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A SUMMER TRAINING PROJECT REPORT
ON
Comparative Analysis of Services provided byIndia Infoline Limited and other Broking Houses
SUBMITTEDINTHEPARTIALFULFILLMENTFORTHEAWARDOF
DEGREEOFMASTERINBUSINESSADMINISTRATION2012-14
UNDER THE GUIDANCE OF:
Ms. Surbhi Gupta
Associate Professor, RDIAS
SUBMITTED BY:
Ritika khurana
Enrollment No.- 09180303912
MBA, Semester 3
Batch 2012-14
RUKMINI DEVI INSTITUTE OF ADVANCED STUDIES
An I SO 9001:2008 Certif ied I nstitu te
(Approved by AICTE, HRD Ministry, Govt. of India)
Affiliated to Guru Gobind Singh Indraprastha University, Delhi
2A & 2B, Madhuban Chowk, Outer Ring Road, Phase-1, Delhi-110085
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TABLE OF CONTENTS
Student declaration..i
Certificatefrom Guide. .ii
Acknowledgement..iii
Executive Summary.iv
A summary statement designed to provide a quick overview of the full lengthreport on which it is based.
List of Tables....v
List of Graphs..vi
List of Charts.vii
List of Abbreviations, if anyviii
CHAPTER- 1: INTRODUCTION
1.1 About the Industry1.2 About Organization/ Company Profile
CHAPTER2:TOPIC INTRODUCTION& LITERATURE
REVIEW
2. 1 About The Topic2.2 Literature Review
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CHAPTER3: RESEARCH METHODOLOGY
3.1 Purpose of the study.....
3.2 Research Objectives of the study..
3.3 Research Methodology of the study.
3. 3.1 Research Design......
3.3.2 Data Collection Techniques
3.3.3 Sample design...
3.3.3.1 Population..
3.3.3.2 Sample size
3.3.3.3 Sampling method...
3.3.4 Method of data collection..
3.3.4.1 Instrument for data collection
3.3.4.2 Drafting of a questionnaire.
3.3.5 Limitations
CHAPTER4: ANALYSIS& INTERPRETATION
CHAPTER- 5: FINDINGS
CHAPTER-6: RECOMMENDATIONS AND CONCLUSION
BIBLIOGRAPHY
ANNEXURES
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STUDENT DECLARATION
This is to certify that I have completed the Project titled Comparative Analysis of
Services provided by India Infoline Limited and other Broking Houses under the
guidance of Ms Surbhi Gupta in the partial fulfillment of the requirement for the
award of the degree of Master in Business Administration from Rukmini Devi
Institute of Advanced Studies, New Delhi. This is an original work and I have not
submitted it earlier elsewhere.
Name of the student: Ritika khurana
Course: MBA- 3
Enrolment No: 09180303912
Batch: 2012-2014
(Signature)
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CERTIFICATE OF GUIDE
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ACKNOWLEDGEMENT
It gives me pleasure to present this Summer Training Report, which is an outcome of the
study Comparative Analysis of the services provided by India Infoline Limited and other
Broking houses
Completing a task is never a one-man effort. It is often the result of valuable
contribution of number of individuals in a direct or indirect manner that helps on
shaping and achieving an objective.
Firstly, I would like to acknowledge my sincere thanks to Mr. Nomit Kochar (A.V.P.)
who gave me an opportunity to carry out this project and had been a constant source of
advice, motivation and inspiration.
I offer my sincere thanks and humble regards to Rukmini Devi Institute Of Advanced
Studies, GGSIP University, New Delhi for imparting us very valuable professional
training in MBA.
I pay my gratitude and sincere regards to Surbhi Gupta, my project Guide for giving me
the cream of her knowledge. I am thankful to her for giving her suggestions andencouragement throughout the project work. I also thank ms. Geeta lomas for her
continuous guidance and suggestions in IIFL office.
It gives me immense pleasure to express my gratitude towards India Infoline-IIFL, Moti
Nagar New Delhi for providing me the opportunity to learn so much in my first summer
training project. I would like to thank each and every employee of Finance and Marketing
dept for imparting their knowledge and helping me with my project which resulted in this
project being a personally rewarding experience throughout my 2 months tenure at India
Infoline-IIFL.
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EXECUTIVE SUMMARY
This project provides an insight into the financial service industry of which insurance,
stocks and mutual funds form an integral part. The project focuses on the
dematerialization and stock trading services provided by India Infoline Limited. The
project also includes the services industry in which India Infoline Limited plays an
important role. The organization structure, history of the company, ownership patterns,
divisions and branches and different departments in the organization are also mentioned.
The project provides an overall view on the financial standing of the company, products
offered and services provided the competitors in the industry and the competitive edge of
India Infoline Limited to have a distinctive position in the industry .Lastly the project
involves an analysis and comparative study of the product of India Infoline Limited with
two of its competitors and recommendations to provide a horizon of improvement and
growth.
There is growing competition between brokerage firms in post reform India. For investor
it is always difficult to decide which brokerage firm to choose. Research was carried out
to find which brokerage house people prefer and to figure out what people prefer while
investing in stock market. This study suggests that people are reluctant while investing in
stock and commodity market due to lack of knowledge. Main purpose of investment is
returns and liquidity, commodity market is less preferred by investors due to lack of
awareness.
The major findings of this study are that people are interested to invest in stock market
but they lack knowledge. Through this report we were also able to understand, what areour companys positive and strong points, on the basis of which we come to knowwhat
can be the basis of pitching to a potential client. We also gave suggestions to the
company, what improvement can be done to our product. I hope India Infoline Ltd. will
recognize this as well as take more references from this project report.
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LIST OF TABLES
1. Preference of Investment.....Table No. 4.12. Knowledge about Demat account....Table No. 4.23. Intend to open a Demat account..Table No. 4.34. Years you trade........Table No. 4.45. Types of trading...Table No. 4.56. Occupation...Table No. 4.67. Priorities while opening a demat accountTable No. 4.78. Company you have Demat and Trading accout ......TableNo. 4.89.
Satisfaction of your present broking firm ...Table No. 4.9
10.Satisfaction of the software for online trade........Table No. 4.1011.Satisfaction with the charges charged..Table No. 4.1112.Company providing daily research e-mail.......Table No. 4.1213.Company providingprinted reports..Table No. 4.13
14. Best broking firm ...Table No. 4.14
15. Future customer of India Infoline Limited..Table No. 4.15
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LIST OF GRAPHS
1. Preference of Investment...Graph No. 4.12. Knowledge about Demat account.Graph No. 4.23. Intend to open a Demat accountGraph No. 4.34. Years you trade.....Graph No. 4.45. Types of trading.Graph No. 4.76. Occupation. Graph No. 4.87. Saving you invest yearlyGraph No. 4.98. Priorities while opening a demat account..Graph No. 4.109.
Company you have Demat and Trading accout Graph No. 4.11
10.Satisfaction of your present broking firm ....Graph No. 4.1211. Satisfaction with the charges charged. Graph No. 4.11
12. Company providing daily research e-mail.....Graph No. 4.12
13.Company providingprinted reports..Graph No. 4.13
14. Best broking firm ..Graph No. 4.14
15. Future customer of India Infoline Limited.Graph No. 4.15
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LIST OF CHARTS
1. Corporate structure.Chart No. 1.12. SWOT Analysis of IIFL Limited...Chart No. 1.23. DematerialisationChart No. 1.34. RematerialisationChart No. 1.4
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CHAPTER- 1:
INTRODUCTION
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CHAPTER- 1:
INTRODUCTION
1.1 ABOUT THE INDUSTRY
A stock market or equity market is a public entity (a loose network of economic
transactions, not a physical facility or discrete entity) for the trading of company stock
(shares) and derivatives at an agreed price; these are securities listed on a stock exchange
as well as those only traded privately. The Bombay Stock Exchange (BSE) and the
National Stock Exchange (NSE) are two primary stock exchanges in India. In addition,
there are 22 Regional Stock Exchanges. However, the BSE and NSE have established
themselves as the two leading exchanges and account for about 80% of the equity volume
traded in India. The NSE and BSE are equal in size in terms of daily traded volume.
