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Project Report for MBA Students
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1
A PROJECT
REPORT ON
“COMPETITION MAPPING OF KOTAK SECURITIES LTD. UDAIPUR”
2013-14
In the partial fulfillment of
Master of Business Administration
(2012-2014)
SHRINATHJI INSTITUTES OF TECHNOLOGY AND ENGNEERING
(Department of Management Studies)
Upali Oden, Nathdwara, Rajasmand (Raj.)
Supervised By: Submitted By:
Manish Sharma Monika Sanadhya
2
Acknowledgement
We take immense pleasure in thanking Mr. Ashok Parikh, Managing Director, and
Dr. Deepti Bhargava, our beloved Principal for having permitted us to carry out this
project work.
We wish to express our deep sense of gratitude to my project Guide, Manish
Sharma, Prof., Shrinathji Group of Institutes, Department of Management, for
his able guidance and useful suggestions, which helped us in completing the project
work, in time.
Finally, yet importantly, I would like to express my heartfelt thanks to my beloved
parents for their blessings, my friends/classmates for their help and wishes for the
successful completion of this project.
Monika sanadhya
3
IndexChapterNo.
Topic
1. INTRODUCTION & SCOPE OF TOPIC UNDER STUDY
2. COMPANY‘S PRODUCTS, OTHER RELEVANT
DETAILS & COMPETITORS DETAIL
3. RESEARCH METHODOLOGY
4.RESEARCH ANALYSIS
5.FINDINGS & CONCLUSION
BIBLIOGRAPHY
ANNEXURE
4
CHAPTER -1
INTRODUCTION OF TOPIC UNDER STUDY
5
INTRODUCTION:
Competition Mapping
Competition mapping offers a quick and easy visual guide of nearby competitors to a
selected site. A retailer looking to open a location in a new area should take competitor
data into account when analyzing specific locations. If you were looking to open a
pizza shop, you probably would not want to do so in a building that has 6 other
competing pizza shops within a 2 block radius. You would more than likely want to be
located in an area where there are few competing businesses.
According to the S B A ( U . S . S ma ll B u si n e ss A dm i n istratio n ) , one of the e ss e n ti a l
e leme n ts o f a g oo d bu sin e ss p l a n is a market analysis which includes research on your
business industry, the market, and your competitors.
A competitor analysis can include identifying who your competition is, where they are
located, the types of products and services they offer, hours of operation, marketing
tactics they use, etc. Knowing where your competition is located can be a primary
factor in the market you target and site that you choose.
A more in-depth approach to competition mapping is what is known as a g a p
ana l y sis. A gap analysis is a report that is compiled from competitor data and market
information on a specific location or target area to determine whether there is a
surplus
or shortage (known as ―gaps‖) of a product or service.
While competition mapping is quick and easy and gives you a visual understanding
of where your competitors are located, a gap analysis can include much more:
Overall market/location information
Resident lifestyle and shopping habits
Business and workforce mix
General demographics such as population and income
Competition data
Market gaps
6
Competition mapping and gap analysis can be used to help effectively market
properties to potential buyers/lessees. For example, an owner of a shopping center
seeking new tenants for vacant spaces can use a gap analysis to determine what
types of products or services are needed their center. A gap analysis can be
used to determine what types of tenants to look for and as a way to entice those
tenants to
lease spaces. This type of strategy could help reduce ―hap-hazardous marketing plans‖
that can be costly and ineffective.
Overall, the keys to any successful business venture are to know your market and
use your tools and resources wisely.
Customer satisfaction, a term frequently used in ma rk e ti n g , is a measure of how
products and services supplied by a company meet or surpass customer expectation.
Customer satisfaction is defined as "the number of customers, or percentage of total
customers, whose reported experience with a firm, its products, or its services (ratings)
exceeds specified satisfaction goals." In a survey of nearly 200 senior marketing
managers, 71 percent responded that they found a customer satisfaction metric very
useful in managing and monitoring their businesses
It is seen as a key performance indicator within business and is often part of a
B a la n c e d Sc o rec a r d . In a competitive marketplace where businesses compete for
customers, customer satisfaction is seen as a key differentiator and increasingly has
become a key element of business strategy
"Within organizations, customer satisfaction ratings can have powerful effects. They
focus employees on the importance of fulfilling customers‘ expectations.
Furthermore, when these ratings dip, they warn of problems that can affect sales and
profitability. . . . These metrics quantify an important dynamic. When a brand has
loyal customers, it
gains positive word-of-mouth marketing, which is both free and highly effective.
Therefore, it is essential for businesses to effectively manage customer satisfaction.
To be able do this, firms need reliable and representative measures of satisfaction.
"In researching satisfaction, firms generally ask customers whether their product or
7
service has met or exceeded expectations. Thus, expectations are a key factor
behind
8
satisfaction. When customers have high expectations and the reality falls short, they
will be disappointed and will likely rate their experience as less than satisfying. For
this reason, a luxury resort, for example, might receive a lower satisfaction rating
than a
budget motel—even though its facilities and service would be deemed superior in
'absolute' terms.
The importance of customer satisfaction diminishes when a firm has
increased ba r g a ini n g po w e r . For example, c e ll p h on e plan providers, such
as A T & T an d V e r i z o n , participate in an industry that is an o l ig opo l y , where only a few
suppliers of a certain product or service exist. As such, many cell phone plan contracts
have a lot of f i n e p r i n t with provisions that they would never get away if there were,
say, a hundred cell phone plan providers, because customer satisfaction would be
way too low, and customers would easily have the option of leaving for a better contract
offer.
There is a substantial body of empirical literature that establishes the benefits
of customer satisfaction for firms.
Purpose
A business ideally is continually seeking feedback to improve customer satisfaction.
"Customer satisfaction provides a leading indicator of consumer purchase intentions
and loyalty." "Customer satisfaction data are among the most frequently
collected indicators of market perceptions. Their principal use is twofold:"
9
1. "Within organizations, the collection, analysis and dissemination of these data
send a message about the importance of tending to customers and ensuring
that
they have a positive experience with the company‘s goods and services."
2. "Although sales or market share can indicate how well a firm is
performing currently, satisfaction is perhaps the best indicator of how likely it
is
that the firm‘s customers will make further purchases in the future. Much
research has focused on the relationship between customer satisfaction and
retention. Studies indicate that the ramifications of satisfaction are most
strongly realized at the extremes." On a five-point scale, "individuals who
rate their satisfaction level as '5' are likely to become return customers and
might even evangelize for the firm. (A second important metric related to
satisfaction is willingness to recommend. This metric is defined as "The
percentage of surveyed customers who indicate that they would
recommend a brand to friends." When a customer is satisfied with a
product, he or she might recommend it to friends, relatives and
colleagues. This can be a powerful marketing advantage.) "Individuals who
rate their satisfaction level as ' by contrast, are unlikely to return. Further,
they can hurt the firm by making negative comments about it to prospective
customers. W i l l in g ne ss to re c o m me n d is a key metric relating to customer
satisfaction."
Construction
Organizations need to retain existing customers while targeting non-customers.
Measuring customer satisfaction provides an indication of how successful the
organization is at providing products and/or services to the marketplace.
"Customer satisfaction is measured at the individual level, but it is almost always
reported at an aggregate level. It can be, and often is, measured along various
dimensions. A hotel, for example, might ask customers to rate their experience with its
front desk and check-in service, with the room, with the amenities in the room, with
the restaurants, and so on. Additionally, in a holistic sense, the hotel might ask
10
about overall satisfaction 'with your stay.'
11
As research on consumption experiences grows, evidence suggests that consumers
purchase goods and services for a combination of two types of benefits: hedonic
and utilitarian. Hedonic benefits are associated with the sensory and experiential
attributes of the product. Utilitarian benefits of a product are associated with the more
instrumental and functional attributes of the product (Batra and Athola 1990).
Customer satisfaction is an ambiguous and abstract concept and the actual
manifestation of the state of satisfaction will vary from person to person and
product/service to product/service. The state of satisfaction depends on a number of
both psychological and physical variables which correlate with satisfaction behaviors
such as return and recommend rate. The level of satisfaction can also vary depending
on other options the customer may have and other products against which the
customer can compare the organization's products.
Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and
1988 provides the basis for the measurement of customer satisfaction with a service by
using the gap between the customer's expectation of performance and their
perceived experience of performance. This provides the measurer with a satisfaction
"gap" which is objective and quantitative in nature. Work done by Cronin and Taylor
propose the "confirmation/disconfirmation" theory of combining the "gap" described by
Parasuraman, Zeithaml and Berry as two different measures (perception and
expectation of performance) into a single measurement of performance according to
expectation.
The usual measures of customer satisfaction involve a s u r v e y w ith a set of
statements using a L ikert Tec h n i q u e o r scale. The customer is asked to evaluate
each statement and in term of their perception and expectation of performance of the
organization being measured. Their satisfaction is generally measured on a five-point
scale.
"Customer satisfaction data can also be collected on a 10-point scale.
12
"Regardless of the scale used, the objective is to measure customers‘
perceived
satisfaction with their experience of a firm‘s offerings." It is essential
for firms to
effectively manage customer satisfaction. To be able do this, we need
accurate measurement of satisfaction.
Good quality measures need to have high satisfaction loadings, good reliability, and low
error variances. In an empirical study comparing commonly used satisfaction measures
it was found that two multi-item s e m a n tic d i f fe re n ti a l s cales performed best across
both hedonic and utilitarian service consumption contexts. According to studies by
Wirtz & Lee (2003) they identified a six-item 7-point s em a n tic d i f fe re n t i a l s cale (e.g.,
Oliver and Swan 1983), which is a six-item 7-point bipolar scale, that consistently
performed best across both hedonic and utilitarian services. It loaded most highly on
satisfaction, had the highest item reliability, and had by far the lowest error variance
across both studies.
In the study, the six items asked respondents‘ evaluation of their most recent
experience with ATM services, along seven points within these six items:
―please me - displeased me‖, ―contented with - disgusted with‖, ―very satisfied with -
very dissatisfied
with‖, ―did a good job for me - did a poor job for me‖, ―wise choice - poor choice‖
and
―happy with - unhappy
with‖.
