Role of Stock Broker in Current

8/11/2019 Role of Stock Broker in Current

1/20

EXECUTIVE SUMMARY

The India Info line group, comprising the holding company, India Info lineLimited and its wholly-owned subsidiaries, straddle the entire financial services

space with offerings ranging from Equity research, Equities and derivatives

trading, Commodities trading, Portfolio management Services, Mutual Funds,

Life Insurance, Fixed deposits, Govt. bonds and other small savings instruments

to loan products and Investment banking. India Info line also owns and

manages the websiteswww.indiainfoline.Commandwww.5paisa.comThe

Company has a network of 976 business locations (branches and sub-brokers)spread across 365 cities and towns. It has more than 800,000 customers.

In today's competitive world there are

many goods chasing few customers some are trying it expands their size and

share of existing market. As a result there are loser and winners. Winners are

those who carefully analyze needs identify opportunities and create aloe rich

offers for target customer.

The objective of the market research to

determine the demand and supply and use of the product and competitors

study so as to get the total market scenario of the product for analyzing

market problem research is needed. A firm can obtained market research in a

number of ways. It can hire market research firm or it can ask student to

design and carry out market research project.

These marketing problems and opportunities if entrust to

the student of marketing.Specially when they seek the same during the project

gives opportunities to apply their theoretical knowledge and managerial

knowledge.

India infoline.com/5paisa.com is related to

sharemarket, it is equity to caused organization tracing its lineage to SSKL, a

veteran solution company with over 8 decades of experience in the lead in

stock market.
http://www.indiainfoline/http://www.indiainfoline/http://www.5paisa.com/http://www.5paisa.com/http://www.5paisa.com/http://www.indiainfoline/


2/20

PREFACE"A good broker system must be able to cope with an extremely complex and

dynamic environment."

The microstructure of the stock market in which

brokers work is highly dynamic and volatile. Many stocks are available to be

bought and sold, each exhibiting its own patterns and characteristics that are

highly unpredictable. With so many options and considerations that need to be

taken into account, it is an extremely arduous task for a broker to investigate

aspects of the stock market and consistently provide effective advice to their

clients.

Thus, brokers perform their day-to-day tasks

with the aid of a broker system. Such a system should provide tools for

interacting with exchanges and performing analysis. As a consequence, these

broker systems are quite large and complicated by themselves

This research aims is to analysis Stock broker on

the basis of their services, products, growth, and their subsidiaries. Because

Stockbrokers are one of the main participants in stock exchanges worldwide,

they often act as an agent for their clients, making trades on their behalf. They

also act as advisors, providing suggestions to their clients on what stocks to

buy and sell.


3/20

ACKNOWLEDGEMEN

T

"Expression of feelings by words makes them less significant when it comes

to make statement of gratitude"

It gives us pleasure to express our most profound regards and sense of great

indebtedness and sincere gratitude to our Company Guide Mr. Prashant Gupta

(Territory Manager, IndiaInfoline ltd. Pune).

We thank further to Mr. Ajay Barley (Branch Manager, IndiaInfoline ltd.

Pune) for his cooperation during this period.

We also like to thanks especially, Mr. Hemant Kashyap (Business

Development Officer, IndiaInfoline ltd. Pune) for his guidance and support

during the completion of the project.

Last but not least, our sincere thanks to our parents and friends who

directly or indirectly helped us to bring this project into the final shape.


4/20

DECLARATIONWe, hereby declare that project entitled "Role of Stock B roker in Current

Scenario" submitted in the partial fulfillment of the Post Graduate Program in

Marketing-Finance (MITSOT) , is of our own accurate work.

We further declare that all the facts and figures furnished in this project report

are the outcome of our own intensive research and findings.

This report is based on our personal opinion hence cannot be referred to

legal purpose.

SUBMITTED BY:-

Avneesh Mishra

Pankaj Kumar

Mahendra Jat


5/20

AN

INDUSTRY INTERFACE PROGRAM REPORT

ON

"Role of Stock Broker in Current

Scenario".

AtINDIA INFOLINE PVT. LTD.

In partial fulfillment for the course of

Post Graduate Program in Mktng-Fin.

(Session 2008-2010)

Submitted to

MIT School of Telecom and Mgmt studies,Pune.

Submitted by:

AVNEESH MISHRA, PANKAJ KUMAR, MAHENDRA JAT.

CONTENTS

ACKNOWLEDGEMENT


6/20

INTRODUCTION 1.

COMPANY PROFILE AND OFFERINGS 2.COMPARATIVE ANALYSIS 4.

