Monday, February 13, 2012

Project report on Analysis of Marketing Strategies of E-

Broking


A
PROJECT REPORT
ON
Analysis of Marketing Strategies of E-Broking
45 days summer training project with
INDIA ADVANTAGE SECURITY LTD






Submitted by:
Sunil kumar dadhich
MBA - III Semester

POORNIMA SCHOOL OF BUSINESS MANAGEMENT
ISI 2, RIICO Institutional Area, Goner Road, Sitapura, Jaipur

POORNIMA SCHOOL OF BUSINESS MANAGEMENT
(ISI-2, Goner Road, Sitapura, Jaipur)


CERTIFICATE OF
Summer training during June July, 2010
Certified that Mr. Sunil kumar dadhich, student of Master of business administration, III semester has
submitted his report on Analsis of marketing strategies of E- Broking after successfully completing
the summer practical training at INDIA ADVANTAGE SECURITIES LTD from16th May to 1
st
July 2011,
towards fulfillment of the syllabus requirement prescribed by Rajasthan technical university, Kota for MBA
III semester Paper.


Dr. R P Rajoria (Director, PCE)


Manoj Gupta (Director, PIET)


Vandana Sharma (Director, PSOM)


Mohd. Rizwanullah (Director, PSBM)










ACKNOWLEDGEMENT

The path to success is never so smooth and simple to achieve. However, our learnings and motivation by
our close ones and our mentors helps us to reach beyond our potential. My Project would remain partial
without acknowledging people who encouraged me to achieve a milestone.

I would also like to thank Mr. R.K. Agarwal, Advisor and the supporting staff of Department of
Management Studies, Poornima School of Business Management for their help and cooperation
throughout my project.

I express my sincere thanks to my project guides faculty, Department of Management Studies for guiding
me right form the inception till the successful completion of the project. I sincerely acknowledge them for
extending their valuable guidance, support for literature, critical reviews of project and the report and
above all the moral support they had provided to me with all stages of this project.
I would like express my heartily thankfulness to Mr. JAIPAL (). I am also thankful
to Mr. (Head of F&A). He has given me valuable guidance and other information for the
preparation of this report.

Finally I would like to thanks to all the staff of his company for extending their helping hands whenever I
needed.


(Signature of student)

SUNIL KUMAR DADHICH
MBA (III rd SEM.)

DECLARATION


I SUNIL KUMAR DADHICH Student of MBA, POORNIMA
SCHOOL BUSINESS MANAGEMENT JAIPUR Analysis of Marketing Strategies
of E-Broking. In Partial Fulfillment of MBA Degree Course in INDIA
ADVANTAGE PVT LTD is my Original Work.







(SUNIL DADHICH












PREFACE

Quite frequently these days people talk of practical knowledge, both in academic institutions and outside.
At each and every aspect in life we require some sort of theoretical and practical knowledge too.

It means only classroom lecture may not be enough to get the proper knowledge either in the business
field or social life.

Keeping all this in view, the present report has been written for the promotion the brand position of INDIA
ADVANTAGE in the highly competitive environment and to study the consumer behavior by working as a
promoter at Modern Trade Centers.

I am grateful to all those who have helped me in the successful completion of this report.

I hope I have tried my level best in making this Report.
If there is any error, in this Report I want to apologies for that.








CONTENTS

Introduction to the Industries 7
Indian Stock Market 21
Major players the Broking industry in India 27
Introduction of the company 28
Products of INDIA ADVANTAGE Broking 33
Fundamental Services 41
Technological Services
Commodity Services
About the other companies 48
Comparative Analysis of the company 52
Market share of INDAIN ADVANTAGE 53
Limitations 55
Study of Selected research problem 60
Description of terminology used in Broking company 67
Research Methodology 81
Data Analysis and Interpretation 85
Findings and summary of learning experience 96
Achievement 99
Conclusion 100
Recommendation 101
Questionnaire 102
Bibliography 109

OBJECTIVE OF THE STUDY

Main objective of the project is to find out the strategies of different E-Broking firms and evaluate
them. Project is about to penetrate the competitors of INDIA ADVANTAGE LTD. Conclusion of this project
can give an idea of strategies of different companies which may be helpful to the company. Now days all
the broking companies in India are trying to establish themselves in the competitive market. They are
introducing innovative marketing

Strategies to survive in the market. Many other private companies are looking to enter in the Indian
Broking market .so it is very essential to a company to innovate their marketing strategies in terms of

Well educated and capable employee in the agency
Marketing of their products
Deployment of their products
Targeting the right and potential customers
Differentiating from other companies
Future plan of the company
This study consists of to find out the marketing strategies of different Broking companies which are the
competitors of INDIA ADVANTAGE LTD.






INTRODUCTION TO THE INDUSTRY

THE HISTORY OF INDIA E-BROKING INDUSTRY

The first publicly issued security can be tracked back to the fourteenth century in Venice where
the government made the first known issue of bonds. These government securities were purchased by
merchants and landowners as investments.
In and around 1750s in England, traders in the shares of early companies would commonly meet
in Jonathans Coffee House to trade shares and make business deals. Early share bids and offers were
written on the Coffee House walls and the trading process was highly unregulated, with insider trading
forming the basis for most investment decisions.
By 1773, Trading Clubs had formed, and in 1801 a group of traders raised 20,000 pounds to build
the London Stock Exchange in Capel Court. A similar process was occurring in America. By the early
1790s many merchants had begun trading shares. Just as in London, these early traders often met at
coffeehouses in an informal environment.
In 1792, 24 Brokers who each paid $400 for a "trading seat" signed the Buttonwood Tree
Agreement. This agreement outlined the regulations under which shares could be bought and sold. These
regulations formed the basis for trading rules that

Still exist today and led to the formation in 1817 of the New York Stock Exchange. Much water
has passed under the bridge since then and we forward all the way to late 1990s.
By late 1990s, most of the stock exchanges had been automated, and the open outcry method
of trading was the thing of the past. Most stock exchanges began to use computers to replace floor
traders. Floor traders take phone and computer orders from brokers, and negotiate a trade with stock
specialists at trading stations on the trading floor. The internet orders placed by clients are first processed
and authorized through the stock brokers computer system before being automatically placed on the
stock exchanges computer systems. This period saw the rise in popularity and acceptance of online
stock broking.
India Advantage was established to perform these core functions three decades ago. Prior to
this, it operated as M/s Mehta Investments, founded by Mr. Pravin Mehta, Chartered Accountant in
1990. It is under the able guidance of Mr. Mehta, the Chairman and Managing Director, that India
Advantage is today reaching new heights in financial consultancy. India Advantage was founded with a
vision of creating a ONE-STOP-INVESTMENT SOLUTION PROVIDER TO ALL INVESTORS. Strong
team of qualified and experienced professionals is the key success of our organization. With latest IT
infrastructure set-up we provide hassle free connectivity and fastest trading platform. It is backed up by
focused professionals. We have catered number of clients by giving end to end wealth solutions. We are
based
on the principles of highest standards of excellence, ethics, efficiency and professionalism.


Introduction


Meaning of stock market

A stock market is a private or public market for the trading of company stock and derivatives of company
stock at an agreed price; both of these aresecurities listed on a stock exchange as well as those only
traded privately.
Trading
Participants in the stock market range from small individual stock investors to large hedge fund traders,
who can be based anywhere. Their orders usually end up with a professional at a stock exchange, who
executes the order.
Some exchanges are physical locations where transactions are carried out on a trading floor, by a
method known as open outcry. This type of auction is used in stock exchanges and commodity
exchanges where traders may enter "verbal" bids and offers simultaneously. The other type of exchange
is a virtual kind, composed of a network of computers where trades are made electronically via traders.
Actual trades are based on an auction market paradigm where a potential buyer bids a specific price for a
stock and a potential seller asks a specific price for the stock. (Buying or selling at market means you will
accept any ask price or bid price for the stock, respectively.) When the bid and ask prices match, a sale
takes place on a first come first served basis if there are multiple bidders or askers at a given price.






Stock market index

The movements of the prices in a market or section of a market are captured in price indices called stock
market indices, of which there are many, e.g., the S&P, the FTSE and the Euronext indices. Such indices
are usually market capitalization (the total market value of floating capital of the company) weighted, with
the weights reflecting the contribution of the stock to the index. The constituents of the index are reviewed
frequently to include/exclude stocks in order to reflect the changing business environment.


Derivative instruments

Financial innovation has brought many new financial instruments whose pay-offs or values depend on the
prices of stocks. Some examples areexchange-traded funds (ETFs), stock index and stock options, equity
swaps, single-stock futures, and stock index futures. These last two may be traded on futures
exchanges (which are distinct from stock exchangestheir history traces back to commodities futures
exchanges), or traded over-the-counter. As all of these products are only derived from stocks, they are
sometimes considered to be traded in a (hypothetical) derivatives market, rather than the (hypothetical)
stock market.






The Bombay Stock Exchange

The Bombay Stock Exchange Limited (formerly, The Stock Exchange, Mumbai; popularly called The
Bombay Stock Exchange, or BSE) is the oldeststock exchange in Asia. It is located at Dalal
Street, Mumbai, India.

The Bombay Stock Exchange was established in 1875. There are around 4,800 Indian companies listed
with the stock exchange
[1]
, and has a significant trading volume. As of August 2007, the equity market
capitalization of the companies listed on the BSE was US $ 1.11 trillion
[2]
. The BSE SENSEX (SENSitive
indEX), also called the "BSE 30", is a widely used market index in India and Asia. It is located at Dalal
Street, Mumbai, India.

Bombay Stock Exchange was established in 1875. There are around 4,800 Indian companies listed with
the stock exchange
[1]
, and has a significant trading volume. As of August 2007, the equity market
capitalization of the companies listed on the BSE was US $ 1.11 trillion
[2]
. The BSE SENSEX(SENSitive
indEX), also called the "BSE 30", is a widely used market index in India and Asia .




National stock Exchange

The National Stock Exchange of India Limited (NSE), is a Mumbai-based stock exchange. It is the
largest stock exchange in India and the third largest in the world in terms of volume of transactions
[1]
.
NSE is mutually-owned by a set of leading financial institutions, banks, insurance companies and other
financial intermediaries in India but its ownership and management operate as separate entities
[2]
. As of
2006, the NSE VSAT terminals, 2799 in total, cover more than 1500 cities across India
[3]
. In July 2007,
the NSE had a total market capitalization of 42,74,509 crore INR making it the second-largest stock
market in South Asia in terms of market-capitalization
[4]
.

The National Stock Exchange of India was promoted by leading Financial institutions at the behest of
the Government of India, and was incorporated in November 1992 as a tax-paying company. In
April 1993, it was recognized as a stock exchange under the Securities Contracts (Regulation) Act, 1956.
NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital
Market (Equities) segment of the NSE commenced operations in November 1994, while operations in
the Derivatives segment commenced in June 2000






Hang Seng Index

Hang Seng" redirects here. For the bank with the same name, see Hang Seng Bank. For all other uses,
see Hang Seng (disambiguation).
The Hang Seng Index (abbreviated: HSI, Chinese: ) is a freefloat-adjusted
market capitalization-weighted stock market index in Hong Kong. It is used to record and monitor daily
changes of the largest companies of the Hong Kong stock market and is the main indicator of the overall
market performance in Hong Kong. These 40 companies represent about 65% of capitalization of the
Hong Kong Stock Exchange.


Stock market crash

A stock market crash is often defined as a sharp dip in share prices of equities listed on the stock
exchanges. In parallel with various economic factors, a reason for stock market crashes is also due to
panic. Often, stock market crashes end up with speculative economic bubbles.
There have been famous stock market crashes that have ended in the loss of billions of dollars and
wealth destruction on a massive scale. An increasing number of people are involved in the stock market,
especially since the social security and retirement plans are being increasingly privatized and linked
to stocks and bonds and other elements of the market. There have been a number of famous stock
market crashes like the Wall Street Crash of 1929, the stock market crash of 19734, the Black Monday
of 1987, the Dot-com bubble of 2000. But those stock market crashes did not begin in 1929, or 1987.
They actually started years or months before the crash really hit hard.
One of the most famous stock market crashes started October 24, 1929 on Black Thursday. The Dow
Jones Industrial lost 50% during this stock market crash. It was the beginning of the Great Depression.
Another famous crash took place on October 19, 1987


Function and purpose

The stock market is one of the most important sources for companies to raise money. This allows
businesses to go public, or raise additional capital for expansion. The liquidity that an exchange provides
affords investors the ability to quickly and easily sell securities. This is an attractive feature of investing in
stocks, compared to other less liquid investments such as real estate.
History has shown that the price of shares and other assets is an important part of the dynamics of
economic activity, and can influence or be an indicator of social mood. Rising share prices, for instance,
tend to be associated with increased business investment and vice versa. Share prices also affect the
wealth of households and their consumption. Therefore, central banks tend to keep an eye on the control
and behavior of the stock market and, in general, on the smooth operation of financial system functions.
Financial stability is the raison d'tre of central banks.

Exchanges also act as the clearinghouse for each transaction, meaning that they collect and deliver the
shares, and guarantee payment to the seller of a security. This eliminates the risk to an individual buyer
or seller that the counterparty could default on the transaction.

The smooth functioning of all these activities facilitates economic growth in that lower costs and
enterprise risks promote the production of goods and services as well as employment. In this way the
financial system contributes to increased prosperity.



Relation of the stock market to the modern financial system

The financial system in most western countries has undergone a remarkable transformation. One feature
of this development is disintermediation. A portion of the funds involved in saving and financing flows
directly to the financial markets instead of being routed via banks' traditional lending and deposit
operations. The general public's heightened interest in investing in the stock market, either directly or
through mutual funds, has been an important component of this process. Statistics show that in recent
decades shares have made up an increasingly large proportion of households' financial assets in many
countries. In the 1970s, in Sweden, deposit accounts and other very liquid assets with little risk made up
almost 60 per cent of households' financial wealth, compared to less than 20 per cent in the 2000s. The
major part of this adjustment in financial portfolios has gone directly to shares but a good deal now takes
the form of various kinds of institutional investment for groups of individuals, e.g., pension funds, mutual
funds, hedge funds, insurance investment of premiums, etc. The trend towards forms of saving with a
higher risk has been accentuated by new rules for most funds and insurance, permitting a higher
proportion of shares to bonds. Similar tendencies are to be found in other industrialized countries. In all
developed economic systems, such as the European Union, the United States, Japan and other
developed nations, the trend has been the same: saving has moved away from traditional (government
insured) bank deposits to more risky securities of one sort or another.

The stock market, individual investors, and financial risk

Riskier long-term saving requires that an individual possess the ability to manage the associated
increased risks. Stock prices fluctuate widely, in marked contrast to the stability of (government insured)
bank deposits or bonds. This is something that could affect not only the individual investor or household,
but also the economy on a large scale. The following deals with some of the risks of the financial sector in
general and the stock market in particular. This is certainly more important now that so many newcomers
have entered the stock market, or have acquired other 'risky' investments (such as 'investment' property,
i.e., real estate and collectables).
With each passing year, the noise level in the stock market rises. Television commentators, financial
writers, analysts, and market strategists are all overtalking each other to get investors' attention. At the
same time, individual investors, immersed in chat rooms and message boards, are exchanging
questionable and often misleading tips. Yet, despite all this available information, investors find it
increasingly difficult to profit. Stock prices skyrocket with little reason, then plummet just as quickly, and
people who have turned to investing for their children's education and their own retirement become
frightened. Sometimes there appears to be no rhyme or reason to the market, only folly.

This is a quote from the preface to a published biography about the long-term value-oriented stock
investor Warren Buffett.
[2]
Buffett began his career with $100, and $105,000 from seven limited partners
consisting of Buffett's family and friends. Over the years he has built himself a multi-billion-dollar fortune.
The quote illustrates some of what has been happening in the stock market during the end of the 20th
century and the beginning of the 21st.
The behavior of the stock market


NASDAQ in Times Square, New York City.
From experience we know that investors may temporarily pull financial prices away from their long term
trend level. Over-reactions may occurso that excessive optimism (euphoria) may drive prices unduly
high or excessive pessimism may drive prices unduly low. New theoretical and empirical arguments have
been put forward against the notion that financial markets are efficient.

According to the efficient market hypothesis (EMH), only changes in fundamental factors, such as profits
or dividends, ought to affect share prices. (But this largely theoretic academic viewpoint also predicts that
little or no trading should take placecontrary to factsince prices are already at or near
equilibrium, having priced in all public knowledge.) But the efficient-market hypothesis is sorely tested by
such events as the stock market crash in 1987, when the Dow Jones index plummeted 22.6 percentthe
largest-ever one-day fall in the United States. This event demonstrated that share prices can fall
dramatically even though, to this day, it is impossible to fix a definite cause: a thorough search failed to
detect any specific or unexpected development that might account for the crash. It also seems to be the
case more generally that many price movements are not occasioned by new information; a study of the
fifty largest one-day share price movements in the United States in the post-war period confirms
this.
[3]
Moreover, while the EMH predicts that all price movement (in the absence of change in
fundamental information) is random (i.e., non-trending), many studies have shown a marked tendency for
the stock market to trend over time periods of weeks or longer.