BSE
The Bombay Stock Exchange (BSE) was established in 1875. The BSE India Stock
Exchange serves as the most important for companies to raise money. The Bombay Stock
Exchange is the oldest exchange in Asia. The BSE SENSEX, also called "BSE 30"comprises 30 stocks, is a widely used market index in India and Asia. The BSE has over
6000 stocks listed and has a market capitalization of around Rs.9,68,000 crore.
The chief function of the Stock Market of India is to help raise money as capital for the
growth and expansion of various private and public sector enterprises. Besides, the stock
market of India provides able assistance to the individual investors through daily updates
on current position of the stocks
of the respective companies that are enlisted in the Stock Index in which the movement
of prices in a section of the market are captured in price indices. The popular acronym
for Stock Index is Sensitive index or sensex. Moreover, the liquidity provided by the
exchange enables the investors to sell securities owned by them easily and quickly.
Hence a person, who is subjected to sudden dearth of funds, can immediately sell his
shares for cash in India Stock Market.
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NSEThe National Stock Exchange(NSE) stock exchange located at Mumbai, India. The
National Stock Exchange of India Ltd. (NSE) was set up in the year 1993. It is the 16th
largest stock exchange in the world by market capitalization and largest in India by daily
turnover and number of trades, for both equities and derivative trading. NSE has a market
capitalization of around US$98 billion and over 1,646 listings as of December 2011. The
NSE's key index is the S&P CNX Nifty, known as the NSE NIFTY (National Stock
Exchange Fifty), an index of fifty major stocks weighted by market capitalisation.NSE has set up a sophisticated electronic trading, clearing and settlement platform and its
infrastructure serves as a role model for the securities industry. The standards set by NSE
in terms of market practices; products and technology have become industry benchmarksand are being replicated by many other market participants.
Most key stocks are traded on both the exchanges and hence the investor could buy on
either of the exchanges. Both exchanges have a different settlement cycle, which allows
investors to shift their position on the bourses.
The markets are closed on Saturdays and Sundays. Both the exchanges have switched
over from the open outcry trading system to a fully automated computerized mode of
trading known as BOLT (BSE Online Trading) and NEAT (National Exchange
Automated Trading) system. It facilitates more efficient processing, automatic order
matching, faster execution of trades and transparency. The scrip traded on the BSE has
been classified into A, B1. B2. C, F and Z groups
The A group shares represent those, which are in the carry forwardSystem (Badla). the
F group represents the debt market (Fixed Income Securities) segment.The Z group
scrip is the blacklisted companies. The C group covers the odd lot securities in A,
B1, & B2 groups and Rights renunciations. The key regulator governing Stock
Exchanges, Brokers, Depositories, Depository Participants, Mutual Funds, FIIs and other
participants in Indian Secondary and Primary Market is the Securities and Exchange
Board of India (SEBI) of India.
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1.2ABOUT THE COMPANY
The IIFL (India Infoline) group, comprising the holding company, India Infoline Ltd and
its subsidiaries, is one of Indias 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 Banking,
Gold bonds and other small savings instruments.
Vision:
Ourvision is to be the most respected company in the financial servicesspace.
Mission:
Tobecome a full-fledged financial services company known for its quality ofadvice, personalized services and cutting edge technology
Products:
IIFL has their presence in:
Equities: IIFLs core offering, gives the company a leading market share in bothretail and institutional segments. Over a million retail customers rely on IIFLs
research, as do leading FIIs and MFs that invest billions.
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Private Wealth Management services cater to over 2500 families who havetrusted IIFL with close to Rs 25,000 crores ($ 5bn) of assets for advice.
Investment Banking services are for corporates looking to raise capital. IIFLsforte is Equity Capital Markets, where the company has executed several marquee
transactions.
Credit & Finance focuses on secured mortgages and consumer loans. IIFLshigh quality loan book of over Rs. 6,200 crores ($ 1.2bn) is backed by strong
capital adequacy of approximately 20%.
IIFL Mutual Fund made an impressive beginning in FY12, with lowest chargeNifty ETF. Other products include Fixed Maturity Plans.
Life Insurance, Pension and other Financial Products, on open architecturecomplete IIFLs product suite to help customers build a balanced portfolio.
IIFL has received membership of the Colombo Stock Exchange becoming the first
foreign broker to enter Sri Lanka. IIFL owns and manages the website,
www.indiainfoline.com, which is one of Indias leading online destinations for personal
finance, stock markets, economy and business. IIFL has been awarded the Best Broker,
India by Finance Asia and the Most improved brokerage, India in the Asia Money
polls. India Infoline was also adjudged as Fastest Growing Equity Broking House -
Large firmsby Dun & Bradstreet. A forerunner in the field of equity research, IIFLs
research is acknowledged by none other than Forbes as Best of the Web and a must
read for investors in Asia.
IIFLs 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.
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IIFL is a listed company with a consolidated group net worth of about Rs1,800 crores.
The income and net profit during FY2010-11 were Rs.14.7 billion and Rs.2.1 billion
respectively.
The Group has a consistent and uninterrupted track record of profits and dividends since
its listing in 2005. The company is listed on both Exchanges and also trades in the
derivatives segment.
IIFLs Crisil and ICRA Rating for short term is top rated as CRISIL A1+ and ICRA (A1+)
respectively. For long term, IIFL has been rated ICRA(AA-) by ICRA and CRISIL AA-
/Stable by CRISIL indicating high degree of safety for timely servicing of financial
obligations.
IIFL is present in every nook and cranny of the country, with over 3,000 business
locations across 500 cities in India. IIFL can be reached in multiple ways including
online, over the phone and through the branches. All the offices of IIFL are connected
with the corporate office in Mumbai with cutting edge networking technology. . The
group caters to a customer base of about a million customers.
IIFLs physical presence in key global markets includes subsidiaries in Colombo, Dubai,
New York, Mauritius, London, Singapore and Hong Kong.
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History & Milestones:1995
Commenced operations as an Equity Research firm
1997
Launched research products of leading Indian companies, key sectors and theeconomy
1999
Launchedwww.indiainfoline.com
2000
Launched online trading through www.5paisa.com Started distribution of lifeinsurance and mutual fund
2003
Launched proprietary trading platform Trader Terminal for retail customers
2004
Acquired commodities broking license Launched Portfolio Management Service
2005
Maiden IPO and listed on NSE, BSE
2006
Acquired membership of DGCX Commenced the credit & finance2007
Commenced institutional equities business under IIFL Formed Singapore subsidiary, IIFL (Asia) Pte Ltd
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2008
Launched IIFL Wealth Transitioned to insurance broking model
2009
Acquired registration for Housing Finance Obtained Venture Capital license
2010
Received membership of the Singapore Stock Exchange and Colombo StockExchange
Commenced operations in Singapore & Colombo
2011
Received SEBI final approval for IIFL Mutual Fund
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Chart No. 1.1
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COMPANY PHILOSOPHY:
The India Infoline Group is committed to placing the Investor first, by continuously
striving to increase the efficiency of the operations as well as the systems and processes
for use of corporate resources in such a way so as to maximize the value to the
stakeholders. The Group aims at achieving not only the highest possible standards of
legal and regulatory compliances, but also of effective management.
