to get in transactions. Sharekhan ltd. have a dedicated call
Toll Free Number 1800-22-7500
'India's Best Broking House institutional-level research and broking services to
shares in an instant from any PC EXECUTION services for time can translate into direct also get
a useful set of knowledge-based tools that will investment advice and execute his call-centre to
provide this service via a & 1800-22-7050 from anywhere in India. CUTION investment
CUSTOMER SERVICE
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Sharekhan limiteds customer service team will assist one for any help that one may require
relating to transactions, billing, demat and other queries. Its customer service can be contacted
via a toll-free number, email or live chat on www.sharekhan.com.
INVESTMENT ADVICE
Sharekhan has dedicated research teams of more than 30 people for fundamental and technical
researches. Its analysts constantly track the pulse of the market and provide timely investment
advice to its clients in the form of daily research emails, online chat, printed reports and SMS on
their mobile phone.
SHAREKHAN LIMITEDS MANAGEMENT TEAM
Dinesh Murikya : Owner of the company
Tarun Shah : CEO of the company
Shankar Vailaya : Director (Operations)
Jaideep Arora : Director (Products & Technology)
Pathik Gandotra : Head of Research
Rishi Kohli : Vice President of Equity Derivatives
Nikhil Vora : Vice President of Research
PRODUCTS AND SERVICES OF SHAREKHAN LIMITED
The different types of products and services offered by Sharekhan Ltd. are as follows:
Equity and derivatives trading
Depository services
Online services
Commodities trading
Dial-n-trade
Portfolio management
Share shops
Fundamental research
Technical research
TYPES OF ACCOUNT IN SHAREKHAN LIMITED
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Sharekhan offers two types of trading account for its clints
Classic Account (which include a feature known as Fast Trade Advanced Classic
Account for the online users) and
Speed Trade Account
CLASSIC ACCOUNT
This is a User Friendly Product which allows the client to trade through website
www.sharekhan.com and is suitable for the retail investor who is risk-averse and hence prefers to
invest in stocks or who does not trade too frequently. This account allow investors to buy and
sell stocks online along with the following features like multiple watch lists, Integrated Banking,
Demat and digital contracts, Real-time portfolio tracking with price alerts and Instant credit &
transfer.
This account comes with the following features:
a. Online trading account for investing in Equities and Derivatives
b. Free trading through Phone (Dial-n-Trade)
I. Two dedicated numbers(1800-22-7500 and 39707500) for placing the orders using cell phones
or landline phones
II. Automatic funds transfer with phone banking facilities (for Citibank
and HDFC bank customers)
III. Simple and Secure Interactive Voice Response based system for
authentication
IV. get the trusted, professional advice of Sharekhan limiteds Tele
Brokers
V. After hours order placement facility between 8.00 am and 9.30 am
c. Integration of: Online Trading +Saving Bank + Demat Account.
d. Instant cash transfer facility against purchase & sale of shares.
e. IPO investments.
f. Instant order and trade confirmations by e-mail.
g. Single screen interface for cash and derivatives.
SPEED TRADE ACCOUNT
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This is an internet-based software application, which enables one to buy and sell in an instant. It
is ideal for active traders and jobbers who transact frequently during days session to capitalize
on intra-day price movement.This account comes with the following features:
a. Instant order Execution and Confirmation.
b. Single screen trading terminal for NSE Cash, NSE F&O & BSE.
c. Technical Studies.
d. Multiple Charting.
e. Real-time streaming quotes, tic-by-tic charts.
f. Market summary (Cost traded scrip, highest value etc.)
g. Hot keys similar to brokers terminal.
h. Alerts and reminders.
i. Back-up facility to place trades on Direct Phone lines.
j. Live market debts.
CHARGE STRUCTURE
Fee structure for General Individual:
Charge Classic Account Speed Trade Account
Account Opening Rs. 750/= Rs. 1000/=
Brokerage
Intra-day 0.10 %
Delivery - 0.50 %
Intra-day - 0.10%
Delivery - 0.50%
Depository Charges:
Account Opening Charges Rs. NIL
Annual Maintenance Charges
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Rs. NIL first year Rs. 400/= p.a. from
second calendar year onward
HOW TO OPEN AN ACCOUNT WITH SHAREKHAN LIMITED?
For online trading with Sharekhan Ltd., investor has to open an account. Following are the ways
to open an account with Sharekhan Ltd.:
One need to call them at phone number provided below and asks that he want to open an
account with them.
a. One can call on the Toll Free Number: 1-800-22-7500 to speak to a Customer Service
executive.
b. Or If one stays in Mumbai, he can call on 022-66621111
One can visit any one of Sharekhan Limiteds nearest branches. Sharekhan has
A huge network all over India (640 centers in 280 cities). One can also log on to
http://sharekhan.com/Locateus.aspx link to find out the nearest branch.
One can send them an email at [email protected] to know about their
products and services.
One can also visit the site www.sharekhan.com and click on the option Open an
Account to fill a small query form which will ask the individual to give details regarding his
name, city he lives in, his email address, phone number, pin code of the city, his nearest
Sharekhan Ltd. shop and his preferences regarding the type of account he wants. These
information are compiled in the headquarter of the company that is in Mumbai from where it is
distributed through out the countrys branches in the form of leads on the basis of cities and
nearest share shops. After that the executives of the respective branches contact the prospective
clients over phone or through email and give them information regarding the various types of
accounts and the documents they need to open an account and then fix appointment with the
prospective clients to give them demonstration and making them undergo the formalities to open
the account. After that the forms that has collected from the clients, is scrutinized in the branch
and then it is sent to Mumbai for further processing where after a few days the clients account
are generated and activated. After the accounts are activated, a Welcome Kit is dispatched from
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Mumbai to the clients address mentioned in the documents provided by them. As soon as the
clients receive the Welcome Kit, which contains the clients Trading ID and Trading Password,
they can start trading and investing in shares.