LEARNINGS 6.

FINDING & ANALYSIS 7.

SUGGESTIONS 8.

CONCLUSION 9.

APPENDIX (QUESTIONNAIRE) 10.

BIBLIOGRAPHY 14.

INTRODUCTION.

India Infoline originally incorporated on October 18, 1995 asPROBITY

RESEARCH AND SERVICES PVT LTD.at Mumbai under the Companies Act,


7/20

1956 with Registration No. 1193797.and became a public limited company

on April 28, 2000.

The name of the Company was changed to India Infoline.com

Limited on May 23, 2000 and later to India Infoline Limited on March 23,

2001. It is the first Company in India to foray into the online distribution of

Mutual Funds

It is a one-stop financial services shop, most respected for quality

of its advice, personalized service and cutting-edge technology. The

No.1Corporate agent for ICICI Prudential Life Insurance Company. Research

acknowledged by Forbes as "Must Read for investor in South Asia"

Listed on Bombay and National Stock Exchange with a net worth

of INR 200 crore and a market cap of over INR 1970 crore.

The company has a network of 976 business locations (branches

and sub-brokers) spread across 365 cities and towns. It has more than

800,000 customers. It is registered with NSDL as well as CDSL as a

depository participant.

Providing a one-step solution for clients trading in the equities market.

PILLARS OF THE ORGANIZATION

Unlike others, India Infoline has the concept of an Investment Team.

The brains behind all the investment strategies and decisions regarding Wealth

Management Services are:


8/20

Mr Nirmal Jain

MBA:IIM-A, Chartered & Cost Accountant

Mr R Venkataraman

MBA:IIM-B, B.Tech:IIT Kharagpur

Mr Anand Tandon

MBA:IIM-A, B.Tech: IIT Kanpur

Mr Venkat Subramaniam

B.sc, chartered accountant.

PRODUCT

OFFERINGS


9/20

COMPETITIVE

ANALYSIS.


10/20

COMPARISON OF INDIA INFOLINE WITH OTHER

DEPOSITORIES.

Particulars INFOLINE ICICI - DIRECT SHARE - KHAN RELIANCE -

MONEY

INITIAL 555 975 750 750

HARGES (IN RS.)

INITIAL 2000 5000 5000 500 (a/c access fee) D

ARGIN (IN RS.)

AMC NIL 500 (after 1 year ) 300 (after 1 year ) 500 (after 1 year ) 3

(IN RS.)

BROKERAGE .05 % .075%, .10%, .10% .

(IN RS.) .50 % .75% .50% .50% .

F&O .05 / LOT N. A N. A N.A

SEGMENT

Results on the Basis of charges

There are the two type of the transaction:-

1. Intra-day based

2. Delivery based


11/20

Comment:-According to the survey HDFC securities charge

maximum brokerage as compare to others whereas India Infoline

Ltd. charge only 0.20 paisa on maximum investment.

ROLE OF STOCK

BROKER

A stock broker is a professional who buys and

sells stocks and other securities in the stock market through the book

makers from the stock investors. As per the law in United States one

needs to pass the General Securities Representative Examination or

the Series 7 exam for working as a stock broker. Brokers provide

different types of services to their clients.


12/20

Execution only- In this service the broker only carries out the trading

according to the direction of the investor. This is the basic and the

most commonly used service of the brokers.

Advisory dealing- In this service the broker not only performs the

buying and selling instructions of the client but also advises the

investor about which stock to buy and which stock to sell.

Discretionary dealing- This is the most comprehensive service that a

broker provides. In this case the broker has the discretionary power

to take the investment decisions on behalf of the investor.

These are the basic services provided by

the stock market brokers and it completely depends on you which

service you will subscribe to. For example, if you are quite apt at

stock market analysis and can regularly watch on the happenings of

stock market and the stocks in which you invest, it is better to have a

stockbroker to execute your buying and selling instructions. It will

not only save the service charges but also give you full confidence in

stock market trading.

LEARNINGS1. Analyze the movement of market.

2. Designing questionnaire.

3. Taking feedback from existing franchises.


13/20

4. Converting other franchises, by negotiating over

brokerage and commission.

5. Analyzing portfolio of HNI's.

6. Regular presentation over topics assigned.

7. To find out the grey areas of the organization. 8.

How to analyze equity.

9. How to analyze index value :-

current market capitalization X base value.

Base market capitalization

10. How to calculate net asset value:-

Sum of market value of shares+ Liquid assets

+ Dividends/interest accrued

- amount due on unpaid assets -

Expenses accrued but not paid

No. of shares outstanding

11.CLEARING MECHANISM OF STOCK EXCHANGE.

FINDINGS

1. According to the survey most of the customers of "Infoline Ltd"

says that it is pocket friendly.

2. Coming to faith 70% say IndiaInfoline Ltd is better than others

stock brokers due to customers satisfaction.


14/20

3.

4.

5.

6.

7.

8.

9.

10.

1.

2.

3.

Lack of promotional activities undertaken by IndiaInfoline

securities Ltd. in Pune Region.

Main purposes of investments are returns & liquidity.

Investors take risk as well as returns into their mind while making

the investment.

Businessmen are more interested in the stock market than the

others.

Commodity market is less preferred by the investors, might

because of less awareness about commodity market.

People want to invest their money in the security market but they

have not the proper knowledge.

People pay more emphasis on brokerage than service provided

by brokerage houses.

3 elements affects the economy of any country:-

1) GOLD, 2) CRUDE OIL, 3) U.S DOLLAR

SUGGESTIONS

Commitment should be equalized for every person.

Provide the facility of free demonstrations for all.

Improvement in the opening of De-mat & contract notice

procedure is required.


15/20

4.

5.

6.

7.

There should be a limited number of clients under the

relationship manger. So that he can handle new as well as old

customer properly.

Some promotional activities are required for the awareness of

the customer.

People at young age should be encouraged to invest in stock

market.

Seminars should be held for providing information to

prospective and present customers.

CONCLUSIONS

On the basis of the study it is found that IndiaInfoline Ltd is better

services provider than the other stockbrokers because of their timely

research and personalized advice on what stocks to buy and sell.

Infoline Ltd. provides the facility of Trade tiger as well as relationship


16/20

manager facility for encouragement and protects the interest of the

investors. It also provides the information through the internet and

mobile alerts that what IPO's are coming in the market and it also

provides its research on the future prospect of the IPO.

Study also concludes that people are not much aware of commodity

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

The company should also organize seminars and similar activities to

enhance the knowledge of prospective and existing customers, so

that they feel more comfortable while investing in the stock market.

BIBLIOGRAPHY

Magazines:

VALUELINE (SHAREKHAN MONTHLY RESEARCH

MAGAZINE)

CAPITAL MARKET (5PASISA.COM), NEW DELHI.

THE FINAPOILS (YOUR PERSONAL FINANCE ADVISOR FROMKARVY).


17/20

NCFM WORKBOOKS.

Internet:

http://WWW.MONEYCONTROL.COM

http://WWW.CAPITALINE.COM

http://WWW.SHAREKHAN

LTD.COM

http://WWW.INDIAINFOLINE.COM

http://WWW.ICICIDIRECT.COM

http://WWW.KARVY.COM

APPENDIXES

(QUESTIONNAIRE)

QUESTIONNAIRE

DATE:

NAMEOCCUPATION

A GE
http://www.moneycontrol.com/http://www.capitaline.com/http://www.indiabulls.com/http://www.indiabulls.com/http://www.indiainfoline.com/http://www.icicidirect.com/http://www.icicidirect.com/http://www.indiainfoline.com/http://www.indiabulls.com/http://www.indiabulls.com/http://www.capitaline.com/http://www.moneycontrol.com/


18/20

CONTACT NO.

1) Do you know about Investment options available?

a) Yes b) No

2) Do you know about the different types of investment alternatives?

a) Insurance & mutual funds b) Banks

c) Real estate d) Share market

e) Commodity f) Others

3) What is the basic purpose of your investment?

a) Liquidity b) Returns

c) Capital appreciation d) Risk covering

e) Tax benefits


19/20

4) What are the most important things you take into account, while

making any investment?

a) Risk b) Returns c) Both

5) Do you have any knowledge of share markets?

a) Partial b) Complete c) Nil

6) Do you have any D-mat & Trading account?

a) Yes b) No

7) In which company you have D-mat & Trading account?

a) Sharekhan Ltd b) Karvy

c) Indiainfoline d) Motilal Oswal.

8) Are you satisfied with you present broking company?

a) Yes b) No.


20/20

9) WHY DO PEOPLE PREFER STOCK

MARKET?

a) FOR EARNING SHORT TERM PROFIT

b) FOR EARNING LONG TERM PROFIT

c) FOR REDUCING RISK

d) FOR HEDGHING PURPOSE

10) What is your trading exchange preference?

a) NSE b) BSE

c) MCX d) NCDEX

Documents

Role of Stock Broker in Current