SWOT Analysis of IIFL Limited
Chart No.1.2
Strengths:
Wide range of financial products. Successful implementation of Insurance Broking. Online Portals successful branding as 5paisa.com. 3,000 business locations across 500 cities in India. First Indian Brokerage House to get membership of Singapore Exchange. IIFL has been awarded the Best Broker, India, Most Improved Brokerage,
India, Fastest Growing Equity Broking House.
StrengthWeakne
ss
ThreatsOpportu
nities
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Weakness:
High risk exposure as seen by conservative population. Less emphasis on Advertising causes lack of brand visibility.
Opportunities:
High income urban families. More penetration into the growing cities.
Threats:
Stringent Economic measures by Government and RBI. Entry of foreign finance firms in Indian Market.
Major Players in the Region
Angel Broking Limited Sharekhan Securities Indiabulls Securities Limited Religare Securities Limited SMC Securities ICICI Direct HDFC Securities Kotak Securities
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Angel Broking Limited
Angel Broking's tryst with excellence in customer relations began in 1987. Today, Angel
has emerged as one of the most respected Stock-Broking and Wealth Management
Companies in India. With its unique retail-focused stock trading business model, Angel is
committed to providing Real Value for Money to all its clients.
The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock
Exchange (NSE) and the two leading Commodity Exchanges in the country: NCDEX &
MCX. Angel is also registered as a Depository Participant with CDSL.
Products and Services offered by Angel Broking Limited
Equity Trading Commodities
Portfolio Management Services Mutual Funds Life Insurance IPO Depository Services Investment Advisory Personal Loans
Quality Assurance
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Sharekhan Securities
Sharekhan Securities is one of the leading retail brokerage of Citi Venture which is
running successfully since 1922 in the country. Earlier it was the retail broking arm of the
Mumbai based SSKI Group, which has over eight decades of experience in the stock
broking companies. Launched on February,8,2000 as an online trading portal, Sharekhan
has today a pan-India presence with over 1,529 outlets serving 950,000 customers across
450 cities. Sharekhan offers its customers a wide range of equity related services
including trade execution on BSE, NSE, Derivatives, depository services, online trading,
investment advice, etc.
Products and Services offered by Sharekhan Securities:
Equity Trading Platform (Online/Offline) Commodity Trading Platform (Online/Offline) Portfolio Management Services (PMS) Mutual Fund Advisory and Distribution Insurance
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Indiabulls Securities
Indiabulls Securities (ISL)is one of India's leading capital markets companies
providing securities broking and advisory services. Indiabulls Securities also provides
depository services, equity research services and IPO distribution to its clients and offers
commodities trading through a separate company. These services are provided both
through on-line and off-line distribution channels. Indiabulls Securities is a pioneer of on-
line securities trading in India. Indiabulls Securities in-house trading platform is one of
the fastest and most efficient trading platforms in the country. Indiabulls Securities has
been assigned the highest rating BQ-1 by CRISIL. Indiabulls is a corporate member of
Capital market and derivative segment of The National Stock Exchange of India Limited.
Products and Services offered by Indiabulls Securities Limited:
Equity & Debt Broking Commodity trading Depostiory Services Derivative Broking Services Equity Research Services Mutual Fund Distribution IPO Distribution Insurance
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Religare Securities Limited
Religare Securities Ltd. (RSL) is a wholly owned subsidiary of Religare Enterprises
Limited (REL), an emerging markets financial services group. RSL is one of the market
leading securities firms in India serving over a million clients across both Offline and
Online platforms. Through its extensive footprint extending to over 500 cities, the
company offers Equity, Commodity and Currency broking services as well as depository
participant services. RSL is a member of the NSE, BSE, MCXSX, USE and a depository
participant with NSDL and CDSL. RSL also offers TIN facilitation & PAN facility at
select branches - a unique service to help an individual with PAN, TAN and TDS/TCS
returns related requirements.
Products and Services offered by Religare Securities Limited:
Equity & Commodity Broking Derivatives Portfolio Management Services Online Investment Portal Depository Services Investment Banking Institutional Broking Corporate Broking Corporate Finance Insurance
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SMC Securities
SMC Group, founded in 1990, is Indias best Equity Broking House and the Largest
Distribution Network, providing a wide range of financial services and investment
solutions. A blend of extensive experience, diverse talent and client focus has made us
achieve this landmark.
Over the years, SMC has expanded its operations domestically as well as internationally.
Existing network includes regional offices at Mumbai, Kolkata, Chennai, Ahmedabad,
Jaipur, Hyderabad, Bangalore plus a growing network of 2500+ offices spread across
500+ cities/towns in India.
We are also amongst the first financial firms in India to expand operations in the lucrative
gulf market, by acquiring license for broking and clearing member with Dubai Gold and
Commodities exchange (DGCX).
Products and Services offered by SMC Securities:
Equity, Commodities & Currency Trading Derivatives Portfolio Management Wealth Advisory Online Trading Investment Banking Depository Services Institutional Broking Loan against Securities Clearing Services Mutual Funds Insurance & IPO Commodity Research
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ICICI Direct
ICICI Web Trade Limited is a company that is venture of ICICI Bank, ICICI Limited to
produce an integrated offering of e-broking services. This service is the combination of
these entire three organizations. Promotions are looked after ICICI web Trade that has
made e-invest facility, commonly known as ICICI Direct.com possible. This company is
100% subsidiary of ICICI Limited. The company enables to have the facility of having
all the facilities online. One can view his banking transactions online, view the Demat
balance with the latest market values and at the same time buy and sell shares online.
This company has pioneered the concept of e-broking in India. The company went online
with NSE on 15th April 2000.
Products and Services offered by ICICI Direct:
Investing in Mutual Funds Personal Finance Customer Service Features IPOs Margin Trading Margin PLUS Trading Call Trade Trading on NSE/BSE Trade in Derivatives
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HDFC Securities
HDFC Securities Ltd., a trusted financial services intermediary is a subsidiary of Indias
respected private sector Bank- HDFC Bank. A leading stock broking company having
completed 10 years in operation serves a diverse customer base of retail and institutional
investors. Discerning investors experience a robust platform to trade in Equities,
derivatives, currency futures and mutual funds through both NSE & BSE and other
investment options like IPO's, bonds, corporate fixed deposits, insurance etc.
Products and Services offered by HDFC Securities:
Equity Derivative Cash-n-carry on both NSE & BSE Trade on Futures & Options on the NSE IPO NRI Offerings Mutual Funds Insurance Fixed Deposits & Bonds Loans
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Kotak Securities
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.
It 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).
Products and Services offered by Kotak Securities:
Equity Trading Derivatives: Futures & Options, Foreign Indices Mutual Funds Currency Derivatives Fixed Deposits and Bonds Debentures
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CHAPTER 2:
LITERATURE REVIEW
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CHAPTER 2:
TOPIC INTRODUCTION
& LITERATURE REVIEW
2.1. TOPIC INTRODUCTION
2.1.1 STOCK BROKERAGE FIRM
A brokerage firm is a financial institution that facilitates the buying and selling
of financial securities between a buyer and a seller. Brokerage firms serve a clientele of
investors who trade public stocks and other securities, usually through the firm's
agent stockbrokers.
Stock brokerage firms are registered members of the stock exchange. Only members of astock market are authorized to trade in the stock market. The members or stock brokers
can trade for themselves or on behalf of other investors who are not members. The
members are further grouped into stock broking services firms who offer a wide variety
of stock market services. The stock broking firm or stock brokers charge a commission
from the general investor for trading on their behalf.