GENERALLY THE PROCESS OF OPENING AN ACCOUNT FOLLOWS THE
FOLLOWING STEPS:
LEAD MANAGEMENT SYSTEM (LMS) / REFERENCES
CONTACT THE PERSON OVER PHONE OR THROUGH EMAIL
FIXING AN APPOINTMENT WITH THE PERSON
GIVING
DEMONSTRATION
YES NO
DOCUMENTATION
FILLING UP THE FORM
SUBMISSION OF THE FORM
LOGIN OF THE FORM
SENDING ACCOUNT OPENING KIT TO THE CLIENT
TRADING
Apart from two passport size photographs, one needs to provide with the following
documents in order to open an account with Sharekhan Limited.:
Photocopy of the clients PAN Card which should be duly attached
Photo copy of any of the following documents duly attached which will serve as
correspondence address proof:
a. Passport (valid)
b. Voters ID Card
c. Ration Card
d. Driving License (valid)
e. Electricity Bill (should be latest and should be in the name of the client)
f. Telephone Bill (should be latest and should be in the name of the client)
g. Flat Maintenance Bill (should be latest and should be in the name of the
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client)
h. Insurance Policy (should be latest and should be in the name of the client)
i. Lease or Rent Agreement.
j. Saving Bank Statement** (should be latest)
Two cheques drawn in favour of Sharkhan Limited, one for the Account
Opening Fees and the other for the Margin Money (the minimum margin money
is Rs. 5000).
** A cancelled cheque should be given by the client if he provides Saving Bank
Statement as a proof for correspondence address.
NOTE: Only Saving Bank Account cheques are accepted for the purpose of
Opening an account.
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INTRODUCTION
OF
THE TOPIC
INTRODUCTION OF TOPIC
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After hours order placement facility between 8.00 am and 9.30 am
Integration of: Online trading + Bank + Demat account
Instant cash transfer facility against purchase & sale of shares
IPO investments Instant order and trade confirmations by e-mail
Single screen interface for cash and derivatives
SHAREKHAN SPEEDTRADE ACCOUNT
This accounts for active traders who trade frequently during the day's trading session.
Following are few popular features of SpeedTrade account.
a. Single screen interface for cash and derivatives
b. Real-time streaming quotes with Instant order Execution & Confirmation
c. Hot keys similar to a traditional broker terminal
d. Alerts and reminders
e. Back-up facility to place trades on Direct Phone lines
BROKERAG
Some stock trading companies charge direct percentage while others charge a fixed amount per
Rs 100. Sharekhan charges 0.5% for inter day shares and 0.1% for intra day or you could say
Sharekhan charges 50 paise per Rs 100.
How to open account with Sharekhan?
For online trading with Sharekhan, investor has to open an account. Following are the ways
to open an account with Sharekhan:
Call them at phone number provided below and ask that you want to open an account with
them.
1. Call on Toll free number: 1-800-22-7500 to speak to a Customer Service executive
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2. If you are in Mumbai call on 022-66621111
VISIT ONE OF THEIR BRANCHES. SHAREKHAN HAS A HUGE NET
Work all over India. Click on http://sharekhan.com/Locateus.aspx this link to find out yournearest branch. Just select the place near you and you'll find a manager to assist you there.
You can send them an Email on [email protected] to know about their products and
services.
If you wish to chat with customer service representative, you can join the chat sesssion.
ADVANTAGES OF SHAREKHAN:
1. Online trading is very user friendly and one doesn't need any software to access.2. They provides good quality of services like daily SMS alerts, mail alerts, stock
recommendations etc.
3. Sharekhan has ability to transfer funds from most banks. Unlike ICICI Direct, HDFC
Sec, etc., so investor not really needs to open an account with a particular bank as it can
establish link with most modern banks.
DISADVANTAGES OF SHAREKHAN:
1. They charge minimum brokerage of 10 paisa per stock would not let you trade stocks
below 20 rs. (If you trade, you will loose majority of your money in brokerage).
2. Lots of hidden rules and charges.
3. They do not provide facility to book limit order trades during after-hours.
4. Classic account holders cannot trade commodities.
5. Cannot purchase mutual funds online.
METHODOLOGY
TYPE OF RESEARCH
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DESCRIPTIVE RESEARCH: :- Descriptive research includes surveys and fact finding
enquires of different kinds. The major purpose of descriptive research is description of
the state of affairs as it exists at present. Researcher has no control over the variables of
this type of research.
DATA COLLECTION:-
The survey was based on the primary and secondary data.The subject i.e , Investor
Behaviour analysis with reference to sharekhan.The potential client were given a
set of questions in the form of questionnaire .The question were focused on the
awareness, effectiveness, importance and satisfaction level of clients.
PRIMARY DATA:-
Primary data get collected
A. )Through questionnaires of clients
B. )and face to face contact with the customer
SECONDARY DATA:-
Secondary data get collected
A. )From website of SHARE KHAN LTD.(www.sharekhan.com).
B. Another data is collecte by sharekhan employe
C. To collect by its customer.
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SAMPLING:
TYPE OF SAMPLING :
Random sampling
SAMPLING SIZE:
sample size of 100 was taken.
SAMPLING PLACE
conducted through canopies at difference place like-In sector 24 Noida(near Hcl),sector
16 Noida etc
OBJECTIVE:
To Learn share trading .
To learn how to convince the customer.
To gain the corporate experience
Learn the linkage between client and NSE and BSE
Gaining the latest knowledge and skill which will enable me to undertake current and
future responsibilities in a effective manner.
Access the investors behavior toward sharetrading
Access the behavior of client for Demat A/C.
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To know the perception of client toward SHAREKHAN ltd.
To study the functions of SHAREKHAN through various departments.
To know the online screen based trading system adopted by SHAREKHAN and about
its communication facilities. The appropriate configuration to set the network, which
would link the SHAREKHAN to individual / members.
SCOPE:
Understanding the stock exchange.
Trading with NSE and BSE.
Understanding the consumer mind set.
Utility of Demat a/c.to investor
Role of sharekhan to investor
LIMITATAION
Despite of the training my level best, there were still some limitation which I think remains there
to draw fruitful conclusion. There were some practical problem which come across and could not
be properly death with
The advisory services being promised by the brokers would be of little use
to investors looking for an insight into the market.
As a client one will access the NSE through a server of the online brokerage and this may
involve queuing delays
Time constraint as the training was for only two months.