A s e ma n tic d i f fe re n ti a l (4 items) scale (e.g., Eroglu and Machleit 1990), which is a
four- item 7-point bipolar scale, was the second best performing measure, which was
again consistent across both contexts. In the study, respondents were asked to
evaluate their experiencewith both products, along seven points
withinthese four items:
―satisfied to dissatisfied‖, ―favorable to unfavorable‖, ―pleasant to unpleasant‖ and ―I like
it very much to I didn‘t like it at
all‖
The third best scale was single-item percentage measure, a one-item 7-point bipolar
13
scale (e.g., Westbrook 1980). Again, the respondents were asked to evaluate their
experience on both ATM services and ice cream restaurants, along seven points
within
―delighted to terrible‖
It seems that dependent on a trade-off between length of the questionnaire and quality
of satisfaction measure, these scales seem to be good options for measuring
customer satisfaction in academic and applied studies research alike. All other
measures tested
14
consistently performed worse than the top three measures, and/or their performance
varied significantly across the two service contexts in their study. These results suggest
that more careful pretesting would be prudent should these measures be used.
Finally, all measures captured both affective and cognitive aspects of satisfaction, independent of their scale anchors. Affective measures capture a consumer‘s attitude
(liking/disliking) towards a product, which can result from any product information or
experience. On the other hand, cognitive element is defined as an appraisal
or
conclusion on how the product‘s performance compared against expectations (or
exceeded or fell short of expectations), was useful (or not useful), fit the situation (or
did not fit), exceeded the requirements of the situation (or did not exceed).
Methodologies:
A me r i c a n Cus t o me r S a ti s f a ct i o n I n de x (ACSI) is a scientific standard of customer
satisfaction. Academic research has shown that the national ACSI score is a strong
predictor of Gross D o me stic Pro d u ct (G DP) growth, and an even stronger predictor
of P e r s ona l C o n s u m p ti o n E x pe n d it u re (P CE) growth. On the m ic r oe c o n o m ic le vel,
academic studies have shown that ACSI data is related to a firm's financial performance
in terms of r e t u rn o n in v e stme n t ( ROI), sales, long-term firm value (T o b in's q) , c a sh
f lo w , cash flow volatility, hum a n c ap it a l performance, po r t f o l i o ret urns, d e b t financing,
risk, and consumer spending Increasing ACSI scores has been shown to predict loyalty,
word-of-mouth recommendations, and purchase behavior. The ACSI measures
customer satisfaction annually for more than 200 companies in 43 industries and 10
economic sectors. In addition to quarterly reports, the ACSI methodology can be applied
to private sector companies and government agencies in order to improve loyalty
and purchase intent. Two companies have been licensed to apply the methodology
of the ACSI for both the private and public sector: CFI Gro up , I n c. and F o res e e Res u lts
a pply the ACSI to websites and other online initiatives. ASCI scores have also
been calculated by independent researchers, for example, for
the mobile phones
sector,[ 1 3 ] h igher education,[ 1 4 ] a nd e lec t r o n ic ma i l .
15
The K an o m o de l is a theory of product development and customer satisfaction
developed in the 1980s by Professor Nor i a ki K a n o t hat classifies customer
preferences into five categories: Attractive, One-Dimensional, Must-Be, Indifferent,
Reverse. The Kano model offers some insight into the product attributes which are
perceived to be important to customers.
SERVQUAL or RATER is a service-quality framework that has been incorporated
into customer-satisfaction surveys (e.g., the revised Norwegian Customer
Satisfaction Barometer to indicate the gap between customer expectations and
experience.
J.D. P o w e r an d Ass o c ia te s p rovides another measure of customer satisfaction, known
for its top-box approach and automotive industry rankings. J.D. Power and
Associates' marketing research consists primarily of consumer surveys and is publicly
known for the value of its product awards.
Other research and consulting firms have customer satisfaction solutions as well.
These include A . T . K ea r n e y's Customer Satisfaction Audit process, which
incorporates the
Stages of Excellence framework and which helps define a company‘s status against
eight critically identified dimensions.
For Business to Business (B2B) surveys there is the Info Quest box. This has been
used internationally since 1989 on more than 110,000 surveys (Nov '09) with an
average response rate of 72.74%. The box is targeted at "the most important"
customers and avoids the need for a blanket survey.
In the European Union member states, many methods for measuring impact and
satisfaction of e -g o v ernm e n t s ervices are in use, which the e G o v M o Net p roject
sought to compare and harmonize.
These customer satisfaction methodologies have not been independently audited by
the M a rk e ti n g Acc oun t ab i l ity St anda rds B oa r d ( M ASB) a ccording to MM AP ( M a rketing
M e tric A ud it Prot o c o l ) .
16
CHAPTER-2
COMPANY‟S INTRODUCTION,
PRODUCTS, OTHER RELEVANT
DETAILS & COMPETITORS
DETAIL
17
Kotak Securities Pvt. Ltd.
Originally established in 1994, Kotak Securities is a subsidiary of Kotak Mahindra
Bank, which services more than 7.4 lakh customers. The firm has a wide network of
more than 1400 branches, franchisees representative offices, and satellite offices
across 448 cities in India and offices in New York, London, Dubai, Mauritius and
Singapore. We process more than 400000 trades a day which is much higher than
some of the renowned international brokers.
The company is a corporate member of both The Bombay Stock Exchange (BSE)
and The National Stock Exchange of India (NSE). Our operations include stock
broking services for trading in stock markets through branches & internet and
distribution of various financial products including investments in IPOs, Mutual Funds
and Currency Derivatives. Currently, Kotak Securities is one of the largest broking
houses in India with substantial geographical reach to Asia Pacific, Europe, Middle
East and America. Kotak Securities Limited has Rs. 1,202 crore of Assets Under
Management (AUM) as of
31st Dec, 2011.
Innovators:
We have been the pioneers in providing many products and services which have
now become industry standards for stock broking in India. Some of them include:
Mobile stock trading application to keep track of your investments even on the go
Facility of Margin Finance to the customers for online stock trading
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Auto Invest - A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in your
Demat account
18
Research Expertise:
We specialize in Fundamental and Technical analysis backed by a team of highly
trained and qualified individuals. Our full-fledged research division is involved in
Macro Economic studies, Sectorial research and Company Specific Equity Research
which publishes in-depth stock market analysis. This is combined with a strong
and well networked sales force which helps deliver current and up to date market
information and news.
We are also a depository participant with National Securities Depository Limited (NSDL)
and Central Depository Services Limited (CDSL). By being a stock broker and
depositary participant, we provide dual benefit in our services wherein the investors
can avail our stock broking services for executing the transactions and the
depository services for settling them. Our Portfolio Management Service comes as
an answer to those who would like to grow exponentially on the crest of the stock
market, with the backing of an expert.
19
Equity
Kotak Securities caters to both primary and secondary market under the equity
segment. The primary market provides the channel for creation and sale of new
securities, while the secondary market deals in securities previously issued. The Stock
market or Equities market is where listed securities are traded in the secondary
market. Currently more than 1300 securities are available for trading on the National
Stock Exchange (NSE) and over 6000 on Bombay Stock Exchange (BSE).
Why Equity?
Many people are afraid of stock market investment due to the fear that a fall in stock
market might jeopardize their financial security. However, we're aware that there's an
element of risk in all investments. Holding cash in our bank accounts is considered to
be very safe, but historically it has not always provided an adequate hedge against
inflation. So, cash cannot be considered as the most effective for long-term
investment. Clearly, Equity investment can provide excellent long-term returns,
illustrated by the chart below:
The key to successful stock market investment lies in appreciating the long-term
nature of the returns and keeping away from worries of day-to-day uncertainties.
Volatility is the reality of the stock market. A disciplined and informed approach will
always help in taking control of your money. Kotak Securities always strives to keep
its customers
20
informed of all the stock market events to help you make an informed decision.
What instruments are supported by Kotak Securities Platform?
Following are the various instruments that are available to trade through Kotak
Securities:
Shares
- Equity Shares
- Preference Shares
Debentures
- Partly Convertible Debentures
- Fully Convertible Debentures
- Non-Convertible Debentures
- Warrants / Coupons / Secured Premium Notes/ other Hybrids
- Bonds
Units of Mutual Funds
What are you? An investor or a trader?
You can make money in equity market by investing or trading or both. However, to
avoid disappointment of losing money, customers should make very prudent and
informed decisions.
"Investors" put their money into stocks for a long term. This is under the principle
that over time, the underlying investment will increase in value, and the investment will
be profitable.
On the other hand "traders" take a proactive approach to their investing. They follow
or predict a trend in the stock and use strategies like buy-low, sell-high and make
profits. Though there is really no right or wrong type of stock trading, it is necessary for
you to identify which type of trading is right for you. You can make a great amount of
money either way; however, you must consider your time frame, risk, and how much
work you want to put into it.
While traders can make more money much faster, they are required to do more work
21
and monitoring than the typical investor. Determine what type of trader you want to
be, and then make sure that the people you take guidance from have the same goals
as you.
Ways you can buy Equity on Kotak Securities platform:
Normal Order:
All buy orders are normal orders. Sell orders placed without having shares in your
demat account can be placed under normal. These are short sale orders and can
be placed if sufficient limits are available in the account.
Limit Order:
The order refers to a buy or sells order with a limit price. The investor specifies the
price while placing the order.
Market Order:
The market order means buying or selling at the current market price
Stop Loss Order:
A Stop Loss Order is placed to minimize the losses. It allows the trading member to
place an order, which gets activated only when the last traded price (LTP) of the
share is reached or crosses a threshold price known as the trigger price. The trigger
price will be quoted as per the risk you are ready to bear.
AMO:
AMO stands for After Market Order. It is a facility that Kotak Securities extends to its
customers whereby they can place orders even after the trading hours of a particular
day. There is a 10% price band for placing AMOs. This facility is available in the time
slots mentioned below:
Anytime between 3.30 p.m. to 1.00 a.m.
Anytime between 4.30 a.m. to 9.00 a.m.
22
BNST:
Kotak Securities has introduced service of BNST i.e. Buy Now Sell Tomorrow where
client will be allowed to sell the entire BUY quantity but the responsibility of any
short fall in delivery will be clients' as it is not guaranteed by Kotak Securities.
E.g. for BNST: Suppose you have bought 100 shares of EIH on T Day. The
settlement day for this buy transaction is T+2 Day. You can sell these 100 shares of
EIH under BNST either on T+1 Day or on T+2 Day. As this scrip is not in specified list
of BNST, Kotak Securities doesn't guarantee the delivery of these shares.
Initial Public Offering (IPO)
An initial public offering, or IPO, is the first sale of stock by a company to the public.
A company can raise money by issuing either debt or equity. If the company has
never issued equity to the public, it's known as an IPO.
Investing in IPOs is not complex anymore, Kotak Securities has made buying IPOs
very simple. All you have to do is make one phone call, and that's all. No IPO
application forms, no queues, simply pick the phone or log on to
ww w .k o t a ks e c u r i ti e s.c o m and place your IPO order within seconds.
We also provide with you with information on IPO News, forthcoming IPOs in India
and a lots more. To start investing in IPOs, all you need to do is open an online trading
account. Choose from our wide range of accounts that suits your investment needs.