Various explanations for large price movements have been promulgated. For instance, some research
has shown that changes in estimated risk, and the use of certain strategies, such as stop-loss limits
and Value at Risk limits, theoretically could cause financial markets to overreact.
Other research has shown that psychological factors may result in exaggerated stock price movements.
Psychological research has demonstrated that people are predisposed to 'seeing' patterns, and often will
perceive a pattern in what is, in fact, just noise. (Something like seeing familiar shapes inclouds or ink
blots.) In the present context this means that a succession of good news items about a company may
lead investors to overreact positively (unjustifiably driving the price up). A period of good returns also
boosts the investor's self-confidence, reducing his (psychological) risk threshold.
[4]


Another phenomenonalso from psychologythat works against an objective assessment is group
thinking. As social animals, it is not easy to stick to an opinion that differs markedly from that of a majority
of the group. An example with which one may be familiar is the reluctance to enter a restaurant that is
empty; people generally prefer to have their opinion validated by those of others in the group.
In one paper the authors draw an analogy with gambling.
[5]
In normal times the market behaves like a
game of roulette; the probabilities are known and largely independent of the investment decisions of the
different players. In times of market stress, however, the game becomes more like poker (herding
behavior takes over). The players now must give heavy weight to the psychology of other investors and
how they are likely to react psychologically.
The stock market, as any other business, is quite unforgiving of amateurs. Inexperienced investors rarely
get the assistance and support they need. In the period running up to the recent Nasdaq crash, less than
1 per cent of the analyst's recommendations had been to sell (and even during the 2000 - 2002 crash, the
average did not rise above 5%). The media amplified the general euphoria, with reports of rapidly rising
share prices and the notion that large sums of money could be quickly earned in the so-called new
economy stock market. (And later amplified the gloom which descended during the 2000 - 2002 crash, so
that by summer of 2002, predictions of a DOW average below 5000 were quite common.)

Irrational behavior
Sometimes the market tends to react irrationally to economic news, even if that news has no real effect
on the technical value of securities itself. Therefore, the stock market can be swayed tremendously in
either direction by press releases, rumors, euphoria and mass panic.

Over the short-term, stocks and other securities can be battered or buoyed by any number of fast market-
changing events, making the stock market difficult to predict.




INDIAN STOCK MARKET

Thee origination of the Indian securities market may be traced back to 1875, when 22 enterprising
brokers under a Banyan tree established the Bombay Stock Exchange (BSE). Over the last 125 years,
the Indian securities market has evolved continuously to become one of the most dynamic, modern and
efficient securities markets in Asia. Today, Indian markets conform to international standards both in
terms of operating efficiency.

Structure and size of the markets:
Today India has two national exchanges, the Bombay Stock Exchange (BSE) and the National Stock
Exchange (NSE).Each has fully electronic trading platforms with around 9400 participating broking outfits.
Foreign brokers account for 29 of these.

There are some 9600 companies listed on the respective exchanges with a combined market
capitalization near $125.5bn. Any market that has experienced this sort of growth has an equally
substantial demand for highly efficient settlement procedures.

In India 99.9% of the trades, according to the National Securities Depository, are settled in dematerialized
form in a T+2 rolling settlement environments. In addition, trades are guaranteed by the National Clearing
Corporation of India Ltd. (NSCCL) and Bank of India Shareholding Ltd. (BOISL), Clearing Corporation
houses of NSE and BSE respectively. The main functions of the Clearing Corporation to work out.

Furthermore, each exchange has a Settlement Guarantee Fund to meet with any unpredictable
situation and a negligible trade failure of 0.003%. the Clearing Corporation of the exchanges assumes the
counter-party risk of each member and guarantees settlement through a fine-tuned risk management
system and an innovative method of online position monitoring. It also ensures the financial settlement of
trades on the deliver the required funds and/or securities with the help of a settlement guarantee fund.

Advantages Of Online Trading
The first major advantage of trading online is the ability to have total control over ones investments.
Before the advent of online trading, investors had to go through a stockbroker in order to buy and sell
their stocks. This process is tedious, can take up value able time and is costly. In addition to that, brokers
can sometimes persuade investors to buy and sell certain stocks because of personal reasons.

When investors trades online they have total control of their money. In addition to that, investors investors
have the luxury of speed. They can buy and sell stocks quickly, which can help them save money. An
example of this is if investors want to buy certain stocks at low price, by the time they call their broker and
eventually buy the stock the price could have increased during that time period. This same example
applies to when investors want to sell a stock at a certain time. While the investors are calling their broker
and the stock is being sold, the price could have dropped. This could sometimes cost investors
thousands of dollars. With online trading, people can buy and sell at the exact time they choose to do so
because it is just a mouse click away.

Online trading is also beneficial because it reduces the cost of transaction. Instead of paying broker ,
which can be very costly , investors can trade online and pay a small fee to their company. this saves the
customers from having to pay commission to the stockbroker. Furthermore, since the explosion of online
brokerages has driven the cost of transactions way down, trading online is cheaper than ever. This is
because all the companied are competing for business continue reducing their costs to attract customers.

The last major advantage of trading stocks online is that more information is available then ever before.
Investors can get the most up to date stock quotes and can reach any company they plan on buying stock
for. This information was previously only available to stockbrokers. With the new technology the internet
offers, it is available to everyone. With this information the investors can become more educated and
make good decision on the stocks they want to buy and sell. One such website that allows users to
gather information is Quote.com. Quote.com has graphic charts that updates the investors portfolio
throughout the day and also lets investors create watch lists or mock portfolios that monitor alternative
investment options. This means that customers can plan out different investing stratifies and see how
those compare to the ones they are already invested in. These advantages have contributed greatly to
the increase of ntrading online.

Disadvantages of online training

One major disadvantage with online trading is that there are many security risks. The internet is
a wonderful but dangerous place to do business. Hackers have the ability to access personal information
on anyone who has ever searched the internet, which includes credit card information. This was the main
reason a company like Charles Schwab was reluctant to start trading online. Although the percentage is
small, there is still a small chance that hackers can access ones account (price 2) companies are taking
the most serious precautions on this matter.

Another drawback to trading online is that, while companies offer trades that are quick and on the
spot, in actuality it can take up to several hours to complete or even not to be completed at all. According
to the Securities and Exchange Commission, E-traders registered more than 3,300 complaints in the 12
months ended in September 1999, a 197 percent increase over 1998 and nearly 2,000 percent higher
than in 1997. This means that here was an increase in problems that the web sites were having. This
could have serious effects on investors because they could think they bought a stock or sold a stock at a
certain time but in actuality the transaction registered late or not at all costing that investor money.

The internet is unpredictable and stable. One can never know when a web site will fail. In
situations where there is a problem like this, investors can usually call their brokerage firm and the
problem is fixed right away. However, the problem with online trading companies is that they are too large
and are not easily reached by e-mail or phone. This is the main concern for online brokerage firms and
they are trying their best to alleviate these problems.

Finally the most important problem with online trading is that it is so quick and easy to make
transaction, that money can be lost just as quick and just as easily. Some people that invest online do not
know how the stock market words and think they can just invest in anything and it will make them money.
According into foresters search, two types of traders have already moved online the aggressive affluent
and those who want to get rich quick.. These two groups make up 70 percent of the people that want
investors trading online today. These people can make rash decisions and lose a lot of their money.
People like this generally think that investing in the stock market is like gambling in Las Vegas. This is a
dangerous attitude and could make people lose money they cannot afford to lose.

Major Players in the BROKING
Industry in India

1 SHAREKHAN
2 ANAND RATHI
3 MOTILAL OSWAL
4 IL&FS
5 INDIABULLS
6 HDFC SECURITIES
7 INDIA INFOLINE
8 IDIA ADVANTAGEBROKING
9 RELIGARE
10 RELIANCE MONEY
11 ICICI DIRECT
12 BONANZA
13 MAGAL KESHAV
14 JAIPURK SECURITIES
15 UTI SECURITIES
16 GEOJIT
17 KARVY
18 MAN FINANCIAL
23 JP MORGAN STANLEY
24 ASIT C METHA
























INTRODUCTION OF THE COMPANY
COMPANY PROFILE OF INDIA ADVANTAGE
SECURITY LTD
An arm of the flagship company India Advantage Securities Limited, we at the India
Advantage group are dedicated to deliver expert financial services that best suit your futuristic needs. Our
fundamental areas of functioning include Shares, Stocks (Capital Market and Futures & Options),
Commodities, E-Broking, Internet Institutional Equities, Research, Currency Derivatives, NRI Desk, PCG,
IPOs and Depository services. We are a one-stop specialized solution to all your financial requirements.

India Advantage was established to perform these core functions three decades ago. Prior to this, it
operated as M/s Mehta Investments, founded byMr. Pravin Mehta, Chartered Accountant in 1990. It is
under the able guidance of Mr. Mehta, the Chairman and Managing Director, that India Advantage is
today reaching new heights in financial consultancy. India Advantage was founded with a vision of
creating a ONE-STOP-INVESTMENT SOLUTION PROVIDER TO ALL INVESTORS. Strong team of
qualified and experienced professionals is the key success of our organization. With latest IT
infrastructure set-up we provide hassle free connectivity and fastest trading platform. It is backed up by
focused professionals. We have catered number of clients by giving end to end wealth solutions. We are
based on the principles of highest standards of excellence, ethics, efficiency and professionalism.

The integration of India Advantage Securities Limited and India Advantage Commodities Private Limited
has transformed it into a financial power house that provides expert services required for stock broking
and investments in Capital / Securities and Commodities market. We are focused on our aim to fulfill the
requirements of individual investors and financial institutions across the country.

We channel our energies towards bringing out our best skills to ensure a maximum financial benefit for
you. Along with this, we uphold and augment the values of our shareholders. We are a visionary team
with a deep understanding of the financial diversity. We are a tram with intense passion for our goal of
setting excellent standards of Corporate Governance and meeting the financial needs and demands of
society.

VISION
India Advantage Group of Companies shall be professionally-managed one roof solution for Capital,
Financial & Commodities Market activity enabling social and individual financial benefits.

Every individual shall be focused, committed and part of empowered team constantly adding values to
attaining benchmarks with honesty & integrity for continuous growth.

India Advantage Group of Companies shall foster a culture of caring, trust and continuous learning while
achieving goals and target.

BUSINESS PHILOSOPHY
ethical practices & transparency in all our dealings
customer interest above our own
always deliver what we promise
effective cost management

VALUES
INTEGRITY
TEAMWORK
QUALITY MINDSET
ENTREPRENEURSHIP
SERVICE ORIENTATION
PASSION & COMMITMENT

We offer services like:

Equity Broking
Commodities
Depository
Research
E-broking
Advisory
Portfolio Management Services
Mutual Fund Distribution


TIE UP BANKS
HDFC
ICICI
AXIS
CORPORATION
ORIENTAL BANK OF COMMERCE
KARNATAKA






Products of INDIA ADVANTAGE Broking




E-Broking
It is user-friendly services to customers so that they can manage their stock portfolio. Including, online capabilities
linked to an information database to help customers invest, confidently. E-broking services are specially developed
for the traders and investors who prefer operating from their home or office, through the internet.
Equities
India Advantage Securities Ltd. encourages its clients to deal on both the prominent exchanges of the
country the Bombay Stock Exchange and the National Stock Exchange of India Ltd. Capital Market
segments though smaller in volumes than Derivatives, are very vital for the success of the medium and
small investors. We advance client dealings on BSE and NSE for equities segment. Dedicated sales and
trading teams in our trading desks support these client deals.

Derivatives
India Advantage Securities Ltd., also provides services for its clients wanting to deal in the Derivatives
segment of the NSE. All client dealings on the exchange in all types of Futures and Options (Call and
Put), conducted through us are duly supported by a dedicated sales & trading teams in our trading desks.
Commodities







Commodities have lately forged new possibilities for participation of investors and
traders. Commodities hold a wide range of unexplored opportunity to evade business
risks, while providing attractive investment and trading prospects for investors as well as
traders. Commodities hold great ability to turn into a separate asset class for market-
savvy investors, arbitrageurs and speculators. The best part is that they are easily
comprehendible for fundamentals of demand and supply.

At India Advantage Commodities Pvt. Ltd., we back our clients and provide an
efficient platform to trade on both the commodities exchanges, which are the Multi
Commodity exchange of India Ltd. (MCX) and the National Commodity & Derivatives
Exchange Ltd. (NCDEX)

NRI SERVICE

FOR ONLINE TRADING ACCOUNT

Approach Register online for opening an account.. Our IASL executive will contact you through e-
mail.

Processing Fill and submit your Bank account opening forms and Trading KYC to us. We will send
the Bank account documents to the Bank. Bank gives Bank a/c numbers to IASL. We will process the
Demat and Trading accounts

Open an account: On opening of Bank Accounts and PIS permission, Bank will send you the Bank
account opening kit on opening of Trading and Demat Account, IASL will send you the Welcome Kit
containing your Trading and Demat Account.


GUIDELINES FOR NRI TRADING:
Top

An NRI can deal with only one bank at any point of time. PIS (Portfolio Investment
Scheme) approval can be issued by only one bank.

Intraday trading is not allowed for NRIs. NRIs can trade only in delivery-based
transactions.

BTST (Buy Today Sell Tomorrow) is not allowed to NRIs.

NRI will be allowed to invest only up to 5 % of the paid up capital of the company. NRIs are
NOT allowed to buy certain scrips under this regulation. Report of the same is available on the
RBI website. http://www.rbi.org.in/scripts/BS_FiiUSer.aspx

NRIs need to have 100% funds at the time of buying. No exposure is given to NRIs. Same
way, they need to have 100% stock available to them while selling. No short selling allowed.

Contract notes of NRIs are daily reported to respective Bank and bank in turn reports them
to RBI. Reporting is taken care by India Advantage Securities Limited.

A NRI is required to make bill-to-bill payments. No adjustments of purchase against sale
consideration can be done. Purchase and Sales will be dealt separately for payments /
receipts.

IPOs/Mutual funds can be applied through NON PIS i.e. Through NRE/NRO Savings
account.
FNO transactions can be routed through NRO NON PIS i.e. through NRO Savings account
For FNO transactions separate code is allotted by NSE and the same has to be punched at the
time of placing FNO order for NRI clients along with the client code.

It may kindly be noted that NRI A/c's are controlled both by SEBI and RBI. Non compliance
on the above defined parameters is a very serious offence and is taken very seriously as the
same is taken a violations in FEMA.

NOTE: Online trading in India not applicable for NRIs in USA


Institutional Desk

India Advantage Securities Pvt. Ltd. is a member of The Bombay Stock Exchange Ltd. (BSE) as
well as the National Stock Exchange (NSE). The institutional desk was established in 2009 with
a vision to provide quality research and execution services to institutional as well as corporate
clients. IASL has significant net worth as well as expertise in managing large transactions in the
cash and derivatives market. Our expertise lies in Futures and Options where we are the market
leaders in Delta / Gamma Neutral arbitrage in the Indian markets IASL services Financial
Institutions, Mutual funds and Foreign Institutional Investors. The quality, commitment and
experience of our Institutional Sales Team is an essential element of our ability to meet and
surpass our clients expectations. We are confident and committed to devise and conceptualize
various investment and trading themes with respect to dynamic market conditions in Indian
equities and derivatives domain. Our team remains committed to provide highest standards of
Research, execution and client satisfaction.

Depository Services (CDSL)

We at India Advantage Securities Ltd., also provide our client with the facility of
depository services through Depository Participants with CDSL. Through CDSL, we offer you
daily valuation of your holdings. Our depository services include settlement, clearing and
custody of securities, registration of shares and dematerialization. We offer this service with the
purpose of creating a flawless transaction platform as a part of our value-added services for our
precious clients.

Investment Advisory Services



To derive optimum returns from equity as an asset class requires professional guidance and advice.
Professional assistance will always be beneficial in wealth creation. Investment decisions without expert
advice would be like treating ailment without the help of a doctor.

Expert Advice: Their expert investment advisors are based at various branches across India to provide
assistance in designing and monitoring portfolios.

Timely Entry & Exit: Their advisors will regularly monitor customers investments and guide customers
to book timely profits. They will also guide them in adopting switching techniques from one stock to
another during various market conditions.

De-Risking Portfolio: A diversified portfolio of stocks is always better than concentration in a single
stock. Based on their research, They diversify the portfolio in growth oriented sectors and stocks to
minimize the risk and optimize the returns.

Depositary Participant Services



India advantage Ltd. Is a DP services provider though CDSL. We offer depository services to create a
seamless transaction platform to execute trades through Idia advantage group of companies and settle
these transactions through I. A. Depository services.

Wide branch coverage
Personalized/attentive services of trained a dedicated staff
Centralized billing & accounting
Acceptance & execution of instruction on fax
Daily statement of transaction & holdings statement on e-mail
No charges for extra transaction statement & holdings statement

Portfolio Management Services




Successful investing in Capital Markets demands ever more time
and expertise. Investment Management is an art and a science in itself.
Portfolio Management Services (PMS) is one such service that is fast gaining
eminence as an investment avenue of choice for High Networth Investors(HNI). PMS is a sophisticated
investment vehicle that offers a range of specialized investment strategies to capitalize on opportunities in
the market. The Portfolio Management Service combined with competent fund management, dedicated
research and technology, ensures a rewarding experience for its clients .