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CHAPTER 4
DATA COLLECTION
AND
ANALYSIS
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DATA ANALYSIS
1 Different age group involve in share trading
COMMENT:
INTERESTED AGE GROUP:
Between 18-25--- 25% Between 34-41---15%
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Between 26-33---55% Between 42-49---5%
2.The ratio of male and female involve in share trading
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COMMENT:
80% males and 20% females are involved in share trading. Because mostly female are house
wife. Thats why female ratio is less than as compare to male ratio.
3.Different income group involve in investment
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COMMENT:
Above 50000-55%
30000-40000-25%
20000-30000-15%
Below 30000-5%
4.Interest of cosumer for different type of investment
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COMMENT:
Peoples are invest money in those investment.
share market:40% mutual fund:30%
commodities:10% Insurance:20
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5.Awareness About Different Investments
COMMENT
People know about the investment
Well aware: only 10%
Basic awareness: 40%
Not aware: 50%
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6. Frequency of trading
COMMENT
TRADING:
Daily: 10% 2 to 3 times a week:30%
Once a week:20% No set pattern of trading:40%
7.CAUSES OF NO INVESTMENT
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COMMENT
Risk factor:55%
Previous bad experience:20%
No knowledge:15%
Time constrant:10%
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DEMAT ACCOUNT
Demat account allows you to buy, sell and transact shares without the endless paperwork and
delays. It is also safe, secure and convenient.
What is demat account?
Demat refers to demate realized account.
Just as you have to open an account with a bank if you want to save your money, make cheque
payments etc, you need to open a demat account if you want to buy or sell stocks. So it is just
like a bank account where actual money is replaced by shares. You have to approach the DPs
(remember, they are like bank branches), to open your demat account.
Lets say your portfolio has 100 of Satyam, 200 of IBM and 120 of TCS shares. All these will
show in your demat account. So you dont have to possess any physical certificates showing that
you own these shares. They are all held electronically in your account. As you buy and sell the
shares, they are adjusted in your account. Just like a bank passbook or statement, the DP will
provide you with periodic statements of holdings and transactions.
Is a demat account a must?
Nowadays, practically all trades have to be settled in dematerialised form. Although the market
regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of upto 500
shares to be settled in physical form, nobody wants physical shares any more. So a demat
account is a must for trading and investing.
Why demat?
The demat account reduces brokerage charges, makes pledging/hypothecation of shares easier,
enables quick ownership of securities on settlement resulting in increased liquidity, avoids
confusion in the ownership title of securities, and provides easy receipt of public issue
allotments.
It also helps you avoid bad deliveries caused by signature mismatch, postal delays and loss of
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certificates in transit. Further, it eliminates risks associated with forgery, counterfeiting and loss
due to fire, theft or mutilation. Demat account holders can also avoid stamp duty (as against 0.5
per cent payable on physical shares), avoid filling up of transfer deeds, and obtain quick receipt
of such benefits as stock splits and bonuses.
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Benefits Of Demat Account
1. A safe and convenient way of holding securities (equity and debt instruments both).
2. Transactions involving physical securities are costlier than those involving dematerialised
securities (just like the transactions through a bank teller are costlier than ATM
transactions). Therefore, charges applicable to an investor are lesser for each transaction.
3. Securities can be transferred at an instruction immediately.
4. Increased liquidity, as securities can be sold at any time during the trading hours (between9:55 AM to 3:30 PM on all working days), and payment can be received in a very short
period of time.
5. No stamp duty charges.
6. Risks like forgery, thefts, bad delivery, delays in transfer etc, associated with physical
certificates, are eliminated.
7. Pledging of securities in a short period of time.
8. Reduced paper work and transaction cost.
9. Odd-lot shares can also be traded (can be even 1 share).
10. Nomination facility available.
11. Any change in address or bank account details can be electronically intimated to all
companies in which investor holds any securities, without having to inform each of them
separately.
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12. Securities are transferred by the DP itself, so no need to correspond with the companies.
13. Shares arising out of bonus, split, consolidation, merger etc. are automatically credited
into the demat account of the investor.
14. Shares allotted in public issues are directly credited into demat account of the applicants
in quick time.
Opening a Demat Account
To start dealing in securities in electronic form, one needs to open a demat account with a DP of
his choice. An investor already having shares in physical form should ensure that he gets the
account opened in the same set of names as appearing on the share certificate; otherwise a new
account can be opened in any desired pattern by the investor.
Getting started
1. Choose a DP
2. Fill up an account opening form
provided by DP, and sign an
agreement with DP in a standard
format prescribed by the
depository.3. DP provides the investor with a
copy of the agreement and
schedule of charges for his
future reference.
4. DP opens the account and
provides the investor with a
unique account number, also
known as Beneficiary Owner
Identification Number (BO ID).
Documents to be attached
Passport size photographs
Proof of residence (POR) -
Any one of Photo Ration
Card with DOB / Photo
Driving License with DOB /
Passport copy / Electricitybill / Telephone bill
Proof of identity (POI) -
Any one of Passport copy /
Photo Driving License with
DOB / Voters ID Card /
PAN Card / Photo Ration
Card with DOB
PAN card
Note:
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The agreement required to be signed by the investor details the rights and duties of the
investor and DP.
DP may revise the charges by giving a 30 days prior notice. SEBI has rationalized the cost
structure for isation by removing account opening charges, transaction charges for credit
of securities and custody charges, effective from January 28, 2005.
Maximum Number of holders in a Demat Account
A maximum of three persons are allowed to open a joint demat account in their names.
DEMATERIALISATION
Definition
Dematerialisation is the process of converting physical shares (share certificates) into an
electronic form. Shares once converted into dematerialised form are held in a Demat account.
Dematerialisation Process
An investor having securities in physical form must get them dematerialised, if he intends to sell
them. This requires the investor to fill a Demat Request Form (DRF) which is available with
every DP and submit the same along with the physical certificates. Every security has an ISIN
(International Securities Identification Number). If there is more than one security than the equal
number of DRFs has to be filled in. The whole process goes on in the following manner:
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THINGS INVESTORS SHOULD KNOW ABOUT ACCOUNT OPENING AND
DEMATERIALISATION
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Providing the bank account details at the time of account opening
It is mandatory for an investor to provide his bank account details at the time of opening a demat
account. This is done to safeguard investor's own interests. There are two major reasons for this:
1. The interest and dividend warrants can't be en-cashed by any unauthorized person, as the
bank account number is mentioned on it.