How is Trading Done by Stock Brokerage Firms or Stock Brokers?
With the advance in communication technology, in stock exchanges such as the
NASDAQ, stock brokers and stock broking firms use sophisticated computer networks to
facilitate online trading. This has enabled the creation of an online or virtual stock
market.
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The Bombay Stock Exchange (BSE) too has a private computer network connecting 417
cities to enable online share trading.
Stock broking firms extend online trading services to their clients - the investors.
Share trading by stock brokers has come a long way from the vocal -based system of
yesteryears to the virtual stock market of today.
What are the Services Offered by a Stock Broking Firm?
The standard services of buying and selling shares on behalf of the investor is offered by
the stock broking firm.
Some other market-related services offered by Stock broking firms may be:
1. Online Share Trading or the Virtual Stock Market - The facility allowsinvestors to open an online account with the stock broking firm to utilise their
services. All investor transactions can be via the internet, therefore functioning as
virtual stock market.
2. Stock Portfolio Management- While some investors may like to choose stocksto invest in on their own and wish to make own trading decisions, inexperienced
investors can avail the services of stock portfolio managers of the stock broking
firm. The portfolio managers may advise the investor as to which stocks to invest
in, and when to buy or sell stocks.
3. Initial Public Offerings (IPO) issue purchase - The stock brokerage can informthe investor regarding upcoming IPOs and bid for IPO shares on behalf of the
investor.
4. Mutual Fund investment - Investors can choose and invest in a variety of mutualfunds through the stock brokerage. The stock broking firm may advise the
investor on the type of mutual fund to invest in.
5. Market Advisory Services- The stock broking firm may offer its own analysisfrom its market experts. It may issue reports and advise on areas such as choosing
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stocks, stock market trends, analysis regarding specific companies and general
economic analysis.
6. Margin Funding Services or Margin Trading - When an investor starts anaccount with a stock broking firm and starts trading, he or she has to deposit a
certain amount called margin in the account. For purchase of shares, some stock
broking firms provide margin funding where the investor pays only 50%
(percentage varies) of the share value, and the rest is funded by the stock broking
firm as a loan. Interest rates are charged on margin funding. This procedure is
referred to as margin trading. Some experts advise inexperienced investors to be
cautious of margin trading, as it is a risky strategy.
2.1.2 INTRODUCTION TO DEMAT ACCOUNT
Definition:
Demat account is a safe and convenient means of holding securities just like a bank
account is for funds. Today, practically 99.9% settlement (of shares) takes place on demat
mode only. Thus, it is advisable to have a Beneficiary Owner (BO) account to trade at the
exchanges.
Benefits Of Demat Account
1. A safe and convenient way of holding securities (equity and debt instrumentsboth).
2. Transactions involving physical securities are costlier than those involvingdematerialised securities (just like the transactions through a bank teller are
costlier than ATM transactions). Therefore, charges applicable to an investor
are lesser for each transaction.
3. Securities can be transferred at an instruction immediately.
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4. Increased liquidity, as securities can be sold at any time during the tradinghours (between 9:55 AM to 3:30 PM on all working days), and payment can
be received in a very short period of time.
5. No stamp duty charges.6. Risks like forgery, thefts, bad delivery, delays in transfer etc, associated with
physical certificates, are eliminated.
7. Pledging of securities in a short period of time.8. Reduced paper work and transaction cost.9. Odd-lot shares can also be traded (can be even 1 share).10. Nomination facility available.11. Any change in address or bank account details can be electronically intimated
to all companies in which investor holds any securities, without having to
inform each of them separately.
12. Securities are transferred by the DP itself, so no need to correspond with thecompanies.
2.1.3 HOW TO INVEST IN STOCK MARKET?
Opening a Demat account
To start dealing in securities in electronic form, one needs to open a demat account with
a DP of his choice. An investor already having shares in physical form should ensure that
he gets the account opened in the same set of names appearing on the share certificate;
otherwise a new certificate can be opened in any desired pattern by the investor.
Getting started:
1 . Choose a DP.2. Fi ll up an ac co un t o p en in g fo rm provided by DP, and sign an
agreement with DP in a standard format prescribed by the depository.
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3. DP provides the investor with a copy of the agreement and schedule ofcharges for his future reference.
4. DP opens the account and provides the investor with a unique accountnumber, also known as Beneficiary Owner Identification Number (BOID).
Documents to be attached:
Passport size photographs.
Proof of residence (POR) - Anyone of Photo Ration Card with DOB / Photo Driving
License with DOB / Passport copy /Electricity bill / Telephone bill.
Proof of identity (POI) - Anyone of Passport copy / Photo Driving License with DOB
/Voters ID Card / PAN Card /Photo Ration Card with DOB.
PAN card
Note:
The agreement required to be signed by the investor details the rights and duties of the
investor and DP.
DP may revise the charges by giving a 30 days prior notice.
Maximum Number of holders in a Demat Account
A maximum of three persons are allowed to open a joint demat account in their names.
DEMATERIALISATION
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Dematerialisation is the process of converting physical shares (share certificates) into an
electronic form. Shares once converted into dematerialised form are held in a Demat
account.
Dematerialisation ProcessAn investor having securities in physical form must get them dematerialised, if he intends
to sell them. This requires the investor to fill a Demat Request Form (DRF) which is
available with every DP and submit the same along with the physical certificates. Every
security has an ISIN (International Securities Identification Number). If there is more
than one security than the equal number of DRFs has to be filled in. The whole process
goes on in the following manner:
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Flow Chart No.2
Demater ial isation Process
1. Investors surrenders the physical certificates
to the DP for dematerialisation
2. DP informs the Depository about the request
3. DP submits the certificate to the registrar of the issuer company
4. Registrar communicates with the Depository to confirm the request
5. Dematerialisation of the certificates is done by the Registrar
6. Accounts are updated by the Registrar and the depository is informed aboutthe completion of dematerialisation
7. Accounts are updated by the Depository and DP is informed about the same
8. Demat account of the investor is updated by DP
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REMATERIALISATIONThe process of getting the securities in an electronic form, converted back into the
physical form is known as Rematerialisation. An investor can rematerialise his shares by
filling in a Remat Request Form (RRF). The whole process goes on as follows:
Flow Chart No.3
Remateriali sation Process
1. Investor makes a request for rematerialisation to the DP
2. DP informs the Depository about the request
3. Depository confirms the request to the registrar of the issuer company
4. Registrar updates accounts and prints certificates for the investor.
5. Accounts are updated by the depository and details are provided to the DP.
6. Investor receives the certificates from the registrar.
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Note:
Depository -
An organization that facilitates holding of securities in the electronic form and enables
DPs to provide services to investors relating to transaction insecurities. There are two
depositories in India, namely NSDL and CDSL. As per SEBI guidelines, the minimum
net worth stipulated for a depository is Rs.100 crore.
NSDL/CDSL -
The securities are held in depository accounts, like the funds are held in bank accounts.
There are two depositories in India namely NSDL and CDSL. NSDL(National Securities
Depository limited) was established in August 1996 and is the first depository in India.
CDSL (Central Depository Securities Limited) is the other depository and was
established in 1999.
DP (Depository Participant) -
A Depository Participant can be a financial organization like banks, brokers, financial
institutions, custodians, etc., acting as an agent of the Depository to make its services
available to the investors. There are a total of 538 DPs registered with SEBI, as on March
31, 2006 and each DP is assigned a unique identification number known as DP-ID.
