Project Report on IIFL

PROJECT REPORT

ON

SELLING OF INVESTMENT PRODUCTS & SERVICES

OF

INDIA INFOLINE

SUBMITTED TO M D UNIVERSITY ROHTAK FOR THE PARTIAL

FULFILLMENT OF DEGREE OF MASTER OF BUSINESS ADMINISTRATION FOR

THE ACADEMIC SESSION 2010-2012

FACULTY GUIDE: - Mrs. NIDHI GOYAL

UNDER THE GUIDANCE OF SUBMITTED BY:

MDU UNIVERSITY Parvez Akhter

ROHTAK 10-MBA-1036

RAWAL INSTITUTE OF MANAGEMENT

SOHNA ROAD, NEAR ZAKOPUR, FARIDABAD

1

Declaration

I PARVEZ AKHTER here by declare that the project work entitled “SELLING OF

INVESTMENT PRODUCTS & SERVICES” is an authentic work carried out by me at “INDIA

INFOLINE” under worthy and esteemed guidance of Mrs. Nidhi. The material provided in this

report is original and has not been submitted anywhere for any other diploma or degree.

I also declare that all the information and schemes gathered by me during course of the

project at “India Infoline Ltd.” will be kept strictly confidential.

Signed by Institute Guide Signature of Student

Name: Name:

Date: Date:

2

AKNOWLEDGEMENT

This study is internal part of our MBA program and to this project in a short period was a heavy task.

Intention, Dedication, Concentration and Hard work are very much essential to complete any task. But it

still needs lots of support, guidance, co-operation of people to make it successful.

Any work that is well accomplished is half done without a word of gratitude. I would like to extend

my heartfelt gratitude to all those who have contributed towards the successful completion of my project.

Foremost among them is Mrs. Nidhi for her helpful and generously extended support and by sparing

his valuable time to guide and suggest me towards completion of this project.

I do owe a deep sense of gratitude to all my friends, colleagues and all those stood with me and for

their continuous support and co-operation during the project. They too have contributed in no mean

amount towards the success of my endeavors.

Last but not Least, I express my heartfelt gratitude to my Parents who financed this project and have

been a moral support to me during this project.

PARVEZ AKHTER

3

PREFACE

Management Training has gained rapid importance only recently. Management was previously

considered as an inborn art or talent.

But in today’s fast developing world this view has been abandoned.

To develop managerial capabilities and to supplement their theoretical knowledge with practical

experience, the management students are required to go for training in business organization.

A comprehensive understanding of the principle will increase their decision-making ability and

sharpness their tools for this purpose. As an essential part of our course, I got the privilege to have training

in “INDIA INFOLINE”. The work has been carried over a span of 2 months. The scope of work under

taken by me includes research and competitive analysis and why customers think which “INDIA

INFOLINE” is better than others and about our services.

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INDEX

S.NO CONTENTS PAGE NO. SIGNATURE

1 CHAPTER 1

Executive summary

Introduction of the project

Objectives

2 CHAPTER 2

Organization Structure

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EXECUTIVE SUMMARY

There is growing investment between different firms in post reform India. For investor it is

always difficult to decide which investment firm to choose.

Research was carried out to find which investment house people prefer and to figure out what

people prefer while investing in stock market.

This study suggest that people are reluctant while investing in stock and commodity market

due to lack of knowledge

Main purpose of investment is returns and liquidity, commodity market is less preferred by

investors due to lack of awareness. The major findings of this study are that people are interested

to invest in stock market but they lack knowledge.

Through this report we were also able to understand, what are our Company’s (India Infoline

Ltd.) positive and strong points, on the basis of which we come to know what can be the basis of

pitching to a potential client. We also gave suggestions to the company, what improvement can

be done to our product.

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INTRODUCTION TO THE PROJECT

This project is a very good task for the selling of the company’s products & services and the

satisfaction level of the customers of various companies. India Infoline Ltd. is brand name in the

field of securities. The major other players in this field are India Bulls, Share Khan, ICICI Direct,

Kotak, Reliance etc. This project includes the various services provided by the company like

research mails, online trading, online terminal etc. In my project I have covered the various

functions of the company mainly taking into consideration the share broking. The various

product and services of companies will help in this study to make a clear cut idea of market

demand of the company as well this will provide the base to improve the strategies to make the

company more competitive.

In this project I have also analyzed the customer perception about the various services

offered by the company and the market scenario. It will help in comparison of the companies

from the point of the customers. There is a need of this study because customers have the veto

power to accept or reject a product or a service.

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OBJECTIVES

I was assigned with the task to do selling the investment plan of India Infoline Ltd. as a part

of the summer training curriculum. The entire project was divided into three parts:

1. Gathering data about the leading online broking houses and compare the main points and

find the strengths of India Infoline compared to them.

2. Conducting Market Research in various parts of the city in order to get statistical data for

comparing on the Competitor Analysis of India Infoline.

3. Customer Acquisition through sales of Trading/Demat accounts in order to get a deep

insight as to how the organization actually performs these functions.

4. Financial Comparison of India Infoline and Comparison on the basis of Financial Ratio.

5. What factors motivate to customers to invest in Share Market and why they think it is

only speculation investing in share market.

I have to be in regular contacts with our clients so that I come to know about the problems

they are facing. This also helps me to multiply my clients by getting the further references.

By this I am able to make a chain of the customers which expands as I satisfy their needs.

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COMPANY HISTORY

We are originally incorporated on October 18, 1995 as Probity Research & Services Private

Limited at Mumbai under the Companies Act, 1956 with Registration No. 11 – 93797. It was

converted into a Public Limited Company on April 28, 2000 and the name of the Company was

changed to Probity Research & Services Limited. The name of the company was changed to

India Infoline.com Limited on May 23, 2000. The name of the company was further changed to

India Infoline Limited on March 23, 2001.

We commenced our operations in October 1995 as Probity Research and Services Private

Limited, as an independent provider of information, analysis and research covering Indian

businesses, financial markets and economy, for institutional customers.

In 1999, we identified the potential of the Internet to cater to a mass retail segment and

transformed our business model from providing information services to institutional to retail

customers. Hence, we launched our Internet portal, www.indiainfoline.com and started providing

news and market information, independent research, interviews with business leaders and other

specialized features.

In May 2000, the name of our Company was changed to India Infoline Limited to reflect the

transformation. Over a period of time, we have emerged as one of the leading business and

financial information services provider in India.

In the year 2000, we leveraged our position as a provider of financial information and

analysis by diversifying into transactional services, primarily for online trading in shares and

securities and online as well as offline distribution of personal financial products, like mutual

funds and RBI Bonds. These activities are carried on through our wholly owned subsidiaries.

Our broking service was launched under the brand name of 5paisa through our subsidiary,

India Infoline Securities Private Limited and www.5paisa.com, the e-broking portal, was

launched for online trading in June 2000. It combined competitive brokerage rates and research,

supported by Internet technology. Besides investment advice from an experienced team of

research analysts, we also offer real time stock quotes, market news and price charts with

multiple tools for technical analysis.