2. It is convenient and time saving, as dividends and interests given by the companies can be
directly credited to the investor's bank account (through ECS facility, wherever available).
Change in bank account details
It is possible for an investor to make changes to the details of his bank account. The investor
must inform any change in his bank account details to his DP. This enables him to receive the
cash corporate benefits (such as dividends, interests) directly into his account in time and
discourages any unauthorized use by any second party.
Change in the address of investor as provided to the DP
Any change in your address should be immediately informed to DP. This enables DP to make
necessary changes in the records and informing the concerned companies about the same.
Opening multiple accounts
An investor is allowed to open more than one account with existing DP or with different DPs.
Minimum balance of securities required in demat account
There is no stipulated minimum balance of securities to be kept in a demat account.
Account opening and ownership pattern of securities
One must make sure to open a demat account in the same ownership pattern in which the
physical securities are held. For example: If you have two share certificates, one in your
individual name (say 'X') and the other held jointly with some other individual (say 'XY'), then in
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November 09, 2005, there are no charges for account closure or transfer of securities by an
investor from one DP to another
DEMAT ACCOUNT
Definition
Demat account is a safe and convenient means of holding securities just like a bank account is
for funds. Today, practically 99.9% settlement (of shares) takes place on demat mode only. Thus,
it is advisable to have a Beneficiary Owner (BO) account to trade at the exchanges.
Bank Account Vs Demat Account
S.
No.
Basis Of
Differentiati
on
Bank Account Demat Account
1.
Form of
Holdings/De
posits
Funds Securities
2. Used for Safekeeping of money Safekeeping of shares
3. Facilitates Transfer of money
(without actually
Transfer of shares
(without actually
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handling money) handling shares)
4.Where to
openA bank of choice
A DP of choice (can be
a bank)
5.
Requiremen
t of PAN
Number
Not MandatoryMandatory (effective
from April 01, 2006)
6.
Interest
accrual on
holdings
Interest income is
subject to the
applicable rate of
interest
No interest accruals on
securities held in
demat account
7.
Minimum
balance
requirement
AQB* maintainance
is specified for certain
bank accounts
No such requirement
8.
Either or
Survivor
facility
Available Not available
*AQB - Average Quarterly Balance
S.
No.
BASIS OF
SIMILARITYPARTICULARS
1.Security and
Convenience
Both are very safe and convenient means of
holding deposits/securities
ss2.Number of
accounts
No legal barrier on the number of bank or
demat accounts that can be opened
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3.
Transfer of
deposits (funds
or securities)
Funds/securities are transferred only at the
instruction of the account holder
4.
Physical transfer
of
money/securities
Physical transfer of money/securities is not
involved
5.Nomination
FacilityAvailable
Types of Share Trading
Mainly there are two ways of share trading.
1) Online Share Trading
2) Offline Share Trading
1) Online Share Trading
Doing share trading with help of computer, internet connection and with trading and demat
account is called Online Share Trading. If you would like to do online share trading then you
need to have a computer, internet connection and online trading account. If you are planning todo trading yourself then opening online share trading account is advisable.
Basically people use online share trading who want to trade themselves.
Essential of Online Share Trading
1) Online trading account - You have to open an online trading account with any of the bank or
financial trading system like There will be nominal annual charges but in fact nowadays some of
them are offering free accounts. To have the list of brokers please see the bottom of this page.
Please also read the certain precautions which you need to take while opening the demat and
trading account.
2) A computer with internet connection but nowadays some people do trading in internet cafe.
Due to fall in electronic prices the computers are available at very affordable prices in the
market. If you have electricity problems then you also need to have inverter.
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Nowadays you can get internet enabled on your cell phone (which is called GPRS) whose speed
will be sufficient to do trading and also the charges of GPRS are very nominal. Also internet
broadband connection is available.
3) After successfully opening the online trading account you will receive the username and
password with the help of which you can login in online trading system and trade yourself.
4) The trading system executive (with whom you opened trading account) will help you initially
about how to use the online trading system.
Types of Share Trading
Mainly there are two ways of share trading.
1) Online Share Trading
2) Offline Share Trading
1) Online Share Trading
Doing share trading with help of computer, internet connection and with trading and demat
account is called Online Share Trading. If you would like to do online share trading then you
need to have a computer, internet connection and online trading account. If you are planning to
do trading yourself then opening online share trading account is advisable.
Basically people use online share trading who want to trade themselves.
Essential of Online Share Trading
1) Online trading account - You have to open an online trading account with any of the bank or
financial trading system like There will be nominal annual charges but in fact nowadays some of
them are offering free accounts. To have the list of brokers please see the bottom of this page.
Please also read the certain precautions which you need to take while opening the demat and
trading account.
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2) A computer with internet connection but nowadays some people do trading in internet cafe.
Due to fall in electronic prices the computers are available at very affordable prices in the
market. If you have electricity problems then you also need to have inverter.
Nowadays you can get internet enabled on your cell phone (which is called GPRS) whose speed
will be sufficient to do trading and also the charges of GPRS are very nominal. Also internet
broadband connection is available.
3) After successfully opening the online trading account you will receive the username and
password with the help of which you can login in online trading system and trade yourself.
4) The trading system executive (with whom you opened trading account) will help you initially
about how to use the online trading system. But in fact you can request for demonstration of their
trading system before you open the trading account with them.
Once you get familiar with the system then you can trade yourself at your home or in the internet
cafe.
5) By doing online trading yourself, you can see and judge where market (or your share)
is heading by seeing different graphs online yourself, which is not possible if youre trading
through broker. Some online trading systems have graphs integrated in their system, so your job
is to just add those graphs and check the status of current market (or share) and depending on
your analysis you can take steps towards successfully trading.
(How to analyze graphs are mentioned in different sections).
6) All your transactions and related documents can be seen online and can also be downloaded
to your PC without depending on your broker. You can also check the status of your amount on
daily basis through you online trading system.
2) Offline Share Trading
Doing share trading with the help of broker or through telephone is called offline share trading.
