AProject Report

On“A Study of Stock Market with Special

ReferenceOf Selected Brokers in Ahmednagar

City.”

Submitted ToUniversity of Pune

In the Subject of Research MethodologyBachelor of Business Administration.

Submitted By

Under the Guidance ofProf. Vashishtha Shah

B.P.H.E. Socity’sAhmednagar College, Ahmednagar

Academic Year2008-2009

ACKNOWLEDGEMENT

Words are not sufficient to describe the contribution made by the people for the project. At the very first I like to thank Hon. Principal R.J.BARNBAS without whom the project would not be possible & also thank to our vice principal Prof. S.J.KAWADE for his kind support. I express my thanks to internal project guide for Dr. D.B.MORE his valuable guidance throughout the project. And I also thank our project incharge Miss Vashishtha Shah & all faculty members of the department for their valuable suggestions. At last I would like to show my gratitude to that entire person who knowingly & unknowingly extended their helping hand. At last but not the list I would like to thanks my parents for their valuable wishes and blessing.

INDEX

Sr.No CONTENTS PAGE No.

1. Introduction to Topic2. Introduction to Broker

3. Company profile

4. Research Methodology

I. Objective of study

II. Scope of study

III. Hypothesis

IV. Data Collection

V. Limitations of study5. Data Analysis6. Findings & Conclusions7. Suggestions8. Bibliography9. Questionnaire

INTRODUCTION TO TOPIC

STOCK MARKET

A Stock Exchange, share market is a corporation or mutual organization which provides facilities for stock brokers & traders to trade company stock & other securities stock exchange also provide facilities for the issue & redemption of securities as well as other financial instrument and capital events including the payment of income & dividends. The securities trade on a stock exchange include.

1) Shares issued by companies

2) Unit trusts

3) Other pooled investment product

4) Bonds

To be able to trade a security on a certain stock exchange, it has to be listed there. Usually there is central location at least for record keeping, but trade is less & less linked to such a physical place, as modern market are electronic network, which gives them advantages of speed & cost f transaction.

Trade on an exchange is by members only. The initial offering of stocks & bonds to investors is by definition done in the primary market & subsequent trading is done in the secondary market.

A stock exchange is often the most important component of stock market supply & demand in stock

market is driven by various factors which, as in all free market affects the price of stocks.

Share Broker- A broker is member of recognized stock exchange, who is permitted to do trade on the floor of the exchange. He is enrolled as a member with the concerned exchange & is registered with SEBI.

Sub-Broker A sub-broker is person who is registered with SEBI as such & is affiliated to a member recognized stock exchange.

Registration of Broker and Sub-Broker A Broker’s registration no. beginning with the letters “INS”

Charging of Brokerage The maximum brokerage that can be charge by a broker is decided by stock exchange as per the exchange resolution. The SEBI 1992 stipulates that Sub-brokers cannot charge from his client a commission which is more than 1.5% of the value mentioned in the respective purchase or sale note.

Brokerage Brokerage is commission charged on transaction of purchasing or selling of shares by Broker.

Pay-in-day

Pay-in-day is the day when the brokers shall make payment or securities to the exchange.

Pay-out-day

Pay-out-day is the day when the exchange makes payment or securities to the brokers.

Since settlement cycle has been reduced from T+3 rolling settlement to T+2 from 01st April 2003, the exchange have to ensure that the pay out of fund and securities to client is done by the broker within 24 hrs. of the payout. The exchange will have to issue press release immediately after payout.

Introduction To Brokers

There are some selected brokers in Ahmednagar city like-

A.Joindre capital service Ltd.

B.SNC global security Ltd.

C. IL and FS Investment Ltd. They are giving attractive Brokerage slaps for client. They are attracting small investors by conducting seminars.

They charging low rate of brokerage to client. But not only they charging low rate of brokerage but they also give good market tips & guidance to client.

So that client gets personal touch & because of this they ready to invest in stock market & because of this there is tremendous development in stock market.

COMPANY PROFILE

1) Joindre capital service Ltd. –

1) Company profile –

A pioneer in the field in retail Broking was incorporated in 1995 by group of professionals with vast & rice experience in Indian capital market. Joindre is one of the conceptual pioneers of retail cult in Indian capital market. It has taken initiative in spreading the online trading terminals to the length &breadth of country through the network of its Branches / SEBI registered sub- brokers & there by catering to the needs of a large number of retail investors.

2) Group companies –

a) Joindre capital service Ltd. - Joindre groups first venture, Joindre capital service Ltd. was incorporated in 1995. This company has strong IPO & mutual funds division for the benefit of the clients. Being client focused the company offers internet trading platform. Joindre capital is member of National stock Exchange of India Ltd., Bombay Stock Exchange Ltd. & many regional exchanges in India. Joindre capital is also Depository participant member of central Depository services Ltd.

b) Joindre commodities Ltd. –

This company provides huge potential, much greater than the securities & cash market in commodities. There is an opportunity to trade in multiple commodities from a single point, on real time basis. A Joindre commodity Ltd. is member of multi commodity exchange of India Ltd. & National commodity & Derivatives exchange Ltd.

c) Joindre DMCC – Joindre DMCC is the first venture from Joindre group outside India. Jiondre sees Dubai as a hub for international trade between east and the west and is encouraged by the facilities, infrastructure & benefits offered by UAE government. Joindre shares the vision of DMCC (Dubai metals & commodities Exchange) & DGCX (Dubai gold & commodities Exchange). With its foresightedness DGCX has introduced Rupee Futures, the first of its kind in Foreign Exchange Trade. Joindre DMCC is member of Dubai Gold & commodities Exchange, Dubai.