Idia advantage PMS brings with it years of experience, expertise, research and the backing of India's
leading stock broking house. At Idia advantage, experienced portfolio management is the difference. It
will advise you on a suitable product based on factors such as your investment horizon, return
expectations and risk tolerance.





Mutual Fund


To enable clients to diversify their investment in the right direction. Idia advantage Broking has added
another product in its range with mutual funds.
Access to in-depth research & proper selection from diversified funds based on your preferred criteria
Rating and rankings of all mutual funds from our in house expert analysts
News and alertfor your Mutual fund Portfolio and performance tracking with watch lists
Current and historical performance of different funds enabling comparisons



Benefits

No risk of loss, wrong transfer,mutilation or theft of share certificates.
Hassle free automated pay-in of your sell obligations by your clearing members
Reduced paper work.
Speedier settlement process. Because of faster transfer and registration of securities in your
account, increased liquidity of your securities.
Instant disbursement of non-cash benefits like bonus and rights into your account.
Efficient pledge mechanism.
Wide branch coverage.
Personalized/attentive services of trained help desk.
Zero upfront payment.
No charges for extra transaction statement & holding statement.
All in one combined Monthly Bill-cum Transaction-cum-Holding-cum-ledger statement.






FUNDAMENTAL SERVICES


The Sunday Weekly Report

This weekly report is ace of all the reports. It offers a comprehensive market overview and likely
trends in the week ahead.
It also presents top picks based on an in-depth analysis of technical and fundamental factors.

It gives short term and long-term outlook on these scripts, their price targets and advice trading
strategies.

Another unique feature of this report is that it provides an updated view of about 70 prominent
stocks on an ongoing basis.



Stock Analysis

INDIA ADVANTAGEs stock research has performed very well over the past few years
and Idia advantage model portfolio has consistently outperformed the benchmark
indices. The fundamentals of select scripts are thoroughly analyzed and actionable
advice is provided along with investment rationale for each scrip.

Flash News
Key developments and significant news announcement that are likely to have an impact on market /
scripts are flashed live on trading terminals. Flash news keeps the market men updated on an online
basis and helps them to reshuffle their holdings.


TECHNICAL SERVICES



Intra-Day Calls
For day traders India advantage provides intraday calls with entry, exit and
stop loss levels during the market hours and our calls are flashed on our
terminals. Our analysts continuously track the calls and provide the
recommendations according to the market movements. Past performance of these calls in terms of
profit/loss is also available to our associates to enable them to judge the success rate.


Posting Trading Calls
Idia advantages Position Trading Calls are based on a through analysis of the
price movements in selected scripts and provides calls for taking positions with a 10 -
15 days time span with stop losses and targets. These calls are also flashed on our
terminals during market hours.



Derivative Strategies
Our analyst take a view on the NIFTY and selected scripts based on derivatives and
technical tools and devise suitable Derivative Strategies , which are flashed on our terminals and
published in our derivative reports.

COMMODITIES SERVICES

Agro Tech Speak
Mainly gives the investors insight into and a forecast for agro commodities viz. pulses(urad
channa etc); reports on oil complex (soyabean castor etc.) along with spices with reports on
kapas guar seed .



Commodities Tech Speak
This report mainly equips the investors dealing in MCX segment in commodities like
gold, silver, crude oil, copper etc with the market insight and expert recommendation on the
trading strategies.



About Anand Rathi

Anand Rathi (AR) is a leading full service securities firm providing the entire
gamut of financial services. The firm, founded in 1994 by Mr. AnandRathi, today has a
pan India presence as well as an international presence rough offices in Dubai and
Bangkok.

AR provides a breadth of financial and advisory services including wealth management,
investment banking, corporate advisory, brokerage & distribution of equities,
commodities, mutual funds and insurance - all of which are supported by powerful
research teams.

The firm's philosophy is entirely client centric, with a clear focus on providing long term
value addition to clients, while maintaining the highest standards of excellence, ethics
and professionalism. The entire firm activities are divided across distinct client groups:
Individuals, Private Clients, Corporates and Institutions.

About Indiabulls

Indiabulls is Indias leading Financial Services and Real Estate company having over 640 branches all
over India. Indiabulls serves the financial needs of more than 4,50,000 customers with its wide range of
financial services and products from securities, derivatives trading, depositary services, research &
advisory services, consumer secured & unsecured credit, loan against shares and mortgage & housing
finance. With around 4000 Relationship Managers, Indiabulls helps its clients to satisfy their customized
financial goals. Indiabulls through its group companies has entered Indian Real Estate business in 2005.
It is currently evaluating several large-scale projects worth several hundred million dollars.
Indiabulls Financial Services Ltd is listed on the National Stock Exchange, Bombay Stock Exchange and
Luxembourg Stock Exchange. The market capitalization of Indiabulls is around USD 6,300 million (31st
December, 2007). Consolidated net worth of the group is around USD 905 million (31st December, 2007).
Indiabulls and its group companies have attracted more than USD 800 million of equity capital in Foreign
Direct Investment (FDI) since March 2000. Some of the large shareholders of Indiabulls are the largest
financial institutions of the world such as Fidelity Funds, Goldman Sachs, Merrill Lynch, Morgan Stanley
and Farallon Capital.





Business of the company has grown in leaps and bounds since its inception. Revenue of the company
grew at a CAGR of 159% from FY03 to FY07. During the same period, profits of the company grew at a
CAGR of 184%.

Indiabulls became the first company to bring FDI in Indian Real Estate through a JV with Farallon Capital
Management LLC, a respected US based investment firm. Indiabulls has demonstrated deep
understanding and commitment to Indian Real Estate market by winning competitive bids for landmark
properties in Mumbai and Delhi.

Religare Securities Limited (RSL):-

It is a leading equity and securities firm in India. The company currently handles sizeable volumes traded
on NSE and in the realm of online trading and investments it currently holds a reasonable share of the
market. The major activities and offerings of the company today are Equity broking, Depository
Participant Services, Portfolio Management Services, Institutional Brokerage & Research, Investment
Banking and Corporate Finance. To broaden the gamut of services offered to its investors, the company
has also recently unveiled a new avatar of it's online investment portal armed with a host of revolutionary
feature.
RSL is a member of the National Stock Exchange of India, Bombay Stock Exchange of India, Depository
Participant with National Securities Depository Limited and Central Depository Services (I) Limited, and
SEBI approved Portfolio Manager
Religare has been constantly innovating in terms of product and services and to offer such incisive
services to specific user segments it has also started the NRI, FII, HNI and Corporate Servicing groups.
These groups take all the portfolio investment decisions depending upon a clients risk / return parameter.
Religare has a very credible Research and Analysis division, which not only caters to the need of our
Institutional clientele, but also gives their valuable inputs to investment dealers.
Religare is also providing in-house Depository services to its clientele and is one of the leading
depository service providers in the country.

Comparative Analysis of Companies


SERVICES COMPANIES NAME
IDIA ADVANTAGE BROKING INDIA BULLS
MUTUAL FUND YES NO
INSURANCE YES YES
PMS YES NO
ONLINE BACK-OFFICE YES YES
E-BROKING

YES YES
INVESTMENT ADVISORY YES YES
M-CONNECT YES NO
FUNDING NO YES
HOME LOANS NO YES
SOFTWARE USING

ODIN DIET


POWER INDIABULLS






MARKET SHARE OF IDIA ADVANTAGE BROKING LTD








Idia advantage Broking Ltd. has the highest market coverage with respect to channel
sales. This is because Idia advantage has the highest number of sub-brokers. There are
105 sub-brokers in Jaipur

Idia advantage Broking Ltd Client wise is No. 2 in India

Idia advantage Broking Ltd has bagged the Major Volume Driver Award (presented by
the BSE) for 3 consecutive years

Idia advantage Broking Ltd. is no.1 in India with respect to service offered

































DISCUSSIONS ON TRAINING
JOB PROFILE (ROLE AND RESPONSIBILITIES)
In Training, My profile was Marketing Executive. My responsibility was to do phone calls and take an
appointment with customer .Their role in the organization was a new client acquisition for account
opening

Giving product presentation to newly join employee.
One of my roles in organization is to train newly joined employee. Tell them all about company, how
the working process of company. What are the advantages of company so that they can convert clients in
Idia advantage clients? How Idia advantage product is better than other competitor. What are the facilities
in Idia advantage product which was not there in other competitor product?

Be in touch with the existing client for purpose of quality
management
After opening account we have to follow-up the existing client so that we can get feed back from
them. After opening account what services executive promise did he getting all that services. It shows the
quality of services. What client need is most important. Most it was create a good relation in-between me
and my client. Existing client help me for my future target he can open account on name of his family
member, relative or friends. Which was good for me to complete my target and it shows that I m giving the
best service to them and he was happy with our service and quality.



Event organizing. To give the details of E-broking services
organizing
I have to take the responsibility of event for collecting data or leads. Before doing event we have to
select a place to organize, for example big shopping malls (center one), corporate (millennium business
park) so that we can get a proper or good feed back with a good collection of data. Why place important?
For selling any product in market, companies do market segmentation. So that there product failure
should be very less and they can success to achieve there target.





Visiting to clients for the purpose account opening
While visiting to client I have to put some points in my mind from were he was trading? What he not
getting there? what his needs?. This analysis I have to do while talking on telephonic for appointment with
client and I have make plan while going to client that, what best I can offer him. So that he can convert in
my company client. While visiting to all my appointment I notice that all client want best from other. My
experience say that they are competing with there friend relative indirectly. So if I m going to give best
offer to them they are going to give me more accounts, more contacts.

Solving technical related queries of the client
After opening account I give training to them, but human are not machine that they can learn all thing
in a single day. So they do mistake. While login on online product, not getting list of market on there
display, login problem, hanging problem, problem while placing order etc. this type of problem we have to
solve. sometime they forget to download master file from site of company so they cannot able to see the
moving market, some time people try to login more than 3 or 4 time in this process they get locked there
id password so, to solve that problem I have reset there password by the help of surveillance department
and password directly send to there email id which the client given when there account opening form
filled. client complain that there order not going, but they doing mistake because they are putting order
more than there exposure given by company so order are rejected. This type of queries we have to
solve.
STUDENT CONTRIBUTION TO THE ORGANIZATION
The contribution towards the organization is adding values in order to bring business to the organization
realizing the responsibilities, bringing potential clients to the organization.

Furthermore I had to also manage various direct marketing activities such as
Tele-calling to clients regarding pre- meetings.
Mailing to potential customers of the company regarding products and services.
The new customers who want software demonstration, we provide that also etc.
Taking feedback of the services ,which we were providing because its a key factor for our company
growth and making long term relationships with customers
Bringing potential client to the organization, not only for the purpose of trading but also for wealth
management services (wms), which includes portfolio management services, mutual funds, IPO, Idia
advantage gold. was my major contribution to the company.


















STUDY OF SELECTED
RESEARCH
PROBLEM
STATEMENT OF RESEARCH OBJECTIVE
The objective of research is to know the competitors, volatile market, in order to bring improvement, in
terms there drawbacks limitations etc.
STATEMENT OF RESEARCH PROBLEM
After sorting out the views, answers of the people, we can conclude the research problem like:
1. Drawbacks of our services. For Example: - The website based product which we were offering to the
clients was not good enough compare to other company.
2. To find out existing clients through research, who would not get all the services or may be some, were he
might have been deprived of recent facilities.
3. As per meeting with the existing and new clients, we come to know that many people do not know how to
operate certain technical products.


STATEMENT OF RESEARCH OBJECTIVE
What is E-Broking?
Prospects for E-Broking
Benefit of E-Broking
Benefit to User
Benefit to Broker

What is E-Broking?
E-Broking means electronic broking or online trading. An electronic market is an attempt use
information and communication technology to provide geographically dispersed traders with the
information necessary for the fair operation of the market. The e-market is in effect, a broking service to
bring together supplier and customer in the specific market segment. These markets give the customer
easy access to comparative data on price
An electronic broker is an intermediary who:-
May take an order from customer and pass to supplier
May provide service to customer such as a comparison between goods with respect to particular criteria
such as price.



Prospects for E-Broking

E-Broking is still an evolving industry in India and the survivor are likely to be those brokers who
are integrated service and are financially resilient. The future of e-broking industry thus largely depends
on the extent of the penetration of the internet in the near future. Moreover the Bombay stock exchange
(BSE) and National stock exchange (NSE) have recently developed proprietary trading engines called
WEBEX and DOTEX, respectively.
These engines will obviate the need for a broker to develop his own engines, and thus, resulted in capital
investment savings. However, a user can log on to these engines using the website of the broker and
trade electronically. These developments are, therefore, expected to give a strong fillip to the e-broking
industry in India.

Benefit of E-Broking

In the recent year the use of internet has spread among investor in stock and shares. The internet
can make up to the minute information available to a large number of investor that until recently had only
been available to those working in financial institution. The use of online brokerage service automates the
process of buying and selling and hence reduction of commission charges. Also the commodity being
traded is intangible; the ownership of stocks and shares can be recorded electronically, so there is no
requirement for physical delivery.


Transparency of fund
24*7 back office access
Privacy of there portfolio
Save time
Detail of company etc.









BENEFIT TO USER

1. Low transaction costs
Brokerage rate in India are in the range of 1 to 1.5%. Where the rate for e-broking are as low as
0.1%. The Bombay stock exchange (BSE) and national stock exchange (NSE) recently develop
proprietary trading engine called WEBEX and DOTEX respectively. This engine will obviate the need for a
broker to develop his own engine. E-Broking in addition, not only brings down the cost of the execution of
the transaction but also speeds up the electronic transfer of securities.

2. Transparency
E-Broking empowers the customer to transact directly on the stock exchange and delayers the whole
process thereby improving transparency. The user does not need to rely on the brokers word of mouth
or transaction slip for confirmation of the price at which his trade was conducted.


3.Convenience
Online share trading is available merely at the click of a button, in the comfort of home / office. Thus,
making it much more convenient for the customer to trade anytime. Also with limit- based order being
allowed, customer can place there order even during the non-trading hour, which are executed at the
earliest trading possibility.













BENEFIT TO BROKER

Easier risk management
Under the online mechanism, the system would first check the status of funds available with the client
in his bank account and only then allow to trade to take place. This process thus substantially reduces the
exposure of the broker to client related credit and payment risk.

Greater business potential
The new paradigm of e-broking which allows simple convenient and transparent transactions may
encourage more participants to trade. It is expected that the introduction of e-broking will expand the
market horizon, thus resulting in better business for brokers in the long term


Lower staff costs.
Automation of the broking processes results in reduced manpower requirement, flexibility of time, less
infrastructure cost etc. offering significant cost saving to broker.











DESCRIPTION OF TERMINOLOGY USED IN BROKING
COMPANIES
Investment
The money you earn is partly spent and the rest saved for meeting future expenses. Instead of
keeping the savings idle you may like to use savings in order to get return on it in the future. This is called
Investment.

Why should one invest?
One needs to invest to:
earn return on your idle resources
generate a specified sum of money for a specific goal in life
make a provision for an uncertain future
One of the important reasons why one needs to invest wisely is to meet the cost of Inflation. Inflation is
the rate at which the cost of living increases. The cost of living is simply what it costs to buy the goods
and services you need to live. Inflation causes money to lose value because it will not buy the same
amount of a good or a service in the future as it does now or did in the past. For example, if there was a
6% inflation rate for the next 20 years, a Rs. 100 purchase today would cost Rs. 321 in 20 years. This is
why it is important to consider inflation as a factor in any long-term investment strategy. Remember to
look at an investment's 'real' rate of return, which is the return after inflation.


The aim of investments should be to provide a return above the inflation rate to ensure that the
investment does not decrease in value. For example, if the annual inflation rate is 6%, then the
investment will need to earn more than 6% to ensure it increases in value.

If the after-tax return on your investment is less than the inflation rate, then your assets have actually
decreased in value; that is, they won't buy as much today as they did last year.

When to start Investing?
The sooner one starts investing the better. By investing early you allow your investments more time to
grow, whereby the concept of compounding (as we shall see later) increases your income, by
accumulating the principal and 7 the interest or dividend earned on it, year after year. The three golden
rules for all investors are:

Invest early
Invest regularly
Invest for long term and not short term

What care should one take while investing?
Before making any investment, one must ensure to:
1. Obtain written documents explaining the investment
2. Read and understand such documents
3. Verify the legitimacy of the investment
4. Find out the costs and benefits associated with the investment
5. Assess the risk-return profile of the investment
6. Know the liquidity and safety aspects of the investment
7. Ascertain if it is appropriate for your specific goals
8. Compare these details with other investment opportunities available
9. examine if it fits in with other investments you are considering or you have already made
10. Deal only through an authorized intermediary
11. Seek all clarifications about the intermediary and the investment
12. Explore the options available to you if something were to go wrong, and then, if satisfied, make the
investment.
These are called the Twelve Important Steps to Investing


What is meant by Interest?
When we borrow money, we are expected to pay for using it this is known as Interest. Interest is an
amount charged to the borrower for the privilege of using the lenders money. Interest is usually
calculated as a percentage of the principal balance (the amount of money borrowed). The percentage
rate may be fixed for the life of the loan, or it may be variable, depending on the terms of the loan.