In other words trading will be done by another person on your behalf based on the instructions
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given by you. The other person would be a broker. The broker will do buying and selling of
shares on your behalf depending on the instructions given by you. So in offline share trading you
dont need to have computer, internet connection but you need to have the offline demat account.
Different methods of buying and selling of shares
Following are the two methods of buying and selling of shares in Indian share market.
1) Market Order
2) Limit Order
1) Market Order
When you put buy or sell price of a stock at market rate or select market order option in trading
terminal then the price get executes at the current rate of market. The market order gets executed
immediately at the current available price.
In market order the shares will get executed at the best current available price. Market order is
used if you want to execute your order very fast and at available price.
If you wish to buy or sell shares at any specific price then market orders is not suitable for you
then have to go for limit order.Market order is for those who want to buy or sell immediately at
the current available price.
2) Limit Order
Its totally different from market order. In limit order the buying or selling price has to be
mentioned and when the share price comes to that price then the order will get executed. But
here its not sure that the price will come to your limit order and the order get executes.
In other words in limit order the specific price is mentioned and trader or investor wait till the
stock price reaches that price and once the stock price reaches that price then the order will get
execute.
Day traders has to take very precaution while using limit order, especially who make use of
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margin amount In day trading, because you have to close all your transactions before 3:30 PM
and if in case the price doesnt reach to your limit order then your order will be open (pending)
and then you have to go through the penalties.Importantly limit order and stop loss order are
used together to minimize the risk.
Stop Loss Order
Stop loss orders are used to reduce or to minimize the losses. This is very important term
especially if you are doing day trading (intraday trading).
Stop Loss order as the name indicates this is used to reduce the losses.
In Stop loss order the trigger price has to be mentioned, by the trader, and once the price reaches
the trigger price the order get executed with the best price available between the trigger price and
the limit price.
For example - Suppose the trader bought the Reliance Industries at Rs 1000.
So he puts the following order to protect his losses.
The limit order of Rs 990 and stop loss trigger price at Rs 985
So if the reliance industries stock price starts falling and if it reaches 985 then his trade executes
with the current market available price.
Note - The stop loss trigger price is placed below the limit price in buy order and above the limit
price in sell order.
2) Offline Share Trading
Doing share trading with the help of broker or through telephone is called offline share trading.
In other words trading will be done by another person on your behalf based on the instructions
given by you. The other person would be a broker.The broker will do buying and selling of shares on your behalf depending on the instructions
given by you. So in offline share trading you dont need to have computer, internet connection
but you need to have the offline demat account.
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r.
Different types of Share trading
1) Day trading and
2) Delivery trading (it is also called as investing) are the two main types of share trading.
1) Day trading
Buying and selling of shares on daily basis is called day trading; this is also called as Intraday
trading.
Whatever you buy today you have to sell it today OR whatever you sell today you have to buy it
today and very importantly during market hours that is between 9.55 am to 3.30 pm (Indian
time).
In day trading, brokers provide margin to do trading. Means you get extra amount for day
trading.
Suppose if you have 10,000 rupees in your account then you can buy and sell shares worth
rupees 40,000 (four times more - basically margin amount depends on your broker).
So if you use margin amount for day trading then you have square off your shares before market
closes irrespective of share price or whether you are making loss or profit.
Please note - If you dont use margin amount and trade only with your available amount then no
need to square off your positions.
For example if the you buy some shares and the share prices falls then you can hold them and
take delivery and sell them whenever the share prices increases.
Important note - New comers should not start by day trading as it is very risky.
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Day trading requires lots of knowledge including share, entire share market, global markets,
news and many more parameters.
For more information please visit at Overview of Day Trading
2) Delivery Trading
In Delivery Trading, as the name say, you have to take the delivery of shares and after getting
these shares in your demat account you can sell them at anytime (or you can hold them till you
want, there is no restriction).
In delivery trading you need to have the amount required to buy share in other words you dont
get margin amount as you get in day trading
For example - If you want to buy 10 shares of Reliance at price 1200 than you must have
(100x1200) Rs 12,000 in your account; once you purchased these shares will get deposited in
your demat account (after trading day and 2 additional days). Then you can sell these shares
when the price of these shares goes up or else you can hold them as long as you want.
Please Note - First you have to buy and sell. You cant sell before buying in delivery trading
while its possible in day trading which is called as short selling.
More information is mentioned at How to analyze the company before investing
Fundamental and Technical analysis in Indian Share Market
Basically the investment and trading decisions are done with the help of two important tools.
1) Fundamental analysis
2) Technical analysis
Above mentioned two tools are widely used by investors and share traders but analyzing differs
from traders to traders or from investor to investor.First of all lets see what these tools mean -
http://www.daytradingshares.com/best_day_trading.htmlhttp://www.daytradingshares.com/growth_under_valued_stocks.htmlhttp://www.daytradingshares.com/best_day_trading.htmlhttp://www.daytradingshares.com/growth_under_valued_stocks.html8/9/2019 Lovely Report 2222222222
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1) Fundamental Analysis
The name itself indicates that this analysis is totally based on companies fundamentals.
Basically the fundamental analysis is used to analyze the company fundamentals for mid term to
long term investment or even some analyst use for short term investment especially during the
announcement of quarterly results.
Like if the company is going to declare the good quarterly results then investors buy them before
the results announcement, like one month before, and sell them as the price increases after the
result announcement.
Following are the few fundamental parameters used to forecast and analyze the companies
current and future growth. Like,
What is the company all about?
The analysis of quarterly, half yearly and annual financial reports.
What are the Companys expansion and future plans?
How is the Management - like board of directors, chairman, CEO etc
The Companies involvement in foreign investment/collaboration or stake etc. and finally
depending on these factors and many others, fundamental analysts have prepared certain
fundamental ratios which will be used to forecast the companys current valuation, future growth
prospects, its debt and many more things.
Fundamental Ratios like
PE (price to earning) ratio
EPS (earning per share) ratio
Book value
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Working capital ratio
Return on equity ratio Debt equity ratio
Based on these terms and other fundamentals terms, the analysts predict the movement of share
prices whether it will be good investment or bad investment in coming future.