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2.2 LITERATURE REVIEW
Chatrath, Ramchander and Song (1996)They examined the relationship between the Indian stock market and the stock markets of
the U.S. and other developed countries using daily data for the period 1984 to 1992. They
used the Bombay Stock Exchange National Index (BSENI) and the Dow Jones Industrial
Average (DJIA) as representative indexes for the Indian and U.S. markets, respectively.
The authors identify two major concerns in portfolio diversification studies. First, return
comparisons between countries are exposed to currency risk. Second, correlations
between stock returns for various countries must be stable over time in order to be able to
employ past correlations as a proxy in creating optimal portfolios. They find that theIndian stock market had low correlations with the markets of the developed countries.
Therefore, the Indian market offered diversification benefits for investors in the
developed countries for the period 1984 to 1992.
Nabhi Kumar Jain (1992)He specified certain tips for buying shares for holding and also for selling shares.
He advised the investors to buy shares of a growing company of a growing industry.
Buy shares by diversifying in a number of growth companies operating in a different but
equally fast growing sector of the economy. He suggested selling the shares the moment
company has or almost reached the peak of its growth. Also, sell the shares the
moment you realise you have made a mistake in the initial selection of the shares. The
only option to decide when to buy and sell high priced shares is to identify the individual
merit or demerit of each of the shares in the portfolio and arrive at a decision.
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David.L.Scott and William Edward4 (1990)They reviewed the important risks of owning common stocks and the ways to minimize
these risks. They commented that the severity of financial risk depends on how heavily a
business relies on debt. Financial risk is relatively easy to minimize if an investor sticks
to the common stocks of companies that employ small amounts of debt. They suggested
that a relatively easy way to ensure some degree of liquidity is to restrict investment in
stocks having a history of adequate trading volume. Investors concerned about business
risk can reduce it by selecting common stocks of firms that are diversified in several
unrelated industries.
Yasaswy J.N. (1993)He disclosed how 'turnaround stocks' offer big profits to bold investors and also the risks
involved in investing in such stocks. Turnaround stocks are stocks with extraordinary
potential and are relatively under priced at a given point of time. He also revealed that
when the economy is in recession and the fundamentals are weak, the stock market, being
a barometer of the economy, also tends to be depressed. A depressed stock market is an
ideal hunting ground for bargain hunters', who are aggressive investors. Sooner or
later recovery takes place which may take a very long time. He concluded that the
investors' watch work is 'caution' as he may lose if the turnaround strategy does not workout as anticipated.
Yasaswy J.N. (1993)He evaluated the quantum of risks involved in different types of stocks. Defensive
stocks are low risk stocks and hence the returns are relatively low but steady.
Cyclical stocks involve higher risks and hence the rewards are higher when compared
to the growth stocks. Growth stocks belong to the medium risk category and they offer
medium returns which are much better than defensive stocks, but less than the cyclical
stocks. The market price of growth stocks does fluctuate, sometimes even violently
during short periods of boom and bust. He emphasised the financial and organisational
strength of growth stocks, which recover soon, though they may hit bad patches once in a
way.
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The Economic Times Investors Year Book 5 (2000-01)The Economic Times Investors Year Book5 commented on the "Paperless World and
described what makes dematerialisation the preferred choice and how it reduces risk.
The dematerialised trading was introduced in India in 1996 to reduce pains and risks in
settlement through the loss of share certificates in transit, bad deliveries, delays in
transfer and forged/fake/stolen certificates. It helps in doing away with the risk of loss in
transit by directly crediting the account with bonus shares and rights. There is no risk of
bad delivery because the ownership status is clearly captured in the Depository's
computers.
L.C. Gupta (1992)He revealed the findings of his study that there is existence of wild speculation in the
Indian stock market. The over speculative character of the Indian stock market is
reflected in extremely high concentration of the market activity in a handful of shares
to the neglect of the remaining shares and absolutely high trading velocities of the
speculative counters. He opined that, short- term speculation, if excessive, could lead
to "artificial price". An artificial price is one which is not justified by prospective
earnings, dividends, financial strength and assets or which is brought about by
speculators through rumours, manipulations, etc. He concluded that such artificial pricesare bound to crash sometime or other as history has repeated and proved.
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Securities and Exchange Board of India (SEBI)According to SEBI, Professional Rating of market intermediaries, as a concept, is a matter
of debate and discussions. The need for rating is felt not only from the point of view
measuring the adequacy of systems and controls to meet internal as well as external
compliance requirements. So that need for Intermediaries Rating services (Brokers),In
view of the developments that are taking place in the capital markets, the need to
constantly upgrade and improve systems and procedures in operation as well as skill sets
has gained considerable importance. Besides compliance with regulatory requirements
both in letter and spirit has assumed significance so as to mitigate risk and ensure
adequate protection of investors interest. And Rating objectives / benefits are rated entity
would be in a position to brand its image and capitalize the same for generating more
business. In a nutshell, the product may accrue significant benefits to all stake holders
including the investors, stock brokers themselves, the regulator and others who will
benefit from the transparency and the consequential focus on efficiency.
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CHAPTER3:
RESEARCH METHODOLOGY
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CHAPTER3:
RESEARCH METHODOLOGY
3.1 Purpose of the Study
The purpose of the study is
To know the basics of Indian Stock Market. To make clients and let them know about the different services offered by India
Infoline Limited.
3.2 Research Objectives of the study
Each research study has its own specific purpose. It is like to discover to question through
the application of scientific procedure. But the main aim of our research is to find out the
truth that is hidden and which has not been discovered as yet. Our research study has two
objectives:
a) Primary Objectives- How India Infoline Ltd. is the best service provider asa Stock Broker in the NCR region.
b) Secondary Objectives- To know about the awareness of the consumers towards Stock Brokers
and Share Market.
To study about the effectiveness and efficiency of India Infoline Ltd. inrelation to its competitors.
To aware people about product & services of India Infoline Limited andsale its products.
To study and analysis of Services provided by India Infoline Limited To study and analysis of Services provided by other broking firms.
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3.3 Research Methodology:
Research methodologyis a collective term for the structured process of conducting
research. A research is carried out by different methodologies which have their own prosand cons. R es e a r ch methodology is a way to solve research in studying and solving
research problem along with logic behind them are defined through research
methodology. The research was carried out through survey method, fieldwork in order to
collect data. Data collected through questionnaire and verbal discussion.
3.3.1 Research Design:
Exploratory and Quali tative Research
Research Design is usually conducted during the initial stage of the research process. The
preliminary activities undertaken to refine the problem into a researchable one need to be
formal or precise.
Exploratory Research
The purpose of the Exploratory Research is to progressively narrow the scope of the
research topic and to transform the discovered problems into defined ones, incorporating
specific research objectives. This type of research can provide significant insight into a
given situation. Exploratory research can be informal such as informal discussions with
consumers, employee, management or competitors or formal such as formal approaches
through in-depth interviews, focus groups, projective methods, case studies or pilot
studies.
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Qual i tative Research
The purpose of Qualitative Research is to explore issues, understand phenomenon and
answer questions. In our research we need comparison between different stock brokers,
so this is based on all quantitative data. Focus groups, in-depth interviews, content
analysis, ethnography, evaluation and semiotics are among the many approaches that are
used, but qualitative research in its most basic form involves the analysis of any
unstructured data, including open-ended survey responses, literature reviews, audio
recordings, pictures and web pages.
3.3.2 Data Collection Techniques
The following techniques are used for collecting the data in this research:
Survey Face-to-Face Interview Telephonic Interview
3.3.3 Sample Design
A sample design is a definite plan for obtaining a sample from a given population.