3) Our Directors –

a) Whole time directors-I. Anil Mutha (C.A.)

II. Dinesh Khandelwal (C.A.)III. Parad Bathia (C.A.)IV. Ranjit Baradia (C.A.)V. Subhash Agarwal (C.A.)

VI. Sunil Jain (C.A.)b) Directors of the company –

i. Mahendrakumar Jain ii. Pradeep Jainiii. Shankar Khandelwaliv. Veepin Thokal

Operations & future prospects –

To provide every client a personalized service by offering simplified & transparent procedures, most competitive rates, prompt execution of trades, that makes them feel special.

To provide every associate & business partner a platform for professional growth to reach their highest potential. To provide every employee the best place to work, a dynamic & challenging work environment.

To provide every stock holder finest wealth accumulation by continually improving our profitability.

IL ANDFS Ltd.

IL& FS Investment Ltd. is one of the Indian’s leading financial service organizations providing individual & corporate with customized financial management solution.

IL & FS Invest Mart Ltd. is an initiative in the filed of financial service by Infrastructure Leasing & financial service on of Indian’s leading Infrastructure development &finance companies, known for its innovative & pioneering initiatives in the area of infrastructure, corporate finance & investment banking.

The management team of IL and FS Ltd.-

I. Mr. James Lessile White Forced – MD& CEO.

II. Mr. Sachin Joshi – Executive Director –Finance & Operation.

III. Mr. Sandip Presswala - Executive Director – Retail Business.

IV. Mr. Kersi Tavadia- Chief Technology Officer.

A) OBJECTIVE OF THE STUDY

1) To Study selected Brokers of stock Market in Ahmednagar city.

2) To Study different Brokerage Rate charged by different Brokers.

3) To Study different Facilities provided by the different Brokers.

4) To Study the Role of broker in Stock Market.

B) SCOPE OF STUDY

1) In this project all researched information are about only Ahmednagar city only.

2)There are three representative brokers of Ahmednagar included in this study.

C) HYPOTHESIS OF THE STUDY

1) Brokers are charging reasonable

Brokerage to Investor.

2) Brokers are giving adequate service to Investors.

D) DATA COLLECTION

Data will be collected from two sources,

A) Primary data collection

B) Secondary data collection

A) Primary data collection - The Primary data are those which are collected a fresh & for the first time. Primary data is also called basic data or original data. Primary data was collected by questionnaire method, Also interview was taken of various brokers in the different companies, data was also be collected by visiting the different department and the offices. The researcher has collected information from brokers by filling up questionnaire and taken interview.

B) Secondary data collection -

The secondary data means data that are already available in various report, diaries, letters, books, periodicals etc. Secondary data was collected from the various published statement, reports and documents by the companies.

The research has collected the Secondary data from brokers by booklet, application form, rules and regulation of SEBI and rules of stoke market.

E) LIMITATIONS OF THE STUDY

1) Due to insufficient time sufficient information data was not collected.

2) Primary data collection is time consuming & costly.

3) Share brokers were not ready to give confidential information.

4) Share brokers don’t have sufficient time to give necessary information due to their busy schedule.

DATA ANALYSIS & INTERPRETATION

The data used for research project in analyzed by collecting information from brokers. The research has prepared the questionnaire and asked certain question to brokers firms. They have given answer of questionnaire. The questionnaire is analyzed by researcher.

The project is case study of all brokers forms therefore the first hand opinion of brokers are most useful for drawing certain conclusions. The questions are related to brokerage charged by different brokers. The researcher made comparative study of statement & graphs are preparing for analysis all the data and it helps to interpret to data. Establishment of firm –

Joindre capital service Ltd. Is a company incorporated under the Company Act, 1956 in the year 1995 with object of shares and stock broking activities.

IL and FS Investment Ltd. Is a company incorporated under the Company Act, 1956 in the year 1997 with object of shares and stock broking activities.

SNC global security Ltd. Is a company incorporated under the Company Act, 1956 in the year 1990 with object of shares and stock broking activities.

Different Rate Of Delivery Brokerage charged by Different Brokers

DELIVERY BROKAGE

FIRMS CHARGES

Joindre capital services Ltd. 0.60 paisa

IL and FS Investment Ltd. 0.40 paisa

SNC global security Ltd. 0.50 paisa

INTERPRETATION –

From the study of above table and graph researcher study different Rate of Delivery Brokerage charged by Different Brokers.

The Joindre capital services Ltd. Charged delivery brokerage 0.60 paisa.

The IL and FS Investment Ltd. Charged delivery brokerage 0.40 paisa.