In December 2000, our subsidiary, India Infoline Insurance Services Limited became a

corporate agent for ICICI Prudential Life Insurance Company Limited. We mobilized Rs. 36.17

9

million of Weighted Annualized Premium during FY2003. In FY 2004, it rose by 287.42% to

Rs. 103.96 million. We have consolidated our position even further in the current financial year.

In the year 2004, we launched commodities broking through our subsidiary India Infoline

Commodities Private Limited. We also received a license for Portfolio Management Services

from SEBI for our broking subsidiary.

Features

In May 2000, the name of our company was changed to India Infoline.com Ltd. to reflect the

transformation of our business. Over a period of time, we have emerged as one of the leading

business and financial information services provider in India.

In the Year 2000, we leveraged our position as a provider of financial information and

analysis by diversifying into transactional services, primarily for online trading in shares and

securities and online as well as offline distribution of personal finance products, like Mutual

Funds and RBI Bonds.

Our broking services were launched under the brand name of 5paisa.com through our

subsidiary, India Infoline Securities Pvt. Ltd. and www.5paisa.com. The e-broking portals, was

launched for online trading in July 2000. It combined competitive brokerages rates and research,

supported by internet technology besides investment advice from an experienced team of

research analysts. We also offer real time stock quotes, market news and price charts with

multiple tools for technical analysis.

VISION

“To be the most respected company in the financial services space.”

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http://www.5paisa.com/

SUCCESS JOURNEY

1999- Vision to provide anything that you would want to know about Indian business &

finance www.indiainfoline.com Name of the company included dot com

2000- We moved away from portal, launched online trading- 5paisa.com

Dot com was deleted from name of the company

2001- Became an insurance agent- purely offline

2002- Into a minefield- struggle to survive

2003- One stop shop for financial services

2004- Fortunes change- started dreaming IPO

2005- IPO and listing

2006- Strong growth- Foray consumer finance

2007- Seize the opportunity- Institutional equities

2008- Build upon strengths- Wealth & Asset Management

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http://www.indiainfoline.com/

COMPANY PROFILE

The India Infoline Group comprises the holding company, India Infoline Ltd, which has 4

wholly-owned subsidiaries engaged in distinct yet complementary businesses which together

offer a whole bouquet of products and services to make your money grow. As on date, the Group

employs 14000 plus Employees in over 60 locations, across India. The corporate structure has

evolved to comply with oddities of the regulatory framework but still beautifully help attain

synergy and allow flexibility to adapt to dynamics of different businesses.

BSE CODE - 532636

BSE Group - A

NSE CODE - INDIAINFO

Industry Name - Finance & Investments

House Name - Indian Private

Registrar - In time Spectrum Registry Ltd

Auditors - Sharp & Tannan Associates, Charted Accountant

Legal Advisor to the issue – Crawford Baylay & Company

Bankers –

State Bank of India

Yes Bank Ltd.

UCO Bank

State Bank of Travancore

Kotak Mahindra Bank

ICICI Bank Ltd.

HDFC Bank Ltd.

Hongkong & Shanghai Banking Corporation Ltd.

Punjab National Bank

Standard Chartered Bank

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Union Bank of India

Allahabad Bank

Axis Bank Ltd.

Bank of Baroda

Citibank NA.

Compliance Member – Ms. Komal Parikh [Company Secretary]

Syndicate Member – Enam Securities Pvt. Ltd.

Public Issue Date – 21/04/05

Face Value – 2

Market Lot – 1

ISIN - INE530B01024

Current PE – 8.1765

Current Market Capital – 38,797,460,000

Key Dates

Year Ending Month March

AGM Date (Month) July

Book Closure Date (Month) July

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Settlement cycle

Exchange Settlement cycle Pay in Pay in Payout

Payout

NSE Wed-Tue Mon Tue Wed Wed

BSE Mon – Fri Wed Thurs Fri Sat

INDIAINFO Share Holding

Name No of Shares % Share Holding

Total Promoters 16486501.00 36.09

Total Foreign 12730808.00 27.87

Total Public & Others 7808327.00 17.09

Total Institutions 715128.00 10.32

Total Non Promoter Corporate

Holding3944452.00 8.63

Registered Office –

Address - Building No 75 Nirlon Complex, Off West Exp Highwy Goregaon-E

District - Mumbai State - Maharashtra

Pin Code - 400063 Tel. No. - 91-022-56775900/26850101

Fax No. - 91-022-26850451

Email: - [email protected] Internet: - http://www.indiainfoline.com

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http://www.indiainfoline.com/

mailto:[email protected]

OWNERSHIP PATTERNS

The Management

Mr. Nirmal Jain (Chairman & Managing Director)

Mr. R Venkataraman (Executive Director)

Mr. Narendra Jain (Chief Operating Officer)

Mr. R Mohan (Chief Compliance Officer)

Mr. Kapil Krishan (Chief Financial Officer)

The Board of Directors

Mr. Sat Pal Khattar (Non- Executive Director)

Mr. Nilesh Vikamsey (Non- Executive & Independent Director)

Mr. Kranti Sinha (Non- Executive & Independent Director)

Mr. A. K. Purwar [Director]

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Company Secretary

Falguni Sanghvi Company Secretary

DIVISIONS

BOARD MEETINGS

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Meeting Date Remark

28-04-2009 Audited Results

21-01-2009 Quarterly results, Interim Dividend & Others

29-11-2008 Buy Back of Shares

28-11-2008 Buy Back of Shares

17-11-2008 Employees Stock Option Plan

17-10-2008 Quarterly Results

29-07-2008 Employees Stock Option Plan

26-04-2008 Audited Results, Dividend & Stock Split


24-12-2007 Preferential allotment of equity shares



25-04-2007 Audited Results

19-03-2007 Interim Dividend




26-04-2006 Accounts, Dividend & Merger

16-01-2006 Quarterly Results & Interim Dividend

29-12-2005 Finalization of ESOP scheme


15-09-2005 Formation of a subsidiary Co. in Dubai


19-05-2005 Accounts & Raising of Debt

DIVIDEND DECLARED

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Announcement Date Effective Date Dividend Type Dividend (%) Remarks

15-01-09 29-01-09 Interim 140.00 –

28-04-08 26-06-08 Final 60.00 AGM

12-03-07 22-03-07 Interim 30.00 –

26-04-06 19-07-06 Final 10.00 AGM (Revised)

17-01-06 24-01-06 Interim 20.00 -

SWOT ANALYSIS

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Strengths

Original research

Integrated technology platform

“One Stop” shop

Pan - India distribution network

“India Infoline.com” and “5paisa.com”

have developed into brands

Weakness

Lack of a banking arm to complete the

bank-broker-depository chain

Insignificant presence in institutional

segment

Opportunities

Changing demographics with higher

disposable income and increasingly

complex financial instruments will

drive demand for investment advisory

services

Rapid penetration of Internet and

computers means that technology

enabled financial services will gain

market share

Threats

Economic slowdown

Volatile movement in indices and

events like May 17, 2004

Stock markets falls will have a

cascading effect on our mutual fund

mobilization

Increase/decrease in interest rates

can affect our debt/ income fund

mobilizations

Future changes in personal taxation

rules can impact insurance sales

Increasing competition from large and

particularly foreign players

TECHNOLOGY

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We believe that online trading will gain market share due to significant advantages that it

offers

It enables the customer to trade directly without any agent intervention

It offers customers the convenience of trading from almost anywhere

It enables rapid dissemination of information and at reduced costs

It offers a responsive mechanism for reporting grievances, problems and bugs

HUMAN RESOURCES

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Our Human Resources policy is based on the philosophy of “Owner Mindset”. We believe

that the key to our continued growth lies in unleashing the entrepreneurial energy of our

employees.