Always good fundamental analysis is utilized for long term period. To understand more about
these ratios and how to decide your good investments please go atHow to analyze the company
before investing
2) Technical Analysis
As fundamental analysis is used for long term investments analysis likewise technical analysis is
made for day trading or short term trading.
Technical analysis is nothing but study of charts made of four important numbers which are open
price of the share, Technical analysis is second analysis tool for short term or for day trading.
high, low and closing price of the share.
Technical analysis also make use of volumes, support and resistance levels, technical indicators
and other parameters which are useful to analyze the share price movements in short term or in
day trading.
There are several factors and terms used in Technical analysis are discussed at Learn Basics of
Technical Analysis
Trading and investment types
Day trading
Buying and selling of shares on daily basis based on market movements, global market
movements, technical analysis, and previous volumes and many other related parameters is
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called as day trading.
If you are interested to learn more about day trading then please visit at Overview of Day
Trading
What is the meaning of Short Term Trading or investing?
Share trading done from one week to couple of months is called short term.
Basically technical analysis is used for short term trading.
But as it there is no any fixed criteria for trading some traders even do short term trading based
on news, Companys announcements of quarterly results, news of merger and acquisitions etc
Mid term Investing
Share trading done from one month to couple of months, say six months to one year or two years
is called mid term trading.
Fundamental analysis, Companys announcements of quarterly results, are the basic parameters
used for mid term trading or investing. Some technical analysis even make use fo technical
charts and indicators for mid term trading.
Long term Investing
Investment for couple of years is called long term investing.
Long term investment may continue from one year to 10 years or even more.
Long term analysis is purely based on fundamental analysis of the company.
But it doesnt mean that once you do the fundamental analysis and invest for 5 years and forget
it. No. The financial quarterly results or half yearly results of the company should be revived and
monitored how the company is performing.
If you are interested to learn more about this then please visit at How to analyze the company
before investing
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How NRIs Do Online Share Trading in Indias Stock Market?
NriInvestIndia.com, Timesofmoney.com, ICICI Direct are you wondering what all these are?
These are just a few names of some of the best brokerage houses in India that help non-residents
(NRIs) to trade in the Indian Share Market. And thanks to technology, online share trading has
become one of the easiest things to do IF you have the right brokers helping you. According to
us, the following brokerage houses are the best:
1) nriinvestindia.com
2) timesofmoney.com
3) nricapital.com
4) nriinvestmentsindia.com
5) ICICI Direct
http://www.ifta.in/goto/http:/www.nriinvestindia.com/nri-online-trading.htmlhttp://www.ifta.in/goto/http:/www.nriinvestindia.com/nri-online-trading.html8/9/2019 Lovely Report 2222222222
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Having said so, we would also like to warn you that we have only taken into account the
ONLINE trading resources these companies offer. We do not take any guarantee or
responsibility of their OFFLINE trading facilities. However, for investing in Initial Public
Offerings (IPO), we feel sharekhan is best as it allows clients to place orders till 2-3 p.m. on the
final day of subscription of IPOs.
Friends and clients alike often ask us as to how they can start investing in the Stock Market
directly. Investing in stock market is very simple, more so if you follow the four simple steps
given below for the same:
Step 1: Apply for a PAN online if you do not have one and you will get your PAN within a
week.
Step 2: You will need a bank account for trading in the stock market. A HDFC Bank NRI
Account is recommended.
Step 3: Once you have a PAN card, open a demat account (this is necessary for trading) with any
bank or a brokerage firm.
Step 4: Lastly, you need to have an online stock market trading account for investing in the stock
market directly.
Please note that its important to link your bank account, demat account and online trading
account. The online trading account and demat account may be opened with the same brokerage
firm and the firm may be given power of attorney to operate your bank account as this would
save you the paperwork. We would also like to warn you about the fact that investment brings
with it risks. Please be careful while investing else your entire capital money will be washed
away. Investors can now also invest in IPOs by the click of a button thanks to technology. An
overview ofNRI Services and about the Indian Share market wouldnt be out of place here.
The Indian Share Market has 22 regional exchanges, in addition to the Bombay Stock Exchange
(BSE) and National Stock Exchange of India Ltd. (NSE) the two primary and pivotal exchange
houses of India. The BSE and NSE together account for almost 80% of the equity trade in India.
http://www.ifta.in/goto/http:/www.nriinvestindia.com/nri-demat-account.htmlhttp://www.ifta.in/goto/http:/www.nriinvestindia.com/services.htmlhttp://www.ifta.in/goto/http:/www.nriinvestindia.com/nri-demat-account.htmlhttp://www.ifta.in/goto/http:/www.nriinvestindia.com/services.html8/9/2019 Lovely Report 2222222222
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The average daily turnover has increased from Rs.851 crore in 1997-98 to Rs.2, 273 crore in
1999-2000. While the NSE has a total of 1,500 shares having a market capitalisation of Rs.9, 215
billion, the BSE has a total of 6,000 shares having a market capitalisation of Rs.9, 680 billion!
Mostly, almost all the stocks are available on both and hence the investor can buy stock from
either. Also both having a different settlement cycle, the investor can shift his position as per
convenience. The BSE Sensex (primary index of BSE) comprises thirty stocks while the Nifty
(primary index of NSE) comprises fifty. However, its the BSE Sensex thats more widely
followed. Both BSE Sensex and Nifty are calculated on the basis of market capitalisation and
contain the heavily traded shares from key sectors. Please note that the market is closed on
Saturdays and Sundays. For the convenience of investors, both BSE and NSE have switched over
to an automated computerised mode of trading known as BSE On Line Trading (BOLT) and
National Exchange Automated Trading (NEAT).
The stocks traded on BSE have been classified into the following groups:
Group A: Shares in the carry forward system (Badla)
Group C: Odd securities in group A, B1 and B2 and Rights renunciations.
Group F: Represents debt market segment (fixed income securities)
Group Z: Blacklisted companies
The Securities and Exchange Board of India (SEBI) governs the stock exchanges, depositories,
depository participants, mutual funds, etc.