The SNC global security Ltd. Charged delivery brokerage 0.50 paisa.

a. The IL and FS Investment Ltd. Charged the lowest delivery brokerage as compared to other firms i.e. 0.40 paisa.

b. The SNC global security Ltd. Charged normal delivery brokerage i.e. 0.50 paisa.

c. The highest rate of delivery brokerage Charged by Joindre capital services Ltd. i.e. 0.60 paisa.

Different Rate of Interaday Brokerage charged by Different Brokers

INTERADAY BROKAGE

FIRMS CHARGES

Joindre capital services Ltd. 0.10%

IL and FS Investment Ltd. 0.15 %

SNC global security Ltd. 0.05%

INTERPRETATION –

From the study of above table and graph researcher study different Rate of intearaday brokerage charged by different brokers.

The Joindre capital services Ltd. Charged intearaday brokerage 0.10%.

The IL and FS Investment Ltd. Charged intearaday brokerage 0.15%.

The SNC global security Ltd. Charged interaday brokerage 0.05%.

a. The IL and FS Investment Ltd. charged the highest rate interaday brokerage as compared to other firms i.e. 0.15%.

b. The SNC global security Ltd. charged lowest interaday brokerage i.e. 0.05%.

c. The Joindre capital services Ltd. charged normal interaday brokerage i.e. 0.10%.

Pay-in-day & Pay-out-day

Pay-in-day & Pay-out-day is same in case of all the firms i.e. 3rd day from purchase / sales of shares or as per the settlement.

Documents are required to in client registration provide by client those as follows –

Those documents are same in case of all firms.

In case of individual client registration, clients have to provide following information.

Name of client, address, education qualification, occupation.

Bank passbook Xerox PAN card no. (Both sides) which also serve as unique

client cord. For proof of identity to submitted either as passport

no. / Driving license / Ration card / identity card / voter ID (Both sides).

If client registered with any broker than the name of broker & concerned stock exchange & client cord no.

In case of Non-individual client following information has to provide-

Name & address of the company / firm. Certificate of commencement of business. Certificate of incorporation. Copy of Memorandum & Articles of association &

partnership deed. Copy of the Balance sheet for the last 2 financial years. List of share holder & Directors & whole time directors

& Secretary. Particulars of Bank A/C. Annual income in last 3 years & market value of

portfolio. Copy of PAN card. If client registered with any broker than the name of

broker & concerned stock exchange & client cord no.

Placing of order with Broker or Sub- Broker-

This is some in case of all the time firm client can go to the broker or sub-broker office or place on order by telephone.

The way client know whether his / her order is placed

The stock exchange assigns a unique order code no. to each transaction, which is intimated by broker to his client & once the order is executed, this order code no. is printed on the contract note. In this way client know whether his / her order is placed.

Payment to Broker in case of purchase of share.

Client must make payment to Broker within 48 hours or T+2 in case of purchase of share i.e. pay-in-day.

Receives the amount in case of sale of shares.

The client receives the amount in case of sale of shares after 2day of pay-out-day.

Maximum brokerage that a broker / sub- broker can charge-

The Maximum brokerage that can charge by broker is decided by the stock exchange as per the exchange regulation.

The main broker can charge Maximum brokerage is 2.5% mentioned in the respective purchase or sale note.

The sub-broker can charge Maximum brokerage is 1.5% mentioned in the respective purchase or sale note.

Customer directly trade online or through the brokers.There are two types of methods

1. Through the broker – In this method the customers do all the transaction through the brokers.

2. Online – In case of online trade the customers do all the transaction directly without any brokers.

In case of all the firms if client is able to place order directly, otherwise client place order through the brokers.

Finding & Conclusion

A) FINDINGS –

1. Among the different brokers from Joindre capital services Ltd. is charging highest brokerage as compared to other brokers.

2. IL and FS Investment Ltd. charging low brokerage as compared to other brokerage form.

3. SNC global security Ltd. charging lowest interaday brokerage as compared to other brokerage form.

4. IL and FS Investment Ltd. charging highest interaday brokerage.

5. For placing order & getting delivery is same procedure of all brokers.

6. The pay-out-day is same of all brokers from.

SUGGESTIONS

1. The Joindre capital services Ltd. firm should charge the low rate of delivery brokerage.

2. The IL and FS Investment Ltd. firm should charge the low rate of interaday brokerage.

3. Other firm should charge the similar rate of brokerage.

4. The broker should give the priority to provide good services to investors.

5. The broker should arrange new market strategies to attract the client.

6. The broker should provide home delivery service for whole transaction.

BIBLIOGRAPHY

Booklet of Stock Market

Dalal Street Magazine

Website : www.google.com

QUESTIONNAIRE

1) Name/ Occupation?

2) Name of firm?

3) When your firm was established?

4) What is your Delivery Brokerage?

5) What is your Interaday Brokerage?

6) What is your pay-in-day & pay-out-day? 7) What document are required to provide in client

Registration from by client?

8) How do client place order with broker? 9) How do client know whether his/her order is place?

10) In case of purchase of Shares, when does the client Make payment to brokers? 11) In case of Sale of Shares when the client receives the amount?

12) What is maximum brokerage that a broker can charge?