What factors determine interest rates?
When we talk of interest rates, there are different types of interest rates - rates that banks offer to their
depositors, rates that they lend to their borrowers, the rate at which the Government borrows in the 8
Bond/Government Securities market, rates offered to investors in small savings schemes like NSC, PPF,
and rates at which companies issue fixed Deposits etc.

The factors which govern these interest rates are mostly economy related and are commonly referred to
as macroeconomic factors. Some of these factors are:

Demand for money
Level of Government borrowings
Supply of money
Inflation rate
The Reserve Bank of India and the Government policies which determine some of the variables
mentioned above

What are various options available for investment?
There is a two way of invastment
Physical assets
Like real estate, gold/jewellery, commodities etc. and/or

Financial assets
Such as fixed deposits with banks, small saving instruments with post offices,
insurance/provident/pension fund etc. or securities market related instruments like shares, bonds,
debentures etc.


What are various Short-term financial options available for
investment?

Broadly speaking, savings bank account, money market/liquid funds and fixed deposits with banks may
be considered as short-term financial investment options:

Savings Bank Account

This is often the first banking product people use, which offers low interest (4%-5% p.a.), making them
only marginally better than fixed deposits.

Money Market or Liquid Funds

They are a specialized form of mutual funds that invest in extremely short-term fixed income instruments
and thereby provide easy liquidity. Unlike most mutual funds, money market funds are primarily oriented
towards protecting your capital and then, aim to maximize returns. Money market funds usually yield 9
better returns than savings accounts, but lower than bank fixed deposits.


Fixed Deposits with Banks

They are also referred to as term deposits and minimum investment period for bank FDs is 30 days. Fixed
Deposits with banks are for investors with low risk appetite, and may be considered for 6-12 months
investment period as normally interest on less than 6 months bank FDs is likely to be lower than money
market fund returns.


What are various Long-term financial options available for
investment?

Post Office Savings Schemes, Public Provident Fund, Company Fixed Deposits, Bonds and Debentures,
Mutual Funds etc.

Post Office Savings:

Post Office Monthly Income Scheme is a low risk saving instrument, which can be availed through any
post office. It provides an interest rate of 8% per annum, which is paid monthly. Minimum amount, which
can be invested, is Rs. 1,000/- and additional investment in multiples of 1,000/-. Maximum amount is Rs.
3, 00,000/- (if Single) or Rs. 6, 00,000/- (if held jointly) during a year. It has a maturity period of 6 years. A
bonus of 10% is paid at the time of maturity. Premature withdrawal is permitted if deposit is more than
one year old. A deduction of 5% is levied from the principal amount if withdrawn prematurely; the 10%
bonus is also denied.




Public Provident Fund:

A long term savings instrument with a maturity of 15 years and interest payable at 8% per annum
compounded annually. A PPF account can be opened through a nationalized bank at anytime during the
year and is open all through

The year for depositing money. Tax benefits can be availed for the amount invested and interest accrued
is tax-free. A withdrawal is permissible every year from the seventh financial year of the date of opening
of the account and the amount of withdrawal will be limited to 50% of the balance at credit at the end of
the 4th year immediately preceding the year in which the amount is withdrawn or at the end of the
preceding year whichever is lower the amount of loan if any.

Company Fixed Deposits:

These are short-term (six months) to medium-term (three to five years) borrowings by companies at a
fixed rate of interest which is payable monthly, quarterly, semi10 annually or annually. They can also be
cumulative fixed deposits where the entire principal along with the interest is paid at the end of the loan
period. The rate of interest varies between 6-9% per annum for company FDs. The interest received is
after deduction of taxes.

Bonds:

It is a fixed income (debt) instrument issued for a period of more than one year with the purpose of
raising capital. The central or state government, corporations and similar institutions sell bonds. A bond is
generally a promise to repay the principal along with a fixed rate of interest on a specified date, called the
Maturity Date.

Mutual Funds:

These are funds operated by an investment company which raises money from the
public and invests in a group of assets (shares, debentures etc.), in accordance with a stated set of
objectives. It is a substitute for those who are unable to invest directly in equities or debt because of
resource, time or knowledge constraints.
Benefits include professional money management, buying in small amounts and diversification. Mutual
fund units are issued and redeemed by the Fund Management Company based on the fund's net asset
value (NAV), which is determined at the end of each trading session. NAV is calculated as the value of all
the shares held by the fund, minus expenses, divided by the number of units issued. Mutual Funds are
usually long term investment vehicle though there some categories of mutual funds, such as money
market mutual funds which are short term instruments.

What is meant by a Stock Exchange?

The Securities Contract (Regulation) Act, 1956 [SCRA] defines Stock Exchange as any body of
individuals, whether incorporated or not, constituted for the purpose of assisting, regulating or controlling
the business of buying, selling or dealing in securities. Stock exchange could be a regional stock
exchange whose area of operation/jurisdiction is specified at the time of its recognition or national
exchanges, which are permitted to have nationwide trading since inception. NSE was incorporated as a
national stock exchange.

What is an Equity/Share.?

Total equity capital of a company is divided into equal units of small denominations, each called a share.
For example, in a company the total equity capital of Rs 2,00,00,000 is divided into 20,00,000 units of Rs
10 each. Each such unit of Rs 10 is called a Share. Thus, the company then is 11 said to have 20, 00,000
equity shares of Rs 10 each. The holders of such shares are members of the company and have voting
rights.

What is a Debt Instrument?

Debt instrument represents a contract whereby one party lends money to another on pre-determined
terms with regards to rate and periodicity of interest, repayment of principal amount by the borrower to the
lender. In the Indian securities markets, the term bond is used for debt instruments issued by the Central
and State governments and public sector organizations and the term debenture are used for instruments
issued by private corporate sector.

What is a Derivative?

Derivative is a product whose value is derived from the value of one or more basic variables, called
underlying. The underlying asset can be equity, index, foreign exchange (forex), commodity or any other
asset. Derivative products initially emerged as hedging devices against fluctuations in commodity prices
and commodity-linked derivatives remained the sole form of such products for almost three hundred
years. The financial derivatives came into spotlight in post-1970 period due to growing instability in the
financial markets. However, since their emergence, these products have become very popular and by
1990s, they accounted for about two thirds of total transactions in derivative products.

What is a Mutual Fund?

A Mutual Fund is a body corporate registered with SEBI (Securities Exchange Board of India) that pools
money from individuals/corporate investors and invests the same in a variety of different financial
instruments or securities such as equity shares, Government securities, Bonds, debentures etc. Mutual
funds can thus be considered as financial intermediaries in the investment business that collect funds
from the public and invest on behalf of the investors. Mutual funds issue units to the investors. The
appreciation of the portfolio or securities in which the mutual fund has invested the money leads to an
appreciation in the value of the units held by investors. The investment objectives outlined by a Mutual
Fund in its prospectus are binding on the Mutual Fund scheme. The investment objectives specify the
class of securities a Mutual Fund can invest in. Mutual Funds invest in 12 various asset classes like
equity, bonds, debentures, and commercial paper and government securities. The schemes offered by
mutual funds vary from fund to fund. Some are pure equity schemes; others are a mix of equity and
bonds. Investors are also given the option of getting dividends, which are declared periodically by the
mutual fund, or to participate only in the capital appreciation of the scheme

What is an Index?

An Index shows how a specified portfolio of share prices is moving in order to give an indication of market
trends. It is a basket of securities and the average price movement of the basket of securities indicates
the index movement, whether upwards or downwards.

What is a Depository?

A depository is like a bank wherein the deposits are securities (viz. shares, debentures, bonds,
government securities, units etc.) in electronic form.

What is Dematerialization?

Dematerialization is the process by which physical certificates of an investor are converted to an
equivalent number of securities in electronic form and credited to the investors account with
his Depository Participant (DP).

SECURITIES
What is meant by Securities?
The definition of Securities as per the Securities Contracts Regulation Act (SCRA), 1956, includes
instruments such as shares, bonds, scrips, stocks or other marketable securities of similar nature in or of
any incorporate company or body corporate, government securities, derivatives of securities, units of
collective investment scheme, interest and rights in securities, security receipt or any other instruments so
declared by the Central Government.



What is the function of Securities Market?

Securities Markets is a place where buyers and sellers of securities can enter into transactions to
purchase and sell shares, bonds, debentures etc. Further, it performs an important role of enabling
corporate, entrepreneurs to raise resources for their companies and business ventures through public
issues. Transfer of resources from those having idle resources (investors) to others who have a need for
them (corporate) is most efficiently achieved through the securities market. Stated formally, securities
markets provide channels for reallocation of savings to investments and entrepreneurship.
Savings are linked to investments by a variety of intermediaries, through a range of financial products,
called Securities.


Which are the securities one can invest in?
Shares
Government Securities
Derivative products
Units of Mutual Funds etc. are some of the securities investors in the securities market can invest in.

Regulator
Why does Securities Market need Regulators?
The absence of conditions of perfect competition in the securities market makes the role of the Regulator
extremely important. The regulator ensures that the market participants behave in a desired manner so
that securities market continues to be a major source of finance for corporate and government and the
interest of investors are protected.


Who regulates the Securities Market?
The responsibility for regulating the securities market is shared by Department of Economic Affairs (DEA),
Department of Company Affairs (DCA), Reserve Bank of India (RBI) and Securities and Exchange Board
of India (SEBI).

What is SEBI and what is its role?
The Securities and Exchange Board of India (SEBI) is the regulatory authority in India established
under Section 3 of SEBI Act, 1992. SEBI Act, 1992 provides for establishment of Securities and
Exchange Board of India (SEBI) with statutory powers for (a) protecting the interests of investors in
securities (b) promoting the development of the securities market and (c) regulating the securities market.
Its regulatory jurisdiction extends over corporate in the issuance of capital and transfer of securities, in
addition to
All intermediaries and persons associated with securities market. SEBI has been obligated to perform the
aforesaid functions by such measures as it thinks fit. In particular, it has powers for:
Regulating the business in stock exchanges and any other securities markets
Registering and regulating the working of stock brokers, subbrokers etc.
Promoting and regulating self-regulatory organizations
Prohibiting fraudulent and unfair trade practices
Calling for information from, undertaking inspection, conducting inquiries and audits of the stock
exchanges, intermediaries, self regulatory organizations, mutual funds and other persons associated with
the securities market.



























Research Methodology
Definition of Research

The word research is derived from the Latin word meaning to know. It is a systematic and a replicable process
which identifies and defines problems, within specified boundaries. It employs well designed method to collect the
data and analyses the results. It disseminates the findings to contribute to generalizeable knowledge.

The five characteristics of research presented below will be examined in greater detail later are:

Systematic problem solving which identifies variables and tests relationships between them.
Logical, so procedures can be duplicated or understood by others.
Empirical, so decisions are based on data collected.
Reductive, so it investigates a small sample which can be generalized to a larger population.
Replicable, so others may test the findings by repeating it.















OBJECTIVE OF RESEARCH
Research design phase :-
This phase mainly involve stating the conceptual structure within which research would be conducted. The main
steps involved in this phase are as:

Sampling Plan:
The sample was selected for the study by convenient method. This type of sampling where each & every item in the
population has an equal chance of inclusion in the sample.


Sample unit:
Under the study the customers are considered the sample unit in JAIPUR & Jaipur, Bundi Districts.

Sample size
The sample for research consisted of 100 Customers of JAIPUR Jaipur & Bundi Districts. The sample was spread all
over the JAIPUR Jaipur& Bundi Districts. The sample size was restricted to 100 because of financial & time
constraint.

SOURCES OF DATA COLLECTION
There are two sources:
1. Primary sources:-
Primary data is collected through market survey.
2. secondary sources:-
Secondary sources are websites and brouchers.




Preparation of Questionnaire :-

The questionnaire was prepared by the researcher himself. The preparation of questionnaire was
done by keeping the objective of study in mind. The researcher took some help from experts during the
framing of questionnaires. The preparation of questionnaire took about 4-5 days. The questionnaire used
for study was of closed type since it is free from bias nature of respondents.




Analysis phase :-

After the data has been collected the researcher tabulated the data from the tables the
researcher analyzed the data. During the analysis of data help of various types of charts & graphs was
taken. The analysis phase took about seven days. For further results weighted average method was used
whenever required. Finally on the basis of analysis various results and conclusions were drawn.














Data Analysis & Interpretation

Q.1 Do you know about Idia advantage ?


Q.2 Where would you like to Invest ?


















Q.3Which company of the share market are you aware of ?




















Q.4 Do you invest in share market ?
























Q.5 In which brokerage house you have your demat account ?

















6 How often do you trade ?
















Q.7 What is the brokerage charged(Intraday) by your company ?
















Q.8 Which of these products apart from equity your company is providing ?
















Q.9 Does your company provide online trading ?















Q.10 Are there any charges for online trading facility ?















Q.11 What ranks would you give to these companies as per their services ?














FINDINGS


Idia advantage Broking Ltd. is a world class company and providing very good services to its clients

Its main objective to provide personalize services to the clients


In the survey it found that 50 percent people among the whole are aware about the services providing by Idia
advantage Broking Ltd

44 persons are like to invest in share market among the total which is the highest among other alternatives


Around 38 People among total are more aware about Idia advantage Broking Ltd. and like to give preference

There are 77 percent persons among total who like to invest in Idia advantage Broking Ltd. than others and
33 percent are used to trade daily


Idia advantage Broking Ltd. is providing lots of services to its clients like PMS, Investment Advisory, M-
Connect, E-Broking, Insurance, Mutual Fund

89 percent people said that their company from where they are availing investment in stock market is
providing online trading and others are not


Among all the companies Idia advantage Broking Ltd. is at the 1st no.

Questionnaire

Name. Age.

Occupation..
Address.

1. Do you know about Idia advantage ?
Completely unaware Have heard about them Aware


2. Where would you like to Invest ?
Fixed Deposits Share Market Property
Jewellery Insurance

3. Which company of the share market are you aware of ?
Idia advantage Broking Religare Indiabulls
Anand Rathi Others


4. Do you invest in share market ?
Yes No



5.In which brokerage house you have your demat account ?

Idia advantage
Broking Religare Indiabulls
Others
Anand Rathi


6. How often do you trade ?
Daily Weekly
onthly Sometimes



7. What is the brokerage charged (Intraday) by your company ?
.10-.25 >.25
>.50 >.75



8. Which of these products apart from equity your company is providing ?
Insurance Investment Advisory
Mutual Fund P.M.S
Trading All of the above





9. Are your company provide online backoffice facility ?
Yes No


1. Does your company provide online trading ?
Yes No


12. Are there any charges for this facility ?
Yes No


13. What ranks would you give to these companies as per their services ?
Idia advantage Broking.
Religare..
Indiabulls..
Anand Rathi
Others


14. What do you expect from Idia advantage Broking ?

.



15. Any suggestions ?

16. Any References ?
a).
b).


17. Are you aware of the Prevailing system of performance appraisal in your organization?
Yes, to certain extent No



18. In my opinion, the need for performance management system in the organization.

Very high Quite high Rather high


Quite low Very low








19. My satisfaction with the appraisal system is:



Very high Quite high Rather high

Quite low Very low


20. Extent of clarity in communication of the key performance areas.
Very high Quite high Rather high

Quite low Very low


21. Extent of feedback & guidance provided to me before the annual appraisal about performance is:

Very high Quite high Rather high

Quite low Very low



22. The extent of unbiased assessment of my performance under the present system is:

Very high Quite high Rather high

Quite low Very low



23. Extent to which the current appraisal system is successful in finding the areas improvement in my
performance:

Very high Quite high Rather high




Quite low Very low


24. The extent of effort in discovering my potential for shouldering higher responsibilities through the
existing system of appraisal:

Very high Quite high Rather high

Quite low Very low


25. The extent of detailed discussion and guidance for future performance on the basis of past years
performance appraisal:


Very high Quite high Rather high

Quite low Very low



26. Do the appraisal system helps appraise to gain more insights into their strengths and weakness:



Very high Quite high Rather high


Quite low Very low


27 .Do you have any suggestion to improve the current appraisal system of
your organization?If yes, please quote




































SUMMARY OF LEARNING EXPERIENCE
We can summarize of our learning experience as how to behave in corporate world.
2. How to work under pressure
3. How to handle team.
4. How to get worked done from team.
5. To maximize the market share of the organization and how to interact with the customer it is known.
6. What is the working process of organization?
7. How to fight with competitors.
8. How to find out the weaknesses of competitors.
9. How to convert competitors client in our organization client.
10. How to analyze the need of client.
11. How to satisfy the need of client.













ACHIEVEMENTS

.
I have achieved all the targets, which the company had set for me for these two months. Up till now I
have opened 4 demat accounts, and assisted its employees in various other activities

I have got the knowledge on how to operate a terminal for trading in the stock market (ODIN based
software).

Apart from this I have also developed skills on how to interact with customers.