We encourage all employees to behave more as 51 owners of their departments rather than

employees. Our people are highly driven and work towards increasing India Infoline’s brand and

market share across product lines.

We have developed extensive in-house training modules. In addition, our staff is trained by

various Asset Management Companies and ICICI Prudential Life Insurance Company Limited.

We lay emphasis on “On the job training” where an experienced and senior person mentors a

junior executive.

In addition to salary, our employees get performance-based incentives on a quarterly basis.

We have also implemented an Employee Stock Option Plan.

STRATEGY AND ITS ELEMENTS

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"One Stop Shop" from advice to Aransactions

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We have emerged as one of India’s leading financial information Internet portal in India. We

distribute mutual funds and life insurance products through our branches as well as directly

through our sales team.

These factors allow us to provide our customers with an integrated online as well as offline

solution to fulfill all their financial information and transaction needs. We believe that our ability

to offer multiple products across broking to insurance to mutual funds to commodities to small

savings differentiates us from our competition. This also offers significant cross selling

opportunities which will help in improving margins as incremental revenue will entail lower

customer acquisition and promotion costs.

Multi Channel Delivery Model

We intend providing a single convenient and reliable platform from which our users can

obtain information, trade online or purchase offline a wide range of personal financial products.

Our branches have been opened in cities after a detailed study of demographics and investment

patterns in different cities.

Expand our Retail Network

We have a retail branch network of 73 branches at 36 locations across India to provide an

alternative channel for our customers to transact with us and to support our online services.

These branches allow our customers the opportunity to purchase personal financial products and

trade at such branches with the assistance of our staff. We propose to set up additional 77

branches in 50 cities across India to have a network of 150 branches to further strengthen our

geographic reach.

Leverage our content Advantage for Value Added Offerings

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We believe that the key to successful investment is research. We have invested considerable

resources in building our research domain skills. Our top management has hands on experience

in equity research. We will continue to expand the breadth and depth of research and content on

Indian business and finance. This research advantage will enable us to acquire customers in high

value added product offerings especially PMS.

Continuous Investments in Technology Platform

We have leveraged the power of technology to offer an integrated platform to the customer to

transact. We will continue to invest in such technologies that would enhance customer

experience while interacting with us. We have facilitated integrated trading and depositary

accounts for the customer, payment gateways with multiple banks, online Internet enabled back

office and MIS. We believe that our technology investments will be a key driver in scaling up of

the business.

Acquisition & Takeover

We strongly believe that to become a market leader in the investment advisory and

intermediation space, we have to expand our business. In our endeavor to do so and as per our

business strategy we may pursue inorganic growth.

COMPETITIVE ADVANTAGES

24

We are strategically positioned to leverage our strength in the domestic market, due to our

competitive advantages that include the following:

Research

We have our roots in equity research. Our original business model was to provide research

and information services on Indian business and capital markets to institutional customers. Our

executive directors have equity research and investment experience in leading banks and

brokerage houses.

Integrated Technology Platform

Since the launch of our website, www.indiainfoline.com, and our online trading platform,

www.5paisa.com, we have invested in building a technology platform. We use a mix of in-house

and outsourced technologies to offer a user-friendly interface for online trading. Our Trader

Terminal is an application which allows customers to trade on both the BSE and the NSE.

We believe that our technology strengths will enable us to scale up the business without a

proportionate increase in operating costs.

Multiple Product Offerings make us a “One Stop” Shop

We provide a range of products and services to our customers, either directly or through any

one of our wholly owned subsidiaries. These multiple offerings across multiple channels – either

online through Internet or offline through any of the branches or over the telephone enables us to

emerge as a financial “one stop” shop. This also offers significant cross selling opportunities,

which helps us in strengthening customer relationships and loyalty.

Pan - India Distribution Network

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We have 73 branches across 36 towns and cities in India. These branches help in customer

acquisition as well as customer service. This is a part of a conscious “bricks and clicks” strategy

to reach out to our customers.

“India Infoline.com” and “5paisa.com” have developed into Brands

India Infoline.com and 5paisa.com are well known brands amongst retail investors across

India. In all the cities that we have expanded into, we have been able to leverage upon brand

awareness and have established a customer base.

Experienced Management Team

Our management team has hands on experience in financial services, especially targeted at

retail sales and relationship management.

Customer Relationship Management

We have developed a team of Customer Relationship Managers across India to handle key

customer accounts. These people are experienced in financial services and have undergone in-

house training. This allows them to offer unbiased advice on not only equities but also on other

investment products like mutual funds and insurance.

Robust Risk Management Systems

We manage the risks associated with our broking operations through use of internally

developed credit algorithms implemented through fully automated risk management software

and selective direct monitoring of certain operating parameters. Our automated risk management

procedures rely primarily on internally developed Risk Management System and systems

provided by our vendors.

FINANCIAL PROFILES OF COMPANY

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ICRA has assigned an A1+ (Pronounced A one Plus) ratings to the 5.0 billion Short-Term

(current fund based-Rs.1.65 billion and current Non-Fund based – Rs. 2.60 billion) bank

facilities of India Infoline Ltd. (IIL). The Short-Term instrument under Fund based and Non

Fund based limits are interchangeable and as such the combined utilization should not exceed

Rs. 5.0 billion. The rating indicates the highest credit quality rating assigned by ICRA to short-

term debt instruments. Instruments rated in this category carry the lowest credit risk in the short

term. ICRA also has an A1+ rating outstanding on IIL’s Rs. 5 billion short term debt programme.

The rating is derived after considering the combined financial and business profile of all

companies in India Infoline Ltd. Group. The rating factors in IIL’s significantly enhanced net

worth following private equity placements, adequate experience in retail broking business and its

increasing market share, strengthening institutional broking business, diversified business

revenues, robust risk management systems and improving financial performance. The rating also

factors in the inherent volatility in its prime business of equity broking business, which is prone

to cyclical downturns and group’s foray into highly competitive consumer finance business,

which is perceived to be relatively riskier.

Results (consolidated) for the quarter and year ended March 31, 2009

Income for the year at Rs9,630.9 million, down 5.9% yoy

Profit before Tax for the year at Rs2,194.7 million, down 22.4% yoy

EBIDTA margins in FY09 at 30.3% as compared to 39.3% in FY08

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Equities

Market share on the NSE for the year under review has grown by 11% yoy to 3.76% as

compared to 3.40% in the previous year. Our average daily volumes for the equity business stood

at Rs22.37 billion as compared to Rs24.31 billion in FY08, a decrease of 8% yoy. Our broking

customer base grew by 36% to about 0.6 million customers at the end of FY09. Average daily

volumes in our commodities broking business were Rs2.63 billion for FY09 which was an

increase of 47% as compared to Rs1.80 billion in FY08.