Sample Design is the technique or the procedure, the researcher would adopt in selecting
items to be included in the sample research should select design which would be reliable
and appropriate for the study.
Generally, sample design are of two types:
Probability Sampling Design- Probability sampling is a sampling techniquewhere the samples are gathered in a process that gives all the individuals in the
population equal chances of being selected.
Non- Probability Sampling Design- Non-probability sampling is a samplingtechnique where the samples are gathered in a process that does not give all the
individuals in the population equal chances of being selected.
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We used the Non-Probability Sampling Design. Under Non-Probability Sampling
Design, we used Convenience sampling it is a non-probability sampling technique
where subjects are selected because of their convenient accessibility and proximity to the
researcher
Many researchers prefer this sampling technique because it is fast, inexpensive, easy and
the subjects are readily available
3.3.3.1 Population
The population of the research was National Capital Region (NCR).
3.3.3.2 Sample size
This refers to the number of items to be selected from the universe to constitute a
sample.
The sample size in this project is 50.
But we also study the six broker companies related to securities and commodities market
like Angel Broking, SMC Securities, Sharekhan Ltd., HDFC Securities, ICICI Direct and
for the appropriate collection of the data.
3.3.3.3 Sampling Method
Sampling methods are used to select a sample from within a general population. Proper
sampling methods are important for eliminating bias in the selection process.
Convenience samplingmethod is used in this project.
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3.3.4 Method of Data Collection
Data collection is a process of preparing and collectingdata.While deciding about the
method of data collection to be used for the study the researcher should keep two types of
data:
Primary Data Secondary Data
Primary Data
The primary data are fresh data collected directly from the field and therefore consist of
original information gathered for the specific purpose. It is expensive, laborious, and time
consuming. But it assures a greater degree of accuracy and reliability. The data have been
collected by Survey using questionnaires, face-to-face interview and telephonic
interview. Though the primary source was not enough for the study but it did give some
accurate conclusions.
Sources of Primary Data:
Telephonic Interview Face-to-face interview
Company Prospectus and Literature Questionnaire
Secondary Data
The secondary data are the data, which the investigator borrows from other who have
collected it for various other purposes. Therefore it may not entirely be reliable. It is less
expensive and involves less expensive and involves less time and labor than the
collection of primary data.
Sources of Secondary data:
Newspapers, Internet, Magazines and Trade Journals. Company Database Employees of the company.
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Publication of books, company records, brochures, catalogues and otherdocuments.
Reports and publications of Government department and international bodies.
The secondary data was the most important source because it gave us information about
company profile, its services, competitors, market scenario, market share, etc. The data
collected from the websites and books was good enough to be included in the study
analyzed and concluded but data from the employees of the companies was most accurate
and reliable. Various newspapers, magazines, websites, trade journals, etc were checked
out for information regarding the comparative analysis of various players in stock market.
The secondary source didnt provide any personal views of the customers services but
were a great help in completing the report and getting the details.
3.3.4.1 Instrument for Data Collection
Questionnaires Telephone Internet
3.3.5 Limitations of the Study
RESTRICTED SCOPEAs only National Capital Region (NCR) dealt in survey so it does not represent the
view of the total Indian Market. Therefore, the scope of the study is restricted
TIMETime duration of project work was short, and this was biggest limitation of my
project. There was also a lack of time on the part of the respondents.
SAMPLE SIZE : Size of the research may not be substantial. My sample size was 50among which 7 respondent were not investing anywhere and some respondent gave
multiple answers. Hence, the level of significance may vary.
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OPINIONInformation is presented from customersopinion only which may vary. The survey
was carried through Questionnaires and the questions were based on perception.
There may be biasness in information by market participant. The project survey for comparison was carried only on the basis of demat
account.
Sampling was judgement based and simple random so chance of occurrence oferror is more.
Complete data was not available due to company privacy and secrecy.
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CHAPTER- 4:ANALYSIS
&
INTERPRETATION
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CHAPTER- 4:
ANALYSIS
&
INTERPRETATION
1. What is your preference of Investment?
Percent
Valid
Percent
Cumulative
Percent
Equity
Shares 28% 28% 28%
Mutual
Funds 20% 20% 48%
Fixed
Deposits 13% 13% 61%
Insurance 31% 31% 92%
Others 8% 8% 100%
Total 100% 100%
Table No. 4.1
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GraphNo.4.1
Interpretation:
This pie-chart shows that although the Mutual Funds market is on the rise yet, the most
favored investment continues to be in the Share Market. So, with a more transparent
system, investment in the Stock Market can definitely be increased.
28%
20%13%
31%
8%Equity Shares
Mutual Funds
Fixed Deposits
Insurance
Others
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2. Do you know about Demat account?
Frequency Percent
Valid
Percent
Cumulative
Percent
Yes 43 86% 86% 86%
No 7 14% 14% 100%
Total 50 100% 100%
Table No. 4.2
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Chart No. 4.2
Interpretation:
Demat account has made trading convenient. As shown in the above pie-chart, as high as
86% people are aware of Demat account as these people are into share trading and have
done Rematerialization of Share Certificates, easy accessibility for online trading, etc.
Only 14% people are not aware of it because these people are not interested in share
trading or they have lack of knowledge about the trading done through Demat account.
86%
14%
Yes
No
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3. Do you intend to open a Demat account?
Frequency Percent
Valid
Percent
Cumulative
Percent
Yes 15 30% 30% 30%Already
have 35 70% 70% 100%
Total 50 100% 100%
Table No. 4.3
Chart No. 4.3
Interpretation:
As seen in the above pie-chart, out of 50 people surveyed, 35% people are already having
an account and others (30%) were not having a Demat account but showed their interest
in opening up a Demat account.
The reason for putting up this question was to find out those people who were interested
in Share Trading but did not know the online facility of trading done through Demat
account and were looking forward to investment avenues in Stock Market which could
give them good returns.
30%
70%
Yes
Already Have
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4. Since how many years you trade?
Frequency Percent
Valid
Percent
Cumulative
Percent
1 Year 7 20% 20% 20%2 to 3 year 10 29% 29% 49%
4 to 7 year 5 14% 14% 63%
More than 7
year 13 37% 37% 100%
Total 35 100% 100%
Table No. 4.4
Chart No. 4.5
Interpretation:
According to above pie-chart, there are 20% people that are trading from last 1 year and
29% people that are trading from 2 to 3 years. Maximum people are trading for more than
7 year and minimum people are trading from 4 to 7 years.
20%
29%14%
37% 1 Year
2 to 3 year
4 to 7 year
More than 7 year
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5. How frequently do you trade?
Frequency Percent
Valid
Percent
Cumulative
Percent
Daily 11 22% 22% 22%Weekly 10 20% 20% 42%
Fortnightly 10 20% 20% 62%
Monthly 12 24% 24% 86%
None 7 14% 14% 100%
Total 50 100% 100%
Table No. 4.5
Chart No. 4.5
Interpretation:
As per the above graph, there is a slight difference in the percentage of people who
preferred Daily, Weekly, Fortnightly and Monthly.
Daily Trading which is referred to as Intraday Trading where shares are bought and sold
at the same day. Such people covered about 22% of the survey. Most of the people
purchased shares and waited to a better opportunity to sell them off. This time duration is
Weekly, Fortnightly and Monthly.
22%20% 20%
24%
14%
0%
5%
10%
15%
20%
25%
30%
Daily Weekly Fortnightly Monthly None
Frequency of Trading
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6. What type of trading you prefer?