Right Investment Partner
We see investing from your perspective, and make recommendations based on your
needs. One of our important goals is to simplify investing for you; along with this we
also provide long term values to our customers.
We have a million reasons for you to choose us. Listed below are a few:
Stability: We are a subsidiary of Kotak Mahindra Bank and one of the oldest and largest
stock broking firms in the Industry. We have been the first and only NBFC to receive
the license to be converted into a bank.
23
Innovators in the Industry: We have been the first in providing many products
and services which have now become industry standards.
First to provide Margin Financing to the customers
First to enable investing in IPOs and Mutual Funds on the phone
Providing SMS alerts before execution of depository transactions
Launching of Mobile application to track portfolio
AutoInvest - A systematic investing plan in Equities and Mutual fund
Provision of margin against securities automatically against shares in your Demat
account
Value: Whether you are a customer with a small or large wallet size, you can expect
us to bring value to you in every form.
Quality Research
Quick trade execution
Low brokerages
Accounts that suit your investment profile
Risk Profiler
Superior Customer Service
Service: We believe in high standards of service and that's precisely what we offer.
It's an honour to be awarded the most customer responsive company award in the
Financial Institution sector by AVAYA GlobalConnect Award both in 2006 and 2007
Robust Technology: We have developed our own proprietary trading platform which
is robust and among the best in the industry. We have more than 150 technology
professionals constantly working on upgrading and speeding up all our systems.
Centralised Risk Management System: Unlike many other players we have a
centralised risk management system. This allows us to offer the same levels of
service to customers across all locations.
24
Exceptional Research: Unlike most other competitors we have our own in house
research team. Our in house research team is among the best in the industry and
they have years of experience in the financial markets. They scan through the
plethora of stocks and find the scrips that have high potential of providing you good
returns.
Our investors get research Technical, Fundamental, Derivatives, Macro-economic
and mutual fund research.
Large Presence: We are present in 447 cities with 1420 outlets all over the country.
Our employee strength extends beyond 3800.
Multiple Share Trading Platforms
We understand your trading needs. If you're an Online Customer, Kotak Securities
offers multiple mechanisms to place your trade. Be it a wi fi-zone or a cybercafé or
a
3G connection or GPRS handset or a completely aloof from internet zone, you'll
always have access to trade through Kotak Securities. We are one of the brokers
to have the highest number of trading platforms to serve your trading needs.
Mode ApplicationType of
ApplicationSatisfying Need
Internet Website Web Access all the features on the web
Desktop KE A T ProX .EXE based
application
Ultra high speed experience with
advanced features. Exe based
application.
Desktop FASTLANE Java applet
KEATProX like experience when your
office premises do not allow
application installations
MobileM ob i l e St o ck
T ra d e r
Mobile
Application
High speed trading experience on a
Mobile
25
Mobile /
ComputerXtralite Web
When you have a weak internet
connectivity
PhoneCall and
Trade- When you're not in an Internet zone
PhoneBranch
Advisory- When you're not in an Internet zone
Share Market Education
When it comes to online trading, lack of certainty leads to inaction. One needs to be
completely informed about the markets, online trading applications, processes and
basics of investing. Kotak Securities has created several programs to help you
learn everything about the stock market investing. This initiative has helped several
customers learn stock markets and online trading and become successful traders.
Below are few of our programs and demos under the customer education initiative:
Kotak Securities Academy: An online initiative that depicts our relentless commitment
to educate on the basics of investing, with a collection on Equities, Derivatives and
Mutual Funds.
Smart Start: An inspiring storyboard for young investors to understand the importance
of saving and investing for the future.
Webinars: As a customer of Kotak Securities, you'll be invited to all our
educative webinars from time to time. You'll get to learn online trading methods
with Kotak Securities and tactics of stock market investing.
Horizon: A fortnightly newsletter that educates you on various asset-classes
and updates you on the markets.
Research Reports: Be informed of every investment you make by referring to
our various detailed reports. You'll have an access to
26
Industry-level reports
Company specific reports
Mutual Fund recommendation reports
Currency derivatives reports
Research Seminars: We conduct workshops and tutorial seminars at frequent
intervals across the country. As a customer of Kotak Securities, you shall have the
privilege to get invited for all such events.
Research and Educative Conference-calls: Our regular con-calls educate you on our
how to use our various platforms for online trading and also would update you on
the markets.
Books: It has been our constant endeavour to come out with handy books that you
can use to increase your financial literacy. Few books that we have published are:
1. A guide to Derivatives: Get this book for free when you open an account with us
2. Everything you wanted to know about stock market investing: In collaboration
with CNBC TV 18, this book will help you understand the all the market nuances.
3. Everything you wanted to know about Investing: In collaboration with CNBC TV
18, this book helps you understand every bit of the investment world.
Social Media: Think about it, it was only approximately 20 some odd years ago that the
average person was beginning to become associated with the internet. Prior to that,
the internet was mostly reserved for academia and various government agencies.
Today, we have not only the internet, but we have social media tied in there as well.
We know that you're already there or will be there soon and made our presence noted.
Following are our pages on various social media sites where you can follow us, learn
and be up to date:
Slideshare: Find presentations on the various financial concepts that we wish
you to learn.
Y ou t ub e : We regularly upload our views on the market here.
27
T w itt e r: Follow us to get market updates and latest happening.
Faceb oo k: W e have a dedicated page here with lots of activities.
Value Added Trading Services
Going above and beyond your basic need of of transactions in equities, we offer you
a plethora of Value Added Services. When you choose any of Kotak Securities
T ra d ing a cc o u n t s , the combination of our research, tra d i n g p la t f o r m s a nd
communication channels enable us to deliver a higher value to you.
Our specialized services like Trade Smart, Res ea rch o n SMS and E-mail subscription
constantly gives you stock ideas that you can benefit from. Our services ensure that
your end-to-end trading needs are satisfied.
Below are the various Value Added Services we have for you:
Supe r Mu ltip le
T win Ad van ta ge
BNST
Po rtf o lio T racke r
SMS A lert Sub scrip tion
T rade Sma rt
S e c u r i ty Ke y
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Capital Market
A capital market is a ma rket f or s e c u r i ti e s ( d eb t o r e q u it y ), where business enterprises
(c om p an ie s ) and g o v e rn m e n ts c an raise long-term funds. It is defined as a market in
which money is provided for periods longer than a year, as the raising of short-term
funds takes place on other markets (e.g., the m o n e y ma rke t ). The capital market
includes the st o ck m a rket (e quity securities) and the bo n d ma r k e t (d ebt). Financial
regulators, such as the UK's Financial Services Authority (FSA) or the U.S.
S e c u r i ti e s an d E x c han g e C o mm iss i o n (SEC), oversee the capital markets in their
designated jurisdictions to ensure that investors are protected against fraud, among
other duties. Capital markets may be classified as p r i ma ry ma rk e ts a nd s e c on d a ry
ma rket s . In primary markets, new stock or bond issues are sold to investors via a
mechanism known as un d e r w r i ti n g . In the secondary markets, existing securities
are sold and bought among investors or traders, usually on a s e c u r i ti e s e x c han g e ,
o v e r - t he - c oun t e r . The market where investment f u n d s l ike bonds, equities and
mortgages are traded is known as the capital market. The primal role of the capital
market is to channelize investments from investors who have surplus funds to the
ones who are running a deficit. The capital market offers both long term and
overnight funds. The financial instruments that have short or medium
term maturity periods are dealtin the m o ne y ma rk e t w hereas the
financial instruments that have long maturity periods are dealt in the capital market.
The different types of financial instruments that are traded in the capital
markets are equity instruments, credit market
instruments, ins u r a n ce instruments, foreign exchange instruments, hybrid instruments
and derivative instruments.
Types of investment options
A derivative is a financial instrument - or more simply, an agreement between two
people or two parties - that has a value determined by the price of something else
(called the underlying). It is a financial contract with a value linked to the expected future
price movements of the asset it is linked to - such as a share or a currency. There
are many kinds of derivatives, with the most notable being swaps, futures, and
options.
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However, since a derivative can be placed on any sort of s e c u r i t y , the scope of all
derivatives possible is nearly endless.
Thus, the real definition of a derivative is an agreement between two parties that is
contingent on a future outcome of the underlying.
An investor has numerous investment options to choose from, depending on his risk
profile and expectation of returns. Different investment options represent a different
risk- reward tra d e o ff. Low risk investments are those that offer assured, but lower
returns, while high risk investments provide the potential to earn greater returns.
Hence, an
investor‘s risk tolerance plays a key role in choosing the most suitable investment.
Banks today provide a range of investment options, including international investing,
investing in commodities, stocks, bonds, precious metals and investment funds.
Other options for in v e sti n g include certificates of deposit, futures and investment clubs.
All investment options have their inherent risk and benefits. For instance,
international investing is prone to social, political,
e c o n o m ic a nd currency risks, while fixed in c o m e in vesting is prone to interest
risks
Futures & Options
Cash
Fixed Interest:Termed as conservative investments or ―low risk/low return investments,‖
these provide assured returns. However, the shortfall is their exposure to inflation.
That is, the returns could be completely wiped out owing to the erosive impact of
inflation on money.
I n v e sti n g in c ash or money market funds may get you higher returns.
Bonds:
Bonds represent money that an investor lends to a bond issuer. The issuer may be
the government or corporate bodies. While c o r p o rate bo n d s t ypically offer greater
returns, they also represent higher risk. In case the company declares
bankruptcy, the bondholders may not be repaid the principal invested. Hence,
those with low risk appetites should opt for government bonds, which offer assured
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returns and regular income.
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Equities or Shares:
The st o ck m a rket o ffers the opportunity to enjoy very high returns. However, it also
exposes investors to high risk. Having a long-term horizon can minimize the risk,
since the stock market is volatile in the short term. Investors can either invest in
individual companies or across different companies through equity mutual funds,
which are managed by professionals and do not require an investor to
conduct extensive research.
Diversifying your investment p o r t f o l i o to include the main asset classes (bank
deposits, bonds, shares and property) can give an investor a better risk-returns
profile. An investor can hire the services of a professional investment manager to
organize his investments and update the portfolio.
Here are six commonly asked questions regarding it.
What is settlement?
After you have bought or sold shares through your broker, the trade has to be
settled. Meaning, the buyer has to receive his shares and the seller has to receive his
money. Settlement is just the process whereby payment is made by all those who
have made purchases and shares are delivered by all those who have made sales.
How T+2 settlement cycle will work
SEBI had introduced T+5 rolling settlement in equity market from July 2001 and
subsequently shortened the settlement cycle to T+3 from April 2002. After
having gained experience of T+3 rolling settlement and also taking further steps
such as introduction of STP, it is now felt appropriate to further reduce the
settlement cycle to T+2 thereby reducing the risk in the market and to protect the
interest of investors.