Life Insurance Distribution

During 2008-09, the weighted annualized premium mobilized for ICICI Prudential, which

forms the dominant part of our Insurance distribution business, was Rs2.66 billion in FY09,

about 40% lower than that in the previous year 2007-08.

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Retail Consumer Finance

The total lending portfolio stood at Rs10.17 billion as at end March 2009, as against Rs9.37

billion last year. In view of adverse credit market conditions, we had scaled down origination of

fresh assets since September 2008. The non performing assets for the portfolio are less than 1%.

Wealth Management

In 2008-09, our wealth management business, has forged many new relationships. The

business has created a foothold in ten cities across four countries, driven strongly by its product

innovation.

Asset Management Business

During the third quarter of FY09, the company received the in-principle approval from SEBI

towards sponsoring a Mutual Fund. The company is now in the process of setting up a Trustee

company and an Asset Management Company.

The Board had earmarked Rs98.91 cr. towards this buyback through stock exchanges up to a

maximum price of Rs43.20 per share, i.e. total utilization of Rs10.80 cr. for buy back. As on

March 31st, 2009.

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SELLING OF INVESTMENT PRODUCTS & SERVICES

OF

INDIA INFOLINE

PRODUCTS AND SERVICES

30

EQUITIES: India Infoline provided the prospect of researched investing to its clients, which

was hitherto restricted only to the institutions. Research for the retail investor did not exist prior

to India Infoline. India Infoline leveraged technology to bring the convenience of trading to the

investor’s location of preference (residence or office) through computerized access. India

Infoline made it possible for clients to view transaction costs and ledger updates in real time.

Service: Clients can access the customer service team through various media like toll-free lines,

emails and Internet- messenger chat for instant query resolution. The Companies customer

service executives proactively contact customers to inform them of key changes and initiatives

taken by the Company. Business World rated the Companies customer service as Best in their

survey of online trading sites carried out in December 2003.

features

Membership on the Bombay Stock Exchange Limited and the National

Stock Exchange

Registered with the NSDL as well as CDSL as a depository participant,

providing a one-stop solution for clients trading in the equities market

Broking services in cash and derivative segments, online as well as offline.

Presence across 350 cities and towns with a network of over 850 business

locations Equity client base of over 500,000 clients

Provision of free and world-class research to all clients.

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PORTFOLIO MANAGEMENT:

Our Portfolio Management Service is a product wherein an equity investment portfolio is

created to suit the investment objectives of a client. We at India Infoline invest your resources into

stocks from different sectors, depending on your risk-return profile. This service is particularly

advisable for investors who cannot afford to give time or don't have that expertise for day-to-day

management of their equity portfolio.

It is all about your money, being managed by the experts, while you continue with your

routine life. Isn't it simple and totally hassle free.

What's more, you can keep track of your dividends / bonus / rights issues with paperless

tracking. So you always know how fast your investment is growing. It basically means assigning

the right job to the right person.

Features

Expert team of Research Analysts

Stock Picking done by the Investment Committee

Dedicated Relationship Manager

Technology and Service driven Back-Office

RESEARCH:

IIL special research cell where some of India's finest financial analysts bring you intensive

research reports on how the stock market is faring, when is the right time to invest, when to

execute your order and more.

IIL make sure that investors are always prepared to make own investment decision when the

opportunity arises.

IIL bring you intensive research reports - whether sectoral or company-wise or more - that tell

you exactly when and where to invest. So whenever there is an exciting investment opportunity,

32

you are in the know and always ready to invest. Research reports IIL will help you choose your

investments wisely, without wasting time. Presented in a lucid and easy-to-understand format;

these reports help you make informed decisions.

COMMODITIES BROKING:

India Infolines extension into commodities trading reconciles its strategic intent to emerge as a

one stop solutions financial intermediary. Its experience in securities broking has empowered it

with requisite skills and technologies. Increased offering: The Companies commodities business

provides a contra-cyclical alternative to equities broking. The Company was among the first to

offer the facility of commodities trading in India’s young commodities market (the MCX

commenced operations only in 2003). Average monthly turnover on the commodity exchanges

increased from Rs 0.34 bn to Rs 20.02 bn. The commodities market has several products with

different and non-correlated cycles. On the whole, the business is fairly insulated against cyclical

gyrations in the business.

Features

Enjoys memberships with the MCX and NCDEX, two leading

Indian commodities exchanges

Recently acquired membership of the DGCX

Multi-channel delivery model, making it among the select few to

offer online as well as offline trading facilities

Extended commodity trading to retail investors, among the few

Indian financial intermediaries to do so

Online business at 80% of revenues dominates commodities trading

revenues

Provides regular commodity updates pertaining to the Indian and

international environment

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MORTAGAGES:

During the year under review, Indiainfoline acquired a 75% stake in Money tree Consultancy

Services to mark its foray into the business of mortgages and other loan products distribution.

The business is still in the investing phase and at the time of the acquisition was present only in

the cities of Mumbai and Pune. The Company brings on board expertise in the loans business

coupled with existing relationships across a number of principals in the mortgage and personal

loans businesses. Indiainfoline now has plans to roll the business out across its pan-Indian

network to provide it with a truly national scale in operations.

HOME LOANS:

Loan against residential and commercial property

Expert recommendations

Easy documentation

Quick processing and disbursal

No guarantor requirement

1. PERSONAL LOANS: Expert recommendations

Easy documentation

Quick processing and disbursal

No guarantor requirement

2. INVEST ONLINE:

India Infoline has made investing in Mutual funds and primary market so effortless. All

you have to do is register with us and that’s all. No paperwork no queues and No registration

charges.

If you are 5p customer use your existing login ID and Ledger (fund transfer) password.

India info line offers you a host of mutual fund and IPO choices under one roof; backed by

in-depth information and research to help you invest effortlessly.

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3. INSURANCE:

An entry into this segment helped complete the client’s product basket; concurrently, it

graduated the Company into a one-stop retail financial solutions provider. To ensure maximum

reach to customers across India, we have employed a multi pronged approach and reach out to

customers via our Network, Direct and Affiliate channels. Following the opening of the sector in

1999-2000, a number of private sector insurance service providers commenced operations

aggressively and helped grow the market.

The Company’s entry into the insurance sector derisked the Company from a predominant

dependence on broking and equity-linked revenues. The annuity based income generated from

insurance intermediation result in solid core revenues across the tenure of the policy.

4. WEALTH MANAGEMENT:

The key to achieving a successful Investment Portfolio is to have a carefully planned financial

strategy based on a thorough understanding of the client's investment needs and risk appetite.

The IIFL Private Wealth Management Team of financial experts will recommend an appropriate

financial strategy to effectively meet your investment requirements.

Our Financial Advisor will analyze:

Your cash-flow requirements

Your risk appetite

Desired investment horizon

Long-term goals

5. NEWS LETTER:

The Daily Market Strategy is your morning dose on the health of the markets. Five intra-day

ideas, unless the markets are really choppy coupled with a brief on the global markets and any

other cues, which could impact the market. Occasionally an investment idea from the research

team and a crisp round up of the previous day's top stories. That's not all. As a subscriber to the

35

Daily Market Strategy, you even get research reports of India Infoline research team on a priority

basis.