Frequency Percent
Valid
Percent
Cumulative
Percent
Intraday 17 49% 49% 49%Delivery 11 31% 31% 80%
Both 7 20% 20% 100%
Total 35 100% 100%
Table No. 4.6
Chart No. 4.6
Interpretation:
From the above graph, we can conclude that maximum people do intraday trading to earn
the short-term income. In Intraday, shares are bought and sold at the same day while
those who wish for the safe investment, they prefer Delivery trade. It is a very secure
trading. 20% people prefer both intraday and delivery trading.
49%
31%
20%
0%
10%
20%
30%
40%
50%
60%
Intraday Delivery Both
Trading Type
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7. What type of trading you prefer? Offline or Online.
Frequency Percent
Valid
Percent
Cumulative
Percent
Online 18 51% 51% 51%Offline 8 23% 23% 74%
Both 9 26% 26% 100%
Total 35 100% 100%
Table No. 4.7
Chart No. 4.7
Interpretation:
As per the above graph, we found that 51% people preferred online trading, 23% of
people liked offline trading and 26% of people were using both type of trading. Online
trading consumes less time as compared to offline trading but online trading is expensive
as compared to offline trading.
51%
23%26%
0%
10%
20%
30%
40%
50%
60%
Online Offline Both Total
Types of Trading
Percent
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8. What is your Occupation?
Parameters Frequency Percent
Valid
Percent
Cumulative
Percent
Business 14 40% 40% 40%
Service 12 34% 34% 74%
Professionals 9 26% 26% 100%
Total 35 100% 100%
Table No. 4.8
Chart No. 4.8
Interpretation:
As per the above graph, we found that 40% people were in Business who trade, these
people mostly did a high volume of trading as for having more of finance at their
disposal. 34% people doing services did trade, although they invested a less portion
in Share Market as compared to business people. and only 26% of the people were
professionals who trade as it is a side income-generating business for them.
40%
34%
26%
0%
5%
10%
15%
20%
25%
30%
35%
40%45%
Business Service Professionals
Occupation
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9. What amount of money savings you invest yearly?
Parameters Frequency Percent
Valid
Percent
Cumulative
Percent
1000-50000 17 48% 48% 48%50000-
100000 12 34% 34% 82%
100000-
150000 3 9% 9% 91%
Above
150000 3 9% 9% 100%
Total 35 100% 100%
Table No. 4.9
Chart No. 4.9
Interpretation:
As per the above graph, 48% of people were investing between Rs.1000-50000, 34% of
people spread fund between we found that 51% people preferred online trading, 23% of
people liked offline trading and 26% of people were using both type of trading. Online
trading consumes less time as compared to offline trading but online trading is expensive
as compared to offline trading.
0%
10%
20%
30%
40%
50%48%
34%
9%9%
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10. What is your first priority while opening a demat account?
Parameters Frequency Percent
Valid
Percent
Cumulative
Percent
AccountOpening
Charges 1 3% 3% 3%
Brokerage 18 51% 51% 54%
Customer
Service 7 20% 20% 74%
Security in
Transaction 5 14% 14% 88%
Convenience 4 12% 12% 100%
Total 35 100% 100%
Table No. 4.10
Chart No. 4.10
Interpretation:
According to graph, 51% voted for brokerage charge as their first priority. About 20%
witnessed the feature of customer service like SMS alerts, telephonic help,etc. as a
second important factor. Security in transaction and convenience was tied up at 14%
and 12%. Account opening charges were of least consideration at 3%
0%
10%
20%
30%
40%
50%
60%
3%
51%
20%14% 12%
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11. In which company you have Demat and Trading account?
Parameters Frequency Percent
Cumulative
Percent
India Infoline 9 25% 25%Angel Broking 4 11% 36%
Religare 4 11% 47%
India Bulls 5 13% 60%
Sharekhan 10 29% 89%
Others 4 11% 100%
Total 35 100%
Table No. 4.11
Chart No. 4.11
Interpretation:
As per the above graph, 29% have demat and trading account in Sharekhan because of
better services and no annual maintenance for the first year and other charges, 25% are
with India Infoline because of their web portal 5paisa.com and 13% are with India Bulls
because as they provide one of the fastest and most efficient trading facility in India.
0%
5%
10%
15%
20%
25%
30% 25%
11% 11%13%
29%
11%
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12. Are you satisfied with the services of your present broking firm?
Parameters Frequency Percent
Valid
Percent
Cumulative
Percent
CompletelySatisfied 19 54% 54% 54%
Somewhat
Satisfied 11 31% 31% 85%
Totally
Dissatisfied 3 9% 9% 94%
None 2 6% 6% 100%
Total 35 100% 100%
Table No. 4.12
Chart No. 4.12
Interpretation:
As per the above graph, the maximum people were satisfied with their broking firms
as the customer start trading which become directly fruitful to broking firms and they
provide good service to broking firms. 31% people were partially satisfied. About 6% of
the people were neither satisfied nor dissatisfied with their firms and 9% people were not
satisfied with their broking firms.
0%
10%
20%
30%
40%
50%
60%
Completely
Satisfied
Somewhat
Satisfied
Totally
Dissatisfied
None
54%
31%
9%6%
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13. Are you satisfied with the software provided by the broking firm for onlinetrade?
Parameters Frequency Percent
Valid
Percent
Cumulative
Percent
Yes 30 86% 86% 86%
No 5 14% 14% 100%
Total 35 100% 100%
Table No. 4.13
Chart No. 4.13
Interpretation:
As per the above graph, only 86% respondents are satisfied with the software facility
provided by the broking firms as a single firm has many up gradation with the software
which is only provided to the premium customer. 14% respondents were not satisfied
with their broking firms software facility.
0%
10%
20%
30%
40%
50%
60%
70%
80%90%
Yes No
86%
14%
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14. Do you operate demat account by yourself or through an agent of your brokingfirm?
Parameters Frequency Percent
Valid
Percent
Cumulative
Percent
Yourself 25 71% 71% 71%
Agent 10 29% 29% 100%
Total 35 100% 100%
Table No. 4.14
Chart No. 4.14
Interpretation:
As per the above graph, most of the customers about 71% did trading by themselves. But
still 29% of the people still used the help of agents due to lack of their knowledge about
the online trading of shares in the indirect form such as through phone, SMS, mail and
Online Chat.
0%
10%
20%
30%
40%
50%
60%
70%80%
Yourself Agent
71%
29%
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15. Which is the Best Broking Firm, according to you?
Parameters Frequency Percent
Valid
Percent
Cumulative
Percent
India Infoline 13 37% 37% 37%Angel
Broking 5 14% 14% 51%
Religare 3 9% 9% 60%
India Bulls 4 11% 11% 71%
Sharekhan 6 18% 18% 89%
Others 4 11% 11% 100%
Total 35 100% 100%
Table No. 4.15
Chart No. 4.15
Interpretation:As per the above graph, we found that the best preferred broking house among the people
of NCR is India Infoline Limited with 37% followed by Sharekhan (18%), Angel
Broking (14%), India Bulls (11%), Religare (9%), ICICI Direct, HDFC Securities, SMC
Securities, Kotak Securities, etc
0%
5%
10%
15%
20%
25%
30%
35%
40%
1 2 3 4 5 6
37%
14%
9%11%
18%
11%
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16.Will you be the future customer of India Infoline Limited?
Parameters Frequency Percent
Valid
Percent
Cumulative
Percent
Yes 9 26% 26% 26%
No 12 34% 34% 60%
Can't Say 14 40% 40% 100%
Total 35 100% 100%
Table No. 4.16
Chart No. 4.16
Interpretation:
As per the above graph, we found that after explaining about the various offers of
Infoline 26% of the people were ready to get the new demat account with India Infoline
Limited while 34% of the people strongly neglected as they are satisfied with theircurrent broking firm.