ROLLING SETTLEMENT CYCLE:
A rolling settlement is typical to each trading day being taken as a trading period. Trades
executed during the day are settled based on net obligations for the day. At NSE and BSE, trades
in rolling settlement are traded on a T+2 basis, that is the second working day. For example,
trades taking place on Monday are settled on Wednesday, those taking place on Tuesday are
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settled on Thursday and so on. All intervening holidays, Saturdays, Sundays, Bank holidays,
Government holidays etc are excluded for arriving at the settlement.
Going Short:
Selling off your shares is known as going short. Generally an investor would do so if he
expects the prices to decline. In a rolling settlement cycle you will have to cover by end of the
day on which you have gone short.
Concept of Margin Trading:
To buy share you need money and to sell you need shares in your demat account. But if you do
not have the full amount or shares, you have to cover your sale/purchase transaction by a
sale/purchase transaction before the close of the settlement cycle. You will make a profit in case
the price during the settlement moves in your favour (increases if you are buying the shares and
decreases if you are selling) and you will receive the payment from the exchange. If the contrary
happens you will suffer a loss and you will have to pay the exchange. It is for this reason that
margins (quotes as a percentage of the value of the transaction) are collected to safeguard against
any adverse price movement.
Angel Broking
Account Opening Charge (AOC): Rs 740
Annual Maintenance Charge (AMC): 1st year free. Rs 300 2nd year on.
Brokerage: 50p (delivery), 10p (intra-day). Rate negotiable for bulk orders.
Browsers: IE 6.0+
Enquiry: No toll-free number
Interface:
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Canmoney
Account Opening Charge (AOC): Rs 500 Annual Maintenance Charge (AMC): 1st year free. Rs 200 2nd year on.
Brokerage: 0.35% (delivery). Buy - Nil, Sell - 0.05% (intra-day) (Min Rs 20; Max Rs
500).
Browsers: IE 5.5+
Enquiry: 1-800-220-369
Interface:
Geojit BNP Paribas
Account Opening Charge (AOC): Rs 650
Annual Maintenance Charge (AMC): Rs 300
Brokerage: 0.30% (delivery). 0.03% (intra-day)
Browsers: IE 6.0+
Enquiry: 1-800-425-5501
Interface:
AOC
AMC
Brokerage
Browsers
Enquiry
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Interface
HDFC Securities
Account Opening Charge (AOC): Rs 799
Annual Maintenance Charge (AMC): 1st
year free. Rs 500 2nd
year onwards. Brokerage: Higher of Rs 25 or 0.5% of transaction value (delivery).
Higher of Rs 25 or 0.1% of transaction value (intra-day).
Browsers: IE 5.0+, NN 8.1+ and FF 1.5+
Enquiry: 1-800-209-9700
Interface:
AOC
AMC
Brokerage
Browsers
IDBI Paisabuilder
Account Opening Charge (AOC): Rs 499 (basic plan), Rs 700+ (turnover based plan)
Annual Maintenance Charge (AMC): 1st year free; Second year on Rs 350
Brokerage: 0.65% (delivery), 0.06% (intra-day).
Browsers: IE 6.0+
Enquiry: 1-800-223-366 Interface:
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AOC
AMC
Brokerage
Browsers
Enquiry
Reliance Money
Account Opening Charge (AOC): Rs 750 (waived off for employees of MNCs)
Annual Maintenance Charge (AMC): Rs 200
Brokerage: 1p (delivery and intra-day).
Browsers: IE 6.0+
Enquiry: No toll-free number
Interface:
AMC
Brokerage
Browsers
Enquiry
Interface
Religare
Account Opening Charge (AOC): Rs 500
Annual Maintenance Charge (AMC): Rs 250 Brokerage: 0.3% (delivery). 0.06% (intra-day) 0.06% (futures).
Browsers: IE 5.5+
Enquiry: 1-860-258-8888
Interface:
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AOC
AMC
Brokerage
Browsers
Enquiry
Interface
SBI
Account Opening Charge (AOC): Rs 400
Annual Maintenance Charge (AMC): Rs 400
Brokerage: 0.5% (delivery). 0.15% (intra-day).
Browsers: IE 6.0+ and FF 1.5+
Enquiry: 1-800-223-345
Interface:
AOC
AMC
Brokerage
Browsers
Enquiry
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SHAREKHAN
Sharekhan Account Opening Charge (AOC): Rs 750 Online, (Rs 500 Offline, plus Rs 160 franking c
Annual Maintenance Charge (AMC): 1st year free. Rs 300 2nd year onwards.
Brokerage: Higher of 0.5% or 10 paise/share (delivery). Higher of 0.1% or 5 paise/share (intra-day).
Browsers: IE 6.0+ and Opera 7.0+
Enquiry: 1-800-227-500
Interface:
Compare Brokerage Fees : Interactive Brokers vs OptionsHouse 2010
OptionsHouse and Interactive Brokers both are online investing companies. Superior commissions are
by Interactive Brokers than OptionsHouse unless you rarely trade, trade penny stocks or large sized ord
avoid $10 per month fee, IB has $30 per month in commissions requirement. For very active, professional
Interactive Brokers is well suited. You are definitely better off with OptionsHouse, if you are new to investi
to bad customer service of IB. OptionsHouse is also great pick for brokerage IRA account due to no IR
maintenance fees.
About OptionsHouse:
The official website of the OptionsHouse is www.optionshouse.com. OptionsHouse is an online in
company that provides many options like what you can do with the reasonable rates that you pay. Thheadquarters of the OptionsHouse is located in Chicago, Illinois in the Chicago Board of Trade. Options
L.L.C. is a subsidiary of proprietary options-trading firm PEAK6 Investments.
The main aim of the OptionsHouse is to provide savvy investors in options and stock the power and functi
of traditional software-based trading tools with the portability of an online trading platform through the ex
use of leading edge web technologies. OptionsHouses Investors have access to the company's online bro
with the member of FINRA and SIPC where they can trade stocks, options, mutual funds and bonds.