The shortening of settlement cycle to T+2 needed co-operation, co-ordination and
active support of various entities and intermediaries in the market such as stock
exchanges, clearing corporations/houses, depositories and depository participants,
FIIs, custodians, fund managers, brokers, etc. SEBI had held several rounds of
consultation with all the market participants and based on the consensus, decided
to introduce T+2 rolling
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settlement in Indian equity market from 1st April 2003. The calendar of events /
activities in T+2 rolling settlement would be as follows:
* Confirmation of the institutional trades by the custodians latest by 11.00 a.m. on T+1.
A provision of an exception window would be available for late confirmations. The
time limit and the additional charges for the exception window would be decided by
the exchanges.
* The exchanges / Clearing House / Clearing Corporation would process and download
the obligation files to the brokers' terminals latest by 1.30 p.m. on T+1.
* DPs shall accept instructions for pay-in of securities by the investors in physical form
at least up to 4 p.m. and in electronic form by 6 p.m. on T+1.
* The depositories would accept the requests from DPs till 8:00 p.m. for `same day
processing'.
* The depositories would accept the requests from DPs till 8:00 p.m. for `same day
processing'.
* The Depository would permit the downloading of the pay-in files of securities and
funds till 10:30 a.m. on T+2 from the broker pool accounts.
* The Depository would process the pay-in requests and transfer the consolidated pay-
in files to the Clearing House / Clearing Corporation by 11:00 a.m. on T+2.
* The Exchanges / Clearing House / Clearing Corporation would execute the pay-out of
securities and funds latest by 1:30 p.m. on T+2 to the Depositories and Clearing Banks
and the Depositories and the Clearing Banks would in turn complete the process by
2:00 p.m. on T+2.
SEBI would be issuing the necessary administrative instructions to market participants,
intermediaries and exchanges shortly. We are also initiating various steps in the
interim to ensure smooth transition into T+2 rolling settlement and these include
widening of scope of STP, wider use of electronic fund transfer facility and issue
of electronic contract notes.
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Circuit breakers
Circuit breakers are the price put by SEBI on the Company Share Price in order to curb
the fluctuation & protect the interest of the investors.
Roll-overs
A rollover occurs when you move your money from a qualified retirement plan, such
as an employer-sponsored 401(k) plan, into a Traditional IRA or another
qualified retirement plan. Typically, you are eligible for a rollover only when you are
eligible to receive a distribution from a qualified plan. Such situations would include:
Retiring. You've been saving for years and years...and now it's finally time to
enjoy your hard-earned savings. Many people find that consolidating their
retirement assets into a Traditional IRA makes it easier to manage and monitor
their money.
Changing jobs. When people change jobs, they often have money in a
qualified retirement plan sponsored by their employer. A rollover lets them
move this money into a Traditional IRA of their own choosing.
Between jobs or switching careers. Perhaps you're taking advantage of
opportunities to explore a new profession. Or maybe you're simply spending time
away from the work force to raise a family or go back to school. Whatever your
situation, you may wish to simplify your finances by transferring the money from
a previous employer's plan to a Traditional IRA.
Open interest
2nd Open Interest:
Open interest (also known as open contracts or open commitments) denotes the
total number of derivative contracts, such as futures and options, that are currently
active on:
That is, the total contracts for a specific strike price and expiration date, that have
been traded, but have not yet expired, have not yet been closed through a
closing transaction, or have not yet been terminated via early exercise. A closing
transaction occurs when a counterparty that is long the contract sells, or,
conversely, when counterparty that is short the
contract buys. For example, in a stock option to buy 100
shares of Nokia at EUR 50 in September
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2006, the underlying is a Nokia share. In a futures contract to buy EUR 10 million 10
year German Government Bonds, the underlying are the German Government
bonds. Other examples are stock market indices such as the Dow Jones Industrial
Average and Nikkei fixed-income derivatives are an example of derivatives whose
underlying is also a derivative. For example, Euro-Bund options (OGBL) are traded
on Eurex and their underlying is the Euro-Bund futures contract (FGBL)
Call Option
An agreement that gives an investor the right (but not the obligation) to buy a stock,
bond, commodity, or other instrument at a specified price within a specific time period.
Price bands
The Securities and Exchange Board of India (SEBI) proposes to relax the price band on
200 stocks from 8 per cent to 12 per cent.
What is a price band and why is it used? A price band is essentially the price range
within which a stock is permitted to trade during a day.
Take, for instance, HDFC. If it closes on Wednesday at Rs. 400 and the price band is 8
per cent, HDFC can trade between Rs. 368 and Rs. 432 on Thursday. If HDFC hits Rs.
432 (Rs. 368), one cannot buy/sell the stock above (below) that price on that day.
Often, trading comes to a halt when stocks hit the upper or the lower price band.
Why?
It is normally heavy demand that pushes a stock towards the upper price band.
Realizing the market's appetite for the stock, sellers ask for a higher price.
The upper price band, however, caps the sellers' ask price for the stock. The result?
There would be no sellers for the stock leading to a trading halt.
By the same logic, stocks that hit the lower price band will experience trading halts as
there would be no buyers at that level. This is in-so-far as the working of price band
is concerned. But why have a price band? Because the market either over-reacts or
under-reacts to rumors and information.
Rumors. for instance, of a 1:1 bonus by Company X would drive people to buy that
stock, pushing up its price to very high levels.
Likewise, rumors or information of a negative development may push a stock to
levels far lower than warranted.
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And, therein lies the problem. If the market realizes its folly, a stock that was pushed
to low levels would start rising while that driven to high levels would move downs.
Such price swings are harmful to the market; they may prompt sellers and buyers to
default on their obligations. They may also keep nervous investors away from the
market. It is to prevent such happenings that stock exchanges impose a price band.
Different types of orders that can be placed in Kotak Securities.com
1. Normal orders: When u sell shares without making delivery it is treated as a short
sale and would be executed if there are sufficient funds available to execute the
transactions.
2. Delivery mark orders: This intimates the system to take delivery for the order placed.You need not mark delivery for a buy order, because if you don‘t
square-off the transaction, the system automatically takes delivery .In case you
mark delivery for a
sell order, then it is not reckoned as a utilization of limits and hence
your ―utilized
margin‖ will remain unchanged on execution of these transactions. The
system will
check your demat stock availability and the transaction will go through only if the
stock is available in your demat account.
3. Margin finance orders: A margin finance order can be placed only if you have
registered for margin funding. Using this facility you can buy shares at 50%
margin, the balance 50% is provided by Kotak Securities.com at a nominal interest
rate.
4. Market orders: An order placed for execution at the prevailing market price. To
place a market order type 0 as the price column or the price displayed by default is
taken as market order.
5. Limit orders: An order placed with a specific price that we want is a limit order.
In such a case we may replace the market price with a price of our own.
6. Stop loss orders: An order placed, which gets activated only when the market price
of the relevant scrip reaches or crosses a threshold price, which is trigger price.
Until then the order does not enter the market but sits with the NSE.
7. Disclosed order quantity: The order quantity to be placed in the market can be any
number with a minimum quantity of one share. In case of large quantity orders,
there is an option of disclosing smaller quantity i.e., in lots of 10% of the total
quantity .As
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and when the lot is executed, the next lot will be pushed into the market
automatically foe execution till the quantity is filled.
8. Multiple orders: It is facility provided by Kotak Securities.com which allows you to
place an order in 5 scripts with a single click.
Cover order: It is a facility provided by Kotak Securities.com wherein two orders will be
accepted at the same time, one being a normal order and second a stop loss order
with a trigger price. Eg- if you place an order to buy 200 shares of SBI AT 886, You
can simultaneous, place a sell order at 880 to restrict your losses. In case SBI does
not reach 880, this order will be automatically cancelled at the end of the trading day.
You need to mention the trigger price at which stop loss will be released in the system.
Com peti tors
Systematic Capital Services Pvt. Ltd.
Systematic Capital Services Pvt. Ltd, the Investment Banking arm of the Group, provides financing solutions to the clients of Systematic group. The company‘s core
operating activity is raising funds (equity & debt) for large and mid-sized corporates
with a minimum requirement of USD 5 million and above through modes at very
attractive terms and the shortest possible time. Other services include business
consulting, corporate restructuring, corporate finance, structuring of funding,
amalgamations, mergers, and acquisitions. The company also offers
consulting on emerging opportunities in India on a global
perspective. Our Team constituted by experienced professionals has entrenched
knowledge and proven credentials in the business with cross product knowledge. The
key strengths of the team are:
expertise in industry sectors
deep understanding of the capital markets
strong networking with buy side institutions
ability to structure transaction and products suitable to needs of the clients
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Approach: Our Approach is characterized by High quality financial advice resulting in
outstanding execution through:
Understanding client's businesses and needs and associated risk implications
Adding value in valuation assumptions, structuring, negotiating, and
Long term commitment and strong relationships
Our team provides full fledged support to strong growth oriented companies raise
Capital through:
Preparation of Business and Financial Plans.
Preparation of the Information Memorandum.
Discussions and Negotiations with prospective investors.
Deal closure and Execution.
Systematix has exponentially expanded pan‐India in a very short span of time
with a presence at 600 plus locations via branches & franchisees servicing
around 60,000 clients with around 1000 terminals spread across 20 states and
150 plus cities targeting a strong client base across India. We have around 400
employees of which over 35% are professional. Mission "To enhance the
economic value of our client‘s business by providing integrated financial &
investment services and products" Vision "To be amongst the most admired
financial institutions in India with a reputation built on strong ethics and trust."
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Systematix Shares and Stocks (I) Ltd (SSSIL)
Offers personalized broking services to its institutional, corporate and
individual clients
Strong pan-india presence, it has more than 42 branches and over 332
franchisees nationwide and is expanding rapidly across the nation to increase its
customer reach.
SSSL is a member of BSE (Capital) segment, NSE (Capital and Futures &
Options) segment and is also a depository participant of CDSL.
SSSL is also clearing and trading member of derivatives.
Strong research team of competent and experienced professionals.
State of art infrastructure in order to provide smooth and hassle free trading.
Latest front office and back office software to ensure error free nonstop
services to the customers.
All offices are interconnected through state-of-art Database Management
Systems for providing speedy service and optimising the operational efficiency.