0%
5%
10%
15%
20%
25%
30%
35%
40%
Yes No Can't Say
26%
34%
40%
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CHAPTER- 5:
FINDINGS
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CHAPTER- 5:
FINDINGS
FINDINGS
According to the survey, we found that in todays market people still prefer insurancefor the purpose of security and tax-savings. Equity shares are second most preferred
as shares are liquid and it gives more profit in less time. Then mutual funds are
preferred because it has less risk than equity shares. Fixed Deposits are least
considered as an investment option because it is a low-income earning type of
investment.
Most of the people know about the Demat account which holds shares in electronicform. Few people are not aware of it because either they are not interested in trading
or they still find shares in paper form much more convenient.
Most of the people are already having a demat account. Some people not having ademat account but they showed their interest in opening a demat account as they put
forward the benefits of share trading though they mentioned the risk factor of being in
the volatile market.
Maximum people are trading for more than 7 years as these people have most of theknowledge about company and products offered by the company. 29% people are
trading from 2 to 3 years, these people are of younger generation and they want to
invest in market and earn some money. Minimum people are trading from 4 to 7
years.
Maximum people are investing monthly because it is easy for them to pay monthlyinstallments. 22% of the respondents are trading daily, they are squaring off the
shares while the market is bullish. Weekly and Fortnightly share traders covered 20%
each of the survey, these people consider it safe to wait for the present moment and
observing the market.
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CHAPTER- 6:
RECOMMENDATIONS
&
CONCLUSIONS
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CHAPTER- 6:
RECOMMENDATIONS
& CONCLUSIONS
6.1 RECOMMENDATIONS:
To increase awareness about the Share Market and the name India Infoline Limiteditself, the company should organize campaign. The campaign can be weekly,
monthly, yearly, it will give a good result to the company to capture market in the
competitive position.
The company should reduce the margin money. It can help to acquire morecustomers, if the firms bring plans for no boundation of margin money.
The company should increase their focus on the less margin money customers also. Itcan help to make more customers of low margin money which can increase the
revenue of the firm. The Relationship Managers focus only to the high margin money
customer because from them they will get high brokerage.
Transaction error should be avoided. Transaction should be done properly, taken inconsideration that is one of the most required quality of a firm. Wrong transaction or
Default transaction may lead the prestige of the company down.
Brokerage rate should be reduced. Sharekhan Securities, Religare Securities Limitedand Indiabulls are charging 0.5%, 0.3% and 0.25% for delivery and 0.1%, 0.03%,
0.05% for intraday whereas India Infoline is charging 0.5% for delivery and 0.05%
for intraday. Though it is negotiable but for high margin money customer not for less
margin money customer.
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The company should increase exposure. It is the good tool to capture the market. There should be more public awareness programs and advertisement related to
companys product and services so that people should be more about India Infolin eLimited.
The company should organize customer happiness survey for active and inactiveclients both.
The company should be more aggressive toward its existing clients feedback and fortheir services after giving them products because it can increase the companys
loyalty as well its brand name.
The company should offer demonstration for online share trading and other seminarsfor the cultivation of knowledge to the customers.
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6.2 CONCLUSION:
Through this study we get through all the differences between different broking firms and
their benefits of investing individually, it was found that India Infoline Limited is better
services provider than the other stockbrokers because of their timely research and
personalized advice on what stocks to buy and sell. India Infoline Ltd. provides the
facility of Onestop shopas well as relationship manager facility for encouragement and
protects the interest of the investors. It also provides the information through the internet
and mobile alerts that what IPOsare coming in the market.
From the above survey and observation it was found that most of the people who are
trading in share market belongs to the business group, next comes the employees and
other class of income people. As the share market value goes on increasing day by day
the investor who wants to invest in shares also increasing. But investing in shares is as
risky as earning yield.
Trading in online trading firm is easy as it all delivered with internet and within a few
minutes the customer can buy and sell shares which save time as well as reduction of
paper work. Hence trading in share market is increasing day by day and investors areready to invest their investment in share market only. They expect all the information
such as less rates, less brokerages, highly returns and better service level without delay.
The needs of the customer differs from person to person, area, locality and occupation.
Customer always want more service by paying less.
The young people should start investing earlier so that they can reap the benefits of
investing in future. People should keep their eye open and keep updating themselves
about various investment avenues so that they can get safe returns.
From this study we have also understand the point of view of the investors to invest their
money with the right company at the right time.
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Bibliography
For Books:
1. Kothari C.R., Research Methodology, 2nd Revised Edition, 2004, New AgeInternational (P) Limited Publishers, New Delhi
For Magazines, Periodicals, Journals, Newspapers:
1. Business World2. Business Economy3. Business Standard4. The Economic Times5. Daily Research Report of India Infoline- Market Mantra
Webliography:
1. www.indiainfoline.com2. www.sharekhan.com3.
www.nse.india.com
4. www.indiabulls.com5. www.religareonline.com6. www.angelbroking.com7. www.icicidirect.com8. www.kotaksecurities.com9. www.smcindiaonline.com10.www.hfdcsec.com
http://www.indiainfoline.com/http://www.indiainfoline.com/http://www.sharekhan.com/http://www.sharekhan.com/http://www.nse.india.com/http://www.nse.india.com/http://www.indiabulls.com/http://www.indiabulls.com/http://www.religareonline.com/http://www.religareonline.com/http://www.angelbroking.com/http://www.angelbroking.com/http://www.icicidirect.com/http://www.icicidirect.com/http://www.kotaksecurities.com/http://www.kotaksecurities.com/http://www.smcindiaonline.com/http://www.smcindiaonline.com/http://www.hfdcsec.com/http://www.hfdcsec.com/http://www.hfdcsec.com/http://www.hfdcsec.com/http://www.smcindiaonline.com/http://www.kotaksecurities.com/http://www.icicidirect.com/http://www.angelbroking.com/http://www.religareonline.com/http://www.indiabulls.com/http://www.nse.india.com/http://www.sharekhan.com/http://www.indiainfoline.com/8/13/2019 Rk Project
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ANNEXURE
QUESTIONNAIRE
Name:_____________________________________
Phone Number:________________________
Date:________________
1. What is your preference of investment? Equity Shares Mutual Funds Fixed Deposits Insurance Others
2. Do you know about Demat account? Yes No
3. Do you intend to open a Demat account? Yes Already Have
4. Since how many years you trade? 1 year 2 to 3 years 4 to 7 years More than 7 years
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5. How frequently do you trade? Daily Weekly Fortnightly Monthly None
6. What type of trading you prefer? Intraday Delivery Both
7. What type of trading you prefer? Online Offline
8. What is your occupation? Business Service Professionals
9. What amount of savings you invest yearly? 1000-50000 50000-100000 100000-150000 Above 150000
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10.What is your first priority while opening a Demat account? Account Opening Charges Brokerage Customer Service Security in Transaction Convenience
11.In which company you have Demat and Trading account? India Infoline Angel Broking Religare India Bulls Sharekhan Others
12.Are you satisfied with the services of your present broking firm? Completely Satisfied Somewhat satisfied Totally Dissatisfied None
13.Are you satisfied with the software provided by the broking firm foronline trade?
Yes No
14.Do you operate Demat account by yourself or through an agent of yourbroking firm?
Yourself Agent
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15.Which is the best broking firm, according to you? India Infoline Angel Broking Religare India Bulls Sharekhan Others
16.Will you be the future customer of India Infoline Limited? Yes No Cant Say
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