CONCLUSION

To succeed in digital space, marketers need to engaged, excite, enable customer, to fulfill there
expectation. Marketing system is more agile and responsive. Customer experience and trusty, security
and privacy are critical factor. E-World is unforgiving and has less patience. Hence promise to perform to
keep up promise. Internet has resulted in consumer power shift and also marketing ability to respond and
anticipate. Still the need for creative marketing exists. Internet is profound

Impact on value changes activities. There is need to synergies online and offline effort to offer
better value. Designing E-Business plan and measuring E-Metric is essential. Internet serves a new
business for advertising, marketing research and sales promotion, distribution. Similar studies need to be
conducted across diverse areas in B2C and B2B domains to understand attitudes, behavior and key
success factor.




Recommendations


1. They should start funding facility

2. They should start loan facility

3. They should provide proper training to sub-brokers in the area of customer service.

4. Time taken in account opening is too long i.e. 6-8 days in comparison with other DPs providing the
account opening in 2-3 days and sometimes even in one day, so the time limit should be reduced so that
the users are interested in opening the account.

5. A lot of Idia advantages customers have been a result of Word of Mouth awareness. If Idia advantage
could now focus on enhancing their Brand presence through marketing activities then Idia advantage has
the potential to attract more customers.






LIMITATI
ONS

The following are the certain limitations of the study:
1. Time constraint
2. Geographical constraint
3. The survey is limited to few areas in Jaipur
4. Jaipur city is new place for me so I could not find potential customer in different places
5. I am new in this field and I have no any past experience of opening Demat account
6. People are reluctant to give appointment and real information
7. Product are expensive compare to other products in the field
8. Most of the people are not aware of the share market how to trade so its hard to
convince them
9. Jaipur is a very big city so its not easy to reach every single customer















:













BIBLIOGRAPHY

www.Idia advantageharmony.com
www.Idia advantagebroking.com
www.google.com
www.Idia advantagetrade.com
www.timesofindia.com
www.ivcj.com




Posted by Rahul Saini at 4:40 AM
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2 comments:
1.
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2.
Abhay dangwalMarch 26, 2014 at 10:21 PM
Really a very nice post! Its something I have never thought about, really, but it makes a whole lot
of sense. Thanks for sharing the valuable information regarding Broking Service Provider in
india.
Reply
Summer Internship Project
COMPARITIVE ANALYSIS OF STOCK BROKING
COMPANIES
Submitted in partial fulfillment of PGDM program2012-14
Submitted by
Name-Sameeksha Shokeen
Roll Number-05/08
Corporate Mentor Faculty Mentor
Name-Mr.Jaipal Singh Name-Mrs. Divya Jindal
Company-Assistant Manager Designation-Professor
Apeejay School of Management
New Delhi
July 2013
CERTIFICATE
This is to certify that the project work done on COMPARITIVE ANALYSIS OF STOCK BROKING
COMPANIES Submitted to Apeejay School of Management,
Dwarka by SAMEEKSHA SHOKEEN in partial fulfillment of the requirement for the award of PG Diploma
in International Business, is to the best of my knowledge a bona fidework carried out by him/her under
my supervision and guidance. This work has not been submitted anywhere else for any other
degree/diploma. The original work was carried out during April 2013 to june 2013 in SHAREKHAN LTD.
Date:
Seal/Stamp of the Organization Signature
Name of Corporate Mentor
CERTIFICATE
This is to certify that I SAMEEKSHA SHOKEEN (IB/05/08) have carried out my Summer internship
in SHAREKHAN LTD in the area JHANDEWALAN. It is also certified that the work done by me is original
with due references of sources, and has not been submitted elsewhere for the award of any diploma or
degree.
_____________________
Signature
Name of the Student
Date : _________________________
Countersigned by Faculty Mentor
EXECUTIVE SUMMARY
Indian securities markets have undergone many changes during the last decade. Exponential growth in
trading volumes is pushing existing trading systems and processes to capacity and increasing settlement
risk. With Indian market moving to a T+2 rolling settlement cycles in line with global markets, SEBI is
continuing its efforts to increase the efficiency and transparency in Indian markets. Indeed it has been
SEBI endeavor to make the Indian markets, one of the most competitive and efficient markets of the
world.
Income, Savings mobilization and promotion of investment are functions of the stock and capital
markets which are a part of the organized financial system in India.
This Project title COMPARATIVE STUDY OF BROKERAGE COMPANIES is an attempt to understand
the stock market and role played by Indian retail Brokerage Firms in stock market. The objective of
brokerage firms is to help the investor to minimize the risk involved in investment and maximize the
return. Some of the main characteristics of the brokerage industry include growth ine-broking; growing
derivatives market, decline in brokerage fees etc. An endeavor was also made to understand the role
played by SHAREKHAN compared to its competitors in Indian retail brokerage market.
The role played by Indian retail brokerage industry is of immense significance, taking into account the
health of the capital markets and the intensity of competition among the brokerage companies.In most
industrialized countries, a substantial part of financial wealth is not managed directly by savers, but
through a financial intermediary, which implies the existence of an agency contract between the
investor (the principal) and a broker or portfolio manager (the agent). Therefore, delegated brokerage
management is arguably one of the most important agency relationships intervening in the economy,
with a possible impact on financial market and economic developments at a macro level.
In most of the metros, people like to put their money in stock options instead of dumping it in the bank-
lockers. Now, this trend pick pace in small but fast developing cities like Noida, Gurgaon, Ghaziabad etc.
My research is based on the residents of Delhi and its nearby areas.
As the per-capita-income of the city is on the higher side, so it is quite obvious that they want to invest
their money in profitable ventures. On the other hand, a number of brokerage houses make sure the
hassle free investment in stocks. Asset management firms allow investors to estimate both the expected
risks and returns, as measured statistically.
HISTORY OF STOCK EXCHANGE IN INDIA
The emergence of stock market can be traced back to 1830. In Bombay, business passed in the shares of
banks like the commercial bank, the chartered mercantile bank, the chartered bank, the oriental bank
and the old bank of Bombay and shares of cotton presses. In Calcutta, Englishman reported the
quotations of 4%, 5%, and 6% loans of East India Company as well as the shares of the bank of Bengal in
1836. This list was further broadened in 1839 when the Calcutta newspaper printed the quotations of
banks like union bank and Agra bank. It also quoted the prices of business ventures like the Bengal
bonded warehouse, the Docking Company and the storm tug company.
The entrance fee for new member was Re.1 and there were 318 members on the list, when the
exchange was constituted. The numbers of members increased to 333 in 1896, 362 in 1916and 478 in
1920 and the entrance fee was raised to Rs.5 in 1877, Rs.1000 in 1896, Rs.2500 in 1916 and Rs. 48,000 in
1920. At present there are 23 recognized stock exchanges with about 6000 stock brokers. Organization
structure of stock exchange varies.
14 stock exchanges are organized as public limited companies, 6 as companies limited by guarantee and
3 are non-profit voluntary organization. Of the total of 23, only 9 stock exchanges have been permanent
recognition. Others have to seek recognition on annual basis.
These exchange do not work of its own, rather, these are run by some persons and with the help of
some persons and institution. All these are down as functionaries on stock exchange. These are
Stockbrokers
sub-broker
market makers
Portfolio consultants etc.
1.) Stockbrokers - Stock brokers are the members of stock exchanges. These are the persons who buy,
sell or deal in securities. A certificate of registration from SEBI is mandatory to act as a broker. SEBI can
impose certain conditions while granting the certificate of registrations. It is obligatory for the person to
abide by the rules, regulations and the buy-law. Stock brokers are commission broker, floor broker,
arbitrageur etc.
2.) Sub-broker - A sub-broker acts as agent of stock broker. He is not a member of a stock exchange. He
assists the investors in buying, selling or dealing in securities through stockbroker. The broker and sub-
broker should enter into an agreement in which obligations of both should be specified.Sub-broker must
be registered SEBI for a dealing in securities. For getting registered with SEBI, he must fulfill certain rules
and regulation.
3.) Market Makers - Market maker is a designated specialist in the specified securities. They make both
bid and offer at the same time. A market maker has to abide by bye-laws, rules regulations of the
concerned stock exchange. He is exempt from the margin requirements. As per the listing requirements,
a company where the paid-up capital is Rs. 3 crore but not more than Rs. 5 crore and having a
commercial operation for less than 2 years should appoint a market maker at the time of issue of
securities.
4.) Portfolio consultants - A combination of securities such as stocks, bonds and money market
instruments is collectively called as portfolio. Whereas the portfolio consultants are the persons, firms
or companies who advise, direct or undertake the management or administration of securities or funds
on behalf of their clients.
Partial fulfillment for degree of M.B.A. programmed, we received the opportunity from Sharekhan Ltd.
for our summer training project report. It is basically a stock brokering company which deals in security
and derivative market, Commodity market, mutual funds and Insurance etc.
The Indian Stock Market in India comprises of two stock exchanges:
Bombay Stock Exchange (BSE)
National Stock Exchange (NSE)
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 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.
The BSE Sensex, also known as BSE 30 is a widely used market index not only in India but across
Asia. In terms of volume of transactions, it is ranked among the top five stock exchanges in the world.
NSE
The National Stock Exchange of India Ltd. (NSE), set up in the year 1993, is today the largest stock
exchange in India and a preferred exchange for trading in equity, debt and derivatives instruments by
investors. 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 benchmarks and are being replicated
by many other market participants.
NSE provides a screen-based automated trading system with a high degree of transparency and equal
access to investors irrespective of geographical location. The high level of information dissemination
through the on-line system has helped in integrating retail investors across the nation.
The exchange has a network in more than 350 cities and its trading members are connected to the
central servers of the exchange in Mumbai through a sophisticated telecommunication network
comprising of over 2500 VSATs.
NSE has around 850 trading members and provides trading in equity shares and debt securities.
Besides this, NSE provides trading in various derivative products such as index futures, index
options, stock futures, stock options and interest rate futures.
In addition to these organizations there are other organizations highlighting on the share trading
in the Indian Stock Market are:
Securities and Exchange Board of India (SEBI)
NSDL
CDSL
The Nifty and the Sensex are the indicators which are the parameters denoting the prices of the
stocks of the major companies of the NSE and the BSE respectively.
Stock Exchange
The Securities Contract (Regulation) Act, 1956 *SCRA+ defines Stock Exchange as anybody of
individuals, whether incorporated or not, constituted for the purpose of assisting, regulating or
controlling the business of buying, selling or dealing in securities. Stock exchange could be a regional
stock exchange whose area of operation/jurisdiction is specified at the time of its recognition or national
exchanges, which are permitted to have nationwide trading since inception. NSE was incorporated as a
national stock exchange.
Equity/Share
Total equity capital of a company is divided into equal units of small denominations, each called a share.
The holders of such shares are members of the company and have voting rights.
Debt Instrument
Debt instrument represents a contract whereby one party lends money to another on pre- determined
terms with regards to rate and periodicity of interest, repayment of principal amount by the borrower to
the lender. In the Indian securities markets, the term bond is used for debt instruments issued by
the Central and State governments and public sector organizations and the term debenture is
used for instruments issued by private corporate sector.
Derivative
Derivative is a product whose value is derived from the value of one or more basic variables, called
underlying. The underlying asset can be equity, index, foreign exchange (forex), commodity or any other
asset. Derivative products initially emerged as hedging devices against fluctuations in commodity prices
and commodity-linked derivatives remained the sole form of such products for almost three hundred
years. The financial derivatives came into spotlight in post-1970 period due to growing instability in the
financial markets.
Mutual Fund
A Mutual Fund is a body corporate registered with SEBI (Securities Exchange Board of India) that pools
money from individuals/corporate investors and invests the same in a variety of different financial
instruments or securities such as equity shares, Government securities, Bonds, debentures etc. Mutual
funds can thus be considered as financial intermediaries in the investment business that collect funds
from the public and invest on behalf of the investors. Mutual funds issue units to the investors. The
appreciation of the portfolio or securities in which the mutual fund has invested the money leads to an
appreciation in the value of the units held by investors. The investment objectives outlined by a Mutual
Fund in its prospectus are binding on the Mutual Fund scheme. The investment objectives specify the
class of securities a Mutual Fund can invest in. Mutual Funds invest in various asset classes like equity,
bonds, debentures, commercial paper and government securities. The schemes offered by mutual funds
vary from fund to fund. Some are pure equity schemes; others are a mix of equity and bonds. Investors
are also given the option of getting dividends, which are declared periodically by the mutual fund, or to
participate only in the capital appreciation of the scheme.
Index
An Index shows how a specified portfolio of share prices is moving in order to give an indication of
market trends. It is a basket of securities and the average price movement of the basket of securities
indicates the index movement, whether upwards or downwards.
Depository
A depository is like a bank wherein the deposits are securities (viz. shares, debentures, bonds,
government securities, units etc.) in electronic form.
Dematerialization
Dematerialization is the process by which physical certificates of an investor are converted to an
equivalent number of securities in electronic form and credited to the investors account with his
Depository Participant (DP)
Securities
The definition of Securities as per the Securities Contracts Regulation Act (SCRA), 1956, includes
instruments such as shares, bonds, scrips, stocks or other marketable securities of similar nature in or of
any incorporate company or body corporate, government securities, derivatives of securities, units of
collective investment scheme, interest and rights in securities, security receipt or any other instruments
so declared by the Central Government.
Securities one can invest in?
Shares
Government Securities
Derivative products
Units of Mutual Funds etc.
Chapter 1
The Area of Internship and Learning Objectives
NEW CONCEPT, IDEAS AND APPROACHES LEARNED DURING THE
PROGRAM
My Summer Internship Program was a total learning experience for me. Usually in Internship Programs,
interns are told about a job and they have to meet targets and prove themselves. In Sharekhan, we had
to sell financial product like Demat account but more than that we were taught all new concepts about
share market.
When we used to trade every day, we applied new approaches to gain rather than losing money. Each
approach was different from another as market fluctuations were not in our hand. Every time we had to
think of some new concepts and ideas to recover the loss or to gain money. During the online trading,
we applied all our theoretical knowledge that was given to us by our Corporate Mentor.
INTERNSHIP, LEADERSHIP, TEAMBUILDING, PROJECT
MANAGEMENT, TIME MANAGEMENT EXPERIENCED ACQUIRED
I learned a lot in my Summer Internship. I was the head person in my batch. I had taken the initiative to
lead the team. In Sharekhan, I polished my leadership skills as I was the sole mediator between the
corporate mentor and my batch mates.
My worked on my communication skills as I had to deal with many customers to sell the financial
products or get the questionnaire filled. I have always been confident in dealing and communicating
with people but most importantly I learned to convince people.
There were multiple batches of different institutes running in the organization. ASM students were
mixed with three other institutes: Fore School of Management, Jaypee Institute of Information
Technology and Delhi School of Professional Studies and Research. Here I learned how to work in a team
collectively. I could brush up with my team working skills.
I was very punctual in my organization. When we started trading in currency, market opens from 9:00
AM to 5:00 PM. I had to report before 9pm got and I used to leave after 5 pm after the market closed.
Later when we traded in Equity (Options), the market opened at 9:15 AM and closed at 3:30 PM. At that
time I used to report at 9am and used to sit till 5pm even though the market closed at 3:30pm. I used to
discuss more about the stock market and used to get more insights about the topic of my project. Being
punctual made me tone up my time management skills.
Overall it was a pleasure of getting trained in such a well established organization, and in such a humble,
healthy and supportive organization culture. It was a great learning experience. We got the theoretical
as well as practical knowledge, each and everything was taught in detail and was explained very clearly.
It was a great learning curve for me.
LITERATURE REVIEW
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 of greater disclosure requirements
for investors interests, considering the important role such intermediaries play, being an interface
between investors and exchanges but also from the point of view of 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
stakeholders including the investors, stock brokers themselves, the regulator and others who will
benefit from the transparency and the consequential focus on efficiency.
According to SEBI and Intermediaries Regulation and Supervision Department, different factors are
consider for rating process Organization structure, Policy on Investors interest, Risk Management Policy
and System, Organization process and procedures, Management policy on compliance, Financials,
History/Background, Firms positioning.
Investors dont Make Money in the Stock Market. One reason the institutions make so much money
is that they are trading. They make money every time you buy or sell. They make money whether you
win or lose. That means that when youre investing, youre basically just sitting there. Youre
not going anywhere. Youre not making money as an investor.
Trading the Trend: The Only Way to Make Money in the Market
If you dont know this already, Trend Trading means trading trends based on human
emotions.
Not lagging indicators. Not complex statistical analysis and not Ph.D. level mathematical
equations. With trend trading, you look for market movement. That could mean stocks that are
going to move up or down during the course of a day (intraday). Youll play the gaps up and
down, often several days a week.
The Trend trading means being aware and taking advantage of trends like the run-ups that
happen around earning sessions. These are trends that have worked time and time again in the
market. They consistently yield results.
CHAPTER-2
PROFILE OF THE COMPANY
COMPANY BACKGROUND
Sharekhan 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 business. 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.
Earlier with a legacy of more than 80 years in the stock markets, the SSKI group ventured into
institutional broking and corporate finance 18 years ago. SSKI is one of the leading players in
institutional broking and corporate finance activities. SSKI holds a sizeable portion of the market in each
of these segments. SSKIs institutional broking arm accounts for 7% of the market for
Foreign Institutional portfolio investment and 5% of all Domestic Institutional portfolio investment in
the country. It has 60 institutional clients spread over India, Far East, UK and US.
Foreign Institutional Investors generate about 65% of the organizations revenue, with a daily
turnover of over US$ 2 million.
The content-rich and research oriented portal has stood out among its contemporaries because of its
steadfast dedication to offering customers best-of-breed technology and superior market information.
The objective has been to let customers make informed decisions and to simplify the process of
investing in stocks.
WORK STRUCTURE OF SHAREKHAN
Sharekhan has always believed in investing in technology to build its business. The company has used
some of the best-known names in the IT industry, like Sun Microsystems, Oracle, Microsoft, Cambridge
Technologies, Nexgenix, Vignette, Verisign Financial Technologies India Ltd, Spider Software Pvt Ltd. to
build its trading engine and content. The Citi Venture holds a majority stake in the company. HSBC, Intel
& Carlyle are the other investors.
On April 17, 2002 Sharekhan launched Speed Trade and Trade Tiger, are net-based executable
application that emulates the broker terminals along with host of other information relevant to the Day
Traders. This was for the first time that a net-based trading station of this caliber was offered to the
traders. In the last six months SpeedTrade has become a de facto standard for the Day Trading
community over the net.
Sharekhans ground network includes over 1502 centres in 550 cities in India which
provide a host of trading related services.
The firms online trading and investment site - www.sharekhan.com - was launched on Feb 8, 2000.
The site gives access to superior content and transaction facility to retail customers across the country.
Known for its jargon-free, investor friendly language and high quality research, the site has a registered
base of over 3 Lacs customers. The number of trading members currently stands at over 7 Lacs. While
online trading currently accounts for just over 5 per cent of the daily trading in stocks in India,
Sharekhan alone accounts for 27 per cent of the volumes traded online.
The Corporate Finance section has a list of very prestigious clients and has many firsts to its
credit, in terms of the size of deal, sector tapped etc. The group has placed over US$ 5 billion in private
equity deals. Some of the clients include BPL Cellular Holding, Gujarat Pipavav, Essar,
Hutchison, Planetasia, and Shoppers Stop.
Finally, Sharekhan shifted hands and Citi venture get holds on it.
REASONS TO CHOOSE SHAREKHAN LIMITED
Experience
SSKI has more than eight decades of trust and credibility in the Indian stock market. In the Asia Money
broker's poll held recently, SSKI won the 'India's best broking house for 2004' award. Ever since it
launched Sharekhan as its retail broking division in February 2000, it has been providinginstitutional-
level research and broking services to individual investors.
Technology
With their online trading account one can buy and sell shares in an instant from any PC with an internet
connection. Customers get access to the powerful online trading tools that will help them to take
complete control over their investment in shares.
Accessibility
Sharekhan provides ADVICE, EDUCATION, TOOLS AND EXECUTION services for investors. These services
are accessible through many centers across the country (Over 650 locations in 150 cities), over the
Internet (through the website www.sharekhan.com) as well as over the Voice Tool.
Knowledge
In a business where the right information at the right time can translate into direct profits, investors get
access to a wide range of information on the content-rich portal, www.sharekhan.com. Investors will
also get a useful set of knowledge-based tools that will empower them to take informed decisions.
Convenience
One can call Sharekhans Dial-N-Trade number to get investment advice and execute his/her
transactions. They have a dedicated call-center to provide this service via a Toll Free Number1800-22-
7500 & 39707500 from anywhere in India.
Customer Service
Its customer service team assist their customer for any help that they need relating to transactions,
billing, demat and other queries. Their customer service can be contacted via a toll- free number, email
or live chat on www.sharekhan.com.
Investment Advice
Sharekhan has dedicated research teams of more than 30 people for fundamental and technical
research. Their analysts constantly track the pulse of the market and provide timely investment advice
to customer in the form of daily research emails, online chat, printed reports etc.
Benefits
Free Depository A/c
Instant Cash Tranfer
Multiple Bank Option.
Secure Order by Voice Tool Dial-n-Trade.
Automated Portfolio to keep track of the value of your actual purchases.
24x7 Voice Tool acess to your trading account.
Personalised Price and Account Alerts delivered instantly to your Mobile Phone & E-mailaddress.
Live Chat facility with Relationship Manager on Yahoo Messenger
Special Personal Inbox for order and trade confirmations.
On-line Customer Service via Web Chat.
Enjoy Automated Portfolio.
Buy or sell even single share
Anytime Ordering.
SHAREKHAN OFFERS THE FOLLOWING
CLASSIC ACCOUNT
This is a User Friendly Product which allows the client to trade through website www.sharekhan.comand
is suitable for the retail investors who is risk-averse and hence prefers to invest in stocks or who do not
trade too frequently.
Features
Online trading account for investing in Equity and Derivatives via www.sharekhan.com
Live Terminal and Single terminal for NSE Cash, NSE F&O & BSE.
Integration of On-line trading, Saving Bank and Demat Account.
Instant cash transfer facility against purchase & sale of shares.
Competitive transaction charges.
Instant order and trade confirmation by E-mail.
Streaming Quotes (Cash & Derivatives).
Personalized market watch.
Single screen interface for Cash and derivatives and more.
Provision to enter price trigger and view the same online in market watch.
SPEEDTRADE
SPEEDTRADE is an internet-based software application that enables you to buy and sell in an instant.It is
ideal for active traders and jobbers who transact frequently during days session to capitalize onintra-
day price movement.
Features
Instant order Execution and Confirmation.
Single screen trading terminal for NSE Cash, NSE F&O & BSE.
Technical Studies.
Multiple Charting.
Real-time streaming quotes, tic-by-tic charts.
Market summary (Cost traded scrip, highest clue etc.)
Hot keys similar to brokers terminal.
Alerts and reminders.
Back-up facility to place trades on Direct Phone lines.
Live market debts.
DIAL-N-TRADE
Along with enabling access for trade online, the CLASSIC and SPEEDTRADE ACCOUNT also givesDial-n-
trade services. With this service, one can dial sharekhans dedicated phone lines 1-800-22-
7500, 3970-7500.Beside this, Relationship Managers are always available on Office Phone and Mobile to
resolve customer queries.
PREPAID ACCOUNT
Customers pay Advance Brokerage on trading Account and enjoy uninterrupted trading in their Account.
Beside this, great discount are also available (up to 50%) on brokerage.
Prepaid Classic Account : - Rs. 1000/-
Charge Structure
Fee Structure for General Individuals: -
Charge Classic Account Speed Trade Account
Account Opening Rs. 1000 Rs. 750
Monthly Rs. NIL Rs. NIL
Commitment
Brokerage Intra-day 0.10 % Intra-day - 0.05%
Delivery - 0.50 % Delivery - 0.50%
* Taxes as per govt.
Depository Charges
Account Opening Charges Rs. NIL
Annual Maintenance Charges Rs. NIL first year.
Rs. 400/= p.a. from second calendar year
onward
EXPOSURE: 4 TO 6.7 TIMES (ON MARGIN MONEY)
Promoters
Sharekhan Ltd (Formally SSKI Investors Services Pvt. Ltd.) was promoted by Mr. Shripal S
Morkharia and Mr. Shreyas S Morkhia. It is currently Indias largest broking house. It is a
member of the stock exchange, Mumbai. It is a depository participant of the NSDL and CDSL.
Vision
Sharekhan practices customer centric approach to be the leading broking firm. The company vision is :
To be the top most company for providing investment advisory and financial planning service in
India.
To be a leading investment intermediary for transaction through both onlineand offline medium.
Enhance transaction handling capability.
Develop human capital technology enable products, services, and internalprocesses with a view or
focus on operating efficiency and economy of scale.
Mission
1) Research backed advice, which is easy to understand, retail specific anddiscipline.
2)Total equity solution for the entire investment process.
3)To identify and support initiatives, with are designed to improve the capacity of the poorest of the
poor to participate in the large economy.
4)These initiative must be cost effective, capable of large scale replication andshould have the potential
for both near and long term impact.
5)To leverage technology in order to overcome constraints and enhance theeffectiveness of various
social initiative
ORGANISATION STRUCTURE