Services Offered
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i. Broking
ii. High Net worth Individuals
iii. Research
iv. Retail
v. Corporate
vi. Institutions
vii. Depository Participant of CDSL
viii. Cash
ix. Futures & Options
Activities undertaken by SSSL: Broking business is divided into the following
broad segments:
Wealth Management including PCG & PMS
Institutional Broking
Full-fee Brokerage Services through its Branch and Franchisee Network
Internet based Trading Platform to reach Professionals, Medium size customersand where company don‘t have its branch network
Distribution of Mutual Funds and IPO
Presently SSSL has established its Branch network to only high potential
geographies to cater Full-fee brokerage services and PCG Desk
SSSL Client Base
i. DP Clients : 25000
ii. Equity
iii. BSE : 25000
iv. NSE : 20000
Wealth Management is Systematix‟s dedicated approach to cater its clients.
Systematix provides the full spectrum of wealth management solutions to you. At
Systematix Wealth Management we assume nothing about your requirements or the
level of involvement you are seeking. That is why we have a full range of
personalized services to meet your needs. A wide range of expertise and experience
supports every
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aspect of your wealth management. Our admired wealth management advises are
credential of the combination of insightful research, winning strategies and
most
important management‘s close connectivity with the industry which provide easy access
for first hand information. At Systematix Wealth Management, we have extensiveexperience working with Corporates and Marquis Who‘s Who wealthy individuals,
families and promoter groups throughout India. Not limited to that, we also provide
wealth management solutions to Wealth Managers. While every investor of this
category is unique, the knowledge we have accumulated helps us to foresee situations
and needs that even our clients and their families might not anticipate. Our multi-
disciplinary team of advisors is trained to identify issues and propose solutions
appropriate to their specific situation.
Systematix Wealth Management has a dual structure where Private Client Group
offers personalized advisory services, on the other side Portfolio Management
Services offers personalized asset management services. Private Client Group
(PCG)
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We believe that the key to a successful investment relationship is a full understanding of our client‘s short and long term goals, attitude towards risk and investment horizon.
Diversification among desired assets need special attention which is why we aim to
develop innovative and customized investment strategies to meet the specific needs
of our clients.
Our team of investment advisory specialists strive to cater to the needs of investors
who choose to be highly active in their investment decision-making. They use their
expertise in asset allocation and investment selection to provide clients with appropriate
choices, whether they are aiming for more aggressive strategies to capture immediate
market trends, or seeking advice on conservative hedging strategies. Our advisors
provide customized investment opportunities in equity, fixed income & liquidity
management (through MFs), derivatives, currency, commodities and innovative
structured
instruments (through third party products), that seek to meet specific investment
objectives. Our innovative mindset, unparalleled research, agile sales teams, and
intensive execution systems have enabled us to relentlessly service our clients in
newer and different ways. Portfolio Management Services (PMS) Those clients who
may not have the time or expertise to manage their wealth, and prefer to delegate the
management of their portfolio, our discretionary investment service is an ideal approach
to achieve your financial goals. Our Portfolio Managers work with clients to design an
individual investment strategy in accordance with their objectives, risk tolerance, and
liquidity needs and draw upon the best suited portfolio.
In a nut shell, based on our holistic investment approach and innovative product
capabilities we offer you very active multi asset class portfolio advisory &
management services with personalized attention and active participation of
Systematix's management.
Merchant Banking: We have a decade experience in the capital markets public
offering and maintain a close relationship with local & Global investment banking firms
that can
provide initial public offerings (IPOs) and other secondary and follow –on registered
offerings. Systematix Group maintains active relationships and provides services
with numerous institutional investors including major venture capital fund, private
equity
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funds, leveraged buyout funds, regional & money center commercial banks
and insurance companies.
Systematix Shares & Stocks (I) Limited provides depository services to investors as a
Depository Participant with Central Depository Services Ltd (CDSL). Dematerialisation
and trading in the demat mode is the safer and faster alternative to the physical
existence of securities. Demat as a parallel solution offers freedom from delays,
thefts, forgeries, settlement risks and paper work.
Our customer centric account schemes have been designed keeping in mind the
investment psychology. With a competent team of skilled professionals, we have a
dedicated Customer Care Centre, exclusively trained to handle queries from our
customers. With our country wide network of branches, you are never far from
SSSIL depository services.
At SSSIL, our commitment is to provide a complete demat solution which is simple,
safe and secure. Your DP account with us takes care of your depository needs like
dematerialization, rematerialisation, transfer and pledging of shares, stock lending
and borrowing etc. Your demat account is safe and absolutely secure in our hands,
every debit instruction is executed only after its authenticity is established.
We offer our customers:
Quick account opening
Electronic Credit against Corporate Actions
Pledging / Unpledging of shares
Dematerialization of shares
Rematerialisation of shares
Monthly statements of Holding / Transaction
Updating the account based on investors' instructions
Other related services
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E-Broking: Internet Trading - The Internet revolution has been changing the
fundamentals of our society. It shapes the way we communicate and the way we do
business. It brings us closer and closer to vital sources of information. Today,
investors can use revolutionary Internet Client-Server technology to buy and sell
stocks nearly
anywhere, anytime… You can place online trades for virtually any stock listed on NSE &
BSE. We offer plenty of powerful ways to place stock orders ... along with the trading
tools and services that help you move quickly and conveniently to trade stocks. In
Online Trading, you can access our website through your internet-enabled PC and
place orders through our internet-based trading engine. These orders are routed to the
Stock Exchange without manual intervention and executed thereon in a matter of a
few seconds.
Online trading portal of Systematix Group is a single gateway for your
multiple investment needs.
With us you can trade in equities, derivatives, commodities & currency at just click
of your mouse button. We deliver state-of-the-art technology, efficient customer
care service, competitive pricing & entire product basket to make your trading
journey smooth.
PRODUCTS:
Equity: You can trade on maximum stocks available on NSE & BSE. We offer
various options to place stock orders.
Delivery Based Trading:
You can place delivery based orders on maximum stocks available on NSE & BSE.
Intraday trading:
Trade in intraday segment up to 3-7 times of your available funds. This facility is
available for selected scripts on NSE & BSE.
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Derivatives: Wide range of futures & options trading strategies available with speed
and ease. Currency Derivatives: Currency Derivatives are standardized foreign
exchange contracts traded on an exchange to buy or sell one currency against
another on a specified future date. The contracts will be traded online through the
order-driven market mechanism, quite similar to equity derivatives.
Commodities: Trade in commodities (both MCX& NCDEX) through Systematix online
trading platform.
Trading Platforms:
1. Wealth Trade
ADD-ON-WEALTH
EXPRESS-WEALTH
2. ODIN
INET.NET
DIET
Value added services:
Customer care desk :
Dedicated customer service desk to handle your query related to password;
transaction reports & other day to day support required
Call n trade :
Dedicated call n trade desk for placing your order thru phone
Back Office Access :
Download your all reports like daily contract note, ledger, trade summary etc
Why Systematix : In an endeavor to offer you nothing less than best, we at Systematix
Shares & Stocks (I) Ltd brings you freedom to trade thru our 3 in 1 account
With 3 in 1 account we offer you integration between trading, banking & demat account.
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Bank account offered will be from an option of Axis & ICICI bank, whereas trading &
demat account will be with Systematix Shares & Stocks (I) Ltd.
Online transfer from your linked bank account to your trading account & vice
versa
128 bit encryption SSL certificate for Online trading which makes it a fool
proof system for trading
Instant update on status of purchase/sale orders.
Automated pay-in of shares and pay-out of funds/shares to and from your
DP/bank account.
Invest/trade online in multiple products - equity and derivatives trading, IPO, GOI
bonds and mutual funds
You can place orders online or through the Phone-2-Trade facility.
Offering of Systematix PMS
Systematix PMS offers a range of portfolios to help meet the varied needs of client
requirements that provide further customization and flexibility.
ICICI Sec uri ties Ltd.
ICICI Securities Ltd is an integrated securities firm offering a wide range of services
including investment banking, institutional broking, retail broking, private wealth
management, and financial product distribution.
ICICI Securities sees its role as 'Creating Informed Access to the Wealth of the
Nation' for its diversified set of client that include corporates, financial institutions,
high net-worth individuals and retail investors.
Headquartered in Mumbai, ICICI Securities operates out of 66 cities and towns in
India and global offices in Singapore and New York.
ICICI Securities Inc., the stepdown wholly owned US subsidiary of the company is a
member of the Financial Industry Regulatory Authority ( F INRA) / Securities Investors
Protection Corporation (SI P C ) . ICICI Securities Inc. activities include Dealing in
Securities and Corporate Advisory Services in the United States. ICICI Securities Inc.
is
46
also registered with the Monetary Authority of Singapore ( M AS) and operates a
branch office in Singapore.
ICICI Securities empowers over 2 million Indians to seamlessly access the capital market
with ICICIdirect.com, an award winning and pioneering online broking platform. The platform not
only offers convenient ways to invest in Equity, Derivatives, Currency Futures, Mutual Funds but
also other services Fixed Deposits, Loans, Tax Services, New Pension Systems and Insurance
are available. ICICIdirect.com offers a convenient and easy to use platform to invest in equity
and various other financial products using its unique 3-in-1 account which integrates customer's
saving, trading and demat accounts.
Apart from convenience, ICICIdirect.com also offers access to comprehensive research
information, stock picks and mutual fund recommendations among other offerings.
Tailored services and tra d ing stra te g ies a re available to different types of customers;
long term investors, day traders, high-volume traders and derivatives traders to name
some. ICICIdirect.com uses the most advanced commercially available 128-bit
encryption technology enabled Secure Socket Layer (SSL), to ensure that the
information transmitted between the client and ICICIdirect.com across the internet is
safe and cannot be accessed by any third party. ICICIdirect.com is the first broker in
India to introduce `Digitally Signed Contract Note' to its customers. As a result, the
process of generating contract notes has been automated and the same would be
instantly available to its customers in a safe and secure manner through the website.
Distribution Channel
ICICI Securities has set-up neighbourhood financial stores which offer a variety of
financial products and services under one roof. It is a one-stop shop that facilitates
existing and potential customers to speak to our team and understand their financial
plans and goals. ICICI Securities has 250 stores across 66 cities in India.
Another unique concept called the ICICIdirect Money Kitchen, was launched in late
2009. An extension of the superstore model, the money kitchen is an
innovative financial store where visitors can create their profiles to not only
analyze their investment strategy by using various financial tools but also monitor it
from time-to-time.
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To enable our customers to maximize their returns and plan for their future,
ICICIdirect has also started financial planning services at these stores. Customized
financial plans can be created for our customers by dedicated Relationship
Managers who will understand the customer's requirements and future goals.
Based on this information, the Relationship Manager works on creating a
comprehensive and easy-to-read financial plan. This enables ICICIdirect to move from
just a transactional based relationship to a meaningful and value-added long-
term relationship with our customers. ICICIdirects services and offerings evolves
according to the customer's ever changing requirements and goals.