(Financial Industry Regulatory Authority) is the primary regulatory body of the securities industry.
http://letmeget.com/blog/compare-brokerage-fees-interactive-brokers-vs-optionshouse-2010http://www.optionshouse.com/http://1.bp.blogspot.com/_ESBpOteBXQw/S_UZg16uuTI/AAAAAAAAB_0/03V59S87aIQ/s1600/inter.jpghttp://letmeget.com/blog/compare-brokerage-fees-interactive-brokers-vs-optionshouse-2010http://www.optionshouse.com/8/9/2019 Lovely Report 2222222222
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BASIS SHARE KHAN INDIABULLS
Types of account 3. 1) ShareKhan Classic
account
4. ShareKhan
SpeedTrade account
1. Indiabulls Equity Trading
Account
Document Required to open
Equity Trading
Account
1. 1 One passport size
photograph.
2. Proof of bank a/c
3. Copy of PAN card.
4. Identity proof - copy
of passport or PAN
card voter ID or
driving license or
ration card.
5. Address proof - copy
of driving license or
passport or ration card
or voter card or
telephone bill or
electricity bill or bank
statement.
6. One passport size
photograph.
7. Proof of bank account
8. Copy of PAN card.
9. Identity proof - copy of
passport or PAN card or
voter ID or driving license
or ration card.
10. Address proof - copy of
driving license or passport
or ration card or voter card
or telephone bill or
electricity bill or bank
statement.
1. .
Brokerage and fees : 1) Account opening charge750/-
1. 200/- Demat Accountopening charge
750/- Software changes
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Advantages of Equity
Trading Account
1)provided various software
2)Research centre provides
latest information to its
client
1. to other online trading
companies.
2. Provide trading
terminal 'powerbulls', a
java based software. It's
very fast in terms of speed
and exe
FINDINGS:
By analyzing the questionnaires of clients who have filled followings results are obtained
Many existing Clients said that these investment plans help them to improve their
financial condition and also they were able to understand the trading through various
software provided by sharekhan ltd. Like Fast Trade ,classic, New fast trade..
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I found that client were satisfied with the services provided by sharekhan ltd.with
demat account through- local dealers, relationship managers and through equity
advisers ,.It depends on the kind of investment the client made .
Sharekhan has its own research centre in Mumbai which provides continuous
information to the clients for better use of their fund and client accept that most of the
time these information prove right.
The knowledge of computer is required for share trading because it works with
software like FastTrade ,classic,New fast trade.And also It is very difficult to
convince the illiterate people
The exposure facility provided by share khan is liked by various clients and it make
the trading comfortable.
Share khan continuously provides latest information related with trading through
yahoo messenger, Gtalk, SMS.
The documentation procedure is very complicated in share khan that takes too much
time of the customer as well as the executives.
SUGGESTIONS:
Share khan being a online trading co., has succeeded in keeping all the customer satisfied ,yet
certain suggestions have been given which if incorporated can prove useful in making is
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better ,as change is rule of life.The following suggestions have been given with a view to
development-
Share khan should continuously improve the service quality for their existing clients
so through that new clients can be pulled .
Share khan should must come up with more Economical Demat Ac. like if the
minimum amount of opening is 750 then it might be of 500/- so that it could be easy
for every people to afford it.
The company should must try to make its documentation procedure easy and
convenient so that will save the time of client as well as executives.
LIMITATIONS
Due to shortage of time only sample size of 100 had been taken ,which is not very
large.
Lots of hidden rules and charges
.
They charge minimum brokerage of 10 paisa per stock would not let the client trade
stocks below20rs
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QUESTIONNAIRE
1. Are you aware of the following investment avenues?
High risk investment avenues:
Equity Share Market.
Commodity Market.
Forex Market.
Traditional investment avenues:
Real Estate (property)
Gold /Silver
Chit Funds.
Emerging investment avenues:
Virtual Real Estate.
Hedge Funds.
Private Equity Investment.
Art And Passion.
Safe/low Risk investment Avenues:
Saving Account.
Bank Fixed Deposits.
Public provident fund.
National saving certificates.
Post Office Savings.
Government securities.
Moderate Risk Investment Avenues:
Mutual Funds.
Life Insurance.
Debentures.
Bonds.
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2. What do you think are the best option for investing your mony?
1.--------------------------- 2----------------------- 3.-------------------------
4 .-------------------------- 5.------------------------- 6.------------------------
3. Reasons for selecting these options:
1. -------------------------------------------
2. -------------------------------------------
4. In the past,you have invested in (write as many as applicable)
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
5. In which sector do you prefer to invest your mony?
Private sector
Government sector
Public sector
Foreign sector
6. What are the important factor guiding your investment decision?(Return,safty of
principal, diversification,progressive values,etc.)?
7. what are your saving objectives?
Children education
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Retirement home purchase
Children marriage healthcare
Others
8. what is your investment objective?
Income and capital prevention
Long term growth
Growth and income
Short term- growth
Others_______________________________________
9. what is the purpose behind investement?
Wealth creation
Tax savings
Earn return
Future expenses
Others________________________________________
10. Have you set aside funds specifically for the education and marriage of your
children ? if yes , please give amounts and how the funds are held
Education: Amount Rs____________invested in _________________
Marriage: Amount Rs____________invested in _________________
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11. Do you have a formal budget for family expenditure?
Yes
No
12. Do you have a savings and investment target amount you aim for each year?
Yes if yes amount_______________________________
No
13. At which rate do you want your investment to grow?
Steadily
At an average rate
Fast
14. which factor do you consider before investing ?
Safety of principal
Low risk
High returns
Maturity period
15. Do you invest your money in share share market?
Yes
No
16. How often do you monitor your investment?
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Daily
Monthly
Occationally
17. what percentage of your income do you invest?
0-15%
15-30%
30-50%
18. what is the time period you prefer to invest?
Short-term (0-1yrs)
Medium-term(1-5yrs)
Long-term (>5yrs)
19. Can you take the risk of losing your principal investment amount?
Yes
No
If yes what percentage_________________
20. what is your source of investment advice ?
Newspaper
News channel
Family or friends
Books
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Internet
BIBLIOGRAPHY:
Selling policy of SHAREKHAN LTD.
Text book of
Financial management by I.M.PANDEY
Technical analysis of the financial market(By John J.Murphy)
Trading for a living (Dr. Alexander Elder)
A Beginners guide to day trading online(Toni Turner)
Trading For Dummies(Michael Griffis)
News paper:
The Economic Times
Mint
Websites---
www.sharekhan.com
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