PRODUCTS AND SERVICES OF SHAREKHAN LIMITED
The different types of products and services offered by Sharekhan Ltd. are as follows:
Equity and derivatives trading
Depository services
Online services
Commodities trading
Dial-n-trade
Portfolio management
Share shops
Fundamental research
Technical research
Marketing Strategies
The marketing strategy is mainly focused on reaching to every segment of people.
Segmentation
Sharekhan has segmented the whole market in to three types of clients which are as follows
Retail investors
High net worth investors
Day traders (or) speculators
Most of the retail investors are salaried persons and middle income class people. They enter with initial
capital around Rs.5000-25000. High net worth investors are clients who invest more than Rs.5 lakhs.
They are mostly high income group. Day traders are clients who are professional speculators and day
traders.
Targeting
As most of clients are middle income people, Sharekhan targets mainly on retail investors such as
salaried people and middle income people.
Positioning
Positioning strategy adopted by Sharekhan is they associated themselves with technology. Standardized
procedures are the first thing that comes to mind of a client when he thinks of Sharekhan.
Lead Management Systems
It is LMS which means leads are generated by the customer who want to purchase the product of the
company. Companies provide facility to the customer on online to fill the registration form through
which the companys executives can provide more information to the customer.
Direct Marketing
Sharekhan executives reaches to the doors of the customer by fixing appointments with the
interested customer, they describe the details of the product. Executive give demonstration of the
products so that customer can understand better.
Advertising
Advertising is the most important tool of increasing awareness of the product and this is the most
widely used technique by the company to tell about the new features and new lunch by giving briefing
of the product. Sharekhan use banners, distribution of pamphlets, and advertisement in newspapers,
magazines.
Competitors
1)INDIA INFOLINE
2)HDFC SECURITIES
3)ICICI DIRECT 4)SHAREKHAN LTD.
INDIA INFOLINE
About the IIFL Group
The India Infoline (IIFL) group, comprising the holding company, India Infoline Ltd (NSE: INDIAINFO, BSE:
532636, Bloomberg: IIFL) and its subsidiaries, is one of the leading players in the Indian financial services
space. 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, GoI bonds and other small savings instruments. It
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 FinanceAsia and the Most improved
brokerage, India in the AsiaMoney polls. IIFL was also adjudged as Fastest Growing Equity
Broking House - Large firms by 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 where it is amongst one of the most read Indian
brokers.
A network of over 3,000 business locations spread over more than 500 cities and towns across India
facilitates the smooth acquisition and servicing of a large customer base. All our offices 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, over a variety of mediums viz. online, over the phone and
at our branches.
IIFL refers to India Infoline Ltd and its group companies.
For further information please contact:
Ms. Nikita Amlekar Corporate Communications India Infoline Ltd
M : (+91) 90046 63042E-mail: HYPERLINK "mailto:nikita.amlekar@indiainfoline.com" HYPERLINK
"mailto:nikita.amlekar@indiainfoline.com" HYPERLINK
Mr. Pranav Thakkar Sampark PR
D: (+91 22) 4042 5565 M : (+91) 9833924775
E-mail: HYPERLINK "mailto:pranav.thakkar@sampark.com" HYPERLINK
"mailto:pranav.thakkar@sampark.com" HYPERLINK
"mailto:nikita.amlekar@indiainfoline.com" HYPERLINK "mailto:nikita.amlekar@indiainfoline.com"
HYPERLINK "mailto:nikita.amlekar@indiainfoline.com" HYPERLINK
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OUR PRODUCTS & SERVICES
Equities
Online Trading
Commodities
Insurances
Wealth Management
Asset Management
Mutual Funds
Loans
Stock SMS Service
Newsletters
HDFC SECURITIES