Customers can walk-in to the financial superstores for products like ICICIdirect 3-in-1
online trading account, equities, mutual funds, IPO, Life and General insurance,
Fixed Deposits and many other financial products. The stores also conduct periodic
training sessions on markets and demo sessions of the trading website.
Research
ICICI Securities understands the need for insightful research to make the right
investment decision. An independent equity research team provides strong and timely
updates to ensure that customer can avail of market opportunities. The research team
focuses on both large cap as well as small and mid-cap. Large cap companies
provide an overview of industry environments, while small and mid-cap companies are
chosen
'bottom-up', providing a unique perspective to a generally under-researched end of
the market. The focus is on identifying companies, which we believe are likely to
generate wealth for investors on a sustained basis through in-depth fundamental
research.
We cater to the entire gamut of investment and return horizon requirements of an
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48
Trading in shares:
Cash Trading : This is a delivery based trading system, which is generally done
with the intention of taking delivery of shares or monies.
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Trading on NSE/BSE : Through ICICIdirect.com, you can trade on NSE as well as
BSE.
Market Order : You could trade by placing market orders during market hours that
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Limit Order : Allows you to place a buy/sell order at a price defined by you. The
execution can happen at a price more favorable than the price, which is defined by
you, limit orders can be placed by you during holidays & non market hours too.
India I nf oline Fi nance Lt d.
The IIFL (India Infoline) group, comprising the holding company, India Infoline Ltd (NSE:INDIAINFO, BSE: 532636) and its subsidiaries, is one of India‘s premier
providers of financial services.
IIFL offers advice and execution platform for the entire range of financial
services covering products ranging from Equities and derivatives, Commodities,
Wealth management, Asset management, Insurance, Fixed deposits, Loans,
Investment
49
Banking, Gold bonds and other small savings instruments.
We have a presence in:
Equities our core offering, gives us a leading market share in both retail and
institutional segments. Over a million retail customers rely on our research, as
do leading FIIs and MFs that invest billions.
Private Wealth Management services cater to over 2500 families who have trusted
us with close to Rs 25,000 crores ($ 5bn) of assets for advice.
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Credit & Finance focuses on secured mortgages and consumer loans. Our high
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IIFL Mutual Fund made an impressive beginning in FY12, with lowest charge Nifty
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India‘s leading online destinations for personal finance, stock markets, economy and
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the
„Most improved brokerage, India‟ in the AsiaMoney polls. India
Infoline was also adjudged as „Fastest Growing Equity Broking
House - Large firms‟ by Dun &
Bradstreet. A forerunner in the field of equity research, IIFL‘s research is
acknowledged
by none other than Forbes as „Best of the Web‟ and ‗…a must read for
investors in
Asia‟.
50
Our research is available not just over the Internet but also on international wire
services like Bloomberg, Thomson First Call and Internet Securities besides
others where it is amongst one of the most read Indian brokers.
51
IIFL is a listed company with a consolidated group networth of about Rs 1,800
crores. The income and net profit during FY2010-11 were Rs. 14.7 bn and Rs. 2.1 bn
respectively.
The Group has a consistent and uninterrupted track record of profits and dividends
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IIFL‘s Crisil and ICRA Rating for short term is top rated as CRISIL A1+ and ICRA (A1+)
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/Stable by CRISIL indicating high degree of safety for timely servicing of
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IIFL is near you physically: we are present in every nook and cranny of the country, with
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Our physical presence in key global markets includes subsidiaries in Colombo, Dubai,
New York, Mauritius, London, Singapore and Hong Kong.
Karv y Stoc k Brok i ng Li mi ted
Karvy Stock Broking Limited is a member of the National Stock Exchange of India and
The Stock Exchange Mumbai. We rank among the top 5 brokers on the NSEI, with over
130,000 trades per day. We began with the aim of serving the small investors today we
have over 3,50,000 clients trading through us. We are uniquely positioned to offer the
best to you, with over 575 branches, one is located near your office / home. If you
prefer to trade from the comfort of your home or office, our online platform provides the
ideal way to trade. Our laser focused approach to serving the retail investors remains
the cornerstone to our success over the last two decades.
If you are looking for an easy and convenient channel to trade in the stock markets…KARVY is your trusted trading services partner. To start trading in equities, you need
to register as a client with us, and you are ready to trade on the premier exchanges of
52
India
KARVY offers you feature-rich trading accounts with options to trade through any of our
branches or by yourself using our proprietary online trading platform. Our friendly and
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calls are issued on multiple verticals and can be Intra Day Recommendations,
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DEPOSITORY SERVICES
KARVY Stock Broking Limited provides depository services to investors as a Depository
Participant with the National Securities Depository Limited (NSDL) and Central
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Issuers, National level Depositories, Depository Participants and Clearing Houses /
Clearing Corporation of Stock Exchanges. Our demat services are accessible through
any of our network of over 575 branches / investor service centers located in over 375
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Our demat services business has the distinction of having all its operations ISO 9001:
2000 certified with state-of-the-art technology and operations capabilities. Our demat
services has innovated over time and we provide online access to account
statements and transaction alerts through SMS to its clients.
KARVY‘s Demat services offer you a secure, convenient and paperless way to keep
track of your investments in shares and other security instruments over time, without
the hassle of handling paper based transcripts.
We provide the following services
Dematerialization of Shares
Rematerialization of Shares
Transfer of Shares
Pledging of Shares
53
Electronic Custodial Services
Maintenance of Beneficial Holdings
Electronic Credit Against Corporate Actions
INTERNATIONAL INVESTOR SERVICES
Karvy Stock Broking Limited is a member of the National Stock Exchange of India
Limited and The Stock Exchange, Mumbai (BSE), in both the Equities and Futures
segment. We are also registered as a Depositary Participant with National Securities
Depositary Limited and Central Depositary Services Limited. We offer the
convenience of trading through any of our 575 branches or online from the comfort of
your home. Karvy Stock Broking Limited is also registered as a Corporate Agent with
the Association of Mutual Funds of India.
We have more than 3,50,000 customers trading though us and we service more than
6,00,000 investors who maintain their Depositary accounts with us. Over
10,00,000 clients have invested through us in some of the best Mutual Funds in
India.
Backed by a top-notch research team that tracks both the global and domestic markets,
we advise our clients on achieving both their short term and long-term goals.
KARVY Stock Broking Limited has a special business services unit to support Non-
Resident Indians (NRIs) who are interested in investing in the Indian equity markets.
India is one of the fastest growing and emerging financial markets in the world and a
preferred destination for investments among the global investors. Persons of Indian
Origin (PIO) across the world can invest in the Indian markets through any of the
following channels:
Equity Trading on NSE & BSE
Derivatives Trading on the NSE
Initial Public Offers
Portfolio Management Services
Investments in Mutual Funds
54
KARVY has also offices in New York, USA (KARVY Inc.) and Dubai, UAE (KARVY
Stock Broking Limited) who can assist you in your investments in India. Please contact
us in case of any queries at .
INSTITUTIONAL BROKING
The institutional broking arm of KARVY Stock Broking offers corporate houses and
institutions dealing capabilities on India leading stock exchanges (NSE and BSE) in
the cash and derivatives segments. This unit has devised a process driven approach
to address the needs of institutional investors who have unique and specialized
investment needs.
The institutional broking services desk is a specialized business unit at KARVY that
operates out of Mumbai, the financial capital of India and is staffed with best-of-
industry equity market professionals and highly skilled dealers. KARVY also supports
institutional traders through their institutional sales and research teams with
information and insightful reports on stocks, sectors and industry verticals.
KARVY's institutional broking clientele include some major domestic Mutual Funds,
Insurance Companies, Banks and FII's in India.
EQUITY & DERIVATIVE RESEARCH―It pays well to be informed and stay connected‖ – a philosophy that drives the
research team at KARVY to produce and deliver in-depth and incisive market research
to you. All
of KARVY‘s businesses are backed by a dedicated research unit which strives
to keep
investors abreast with news, information, events and conditions of markets. Penetrative
and investigative research techniques unearth a wealth of information that empowers
investors in their investment decisions.
The KARVY research team creates the following reports and publications for
consumption by investors in the Indian equity markets. These include the following
55
CHAPTER-3
RESEARCH METHODOLOGY
56
Title of the study: COMPETITION MAPPING OF KOTAK SECURITIES LTD.,
UDAIPUR
Objective of study:
A. To study the Investors satisfaction regarding the services provided by Kotak
Securities Ltd. and its competitors.
B. To study the preferences of the Investors of Kotak securities Ltd. and
its competitors.
C. To analyse the Investors satisfaction of Kotak securities Ltd., HDFC securities,
Anand Rathi securities, Reliance securities., Angle Broking and Emkay shares &
securities Ltd.
Scope of the study
This study helps in understanding consumer behavior towards Financial
instruments.
This research describes consumer perception about these services.
This study describes influence factor of customers.
This study measure the customer loyalty in Financial avenues.
This study helps the organization to understand their competitor
Type of research: Descriptive Research
Descriptive research, also known as statistical research, describes data &
characteristics about the population or phenomenon being studied. Descriptive research
answers the question who, what, where, when, & how.
Although the data description is factual, accurate & systematic, the research cannot
describe what caused a situation thus descriptive research cannot be used to create
a casual relationship where one variable affects another. In other words
descriptive research can be said to have a low requirement for internal validly.
The description is used for frequencies, averages & other statistical calculation. often
the best approach prior to writing descriptive research is to conduct a survey
investigation. Qualitative research often has a aim of description & researchers may
57
follow up with examination of why the observation exists & what the implication of
the findings are.
The main goal of this type of research is to describe the data & characteristics
about what is being studied. The idea behind this type of research is to study
frequencies, averages, & other statistical calculations. Although this research is highly
accurate, it does not gather the causes behind the situation.
Research Design:
Research design specifies methods and procedures for study.
Sufficient thought have been given to frame research question and data types to be
collected & procedures to be used for the study among consumers. However it was
exclusively personal interview. To solve the purpose of the study separate
questionnaire for consumers were made.
Data Collection:
This report was prepared after collecting data from the consumers and past data
was arranged from the various studies conducted in last few years.
Primary Data:
These data were collected by personal interview with consumer. For this
purpose questionnaire was prepared in such that all necessary data would be collected.
Secondary Data:
Information regarding the project, secondary data was also required. These data
were collected from various past studies and other sources of the company.
Research Tools:
Questionnaire
Journals
Internet
Google Docs
Sample size:- 60
There were 300 questionnaire distributed among service users & investors.
Only investors in financial instruments were selected, so they were selected for the
study.
Katak securities Ltd
Systematic capital service pvt ltd.