The India Infoline Weekly Newsletter is your flashback for the week gone by. A weekly outlook

coupled with the best of the web stories from India Infoline and links to important investment

ideas, Leader Speak and features is delivered in your inbox every Friday evening.

List of News letter provide :

Daily Newsletters

Weekly Newsletters

Monthly Newsletters

Yearly Newsletters

Commodity Newsletters

Mutual Fund Newsletters

COMPETITORS

India Bulls Securities Ltd.

Reliance Money Ltd.

ICICI Direct.com

Share Khan.com

Angel Broking Ltd.

Motilal Oswal Securities Ltd.

Religare Securities Ltd.

Edelweiss

36

Why India Infoline

Paisa sense - Simple, we offer an unbeatable value for money proposition. Our brokerage

rates are rock bottom, we charge only 5 paise for Rs100 of trade done, which is 0.05%

brokerage. In the real world, brokers charge anywhere from 0.25% to 1.5% depending on your

net worth and traded volumes. While others talk about democracy, we practice it. We offer the

most competitive rates, independent of your net worth or volumes. In case of trades that result in

delivery, we charge an additional 0.20% for back office and securities handling.

Personalized Service - At India Infoline, we are committed to providing you with

unparalleled service, using e-mail, call centers and support staff. For us the customer comes first,

always and all times. We have invested in physical infrastructure also, so that you can use the

phone also to contact us. Please feel free to call us any time and our representative will help you.

If need be, our representatives will contact you in person to help you, either in filling forms or

answering any queries you might have.

Probity - In normal life, most brokers trade on their own account. This means that every time

you execute a trade through him, there is a potential conflict of interest. What if he executes his

personal trade before executing yours: you lose out. With India Infoline, you have no such

worries as we do not trade on our own account. We are a broker in the true sense of the word.

You may wonder that our employees may be biased and misuse information. No way, we

follow stringent compliance standards and every employee has to sign an agreement that forbids

him to trade without proper authorization. To ensure transparency, they have to use 5paisa.com

to trade and not any friendly neighborhood broker. This means that our interests are aligned - we

work for your best interest.

Protection - Most people are apprehensive about using the net to trade, primarily from fear

of misuse of information. The communications with our servers is fast and secure. All

transactions are secure and confidential. The orders are electronically routed via our

sophisticated trading systems for execution. We have followed world class security systems that

enable us to protect from any fraud or hacking. Even the user password would be generated by

the system and supplied such that, not even employees of India Infoline would know about it.

37

Also, it would be stored in our database in encrypted format so no one can know the actual

password. To be on a safer side you will be requested periodically to change your password.

Pedigree - We come from the India Infoline.com stable, known to produce thoroughbreds. A

brand renowned for quality of information and services, we are professionally managed, with a

skill set which is unbeatable. Our top management has years of experience in financial services

with leading banks and institutions. We believe that quality information is the only ingredient for

successful investments. On India Infoline, you will get company analysis, market commentary,

breaking news and scoops, stock market data and much more. We also have unlimited access to

India Infoline.com library.

TRADING TERMINALS

India Infoline offers 2 different online trading terminals to its customers

38

1. Trader Terminal (TT) Browser web based

2. Trader Terminal (TT) Advance

How to open Account with India Infoline

There are few steps to open an account with India Infoline.

1. First log on to their site and fill the registration form. Once you fill the form they will

give you 2 options. Either you can receive the form by mail or one of their agent visit you

personally. Personal visit is not available in all cities.

2. After registration, you will be required to deposit a certain amount of initial margin

deposit with them. The deposit can be of any amount, but it should not be less than Rupees Five

Thousand.

3. When your account is activated, you will receive a welcome kit, which contains details

about your account, your username and password, and the user's manual. The kit will also

include a CD ROM which will allow you to install trading software.

4. It will take approximately 15 days to complete the formalities if all the correct documents

are sent and the forms are correctly filled.

5. Documents required are 2 latest passport size photos, proof of identity and address i.e.

say electricity/ telephone bill, passport photocopies and PAN number.

Advantages of India Infoline

1. Very fast execution speed.

2. Rates are very competitive then other providers.

3. Easy online fund transfer facility from leading Banks including ICICI, HDFC,

CITI and UTI banks.

39

4. Free facility of subscribing to mutual funds, equity IPOs and other investment

products.

Disadvantages of India Infoline

1. Investing in IPO and Mutual Funds is not so easy like in ICICI Direct.

OTHER RELEVANT INFORMATION

India Infoline public issue gets 6.6 Times oversubscription.

India Infoline has been awarded as the ‘Best Broker in India’ by Finance Asia

magazine. This is an annual ritual conducted by the magazine for study of best financial

services firms in each country across Asia. The study was conducted from a period of 1

year from June 2007 to May 2008.

India Infoline Signs up with First Advantage for Verify Direct. The Employer

Services segment of First Advantage Corporation (NASDAQ: FADV), Asia-Pacific's

largest background screening and talent acquisition solutions provider, today announced

that India Infoline has become the first company to sign up for Ver.

The company also won the Golden Mouse Award in India Internet World

2000 for the Best Finance site.

Our website was included in the Top 200 Best of the Web list by Forbes Global

under the Asia Investing category.

The Company was among the first to offer the facility of Commodities Trading in

India’s young commodities market.

A forerunner in the field of equity research, India Infoline’s research is

acknowledged by none other than Forbes as ‘Best of the Web’ and ‘…a must read for

investors in Asia’.

40

In a poll conducted by Asia Money, we were adjudged as the ‘Most Improved

Brokerage’ in India.

India's Best Websites

The first annual Business Barons - TNS mode Internet-user opinion poll indiamarkets.com has been

rated the no. 1 B2B site by the first annual Business Barons -TNS MODE Internet-user opinion poll in the

Business Barons October 31 2000 issue. In a survey that conducted an opinion poll among regular

Internet users to gauge the most popular websites across eight subject segments, India markets was the

only B2B site among the top ten Business/Personal Finance portals in terms of aided awareness.

indiamarkets.com was rated third under the Business/Personal Finance segment with an aided

awareness of 24% amongst the respondents, the top two being Indiainfoline.com and Sharekhan.com.

Indiainfoline.com and Sharekhan.com are predominantly finance portals, thus making indiamarkets.com

the best under the Business segment.

Aided Awareness

1. indiainfoline.com 37%

2. Sharekhan.com 30%

3. indiamarkets.com 24%

Base: All (509)

Websites visited in the last 3 months

1. indiainfoline.com 15%



Base: All (509)

41

Websites ever visited

1. India Infoline.com 17%



Base: All (509)

Frequency of visits

Average frequency once in ... days

1. indiainfoline.com 12.4

2. Sharekhan.com 8.5

3. indiamarkets.com 11.2

Base: Those visiting in the last three months

Average time spent per visit

42




4. Capitalmarkets.com 21.4

5. indiabazar.com 94.8

6. indiabulls.com 112

7. indiatrade.com 91.1

8. myris.com 75.2

9. walletwatch.com 19.5

Base: Those visiting in the last three months

Frequency of visits

Average frequency once in days




4. Capitalmarkets.com 5.6

5. indiabazar.com 9.2

6. indiabulls.com 9.5

7. indiatrade.com 9.2

8. myris.com 17.4

9. walletwatch.com 8.6

Sites most liked

1. India Infoline.com 24%



Base: Those ranking 1 (169)

REVIEW OF LITERATURE

43

People are not much aware of commodity market and while it’s going to be biggest market in

India.

A key challenge for a brokerage firm is to decide which customer segments to target, which

in turn has important implication for product positioning and pricing

There is substantial variation in investing in investment knowledge and experience across

different individual investors.

These investors don’t value extra services or research tools; they are looking for rock bottom

prices.

Empowered with information, investors demand a tailor-made brokerage product at the

lowest possible price and are unlikely to be loyal at any one provider.

The drawback of the old system and the pool proof measures sought to improve efficiency in

transfer and transparency standards prompted to evaluate the functioning of the dematerialization

process and to focus on the development of the depository system in the Indian Capital Market.

The clients were attended as and when appointments were taken. The appointment are from

different areas, it would have better if the appointment were been taken area wise.

The company should also organize seminars and similar activities to enhance the knowledge

of prospective and existing customers, so that they feel more comfortable while investing in the

stock market.

44

RESEARCH METHODOLOGY

Objective Of Research

Each research study has its own specific purpose. It is like to discover to Question through

the application of scientific procedure. But the main aim of my research to find out the truth that

is hidden and which has not been discovered as yet. My research study has two objectives

PRIMARY OBJECTIVE:- How India Infoline Ltd is best services providers as a stock

broker in the NCR region.

SECONDARY OBJECTIVE:-

1. To know about the awareness towards stock brokers and share market.

2. To study about the competitive position of India Infoline Ltd in Competitive Market.

3. To study about the effectiveness & efficiency of India Infoline Ltd in relation to its

competitors

4. To study about whether people are satisfied with India Infoline Services & Management

System or not

5. To study about the difficulties faced by persons while Trading in India Infoline.

6. To study about the need of improvement in existing Trading system.

TYPES OF RESEARCH

On the basis of theoretical study a research has many types. All of these are distributed on the

nature of research. Some of these are like

1. Descriptive and Analytical

2. Qualitative and Quantitative

3. Conceptual and empirical

4. Applied and fundamental

5. One time research

My research is based on Descriptive, Qualitative and Quantitative research.

45

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.

Qualitative Research:-

In my research I need comparison between different stock brokers. So this based on all

qualitative data. In short, Qualitative research is especially important in the behavioral sciences

where the aim is to discover the underline motives of human behavior. Through such research I

can analyses various factors which motivate to people to behave in a particular manner or which

make people like or dislike a particular thing.

Quantitative research:-

Quantitative research is based on the measurement of quantity or amount. It is applicable to

phenomena that can be expressed in terms of quantity. So I can use it in our research for

collection of all the numerical data.

SAMPLE DESIGN:-

“A sample design is a definite plan for obtaining a sample from a given population. It refers

to the technique or the procedure the researcher would adopt in selecting item for the sample”

Generally Sample designs are two types

1. PROBABILITY RESEARCH DESIGN

2. NON PROBABILITY RESEARCH DESIGN

I used the probability research design.

46

SAMPLING UNITS:-

Sampling unit may be a geographical one, such as state, district, village etc. The researcher

will have to decide one or more of such units that he has to select for his study.

In my research study NCR as a sampling unit.

SIZE OF SAMPLE:-

“This refers to the number of items to be selected from the universe to constitute a sample”

In my research sample size is 100.

But I also study the 5 stock broker companies related to security & commodity market like

Share Khan, ICICI direct, Religare, India Bulls for the appropriate collection of the information.

SOURES OF DATA COLLECTION:-

While deciding about the method of data collection to be used for the study the researcher

should keep to types of data.

1. Primary

2. Secondary Data.

I use in my research primary data, as well as secondary data. Primary means collected a

fresh, and the first time data and secondary means which are already available like annual report,

magazines etc.

47

Survey Method:-

Survey refers to the method of securing information concerning phenomena under study from

all or selected number of respondents of the concerned area. In a survey the investigator

examines those phenomena which exist in the universe independent of his action. I used the

Scheduling Method.

Scheduling:-

In this method the enumerators along with schedules, go to respondents, put to them the

questions from the Performa in the order the questions are listed and recorded the replies in the

space meant for the same in the Performa.

Limitations:-

Size of the research may be substantial.

There was lack of time and information on the part of the respondents.

The survey was carried out on the basis of questionnaire and the questions were based on

perception.

There may be biasness in information by market participant.

Complete data was not available due to company privacy and secrecy.

Some people think that Shares are too risky and just another name of gamble but they

don’t know it’s not at all risky for long term investors.

Since most of the people are quite experienced and also they are not techno savvy. Also

internet penetration is poor in India.

48

ANALYSIS AND FINDINGS

After the whole study, I find out the following results

Results on the Basis of charges

There are the two type of the transaction:-

1. Intra-day based

2. Delivery based

All the figures are in paisa/100 rupees.

Comment:- According to the survey HDFC securities charge maximum brokerage as

compare to others whereas India Infoline Ltd. charge only 0.20 paisa on maximum investment.

49

Results On the basis of Account opening charges

ShareKhan ltd:- There is no ACCOUNT OPENING CHARGES but require margin money

of Rs 5000 for trading purposes.

ICICI direct:- A one-time charge of Rs. 750 at the time of account opening will be charged.

You may later upgrade your Invest account to an ICICI direct.com share trading account when

you desire to trade in equity.

India Infoline:- There is a nominal charge of Rs. 500 only towards stamp duty, legal and

processing fees for opening the account. This includes the registration and account opening

charges. Bank and Depository Participant (DP) account opening charges, if applicable, are

payable separately.

India bulls:- Account opening charges are Rs. 900. There is no AMC and no margin money

is required.

Reliance Money:- Account opening charges are Rs. 900. There is no AMC and no margin

money is required.

Comment:- India Bulls charge maximum account opening charges but there are no such

charges in ShareKhan Pvt. Ltd.

Results on the Basis of Facilities

Basis of

Difference

India

Infoline

Religare Indiabulls ICICI Edelweiss

Share

Trading

Yes Yes Yes Yes Yes

Commodity

Trading

Yes Yes Yes No Yes

D-Mat

Opening

Rights

Yes Yes Yes Yes Yes

50

Analysis and Interpretation

Q1. What is your age group?

According to the survey, maximum numbers of people belong to the age group of 20-35

years. So we can say that the most aforesaid respondents will be willing to take risk and make

investments in the market instruments with moderate risk.

Q2. What is your occupation?

51

50% of the respondents belong to the category of salaried employees, and 15% of the

respondents are into Business. Further 25% of the responds are self employed and remaining

10% are from other occupations.

Q3. Under Which range you’re Income Falls?

The graph above depicts the income range of the respondents. The income range of the

maximum 55% respondents lie in the 10000-25000 categories whereas only 20% respondents

income falls in the category of 0-10000. And 25% respondents are earning 25000<.

Q4. Are you aware about capital market?

Respondents with in age group 20-35 have 26% awareness about the capital market, this is

highest number of percentage who is aware about the capital market and 19% have no idea about

capital market. This is most risk taking category, so company should focus on this category.

52

Respondents with in age group 35-45 have 14% awareness and 45-60 have 11% awareness at

the same time respondents have no awareness about capital with in age group 35-45 is 11% and

45-60% is 7%. This is moderate category who invests in stock market.

Awareness with in age group 60< is 7% and respondents have no awareness in this category

is 5%, this is the least number of percentage. This is no risk taking category.

Q5. Which Financial instrument do you prefer for investment?

17% respondents who are aware about the capital market they are ready to invest in stocks

and this are approx. double of that category that is aware about the capital market but not ready

to invest in stocks.

Respondents who are aware about the capital market and those respondents who are not

aware the capital market has same percentage when they invest in Bonds.

22% respondents those are aware about the capital market invests in Insurance and MFs. And

25% those are not aware about the capital market. That shows people think that Insurance and

MFs is less risky investment in compare of stocks.

Respondents have same approach to invest in other financial instrument like FDs and Post

Offices.

Q6. Do you invest in stock market and what is your understanding and comfort level in

stock market?

53

Respondents those are not invest their money in the stock market they have no experience

and comfort level with stock market i.e. 29%. 9% respondents those are investing in the share

market think that they have no exp. and comfort level and their investment decision is influenced

by broker’s advice.

Respondents those are investing and those are not investing in the stock market have same

number of percentage when they have no exp. but they have some comfort level with stock

market.

Respondents those are investing have 10% reasonable exp. and comfort level but at the same

time respondents those are not investing have 7% comfort level i.e. the company can attract these

kind of the people easily.

54

Q7. What factors motivate you to invest in Securities?

20% respondents those are aware about the capital market they are looking for instant

liquidity in the capital market and same percentage of respondents are looking for good returns

from the capital market. But at the same time 10% people are ready to invest their money in

IPO’s.

Large number of respondents i.e. 23% those are not aware about the capital market is looking

for good return in the capital market.

Q8. Do you have Demat and Trading Account?

55

Respondents with in age group 20-35 have large number of Demat account i.e. 30%. That is

double those don’t have Demat account with in the same age category.

15% respondents with in age group 35-45 have Demat account and 10% respondents with in

age group 45-60 have Demat account. That’s show people are more willing to take risk with in

age group 20-35.

Q9. Which brokerage firm do you prefer for online trading?

27% respondents are showing interest in Reliance Money that is highest number of

percentage out of 100 respondents. Out of 27 14 are aware about the capital market and 13 are

not aware about the capital market. This is because reliance is giving lowest brokerage rates in

the industry.

21% respondents think that India Infoline is better option for them out of 21% 57% are aware

about capital market and 43% are not aware about capital market.

10% respondents those are aware about capital market will prefer share khan and ICICI for

trading and 9% respondents don’t aware about the capital market will prefer Share Khan and

ICICI.

Q10. How often you trade?

56

20% respondents within 10000-25000 income groups are trading on the daily basis. That

shows they are more willing to take risk for their income. And 15% are trading on the monthly

basis.

Q11. What % of your savings do you invest in share trading?

30% respondents with in income level 0-10000 invest their 0-5% savings in share trading i.e.

highest out of total 100 respondents. Their investment within 6-10% and 11-20% is approx.

same. But this number is very less i.e. 2 when investment is more than 20% of their savings.

5% Respondents those income is more than 25000 Rs/Month are investing their 20% savings

in share trading i.e. highest out of 100 respondents.

57

12% Respondents with in income group 10000-25000 is investing their savings in share

market within 6-10% and they are investing their 11% savings within 11-20%.

Q12. Your Investment decision influenced by?

22% respondents within age group take their decisions on theirs or we can say they are more

willing to take risky decision for their investment on their self. And their decision is depend on

their brokers advice is only 11%.

9% respondents more than 60 ages take their decisions on their broker advice i.e. highest out

of 12 respondents that’s shows they are not more willing to take their investment decisions on

their self and they are not depend on micro and macro policies.

11% respondents within age group 35-45 take their decisions on theirs and 10% respondents

within same age group on broker’s advice. That’s show they are moderate on their decisions and

broker’s decisions.

8% respondents within age group take their decisions on change in micro policies i.e.

changes in monetary policies and government policies. And 4% taking decisions on the basis of

change in macro policies. This is the highest number of respondents those are taking their

decisions on change in micro & macro policies.

Q13. What differentiates your trading company from others?

58

17% respondents those have demat account think that brokerages charges is more important

for their trading and there is difference on the basis of this brokerage charges with their company

and at the same time 9% respondents are denying that brokerage is don’t matter which is also the

highest within 39 respondents those don’t have demat account.

11% respondents those have demat account think that research report and dialup trade

facilities are basis of difference with their company to other companies. And 10% respondents

think that account opening is also important.

8% respondents out of 100 respondents think that exposure create difference with their

company to other companies and same number of respondents think that exposure is not

necessary for the comparison of two companies.

Q14. According to your preferences rank the attributes of a Stock Trading Companies?

Company Proper

Guidance

Customer

Services

Regular

Updates

Product

Quality

Average Overall

Ranking

India

Infoline

3.33 3.01 3.03 3.79 3.29 3.07

ICICI 3.08 2.78 2.5 3.01 2.8425 3.01

India

Bulls

3.25 3.07 2.98 3.23 3.1325 2.91

59

Religare 3.39 2.97 3.02 3.60 3.245 2.95

Share

Khan

3.22 3.02 3.01 3.67 3.23 3.09

In this table firstly, I rank the companies; the overall ranking of each attribute on the basis of

100 samples is given in the table as above.

Secondly, I collect all the information about these companies. How customers think these

attribute of this company should be rank on this level out of 5. The overall result average of 100

respondents is given above in the table.

Findings out of this table are as follow:

1st We can analyze the average of all attributes and overall result is that India Infoline is on

the top followed by Share Khan on second rank. ICICI have the last ranking according to my

analysis.

2nd We can analyze the overall ranking of the companies; India Infoline is on third rank in the

overall ranking. Share Khan is on the top in overall ranking and it is followed by ICICIDirect.

3rd We’ll calculate how companies are better than others on the basis of average of different

services and overall ranking;

Company Proper

Guidance

Customer

Services

Regular

Updates

Product

Quality

Total

India

Infoline

3.33*3.07

=

10.2231

3.01*3.07

=9.2407

3.03*3.07

=9.3021

3.79*3.07

=11.6353

40.4012

ICICI 3.08*3.01

=9.2708

2.78*3.01

=8.3678

2.5*3.01

=7.525

3.01*3.01

=9.0601

34.2237

India Bulls 3.25*2.91

=9.4575

3.07*2.91

=8.9337

2.98*2.91

=8.6718

3.23*2.91

=9.3993

36.4623

Religare 3.39*2.95 2.97*2.95 3.02*2.95 3.60*2.95 38.2990

60

=10.0085

=8.7615

=8.9090 =10.6200

Share Khan 3.22*3.09

=9.9498

3.02*3.09

=9.3318

3.01*3.09

=9.3009

3.67*3.09

=11.3403

39.9228

From this table we can easily analyze which brokerage firm is better than others and on what

basis.

India Infoline is on the top in overall ranking and Share Khan is on the Second rank.

After analyzing this table any firm can find where it can improve its customer services and to

gain competitive advantages over the other companies.

And from this table we can analyze that customers are more attracted towards Product

Quality. So companies should try to improve their product quality.

SUGGESTIONS

1. The mantra for success in the current situation will be educating the customers about the

benefits of online trading and the amount of ROI (Return on Investment) that can be generated

through it.

2. A key challenge for a brokerage firms is to decide which customer segments should be

targeted, which in turn has important implication for product positioning and pricing. So

companies should target their customers.

3. Empowered with information, investors demand a tailor made brokerage product at the

lowest possible price and are unlikely to be loyal at any one provider.

4. The companies should look after to develop more safe and secure ways of transacting

business.

5. The companies should make maximum efforts to deduct fraud cases and minimize them.

And try to create a good value in the eyes of the customers.

6. The companies should come with more and more innovative features in their web portals.

7. There should be a limited number of clients under the relationship manger. So that he can

handle new as well as old customer properly.

61

8. People at young age should be encouraged to invest in stock market.

9. There should be a limited number of clients under the relationship manger. So that he can

handle new as well as old customer properly.

LEARNING

The two month summer training was a good experience for me to learn the practical aspects

of the Corporate Life. Some of the learning of mine are:

I improved my communication skills by learning how to talk to different kind of people

as it requires the different approach to handle each person.

I learnt to how handle the pressure under difficult situation.

I became aware about various aspects of working of stock exchange.

I learned about the consumer perception about the stock market and online trading.

Patience was the thing I learnt the most as I have to approach the clients who were to be

explained same things again while approaching or calling them at regular intervals.

As my work included the sales, I learnt some of the ground rules of selling financial

product.

I also found that it is very important to build a relationship with a client as it brings more

business.

62

CONCLUSION

The online trading is growing with a rapid pace with the rising level of education among the

customers. The other factors being that the Indian investors nowadays want to deal themselves in

trading rather than depending upon other middlemen.

Investors are increasingly finance-savvy, due to the proliferation of investment-related

information in newspaper, magazines; cable television and last but not least, the internet. Still

there is substantial variation in investment knowledge and experience across different individual

investors.

Some people feel that online trading is not secured but the people doing the trading online is

happy about the increasing security concerns among the companies.

The year 2008 has not been so good for the stock market and the Sensex and the Nifty has

been dipping and affecting the business negatively for these companies. This is due to the fact

that at these times people don’t prefer to open the Demat and Trading account. So the companies

have to reduce their account opening fees to attract the more and more customers.

There is an intense competition among the companies and the companies coming up with

new and new promotion schemes such as discounted and negotiable brokerages, zero balance

accounts, waving account opening fees and AMC etc.

On the basis of the study it is found that India Infoline Ltd is better services provider than the

other stockbrokers because of their timely research and personalized advice on what stocks to

buy and sell. It also provides the information through the internet and mobile alerts that what

IPO’s are coming in the market and it also provides its research on the future prospect of the

IPO.

Study also concludes that concludes that people are not much aware of commodity market

and while it’s going to be biggest market in India.

Study also conclude that people investment decision is influenced by their self and then on

the advice of their brokers. Very less no of people thinks what’s happening in Micro and Macro

Policies.

63

BIBLIOGRAPHY

This assignment has used references extensively from the internet and various news papers,

magazines and last not the least company’s reports. In addition to all of these some are below

which forms the central idea behind the project.

Books:

Philip kotler, Marketing Management, 13en edition

Rejendra Nargundkar, Market Research, 3rd edition

Publications:

Securities Market [Basic] Module - NCFM

Economic Times

Times of India

Investment Manager

Research Report:-

‘Comparative Analysis of Stock Brokers in Chandigarh Region’ by Vijay Rana, 2008

‘Study of Dominant Players in E-Broking’ by Ashish Sharma, 2008

‘Analysis of Stock Market in ICICI Direct’ by Ramnjot Singh, 2007

‘Comparative Study on Share market and Mutual Fund’ by Rohit Kumar, 2007

‘Stock Market and Inflation at Share Khan Ltd’ by Lokesh Swami, 2008

‘Competitive Analysis at Reliance Money’ by Ankush Bains, 2008

‘Competitive Analysis in Religare’ by Jitendra Tomar, 2007

‘Growth and Development of online Trading in India’ by Vishal Sharma, 2008

‘The Market of Indiabulls in context to its competitors, potential investors and Marketing

Strategy’ by Vijay P. Aggarwal & Chander Prakash, 2008

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Websites:

http://www.moneycontrol.com

http://www.livemint.com

http://www.google.com

http://www.nseindia.com

http://www.bseindia.com

http://www.indiainfoline.com

http://www.5paise.com

http://www.icicidirect.com

http://www.sharekhan.com

http://www.demataccount.com

http://www.indiahowto.com

http://www.slideshare.com

http://www.sharemarketbasics.com

http://www.iloveindia.com

hsttp://www.moneymarket.com

http://www.corporateinformation.com

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APPENDIX

Subject: Comparative Study of India Infoline

NAME

OCCUPATION

AGE

CONTACT NO.

INCOME

[Rs. Per Month]

1. 0-10000

2. 10000-25000

3. Above 25000

1. Are you aware about capital Market?

(a) Yes (b) No

2. In which of these financial instruments do you invest into?

(a) Stocks (b) Bonds

(c) Insurance & Mutual Funds (d) Others

3. Do you invest in stock market?

(a) Yes (b) No

4. Rank your understanding and comfort-level with investing in the stock market.

a) No experience and no comfort level in investing in stocks

b) No experience, but some level of comfort in stocks

c) Reasonable experience and comfort level with stock market

d) Some experience, and interest in stock market investing

e) Extensive background and understanding of stock market

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5. What factors motivate you to invest in securities?

(a) IPO’s (b) Instant Liquidity

(c) Good Return’s (d) others

6. Do you have De-mat & Trading Account?

(a) Yes (b) No

7. Which brokerage firm do you prefer for online trading?

(a) India Infoline (b) Share Khan (c) ICICI

(d) India Bulls (e) Reliance (f) Others

8. What differentiates your stock trading company from others? [Mark Any 2]

(a) Brokerage (b) Research Report (c) Dialup Trade facilities

(d) Exposure (e) A/C opening charges (f) others

9. How often you trade?

(a) Daily (b) weekly (c) Monthly

(d) Quarterly (e) Yearly

10. What percent of your savings do you invest in share trading?

(a) 0 – 5 % (b) 6 – 10 %

(c) 10 – 20 % (d) Above 20%

11. Your investment decision influenced by?

(a) Your Self (b) Broker

(c) Micro Policies (d) Macro Policies

12. Rank these share trading companies according to the quality of services they provided.

1. 2. 3.

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1 = Excellent 6 = Very A. India InfolineB. Share KhanC. ICICID. India BullsE. RelianceF. Others (Please Specify)

4. 5. 6

13. According to your preferences rank the attributes of a stock Trading Companies.

Company Proper

Guidance

Customer

Services

Regular

Updates

Product

Quality

India Infoline

Share Khan

ICICI

India Bulls

Reliance

14. What additional features do you wish to have in online share trading?

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5 = Very Good 1 = Very