COMPANY PROFILE
HDFC Bank Limited is an Indian financial services company that was incorporated in August 1994. HDFC
Bank is the fifth or sixth largest bank in India by assets and the second largest bank by market
capitalization as of February 24, 2012. The bank was promoted by the Housing Development Finance
Corporation, a premier housing finance company (set up in 1977) of India. HDFC Bank has 1,986
branches and over 5,471 ATMs, in 996 cities in India, and all branches of the bank are linked on an
online real-time basis. As of 30 September 2008 the bank had
total assets of Rs.1006.82 billion.[3] For the fiscal year 2010-11, the bank has reported net profit of
3,926.30 crore (US$783.3 million), up 33.1% from the previous fiscal. Total annual earnings of the bank
increased by 20.37% reaching at 24,263.4 crore (US$4.84 billion) in 2010-
11.[4] HDFC Bank is one of the Big Four banks of India, along with: State Bank of India, ICICI
Bank and Punjab National Bank. HDFC Banks equity shares are listed in India on Bombay
Stock Exchange and the National Stock Exchange of India Limited
CAPITAL STRUCTURE
As on 31st March, 2012 the authorized share capital of the Bank is Rs. 550 crore. The paid-up capital as
on the said date is Rs. 469,33,76,540 (234,66,88,270 equity shares of Rs. 2/- each). The HDFC Group
holds 23.15% of the Bank's equity and about 17.29 % of the equity is held by the ADS / GDR Depositories
(in respect of the bank's American Depository Shares (ADS) and Global Depository Receipts (GDR)
Issues). 30.68 % of the equity is held by Foreign Institutional Investors (FIIs) and the Bank has 4,47,924
shareholders.
The shares are listed on the Bombay Stock Exchange Limited and The National Stock Exchange of India
Limited. The Bank's American Depository Shares (ADS) are listed on the New York Stock Exchange (NYSE)
under the symbol 'HDB' and the Bank's Global Depository Receipts (GDRs) are listed on Luxembourg
Stock Exchange under ISIN No US40415F2002.
ICICI DIRECT
ICICI Web Trade Limited (IWTL) maintains www.icicidirect.com (herein after referred to as the
"Website") whereas IWTL is an affiliate of ICICI Bank Limited and the Website is owned by
ICICI Bank Limited. IWTL has launched and established an online trading service on the
Website.
Margin Trading
Personal Finance
Investing in Mutual Funds
PRODUCTS AND SERVICES OF ICICI DIRECT
Call Trade
IPOS
Trading on NSE/ BSE
Trade in Derivatives
How to open account with ICICIDirect?
For Online Stock Trading with ICICI, investor needs to open 3 accounts...ICICI Bank Account, ICICI Direct
Trading Account and ICICI Demat Account (DP Account).
Note: If you already have a bank account or demat account with ICICI, you could link it with new
ICICIDirect trading account.
Opening trading account with ICICI is easy. You could use one of the following options to open account
with ICICIDirect.
Visit ICICIDirect.com and fill the "Open an Account" form.
Call ICICI and tell them that you are interested in opening an account with them.
In both the cases ICICI representative contact you in a day or two and tell you about the procedure to
open the account. They usually send somebody to your home to collect documents, signature and for
demo if required.
Advantages of ICICI Direct
3-in-1 account integrates your banking, broking and demat accounts. All accounts are from ICICI and
very well integrated. This feature makes ICICI the most interesting player in online trading facility. There
is absolutely no manual interfere require. This is truly online trading environment.
Unlike most of the online trading companies in India which require transferring money to the
broker's pool or towards deposits, at ICICI Direct you can manage your own demat and bank accounts
through ICICIdirect.com. Money from selling stock is available in ICICI bank account as soon as the ICICI
Direct receive it.
Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal Savings Schemes all from one
website. General Insurance is also available from ICICI Lombard.
Trading is available in both BSE and NSE.
Disadvantages of ICICI Direct
Getting access to ICICI Direct.com website during market session can be frustrating.
ICICI Direct brokerage is high and not negotiable.
Not all stocks are available under Margin Plus.
Achievements of Sharekhan
SSKI has been voted as the Top Domestic Brokerage House in the research category, twice by Euro
money Survey and four times by Asia money Survey
Rated among the top 20 wired companies along with Reliance, HUJl, Infosys, etc by
Business Today, January 2004 edition.
Awarded Top Domestic Brokerage House four times by Euro money and Asiamoney.
Pioneers of online trading in India amongst the top 3 online trading websites from India. Most
preferred financial destination amongst online broking customers.
Winners of Best Financial Website award.
Voted by CNBC Awaaz as the Most Preferred Stock broker in India in 2005.
Future Plans And Prospectus
5 lakh plus retail customers being serviced through centralized call centres /web solutions
Branches / Semi branches servicing affluent / aggressive traders through high skill financial advisor
1000 independent investment managers/ franchisee servicing 14 lakh highly valued clients
CHAPTER 3
JOB DESCRIPTION AND FUNCTIONAL PROFILE
I had taken my SIP in two departments:
Finance
Mareting
OBJECTIVE
The purpose of my summer internship was to understand the corporate interface and environment of
the organization. The purpose was to make us understand how to adjust in the corporate environment
and to understand the organizational culture.
Another purpose was to make students learn about online trading. To make us understand the value of
investment at a young age. The benefits of investing in stock market.
I was dealing into the finance and marketing department of the organization and the responsibilities I
was handling were:
Customer acquisition
Customer relationship management
Promote products and services
Online trading
CHALLENGE
My biggest challenge was to collect data. As this was the peak summer season, May and June, it was
difficult for me to go to various places and collect data.
Another challenge was to acquire customers in order to sell financial products. Many people know about
Stock market but again at a very superficial level. Even after giving them all information about the same
they were still not that convinced to invest or to open a Demat account.
I have a long list of achievements at Sharekhan. Just to name a few are:
Improved Communication skills
Team work capability
Self confidence
Patience level
Time management
Immense knowledge of share market
Online Trading skills
ENVIRONMENT
My Summer Internship Program was a total learning experience for me. Usually in Internship Programs,
interns are told about a job and they have to meet targets and prove themselves. In Sharekhan, we had
to sell financial product like Demat account but more than that we were taught all new concepts about
share market.
When we used to trade every day, we applied new approaches to gain rather than losing money. Each
approach was different from another as market fluctuations were not in our hand. Every time we had to
think of some new concepts and ideas to recover the loss or to gain money. During the online trading,
we applied all our theoretical knowledge that was given to us by our Corporate Mentor.
There were Demat Accounts opened for every intern at Sharekhan. It was not at all a compulsion for any
of us to get a Demat opened but by getting our own accounts opened we could relate theoretical
knowledge to practical application easily.
In the second month when our theory classes got over, our Demat Accounts were also activated by
then. Now whatever we had learnt in the classes the earlier month, we had to apply that knowledge in
the true practical way. We traded initially in Currency followed by Future and Options later on.
The online trading we did was such a great thing I experienced. At that point I realized that the
knowledge that I have gained in these 3 months at Sharekhan is unmatchable and incomparable in the
true sense.
Many people know what Share Market is all about and how it works but live trading we did here
ourselves was what added color to our Internship Program.
We were given constant support by all the staff members of Sharekhan
The environment at Sharekhan was extremely friendly. The entire staff treated us as if we are the full
time employees there and have been working there for years.
We learnt all about share trading. Even we did online trading ourselves. Doing trading live was a great
experience that I couldnt have ever learnt if I had not joined Sharekhan. We learnt how market
moves, which move will lead us to profit and which will lead us to loss.
If we had incurred loss, instead of getting sad and depressed we learnt how to become strong and cover
the loss the next day. Online trading taught us the feeling of passion towards our work.
There was hardly any negative experience that I went through. The only one negative thing was that the
organizations environment was over friendly due to which there was a lack of discipline
I think. Even though punctuality was there but there was no fixed time for lunch or other activities.
CHAPTER-4
LEARNING EXPERIENCE AND THE INSIGHTS GAINED
Department and Business Unit in which Summer Internship was undertaken
From the first day to the last day of my summer internship I had undergone a totally new experience.
There was always something to learn and grasp from the teachings or from the
situations. My Corporate Mentor Mr. Jaipal Singh (Assistant Manager) gave me so much of knowledge
and exposure to this corporate world.
I had taken my SIP in two departments:
Finance
Marketing
The objectives of business unit:-
To retain its position as a leading broking firm
Customer satisfaction
To Maximize clients investments and profits and minimize their losses
Quality services
Helping customers at all possible situations
SUPERISION AT SUMMER INTERNSHIP PROCESS
During the entire course of our SIP, my Corporate Mentor Mr. Jaipal Singh remained as a constant
source of support and inspiration for me. I could anytime seek help from him and he showed me the
right path always. He always stood as a side support and made sure that this students never feel alone
or helpless in the organization. He usually went out of his way to help and guide us.
Mr. Vijay Singh, Territory Manager, also supervised the batch and made sure that right kind of
information and teachings were given to students. He taught us a new way of leading life and fighting
competition. He made sure that after this Summer Internship Program all his students come out as
trainers and not trainees.
When I entered the organizations, I was totally blank about the Stock Market. The knowledge that I had
was at a very superficial level.
In my first month of my training I was asked to come for only 2-3 hours every day as we used to have
classes on Stock Market. Mr. Jaipal Singh took these classes and took us through many untouched and
unknown areas like Equity, Derivatives, Commodity and Currency etc.
There were multiple batches running due to which we had classes for a limited period of time. These
classes helped in knowing the basic concepts of Stock Market and Share Trading.
We acquired knowledge about the products and services offered by Sharekhan. We were told to make a
Comparison Sheet wherein we had to compare Sharekhan with its Major Competitors on various
parameters (Comparison Sheet shown in Annexure). Through this comparison sheet we could easily
make out that Sharekhan is undoubtedly amongst the top leading stock broking firms in terms of
services offered, Brokerage and other charges, Customer Satisfaction etc. There were Demat Accounts
opened for every intern at Sharekhan. It was not at all a compulsion for any of us to get a Demat opened
but by getting our own accounts opened we could relate theoretical knowledge to practical application
easily.
In the second month when our theory classes got over, our Demat Accounts were also activated by
then. Now whatever we had learnt in the classes the earlier month, we had to apply that knowledge in
the true practical way. We traded initially in Currency followed by Future and Options later on.
The online trading we did was such a great thing I experienced. At that point I realized that the
knowledge that I have gained in these 3 months at Sharekhan is unmatchable and incomparable in the
true sense.
Many people know what Share Market is all about and how it works but live trading we did here
ourselves was what added color to our Internship Program.
We were given constant support by all the staff members of Sharekhan.
PURPOSE OF SIP AND CHALLENGES I FACED DURING THE
PROCESS
The purpose of my summer internship was to understand the corporate interface and environment of
the organization. The purpose was to make us understand how to adjust in the corporate environment
and to understand the organizational culture.
Another purpose was to make students learn about online trading. To make us understand the value of
investment at a young age. The benefits of investing in stock market.
I was dealing into the finance and marketing department of the organization and the responsibilities I
was handling were:
Customer acquisition
Customer relationship management
Promote products and services
Online trading
My biggest challenge was to collect data. As this was the peak summer season, May and June, it was
difficult for me to go to various places and collect data.
Another challenge was to acquire customers in order to sell financial products. Many people know about
Stock market but again at a very superficial level. Even after giving them all information about the same
they were still not that convinced to invest or to open a Demat account.
I have a long list of achievements at Sharekhan. Just to name a few are:
Improved Communication skills
Team work capability
Self confidence
Patience level
Time management
Immense knowledge of share market
Online Trading skills
COMPARATIVE ANALYSIS
Results On the basis of Account opening charges
Sharekhan ltd :- It charges Rs. 1000/- as the ACCOUNT OPENING CHARGES and requires margin money
of Rs 10000 for trading purposes
ICICI direct :- A one-time charge of Rs. 750 at the time of account opening will be charged.
You may later upgrade your Invest account to an ICICI direct.com share trading account when you desire
to trade in equity.
India Infoline :- There is a nominal charge of Rs. 500 only towards stamp duty, legal and processing fees
for opening the account. This includes the registration and account opening charges. Bank and
Depository Participant (DP) account opening charges, if applicable, are payable separately.
Results on the basis of customer preferences
1. According to survey 70 % peoples are satisfied with Sharekhan Ltd because of their RMs facility
and power of Sharekhan Ltd software.
2. According to survey, Sharekhan Ltd open new branches for individually handle to their customer, but
in ICICI direct, Indiainfoline there is no separate offices for this .So people prefer Sharekhan Ltd.
After the whole study, we find out the following results:
Results On The Basis Of Facilities
Basis of Sharekhan ICICI India HDFC
difference Ltd. Direct Infoline Securities

Yes Yes Yes Yes Share
trading

Yes Yes Yes Yes Commodity
trading

demat Yes Yes No Yes
opening
rights

GRAPHICAL REPRESENTATION
OF SURVEY
REPORT
CUSTOMER AWARENESS TOWARDS SHARE MARKET
TOTAL 100
INTERESTED IN SHARE MARKET- 40
NOT INTERSTED IN SHARE MARKET -60
CUSTOMER HOLDING DEMAT A/C
TOTAL- 100
NOT HAVING DEMAT ACCOUNT-30
HAVING DEMAT ACCOUNT- 70
Out of 100 people who were interested in share market 70 peoples already had demat a/c, and 30
doesnt have demat a/c.
CUSTOMER SEGMENTATION
TOTAL -100
ONLINE CUSTOMERS -30
OFFLINE CUSTOMERS -70
Among the 100 customers who are having demat account in various broking firms the pie chart shows
that 30%of the customers are doing online trading, and 70% of the customers are offline trading in the
share market.
CUSTOMER APPROACH TO A BROKING FIRM
TOTAL-100
RELATIONSHIP MANAGER APPROACH-56
FRIENDS RECOMMANDATION -19
THROUGH INERNET ADVERTISEMENT- 12
VIA HAND BILLS- 7
READING ADVERTISEMENT IN NEWS PAPER- 6
FINANCIAL AND ANALYSIS

COMPARATIVE STUDY WITH OTHER COMPANIES
1.INDIA INFOLINE
2.HDFC SECURITIES
3.ICICI DIRECT
4.SHAREKHAN
A/C opening charge- 0/-
Name of the software used- Trader Terminal.Software installation charge- Nil.
No. of scripts provided by the software- Unlimited.Maintainance charge- Nil.
Exposure- 8 times (intra day) 3 times (delivery).
Name of the bank with the help of which customer get the facility of net banking- HDFC Bank, Axis Bank,
ICICI Bank.
Services provided- Equity,IPO,MF,PMS,Commodities,Insurance,Wealth Management Services,
Mortgages.
DP sells charge- 15 per instruction + service tax.Brokerage- 0.05% intraday 0.50% deliveries.Transaction
Report- SMS, mail, daily courier,
Prepaid Scheme- Not available.
Types of trading accounts provided- De-Mat a/c, Trading a/c , Margin a/c.
Network- 1341 branches and 800000 customers.Margin money-Minimum 2555/-
Secrecy- Telephone logger with recorder.

A/C opening charge- 799/-
Name of the software used- Sun Java.
Software installation charge- NIL
Maintenances charge- 500/- from 2nd year.
Exposure- 5 times for intraday.
Name of the bank with the help of which customer get the facility of net banking- HDFC, SB I, ICICI, Axis
Bank.
Services provided- Equity, IPO, PMS, Derivatives, Mutual Funds.
Brokerage- Delivery-.50% & Intraday-.05%
Transaction Report- Through mail/courier(Free of cost)
Prepaid Scheme- not available.
Types of trading accounts provided- De-Mat a/c, Trading a/c, Margin a/c.
Network- 480 branches in 230 cities.
Margin money- 5000/-
Secrecy- password cannot be accessed through internet. HDFC Secuerities offer the highest level of
security such as 128-bit encrypton and SSL(Secured Socket Layer) technology.

A/C opening charge-500/-
Name of the software used- Not available one can access through net.
Maintenance charge- Rs.450/- from 2nd year.
Exposure- 5 times for margin and 25 times for margin plus.
Name of the bank with the help of which customer get the facility of net banking-
ICICI(providing zero balance in saving account)
Services provided- Equity,IPO,Commodities,Insurance,Mutual Funds, GOI bonds,Derivatives, Postal
Savings.
Brokerage- Intra day-0.15%
Delivery- 0.85%
Transaction Report- Through Courier(free of cost)
Prepaid Scheme- Not available.
Types of trading accounts provided- De-Mat a/c, Trading a/c , Saving a/c.
Network- 2124 branches across the countries and 19 foreign branches.
Margin money- Rs.975/-
Secrecy- Password provided to the customers and it can be changed by the customer only.
A/C opening charge- 1000/-
Name of the software used- Trade tiger
Software installation charge- nil
Security Socket Layer(SSL),a security that the information transmitted between customer and agent ,
given by Versign, universally accepted world wide web. The security encripton level in Sharekhan is 128
bit.
Maintenance charge- unlimited
Exposure- 4 times for intraday and delivery both.
Name of the bank with the help of which customer get the facility of net banking- AXIS bank, HDFC bank,
UBI, IDBI,City Bank.
Services provided- Equity,IPO,MF,Derivatives,Commodities.
DP sell charge- NIL
Brokerage- intraday-0.05%-.07% & Delivery-.25%-.40%
Transaction Report- Through mail (Free of Cost)
Prepaid Scheme- yes
Types of trading accounts provided- Classic a/c (for sudden user)
Spend Trade a/c(for frequent user)
Network- 1,502 outlets across 550 cities 14,00,000 customers.
Margin money- Rs.10000/-
Secrecy-
COMPARATIVE ANALYSIS OF CHARGES AND FACILITIES
PROVIDED BY DIFFERENT COMPANIES
Company Account Margin Brokerage AMC Dial n Branches
Opening Money Intra- trade(
Delivery(%) Toll free)

India infoline 750/-(non- 2555/- 0.05-0.50 750/- No 607
adjustable)
HDFC 799/- 5000/- 0.05-0.50 500/- No NA
Securities from 2
nd yr
ICICI Direct 500/- 975/- 0.075- 0.05 450/- No 2124

Sharekhan 1000/- 10000/- 0.05- 0.10 400/- Free of 1502
from Co
2nd st
year
FINANCIAL ANAYLSIS
FINANCIAL ANALYSIS OF INDIA INFOLINE ( 2008-09, 2009-10 & 2010-11 )
Away to analyze a firm is to look at its financial data more meticulously. Financial statements presented
by representing each item as a percentage to the total amount of which it is a part, is referred to as a
common size financial statement. As the magnitude of absolute numbers is removed, it becomes
comparatively easy to understand.
Common Size Profit & Loss Statement
The profit & loss account summarizes the revenue and expenses of an accounting period. We can
prepare a Common size Profit & Loss account by showing the Net sales as 100% and each of the
components of Expenses & income and Profit as a percentage of net sales. We observed that the data
are the same but it has been reorganized.
IIFL ( INDIA INFOLINE )
IIFL is very well diversifying its business because Diversification in total income has increased.
Share of income from Equity brokerage and related income is decreasing & that of other
incomes like Financing and investing income and Marketing and distribution income is
increasing.
IIFL has brought its direct cost esp. Employee cost down in last three years from 31% of total income to
26% of total income. Given the inflationary trends in current market often companies like IIFL justify a
rise in their product prices (By blaming it on current market conditions). But this direct cost & employee
cost can also decrease due to a continuous rise in
product or service prices at a rate which is higher than a rise in its input price. We conclude that it was in
all probability a result of increase in its price of its services.
The percentage of gross profit is of under importance as it tells the variance story between net profit
and itself. One can keep record of expenses incurred before and after arriving at gross profit. It helps in
controlling the cost factor and also forms the basis for comparing the expected performance with that of
actual.
IIFL is able to increase its gross profit percentage by 2% by lowering its operating cost. Share of
Employee cost in Direct expenses in decreasing wich helps to increase gross profits share.
Common Size Balance Sheet
A common size balance sheet is constructed by Showing each item of asset as a percentage of the total
assets, and similarly, each item of liability & owners equity is shown as a percentage of total
liabilitues & owners equity.
Share of Shareholders fund as a percentage of total liabilities & owners equity is decreasing with
a high rate. It is around 35 percent of total liabilities as compare to 80 percent before two year.
Structure of assets and Liabilities

Balance Sheet

2010-2011

2009-2010

2008-2009


Shareholders Fund 36.0 51.1 80.9
Minority Interest 0.7 0.6 16.4
Loan Funds 63.3 48.3 2.7
Total Liabilities 100.0 100.0 100.0
Goodwill ( On
Consolidation) 0.7 0.3 0.0
Net Block 8.8 12.5 14.6
Capital-Work-In-Progress 0.8 1.1 0.4
Investments F 7.4 15.3 16.5
Net Deferred tax 0.6 0.5 0.6
Net Current Assets 81.7 70.2 67.9
Total Assets 100.0 100.0 100.0

2010-2011 2009-2010 2008-2009
Total Current Assets 115.2 111.5 117.1
Total Current Liabilities &
Provisions 33.5 41.3 49.2
Working Capital 81.7 70.2 67.9


The working capital changes of IIFL in Table suggest that Management has taken steps to increase the
working capital from 2008 onwards. Probing further into the Liability structure of IIFL tells us that it has
taken place due to lowering trend in Provisions (Current Liabilities). IIFL almost finished its Provision
from 10 Percent to 0.05 percent.
If we talk about the Composition of Shareholders fund or its element, Reserves & Surpluss share
is majorly decreasing. At the end of financial year 2008-2009 its share was around 77 percent of total
liabilities but currently it is only around 34 percent.
But we can not say that company is not transfering its profit to Reserves & Surplus because amount
transferred to Reserves & surplus is increasing every year under review.
That is all because of dramatically increase in Loan Fundss share in total liabilities. Total liabilities is
increasing due to increase in Loan funds which is ultimately lowering the share of
Reserves & surplus and Shareholders fund. Due to rise in Loan fund, Interest expenses has increase
which affecting the profitability of company.
Current Assets is increasing but when we compare it with Current liabilities, it is clear that Current
liabilities has not used to fund current assets. Since Current Liabilitiess amount is much higher than
current liiabilities. It shows Current assets is being funded by Long term borrowwing which is not a good
decision because it increase the Financing cost of coompany & ultimately affects profitability negatively.
FINANCIAL ANALYSIS OF HDFC SECURTIES(2008-09,2009-10 & 2010-11)
Profit & Loss Statement
The profit & loss account summarizes the revenue and expenses of an accounting period. We can
prepare a Common size Profit & Loss account by showing the Net sales as 100% and each of the
components of Expenses & income and Profit as a percentage of net sales.