Icici securities ltd
India infoline finance ltd
Karvya stock broking limited.
Methods of selecting sample- convenient sampling
Convenient Sampling
A sample is a subject chosen from a population for investigation. A convenient
sampling is one chosen by a method involving an unpredictable component. convenient
sampling can also refer to taking a number of independent observations without
involving any real population. A probability sample is one in which each item has a
known probability of being in the sample.
I have taken sample according my convenient of Kotak securities Ltd. and its
competitors.
Analysis of Data
The real task was started, after the data was collected. The analysis of data
required operations such as establishment of categories, the application of these
categories , the application of these categories to raw data through coding, tabulation
and then drawing statistical inference. The unwieldy data was condensed into a few
manageable groups and tables for further analysis .Then classification of data into
purposeful and usable category. Coding, editing and tabulation was done
simultaneously a then analysis was based on computation of various percentages.
CHAPTER-4
RESEARCH ANALYSIS
AN AL YS IS
Table-1
FrequenciesBrokerage House
Frequency PercentValidPercent
CumulativePercent
Valid
KotakSecuritiesLtd.
10 16.7 16.7 16.7
SystematicCapital Services Pvt Ltd.
10 16.7 16.7 33.3
SharekhanStoke Broking House
10 16.7 16.7 50.0
ICICISecuritiesLtd.
10 16.7 16.7 66.7
India InfolineFinance Ltd. 10 16.7 16.7 83.3
Karvy StockBrokingLimited
10 16.7 16.7 100.0
Total 60 100.0 100.0
Table-2Type of Investment
TotalDerivatives Cash Both
BrokerageHouse
KotakSecurities Ltd.
3 2 5 10
SystematicCapitalServices PvtLtd.
3 4 3 10
SharekhanStock BrokingHouse
6 4 0 10
ICICI SecuritiesLtd.
2 6 2 10
India InfolineFinance Ltd. 2 8 0 10
Karvy StockBroking Limited 0 6 4 10
Total 16 30 14 60
Data Interpretation-
In this study, I tried to find out what was the type of investment in which the investors invested in the securities market.
I found that Kotak Securities Ltd. Had the maximum number of investors who traded in both Cash as well as Derivatives whereas. Sharekhan Stock Broking House had the maximum number of traders who traded in Derivatives and India Infoline Finance Ltd. had the maximum number of traders who traded in Cash.
8
7
6
5
4 Derivatives
3 Cash
2 Both
1
0Kotak
Securities Ltd.
Systematic Capital
Services Pvt Ltd.
Sharekhan Stock
Broking House
ICICI Securities
Ltd.
India Infoline Finance
Ltd.
Karvy Stock Broking Limited
Table-3Time Frame
TotalShortterm
Longterm Both
BrokerageHouse
KotakSecurities Ltd.
0 2 8 10
SystematicCapitalServices PvtLtd.
3 2 5 10
SharekhanStock BrokingHouse
4 2 4 10
ICICISecurities Ltd.
2 3 5 10
India InfolineFinance Ltd. 3 0 7 10
Karvy StockBrokingLimited
5 1 4 10
Total 17 10 33 60
Data Interpretation-
In this table, I have tried to find out the time frame for which the investors invest in the securities market. Kotak Securities Ltd. have the maximum investors for both Long term & Short term whereas ICICI Securities Ltd. has the maximum number of Long term investors and Karvy Stock Broking Ltd. Has the maximum Short term investors.
876543210
Kotak Securities
Ltd.
Systematic Capital
Services Pvt Ltd.
Sharekhan Stock
Broking House
ICICI Securities
Ltd.
India Infoline Finance
Ltd.
Karvy Stock
Broking Limited
Short term
Long term
Both
Table-4Mode of Investment
TotalOn-Line Off-line Both
BrokerageHouse
KotakSecuritiesLtd.
4 0 6 10
SystematicCapital Services Pvt Ltd.
3 3 4 10
Sharekhan Stock BrokingHouse
5 3 2 10
ICICI Securities Ltd.
1 3 6 10
India InfolineFinance Ltd. 5 2 3 10
Karvy StockBrokingLimited
2 3 5 10
Total 20 14 26 60
Data Interpretation-
In this table, I have interpreted that Kotak Securities Ltd. & ICICI Securities Ltd. Holds the maximum number of both online as well as offline customers whereas Sharekhan Stock Broking House& India Infoline Finance Ltd. hold the maximum online customers.
6
5
4
3 On-Line
Off-line2
Both
1
0Kotak
Securities Ltd.
Systematic Capital
Services Pvt Ltd.
Sharekhan Stock
Broking House
ICICI Securities
Ltd.
India Infoline
Finance Ltd.
Karvy Stock Broking Limited
Table-5Satisfaction Level fromSoftware
TotalNeutral SatisfiedHighly-satisfied
BrokerageHouse
KotakSecuritiesLtd.
0 0 10 10
SystematicCapital Services Pvt Ltd.
2 5 3 10
SharekhanStokck Broking House
3 5 2 10
ICICISecuritiesLtd.
4 4 2 10
India InfolineFinance Ltd. 1 5 4 10
Karvy StockBrokingLimited
2 3 5 10
Total 12 22 26 60
Data Interpretation-
In this table, I have analysed that investors investing in Kotak Securities Ltd. were highly satisfied with the software provided to them by their broking house whereas some investors were satisfied with the software provided to them by their broking house or were neutral with the view when asked about the satisfaction with the software provided to them by their broking house.
109876543210 Highly-satisfied
SatisfiedNeutral
Neutral
Satisfied
Highly-satisfied
Table-6factors considered most important before choosing an
investment option
Speedy increas e in wealth
Steady & stable growt h
Assured fixed monthl y income
Safety of fund investme nt
Previous experien ce
Total
Brokerag e House
KotakSecuritiesLtd.
0 10 0 8 5 23
Systemati c Capital Services Pvt Ltd.
7 0 5 6 4 22
Sharekhan Stock Broking House
3 5 5 8 8 29
ICICISecuritiesLtd.
7 0 7 1 0 15
IndiaInfoline Finance Ltd.
3 4 6 8 0 21
KarvyStock Broking Limited
7 4 5 3 3 22
Total 27 23 28 34 20 132
Data Interpretation-
In this table, I studied the factors considered important by the investors before choosing an investment option.
The investors of Kotak Securities Ltd. were mainly focused on the steady & stable growth.
The investors of Systematic Capital Services Pvt. Ltd. were mainly focused on the speedy increase in wealth and fixed monthly income.
4
The investors of Sharekhan were mainly focused on the Safety of fund Investment and previous experience.
The investors of ICICI Securities Ltd. were mainly focused on the speedy increase in wealth & assured fixed monthly income.
The investors of India Infoline finance Ltd. were mainly focused on the SafetyInvestment of Fund.
10987 Kotak Securities Ltd.65
Systematic Capital Services Pvt
3 Ltd.2 Sharekhan Stock Broking House10
ICICI Securities Ltd.
India Infoline Finance Ltd.
Karvy Stock Broking Limited
Table-7(A)
Satisfaction with Brokerage Rates
TotalHighlydissatisfied Neutral Satisfied
Highly-satisfied
BrokerageHouse
KotakSecuritiesLtd.
0 0 4 6 10
SystematicCapital Services Pvt Ltd.
0 5 4 1 10
SharekhanStock Broking House
0 1 7 2 10
ICICISecuritiesLtd.
0 3 6 1 10
India InfolineFinance Ltd. 0 1 6 3 10
Karvy StockBrokingLimited
1 1 6 2 10
Total 1 11 33 15 60
Data Interpretation-
In this table, I have analysed that the investors of Kotak Securities Ltd. were highly satisfied with the brokerage rates whereas the investors of other broking houses were satisfied with the brokerage rates provided to them by their broking houses.
7
6
5
4
3
2 Highly dissatisfied1
Neutral0
Satisfied
Highly-satisfied
Ho: There is no significance difference between the customer satisfaction of the customers of Kotak Securities Ltd. and its competitors.
H1 : There is significance difference between the customer satisfaction of the customers of Kotak Securities Ltd. and its competitors.
Table-7(B)
Chi-SquareTests
CalculatedValue(Chi-Square)
40.357
Degree of Freedom 15
TabulatedValue(Chi-Square)
24.996
Accept/Reject Rejected
Here I have applied Chi-Square Test and in my test I found that the
Calculated Value > Tabulated Value
Therefore, the Hypotheses is rejected. Hence, there is a significance difference between the customer satisfaction of the customers of Kotak Securities Ltd. and its competitors.
Table-8(A)
Dealer's Input
TotalNeutral SatisfiedHighly-satisfied
BrokerageHouse
Kotak SecuritiesLtd.
0 4 6 10
Systematic CapitalServices Pvt Ltd.
3 5 2 10
Sharekhan StockBroking House
1 9 0 10
ICICI SecuritiesLtd.
6 2 2 10
India InfolineFinance Ltd. 0 8 2 10
Karvy StockBroking Limited 3 5 2 10
Total 13 33 14 60
Data Interpretation-
In this table, I have found that the investors investing with Kotak Securities were highlysatisfied with the dealers‘ input whereas the investors dealing with the competitivebroking houses were satisfied or were neutral in their views when asked about thesatisfaction from dealers‘ input.
9876543210
Kotak Systematic Sharekhan ICICI India Karvy
Neutral
Satisfied
Highly-satisfied
SecuritiesLtd.
Capital Services Pvt Ltd.
Stock Broking House
SecuritiesLtd.
Infoline Finance
Ltd.
Stock Broking Limited
Ho: There is no significance difference between the customer satisfaction of the customers of Kotak Securities Ltd. and its competitors.
H1: There is significance difference between the customer satisfaction of the customers of Kotak Securities Ltd. and its competitors
Table-8(B)
Chi- Square Tests
Calculated Value(Chi-Square)
53.351
Degree of Freedom 10
Tabulated Value(Chi-Square)
18.307
Accept/Reject Rejected
Here I have applied Chi-Square Test and in my test I found that the
Calculated Value > Tabulated Value
Therefore, the Hypotheses is rejected. Hence, there is a significance difference between the customer satisfaction of the customers of Kotak Securities Ltd. and its competitors
Table-9(A)
Company's Research Advise
TotalNeutral SatisfiedHighly-satisfied
BrokerageHouse
KotakSecuritiesLtd.
0 3 7 10
Systematic Capital Services Pvt Ltd.
5 4 1 10
SharekhanStock Broking House
6 3 1 10
ICICISecuritiesLtd.
3 7 0 10
India InfolineFinance Ltd. 6 4 0 10
Karvy StockBrokingLimited
3 3 4 10
Total 23 24 13 60
Data Interpretation-
Here, in this table I have analysed that the customers of Kotak Securities Ltd werehighly satisfied with the research advice provided to them by the Company‘s Researchteam whereas the customers of other competitive broking houses were satisfied or wereneutral in their views when asked about the satisfaction from their company‘s researchadvice.
8
7
6
5
4Neutral
3 Satisfied
2 Highly-satisfied
1
0Kotak
Securities Ltd.
Systematic Capital
Services Pvt Ltd.
Sharekhan Stock
Broking House
ICICI Securities
Ltd.
India Infoline
Finance Ltd.
Karvy Stock Broking Limited
Ho1: There is no significance difference between the customer satisfaction of the customers of Kotak Securities Ltd. and its competitors.
Table-9(B)
Chi- Square Tests
Calculated Value(Chi-Square)
39.164
Degree of Freedom 10
Tabulated Value(Chi-Square)
18.307
Accept/Reject Rejected
Here I have applied Chi-Square Test and in my test I found that the
Calculated Value > Tabulated Value
Therefore, the Hypotheses is rejected. Hence, there is a significance difference between the customer satisfaction of the customers of Kotak Securities Ltd. and its competitors.
Table-10(A)
Relation Manager's Input
TotalDis-satisfied Neutral Satisfied
Highly-satisfied
BrokerageHouse
KotakSecuritiesLtd.
0 0 0 10 10
SystematicCapital Services Pvt Ltd.
0 5 5 0 10
SharekhanStock Broking House
0 1 7 2 10
ICICISecuritiesLtd.
1 2 6 1 10
India InfolineFinance Ltd. 0 2 7 1 10
Karvy StockBrokingLimited
0 6 2 2 10
Total 1 16 27 16 60
Data Interpretation-
In this table, I have found that the investors of Kotak Securities Ltd were highly satisfiedwith the Relationship Manager‘s input whereas the investors dealing with thecompetitive broking houses were satisfied or were neutral in their views when asked about the satisfaction from their Relationship Manager‘s input.
10
9
8
7
6
5
4
3
2
1
0Kotak
Securities Ltd.
Systematic Capital
Services Pvt Ltd.
Sharekhan Stock
Broking House
ICICI Securities
Ltd.
India Infoline Finance
Ltd.
Karvy Stock
Broking Limited
Dis-satisfied
Neutral
Satisfied
Highly-satisfied
Ho1: There is no significance difference between the customer satisfaction of the customers of Kotak Securities Ltd. and its competitors.
Table-10(B)
Chi-SquareTests
Calculated Value(Chi-Square)
49.883
Degree of Freedom 15
Tabulated Value(Chi- Square)
24.996
Accept/Reject Rejected
Here I have applied Chi-Square Test and in my test I found that the
Calculated Value > Tabulated Value
Therefore, the Hypotheses is rejected. Hence, there is a significance difference between the customer satisfaction of the customers of Kotak Securities Ltd. and its competitors.
Table-11(A)
Profitability of Investment in EquityMarket
TotalDis- satisfied Neutral Satisfied
Highly- satisfied
BrokerageHouse
KotakSecuritiesLtd.
0 1 3 6 10
SystematicCapital Services Pvt Ltd.
0 1 4 5 10
SharekhanStock Broking House
5 5 0 0 10
ICICISecuritiesLtd.
0 5 3 2 10
India InfolineFinance Ltd. 1 6 1 2 10
Karvy StockBrokingLimited
2 3 4 1 10
Total 8 21 15 16 60
Data Interpretation-
Here, I analysed the investors whether they felt it to be profitable in investing in the securities market or not.
In my findings I analysed that the investors of Kotak Securities Ltd. were highly satisfied with the fact that it was profitable in investing in the securities market whereas other investors investing in some other broking houses were satisfied/neutral/dissatisfied with this fact.
6
5
4
3Dis-satisfied
Neutral
2 Satisfied
Highly-satisfied1
0Kotak
Securities Ltd.
Systematic Capital
Services Pvt Ltd.
Sharekhan Stock
Broking House
ICICI Securities
Ltd.
India Infoline Finance
Ltd.
Karvy Stock
Broking Limited
Ho1: There is no significance difference between the customer satisfaction of the customers of Kotak Securities Ltd. and its competitors.
Table-11(B)
Chi-SquareTests
Calculated Value(Chi-Square)
45.678
Degree ofFreedom
15
Tabulated Value(Chi-Square)
24.996
Accept/Reject Rejected
Here I have applied Chi-Square Test and in my test I found that the
Calculated Value > Tabulated Value Therefore, the Hypotheses is rejected. Hence, there is a significance difference between the customer satisfaction of the customers of Kotak Securities Ltd. and its competitors.
CHAPTER-5
FINDINGS & Conclusion
Conclu sion & FINDIN GS
1. I found that Kotak Securities Ltd. Had the maximum number of investors who
traded in both Cash as well as Derivatives whereas. Sharekhan Stock Broking
House had the maximum number of traders who traded in Derivatives and
India Infoline Finance Ltd. had the maximum number of traders who traded in
Cash.
2. Kotak Securities Ltd. have the maximum investors for both Long term & Short
term whereas ICICI Securities Ltd. has the maximum number of Long term
investors and Karvy Stock Broking Ltd. Has the maximum Short term investors.
3. I have interpreted that Kotak Securities Ltd. & ICICI Securities Ltd. holds the
maximum number of both online as well as offline customers whereas Sharekhan
Stock Broking House& India Infoline Finance Ltd. hold the maximum online
customers.
4. I have analysed that investors investing in Kotak Securities Ltd. were highly
satisfied with the software provided to them by their broking house whereas
some investors were satisfied with the software provided to them by their
broking house or were neutral with the view when asked about the satisfaction
with the software provided to them by their broking house.
5. The investors of Kotak Securities Ltd. were mainly focused on the steady &
stable growth.
The investors of Systematic Capital Services Pvt. Ltd. were mainly focused on
the speedy increase in wealth and fixed monthly income.
The investors of Sharekhan were mainly focused on the Safety of fund
Investment and previous experience.
The investors of ICICI Securities Ltd. were mainly focused on the speedy
increase in wealth & assured fixed monthly income.
The investors of India Infoline finance Ltd. were mainly focused on the Safety
Investment of Fund.
6. I have analysed that the investors of Kotak Securities Ltd. were highly
satisfied with the brokerage rates whereas the investors of other broking
houses were satisfied with the brokerage rates provided to them by their broking
houses.
7. I have found that the investors investing with Kotak Securities were highlysatisfied with the dealers‘ input whereas the investors dealing with the
competitive broking houses were satisfied or were neutral in their views whenasked about the satisfaction from dealers‘ input.
8. I have analysed that the customers of Kotak Securities Ltd were highly satisfiedwith the research advice provided to them by the Company‘s
Research team whereas the customers of other competitive broking houses
were satisfied or were neutral in their views when asked about the
satisfaction from their
company‘s research advice.
9. I have found that the investors of Kotak Securities Ltd were highly satisfied withthe Relationship Manager‘s input whereas the investors dealing
with the competitive broking houses were satisfied or were neutral in their
views when
asked about the satisfaction from their Relationship
Manager‘s input.
10. I analyzed that the investors of Kotak Securities Ltd. were highly satisfied with
the fact that it was profitable in investing in the securities market whereas other
investors investing in some other broking houses were
satisfied/neutral/dissatisfied with this fact.
ANNEXURE
Questionna ire
Name:-
Age :-
o Below 18 yearso 18-30 years o 30-50 years o 50-60 years o 60 & above
Occupation:-
o Studento Businesso Professiono Servicemano Others
Gender:-
o Maleo Female
Marital Status:-
o Marriedo Unmarried1) Do you trade in derivatives/cash /both?
o Derivativeso Casho Both
2) Do you like to trade on short-term basis or on long-term basis?o Short –termo Long-termo Both
3) Do you trade on online mode/ offline mode?o Onlineo Offline
If on online mode, are you satisfied with the software provided to you by the broking company?
Highly dissatisfied Highly Satisfied
4) Which factor would you consider as most important before choosing an investment option?
o Speedy increase in wealtho Steady & stable growtho Assured fixed monthly incomeo Safety of funds investedo Previous experience
5) Are you satisfied with the brokerage rates provided to you by your broking house?
Highly dissatisfied ooooo Highly Satisfied
6) Does your dealer satisfy you at the level you want him regarding updates &knowledge?
Highly dissatisfied ooooo Highly Satisfied
7) Do you get advisory from the company‘s researchers?
Highly dissatisfied ooooo Highly Satisfied
8) Are you satisfied with the RM‘s work and the information provided by him to
you?
Highly dissatisfied ooooo Highly Satisfied
9) Do you think it is profitable to invest in the equity market ?
Highly dissatisfied ooooo Highly Satisfied
10)Do you Suggest your friends & relatives to trade with the Broking house withwhich you are attached?
o Yeso No
BIBLIOGRAPHY
Books and Articles: -
i. Reilly/Brown (2007), ―Investment Analysis and Portfolio Management,
Eight Edition, University of dame, Thomson Publication: Haryana, pp
1042-1050.
ii. Donald E. Fischer and Ronald J. Jordan (2003), Security Analysis and
portfolio management, sixth edition, University of Texas, PHI: New
Delhi, pp 672-677.
iii. Sharp, William F. ―Mutual fund performance‖, Journal of business 39
(1966): 119-138.iv. Treynor, Jack L., ―How to rate management of
investment funds‖
Harvard Business review, 43(1965):pp 63-75v. Jensen, Michael C., ―The performance of mutual fund in the
period
1945-1964‖, Journal of finance, 23(1968):
pp389-416.
vi. Sarkar, A.K., ― Performance Evaluation of Mutual funds‖,
Management
Accountant,9(1991): pp 691-693vii. Magnus Dahlquis, and Soderlind Paul,‖ Evaluating Portfolio
Performance with Stochastic DiscountFactors‖, Journal of
Business,3(1999): pp381-412viii. Bollen, P.B. Nicolas and Jeffrey A. Busse; ― On The Timing
Ability ofMutual Fund Managers‖, Journal Of Finance, 3(1999): p 481
ix. Dutta. A (2007), ―Mutual Funds In India‖, First Edition,
Wisdom
Publication: New Delhi, pp 177-183x. Friend, Irwin, Brown, F.E., Herman Edward S. and Vicker
Douglas. , ―A
study Of Mutual Funds: Investment policy and Investment Policyperformance‖, Elements of Investment: Selected Readings,
ed. By Hsik-Kwang Wu, Alan, J.Zakon Holt, Rinehart and winstor,
inc(1965): pp371-385
Internet:-
i. http/ w w w . ea s y m f .c o m
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