Common Size Balance Sheet
A common size balance sheet is constructed by Showing each item of asset as a percentage of the total
assets, and similarly, each item of liability & owners equity is shown as a percentage of total
liabilitues & owners equity.
Share of Shareholders fund as a percentage of total liabilities & owners equity is decreasing with
a high rate.
Balance Sheet 2010-2011 2009-2010 2008-2009


Capital 0.14 0.15 0.16
Loans & advances 9.0 8.5 8.0
Current Liabilities 90.86 91.35 91.84
Total Liabilities 100.0 100.0 100.0
Cash and balances with RBI 6.1 10 9
Investments Funds 87.3 77 75
Net Current Assets 6.6 13 16
Total Assets 100.0 100.0 100.0
FINANCIAL ANALYSIS OF ICICI DIRECT(2008-2009,2009-10 & 2010-11)
Profit & Loss Statement
The profit & loss account summarizes the revenue and expenses of an accounting period. A Common
size is being prepared Profit & Loss account by showing the Net sales as 100% and each of the
components of Expenses & income and Profit as a percentage of net sales.
ICICI DIRECT
ICICI is very well diversifying its business because Diversification in total income has increased.
Share of income from Equity brokerage and related income is decreasing & that of other
incomes like Financing and investing income and Marketing and distribution income is
increasing.
Talking about the Dividend, although Net profit after tax decreased but it gives more interim dividend
which indicates that it is not looking for any expension plan in near future. In current scenerio, it is
wisefull decision to distribute more because it will help make investors mind to hold the stock of
ICICI. In current market condition, Investors are not gaining much so if we not let them feel good by
dividend, than there may be much volatility.
Balance Sheet
A balance sheet is constructed by Showing each item of asset as a percentage of the total assets, and
similarly, each item of liability & owners equity is shown as a percentage of total liabilitues &
owners equity.
Share of Shareholders fund as a percentage of total liabilities & owners equity is at a moderate
rate.
Structure of assets and Liabilities


Balance Sheet

2010-2011

2009-2010

2008-2009


Shareholders Fund 70.9 65.5 60.8
Minority Interest 25 20.4 25.9
Loan Funds 4.1 14.1 13.3
Total Liabilities 100.0 100.0 100.0
Goodwill ( On
Consolidation) 0.7 0.3 0.0
Net Block 8.8 12.5 14.6
Capital-Work-In-Progress 0.8 1.1 0.4
Investments F 7.4 15.3 16.5
Net Deferred tax 0.6 0.5 0.6
Net Current Assets 81.7 70.2 67.9
Total Assets 100.0 100.0 100.0
The working capital changes of ICICI in Table suggest that Management has taken steps to increase the
working capital from 2008 onwards. Probing further into the Liability structure of ICICI tells us that it has
taken place due to lowering trend in Provisions (Current Liabilities). Current Assets is increasing but
when we compare it with Current liabilities, it is clear that
Current liabilities has not used to fund current assets. Since Current Liabilitiess amount is much
higher than current liiabilities. It shows Current assets is being funded by Long term borrowwing which
is not a good decision because it increase the Financing cost of coompany & ultimately affects
profitability negatively.
RESEARCH METHODOLOGY
OBJECTIVE OF STUDY
The broad objective of the project is to make clients & let them know about the different services
offered by Sharekhan Ltd.
To understand whether the marketing concepts are practically applicable.
To convince clients about how Sharekhan out score their rivals.
To analyze the marketing strategy followed by the competitive companies i.e. Sharekhan & others
competitors.
To ensure companys as well as self growth.
Research Defined
The word "research" is used to describe a number of similar and often overlapping activities
involving a search for information. For example, each of the following activities involves search; but the
differences are significant and worth examining.
In the broadest sense of the word, the definition of research includes any gathering of data,
information and facts for the advancement of knowledge. Reading a factual book of any sort is a kind of
research. Surfing the internet or watching the news is also a type of research.
Research Methodology
Research Methodology consist of two words research and methodology research refers to a search for
knowledge. One can define research as scientific and systematic research for information on specific
topic. In fact research is an art of scientific investigation. Research represents a scientific method of
exploring actual persons and groups, primarily on their experience within their social worlds, inclusive of
social attitudes and values, the mode of analysis of these experience permits stating proposition in the
form. In other words we can say that systematic and scientific search for new facts, ideas and
information while methodology means theoretical analysis of the methods appropriate to a field of
study or to the body of methods and principles particular to a branch of knowledge.
So research methodology can be defined as the system of collecting data for research projects the data
may be collected for either. Theoretical or practical research for example management research may be
strategically conceptualized along with operational planning methods and change management.
In this part of report the methodology of conducting research used in the problem understudy is
explained as research methodology.
Types of Research
Exploratory Research
Conclusive Research
Descriptive Research
Causal Research
Descriptive Research
In this report descriptive research have been used. Descriptive research, also known
as statisticalresearch, describes data and characteristics about the population or phenomenon being
studied. Descriptive research aims at describing certain situation or happening. This type of research
approach is very rigid as opposed to exploratory research. Situation or the happening is described with
the help of 6Ws which stand for What, When, Why, Where, Who & the Way how? This
type of research is appropriate for research problem where previous research has also been
conducted & some sort of data is already available.
Significance of Descriptive Research
To describe the characteristics of certain group.
To estimate the proportion of people in a specified population who behave in a certain way
To make specific predictions e.g. demand of particular product in near future product.
To determine weather certain variables are associated e.g. income and usage of product.
Types of data
As we all know data is of 2 types namely i.e. primary and secondary .primary data is research specific
and is collected originally from the respondent for the first time whereas secondary data is already
collected and published by someone else but may be useful in the problem understudy
.
Primary Data
Primary data is collected for the first time by the researcher for his/her own research problem by
selecting a sample representing his population .It is not a published data .
Advantages of Primary Data
Primary data is is accurate and reliable as they are collected from the original source.
They provide detailed information according to the requirement of the users.
It is more reliable and less prone to error.
Definitions and meaning of terms used in data are explained to make it understandable and the
process transparent.
Method of collection, its limitations and other aspect are generally highlighted.
Disadvantages of Primary Data
Cost- It is expensive to collect primary data
Time- It is time consuming method of data collection.
Training- It requires trained personnel to collect the data.
Secondary Data
It is data collected by someone other than the user. Common sources of secondary data for social
science include censuses, surveys, organizational records and data collected through qualitative
methodologies or qualitative research. Primary data, by contrast, are collected by the investigator
conducting the research.
Secondary data analysis saves time that would otherwise be spent collecting data and, particularly in the
case of quantitative data, provides larger and higher-quality databases than would be unfeasible for any
individual researcher to collect on their own. In addition to that, analysts of social and economic change
consider secondary data essential, since it is impossible to conduct a new survey that can adequately
capture past change and/or developments.
Advantages of Secondary Data
Cost- It is more economical than primary data since data is already available
Time It is faster to collect and process as time has already been spent to collect the data
Information Insight It provide a base on which further information can be collected to update it
and finally use it .It provide valuable insight and contextual familiarity with the subject matter
Disadvantages of Secondary Data
It may not be too relevant for the problem in hand as it was originally collected for some other
context.
It could be outdated and hence of much in a dynamically changing environment.
It is less accurate and reliable as compared to primary data
Locating appropriate source and finally getting access to the data could be time consuming.
Data Collection Method
As in order to undergo a research we are in need of certain source that might be primary source or
secondary source, here we have collected DATA through books,
Journals, websites, newspapers.So, the secondary source of data collection is used to prepare the
report.
SAMPLE DESIGN
A sample design is a definite plan for obtaining a sample from a given population. It refers to the
technique or the procedure the researcher would adopt in selecting item for the sample
Generally Sample designs are two types
PROBABILITY RESEARCH DESIGN
NON PROBABILITY RESEARCH DESIGN
SAMPLING UNITS
Sampling unit may be a geographical one, such as state, district, village etc. The researcher will have to
decide one or more of such units that he has to select for his study.In my research study Delhi region as
a sampling unit.
SIZE OF SAMPLE
This refers to the number of items to be selected from the universe to constitute a sample
In our research sample size is 100.
Survey Method: - Survey refers to the method of securing information concerning phenomena under
study from all or selected number of respondents of the concerned area. In a survey the investigator
examines those phenomena which exist in the universe independent of his action. We used the
Scheduling Method.
Scheduling: - In this method the enumerators along with schedules, go to respondents, put to them the
questions from the Performa in the order the questions are listed and recorded the replies in the space
meant for the same in the Performa.
CHAPTER-7
RECOMMENDATIONS AND CONCLUSION
On the basis of my research and findings, I concluded that most of the people do invest their money
in one or the other investment options available in market like Stock market, Banks or Real Estates etc.
but hesitate to invest in Stock Market due to the fear that their money is not secured in Stock Market
and they will eventually loose it which can be rectified by giving more importance to safety and return
attributes because independent investors are more concerned about safety and getting benefit for their
money.
Besides being aware of Stock Market and also having money to invest, investors want high return
with low risk, which is very much provided in Stock Market, but still they are reluctant to invest in Stock
Market again due to the fear of loosing their money.
Another major finding was that most preferred channel of investing in Stock Market is through
financial advisor/Brokerage Firms and being a part of Sharekhan, I observed that Sharekhan is not
paying much attention towards this area. If Sharekhan will apply proper strategies to reach to the target
investor in this area they can go way ahead as they alreadyhave a firm base in the market and have won
investors trust.
Also, most convenient and easily reachable channel of information was found to be Advertisements,
whereas ShareKhan is not indulged in any advertising Campaign, which is
must for any sector to reach to its target whereas its Competitors in market like India Bulls or IIFL do
have their advertising Campaigns. So, I strongly feel that ShareKhan should come out in the market with
some creative and impactful advertisements.
When it comes to trading, ShareKhan rules the market with a huge customer data base which they
can use as their potential target to invest in mutual Funds by motivating them and giving them proper
information about Stock Market and clearing their doubts in the same.
Stock Market is a prominent investment tool for salaried persons and my research report indicates
that 65% of investors are salaried people, either in Private or in Govt. sector.
From the all above findings, we can derive a fact that what governs investors mind while
investing money in Stock Market is his/her ability.
Sharekhan should devise a proper strategy like arranging stock market awareness programs and target
more on salaried people to convince and motivate them to invest in Stock Market and also involve them
in trading.
BUSINESS EXPERIENCE GAINED (POSTIVE AND NEGATIVE)
The experience I gained in my Summer Internship Program was unique in every way. I have gained both
kinds of business experiences positive as well as negative.
The environment at Sharekhan was extremely friendly. The entire staff treated us as if we are the full
time employees there and have been working there for years.
We learnt all about share trading. Even we did online trading ourselves. Doing trading live was a great
experience that I couldnt have ever learnt if I had not joined Sharekhan. We learnt how market
moves, which move will lead us to profit and which will lead us to loss.
If we had incurred loss, instead of getting sad and depressed we learnt how to become strong and cover
the loss the next day. Online trading taught us the feeling of passion towards our work.
There was hardly any negative experience that I went through. The only one negative thing was that the
organizations environment was over friendly due to which there was a lack of discipline
I think. Even though punctuality was there but there was no fixed time for lunch or other activities.
CONCLUSION
SHAREKHAN is one such place or organization where a customer is fully satisfied by the varied range of
services provided by them which includes Demating of Shares, Stock Broking, investments in equities,
derivatives, commodities, PMS, advisory services, Mutual Funds, IPOs, best research reports. They
also provide beneficial schemes even to small investors and they also have the facility of Online Demat
Services. It is a place which is providing various services all under one roof it is also known to be a
Sharekhans Share Shops.
The major merits or strengths of Sharekhan, being the co-operative attitude of the staff members
towards themselves as well as towards the clients. They help the customers by providing correct
information about the various services and about various products available with them. Thus, we can
say that SHAREKHAN is one of the most prestigious financial organizations of India as far as:-
Service space
Attitude of staff
Dissemination of information
Promptness of query handling
Processing time
Value added services are concerned and therefore the satisfaction level of its customers is also very
high.
NEW CONCEPT, IDEAS AND APPROACHES LEARNED DURING THE
PROGRAM
My Summer Internship Program was a total learning experience for me. Usually in Internship Programs,
interns are told about a job and they have to meet targets and prove themselves. In Sharekhan, we had
to sell financial product like Demat account but more than that we were taught all new concepts about
share market.
When we used to trade every day, we applied new approaches to gain rather than losing money. Each
approach was different from another as market fluctuations were not in our hand. Every time we had to
think of some new concepts and ideas to recover the loss or to gain money. During the online trading,
we applied all our theoretical knowledge that was given to us by our Corporate Mentor.
INTERNSHIP, LEADERSHIP, TEAMBUILDING, PROJECT
MANAGEMENT, TIME MANAGEMENT EXPERIENCED ACQUIRED
I learned a lot in my Summer Internship. I was the head person in my batch. I had taken the initiative to
lead the team. In Sharekhan, I polished my leadership skills as I was the sole mediator between the
corporate mentor and my batch mates.
My worked on my communication skills as I had to deal with many customers to sell the financial
products or get the questionnaire filled. I have always been confident in dealing and communicating
with people but most importantly I learned to convince people.
There were multiple batches of different institutes running in the organization. ASM students were
mixed with three other institutes: Fore School of Management, Jaypee Institute of Information
Technology and Delhi School of Professional Studies and Research. Here I learned how to work in a team
collectively. I could brush up with my team working skills.
I was very punctual in my organization. When we started trading in currency, market opens from 9:00
AM to 5:00 PM. I had to report before 9pm got and I used to leave after 5 pm after the market closed.
Later when we traded in Equity (Options), the market opened at 9:15 AM and
closed at 3:30 PM. At that time I used to report at 9am and used to sit till 5pm even though the market
closed at 3:30pm. I used to discuss more about the stock market and used to get more insights about
the topic of my project. Being punctual made me tone up my time management skills.
Overall it was a pleasure of getting trained in such a well established organization, and in such a humble,
healthy and supportive organization culture. It was a great learning experience. We got the theoretical
as well as practical knowledge, each and everything was taught in detail and was explained very clearly.
It was a great learning curve for me.
CHAPTER-8
BIBLIOGRAPHY
Books
Kothari C.R. , Research Methodology, 7th Edition (2009), Publication House, pp
Marketing Research
Magazine
VALUELINE (SHAREKHAN MONTHLY RESEARCH MAGAZINE)
Newspaper
The Economic Times
Websites
http://www.sharekhan.com/stock-market-research
www.indiainfoline.com
www.hdfcsecurities.com

www.icicidirect.com
www.sharekhan.com
www.tradersedgeindia.com
www.tradingpicks.com
www.masteroftrading.com
www.google.com
ANNEXURE
QUESTONARIE FOR CUSTOMERS
Q1. Are you aware about the stock market? ? Pl tick ().
a) Yes b) No
Q2. Have you ever invested in Mutual Fund? Pl tick ()
a) Yes b) No
Q3. If yes, how did you know about Stock Market?
a. Advertisement b. Peer Group c. Banks d. Financial Advisors

Q4. While investing your money, which factor will you prefer?

(a) Liquidity (b) Low Risk (c) High Return (d) Trust
Q5. In which brokerage firm do you have a demat account?
a)Sharekhan
b)Indiabulls
c)Religare
d)India Infoline
e)ICICI
e)HDFC Bank
f)Others (specify)__________________
Q6. . If invested in Stock Market, you do so because (Pl. tick (), all applicable).
a.Diversification of investments
b.They have a record of giving good returns year after year.
c.Agent Advice
Q7. Reasons for choosing a brokerage firm?
a)Brokerage Rate
b)Research and Investment Tools
c)Online Availability - Interface and Ease of use
d)Minimum Opening Balance and Maintenance Fees
e)Additional Perks and Services
Q8. Are you satisfied with the broking firm services?
Service Satisfied Unsatisfied
Online


Offline
Transaction
Secrecy
Customer care
Sms
Q9. Specify the reason of satisfaction with the current broking house?
a) Operating Expenses b) Brokerage
c) ServicesS
Q10. Do you have any suggestion for the broking firm?

.
Personal Details:
(a). Name:
(b). Address:
Phone:
(c). Age:
QUESTONARIE FOR BROKERAGE FIRM
1) What is the rate of your brokerage?
Intra day delivery
Future option
2) What is the margin for De-mat A/c?

3) Do you have lifetime facility?
a)Yes
b)no
4) The broking firm is registered with?
SEBI
IRDA
NSE
BSE
5)What are your products? Equity
Mutual funds Demat
Gold coins Derivatives Commodities Insurance Others
6)Which is the most popular product?
.
7)Do you provide both online and offline facility?
a)online only
b)offline only
c)both
8)What is the name of the terminal or what kind of software is used for online trading?

9)The transaction report is provided to customer through ?
a)sms
b)courier
c)email
d)call
10)How many branches do you have in kolkata/India?

..
11)Does your brokerage firm have service?
a)Pre paid
b)Post paid
12) How does the secrecy of the customer is maintained?

..
Name:
Designation:
Phone no:
Broking firm:
Date: