INTRODUCTION

The topic is to study the competitors of Anand Rathi with respect to Demat Account .

DEMAT A/C is a pool of various scripts and securities, where as online trading A/C is a

tool of purchasing/ selling of shares or scripts online. These scripts are then transferred to

DP i.e. Depository account after three days.

This topic includes the practical experience of selling company product that is followed

by studying the consumer preference or interest towards share market. This is a market,

which is uncertain some time it gives huge profit and also vice versa; it depends up on the

investment customer made. This is a better option to have better returns on the

investments then investing in banks, mutual fund or bonds . But risk is high in this case.

This product offers customer two type of investment option INTRADAY and

DELIVERY both has there own benefits and limitation but a better way to have more

returns on investment. Intraday means investing in share market for a day i.e. purchasing

and selling of the share in one day. Delivery is purchasing share and selling those shares

next day. The charges that company charge in terms of brokerage is different in both the

cases.

OBJECTIVE OF THE STUDY

1

1) The main objective is selling and promotions of the DMAT Account cum Online

Trading Account.

2) Marketing of the product.

3) To make a comparative study to know the different companies

4) To collect the real time information about preference level of customers using Demat

account and their inclination towards various other brokerage firms.

5) To provide pricing strategy of competitors to fight cut throat competition.

2

COMPANY PROFILE

Tagline: “ Behind every successful investor”

Anand Rathi is a leading full service investment bank founded in 1994 offering a wide

range of financial services and wealth management solutions to institutions, corporations,

high–net worth individuals and families. The firm has rapidly expanded its footprint to

over 350 locations across India with international presence in Hong Kong, Dubai &

London. Founded by Mr. Anand Rathi and Mr. Pradeep Gupta, the group today employs

over 2,500 professionals in India and its international offices.

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. Anand Rathi has been named

The Best Domestic Private Bank in India by Asia money in their Fifth Annual Private

Banking Poll 2009. The firm has emerged a winner across all key segments in Asia

money’s largest survey of high net worth individuals in India. 

MISSION : To be India's first Multinational providing complete financial services solution across the globe

VISION : Providing integrated financial care driven by the relationship of trust and confidence.

3

Anand Rathi’s Core Services

ANAND RATHI is one of India’s leading broking houses providing a complete life-

cycle of investment solution.

4

EQUITIESDERIVATIVES

COMMODITIES

Research Based Investment Advice

Investment and Trading Services

Integrated Demat Facility

Technology Based Investment Tools

Training and Seminars

PRESENCE

The offices of AnandRathi in 197 cities across 28 cities and it has also branches in

Dubai and Bangkok with more than 44000 employees.  It has daily turnover in excess

of Rs. 4billion. It has 1,00,000+ clients nationwide.  It is also leading Distributor of

IPO's.

In India AnandRathi is present in 21 States:

Andhra Pradesh , Assam, Bihar , Chhattisgarh, Delhi , Goa,  Gujarat, Haryana Jammu &

Kashmir, Jharkhand, Karnataka, Kerala, ,Madhya Pradesh, Maharashtra, Orissa, Punjab,

Rajasthan, Tamil Nadu, Uttar Pradesh, Uttaranchal, West Bengal. 

5

MILESTONES

1994:  Started activities in consulting and Institutional equity sales.

1995:  Set up a research desk and empanelled with major institutional investors

1997:   Introduced investment banking businesses Retail brokerage services launched

1999:  Lead managed first IPO and executed first M & A deal

2001:  Initiated Wealth Management Services

2002:  Retail business expansion recommences with ownership model

2003:  Wealth Management assets cross Rs1500 crores Insurance broking launched.

Launch of Wealth Management services in Dubai.  Retail Branch network exceeds 50.

2004: Commodities brokerage and real estate services introduced Wealth Management

assets cross Rs 3000 crores. Institutional equities business re-launched and senior

research team put in place. Retail Branch network expands across 100 locations within

India

2005: Real Estate Private Equity Fund Launched

Retail Branch network expands across 200 locations within India

6

2006: AR Middle East, WOS acquires membership of Dubai Gold & Commodity

Exchange (DGCX). Ranked amongst South Asia's top 5 wealth managers for the ultra-

rich by Asia Money 2006 poll Ranked 6th in FY2006 for All India Broker Performance

in equity distribution in the High Net worth Individuals (HNI) Category

Completes its presence in all States across the country with offices at 300+ locations

within India.

2007: Citigroup Venture Capital International picks up 19.9% equity stake Retail

customer base crosses 100 thousand Establishes presence in over 350 locations

2009: Anand Rathi has been Ranked as the #1 Private Bank - Domestic in India by

Asiamoney Polls 2009 and Ranked as the #2 Private Bank - Overall in India by

Asiamoney Polls 2009

2010: Anand Rathi Private Wealth adjudged Best Domestic Private Bank (India) by Asia

Money Polls 2010 for the second consecutive year.

2011: AnandRathi for the third time in a row has been voted as the 'Best Domestic

Private Wealth Management Firm' by Asiamoney Polls 2011.

 

7

PRODUCTS

Equity & Derivatives Brokerage

Anand Rathi provides end-to-end equity solutions to institutional and individual

investors. Consistent delivery of high quality advice on individual stocks, sector trends

and investment strategy has established us a competent and reliable research unit across

the country. 

Clients can trade through us online on BSE and NSE for both equities and derivatives.

They are supported by dedicated sales & trading teams in our trading desks across the

country. Research and investment ideas can be accessed by clients either through their

designated dealers, email, web or SMS.

Mutual funds:

A mutual fund is a body corporate registered with SEBI that pools money from the

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.

Anand Rathi is one of India's top mutual fund distribution houses. Our success lies in our

philosophy of providing consistently superior, independent and unbiased advice to our

clients backed by in-depth research. We firmly believe in the importance of selecting

appropriate asset allocations based on the client's risk profile. 

 

8

Depository services

Anand Rathi Depository Services provides you with a secure and convenient way for

holding your securities on both CDSL and NSDL. 

Our depository services include settlement, clearing and custody of securities, registration

of shares and dematerialization. We offer you daily updated internet access to your

holding statement and transaction summary.

Commodities

Commodities broking - a whole new opportunity to hedge business risk and an attractive

investment opportunity to deliver superior returns for investors. 

Our commodities broking services include online futures trading through NCDEX and

MCX and depository services through CDSL. Commodities broking is supported by a

dedicated research cell that provides both technical as well as fundamental research. Our

research covers a broad range of traded commodities including precious and base metals,

Oils and Oilseeds, agri-commodities such as wheat, chana, guar, guar gum and spices

such as sugar, jeera and cotton. 

Insurance broking

As an insurance broker, we provide to our clients comprehensive risk management

techniques, both within the business as well as on the personal front. Risk management

includes identification, measurement and assessment of the risk and handling of the risk,

of which insurance is an integral part. The firm deals with both life insurance and general

insurance products across all insurance companies. 

 

9

IPO

We are a leading primary market distributor across the country. Our strong performance

in IPOs has been a result of our vast experience in the Primary Market, a wide network of

branches across India, strong distribution capabilities and a dedicated research team.

We have been consistently ranked among the top 10 distributors of IPOs on all major

offerings. Our IPO research team provides clients with indepth overviews of forthcoming

IPOs as well as investment recommendations. Online filling of forms is also available

Demat Account

Demat account allows you to buy, sell and transact shares without the endless paperwork

and delays. It is also safe, secure and convenient.

In India, a demat account, the abbreviation for dematerialized account, is a type of

banking account which dematerializes paper-based physical stock shares. The

dematerialized account is used to avoid holding physical shares: the shares are bought

and sold through a stock broker.This account is popular in India. The Securities and

Exchange Board of India (SEBI) mandates a Demat account for share trading above 500

shares

Services

Risk Management

Due diligence and research on policies available

Recommendation on a comprehensive insurance cover based on clients needs

Maintain proper records of client policies

Assist client in paying premiums

Continuous monitoring of client account

Assist client in claim negotiation and settlement

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MANAGEMENT TEAM

AR brings together a highly professional core management team that comprises of

individuals with extensive business as well as industry experience.   Our senior

Management comprises a diverse talent pool that brings together rich experience from

across industry as well as financial services.  

1) Mr. Anand Rathi - Group Chairman, Chartered Accountant, Past.

President, BSE; Held several Senior Management positions with one of

India's largest industrial groups

2) Mr. Pradeep Gupta - Vice Chairman; Plus 17 years of experience in

Financial Services

3) Mr.Amit Rathi - Managing Director; Chartered Accountant & MBA; Plus

11 years of experience in Financial Service

11

ORGANIZATION STRUCTURE

12

Anand Rathi

FranchiseBranch

Web Dealer

Sales Executive

Sales Coordinator

Customer Care

Receptionist

Account Head

JOB DESCRIPTION

The company placed me as a Summer Trainee. I have been handling the Following

responsibilities:

The job profile is to sale of product (Demat Account) of the organization.

Job profile is to generate the lead by cold calling.

Job profile is to understand customers’ needs and their feedback.

Job profile is to do sales promotion through e-mails, canopies, making cold

calling, distributing pamphlets and etc.

Job profile is to analyze the pricing and marketing strategies of the competitors.

AREA ASSIGNED :

The areas covered were of M.I.D.C phases of Badlapur, Ambarnath, Kalyan, Dombivli

Ulhasnagar.

13

Basics of Stock Market

Corporations issue official-looking sheets of paper that represent ownership of the

company. These are called stock certificates, and each certificate represents a set number of

shares. The total number of shares will vary from one company to another, as each makes

its own choice about how many pieces of ownership to divide the corporation into. One

corporation may have only 2,500 shares, while another, such as IBM or the Ford Motor

Company, may issue over a billion shares. Companies sell stock (pieces of ownership) to

raise money and provide funding for the expansion and growth of the business. The

business founders give up part of their ownership in exchange for this needed cash. The

expectation is that even though the owners have surrendered a portion of the company to the

public, their remaining share of stock will become increasingly valuable as the business

grows. Corporations are not allowed to sell shares of stock on the open stock market without

the approval of the Securities and Exchange Commission (SEC). This transition from a

privately held corporation to a publicly traded one is called going public, and this first sale

of stock to the public is called an initial public offering, or IPO.

14

Stock exchanges

The introduction of the concept of the stock exchanges in India came with the breaking of

the American Civil War and the idea materialized first in 1874 with the foundation of the

Bombay Stock Exchange at the Dalal Street in Mumbai.

Currently, in all the India Stock Exchanges the trading system is computerized for more

efficient and transparent trading. There has been a significant boom in the degree of

development and volume of trading in the stock exchanges .

The two most important exchange houses of the Indian stock market are the Bombay

Stock Exchange and the National Stock Exchange. Many of the regional stock exchanges

have obtained the membership of these two stock exchanges in India. The index of the

Bombay Stock Exchange, BSE Sensex is a value-weighted index composed of 30

companies.

Another significant feature of the India Stock Exchanges is the regulatory agency,

Securities and Exchange Board of India or SEBI which supervises the activities of stock

markets, regulates the functioning of stock exchanges and intermediaries and registers

Foreign Investors trading in Indian scrip .

Stock Exchanges are an organized marketplace, either corporation or mutual

organization, where members of the organization gather to trade company stocks or other

securities. The members may act either as agents for their customers, or as principals for

their own accounts.

Stock exchanges also facilitate for the issue and redemption of securities and other

financial instruments including the payment of income and dividends. The record keeping

is central but trade is linked to such physical place because modern markets are

computerized. The trade on an exchange is only by members and stockbroker do have a

seat on the exchange.

List of Stock Exchanges In India :

Bombay Stock Exchange

National Stock Exchange

Regional Stock Exchanges.

15

Establishment Of SEBI

The Securities and Exchange Board of India was established on April 12, 1992 in

accordance with the provisions of the Securities and Exchange Board of India Act, 1992.

In 1988 the Securities and Exchange Board of India (SEBI) was established by the

Government of India through an executive resolution, and was subsequently upgraded as

a fully autonomous body (a statutory Board) in the year 1992 with the passing of the

Securities and Exchange Board of India Act (SEBI Act) on 30th January 1992. In place

of Government Control, a statutory and autonomous regulatory board with defined

responsibilities, to cover both development & regulation of the market, and independent

powers have been set up.

The Preamble of the Securities and Exchange Board of India describes the basic

functions of the Securities and Exchange Board of India as

“…to protect the interests of investors in securities and to promote the development

of, and to regulate the securities market and for matters connected therewith or

incidental thereto”

The basic objectives of the Board were identified as:

1. To protect the interests of investors in securities.

2. To promote the development of Securities Market.

3. To regulate the securities market.

SEBI has introduced the comprehensive regulatory measures, prescribed registration

norms, the eligibility criteria, the code of obligations and the code of conduct for different

intermediaries like, bankers to issue, merchant bankers, brokers and sub-brokers,

registrars, portfolio managers, credit rating agencies, underwriters and others. It has

framed bye-laws, risk identification and risk management systems for Clearing houses of

stock exchanges, surveillance system etc. which has made dealing in securities both safe

and transparent to the end investor.

16

Bombay stock exchange

Of the 22 stock exchanges in the country, Mumbai's Bombay Stock Exchange is the

largest, with over 6,000 stocks listed. The BSE accounts for over two thirds of the total

trading volume in the country. Established in 1875, the exchange is also the oldest in

Asia. Among the twenty-two Stock Exchanges recognized by the Government of India

under the Securities Contracts (Regulation) Act, 1956, it was the first one to be

recognized and it is the only one that had the privilege of getting permanent recognition

ab-initio.

The main aims and objectives of the BSE is to provide a market place for the purchase

and sale of security evidencing the ownership of business property or of a public or

business debt. It aims to promote, develop and maintain a well-regulated market for

dealing in securities and to safeguard the interest of members and the investing public

having dealings on the Exchange. It helps industrial development of the country through

efficient resource mobilization. To establish and promote honorable and just practices in

securities transactions

17

National stock exchange

In the fast growing Indian financial market, there are 23 stock exchanges trading

securities. The National Stock Exchange of India (NSE) situated in Mumbai - is the

largest and most advanced exchange with 1016 companies listed and 726 trading

members.

It was set up in 1993 to encourage stock exchange reform through system modernization

and competition. It was recently accorded recognition as a stock exchange by the

Department of Company Affairs. The NSE is owned by the group of leading financial

institutions such as Indian Bank or Life Insurance Corporation of India. However, in the

totally de-mutualised Exchange, the ownership as well as the management does not have

a right to trade on the Exchange. Only qualified traders can be involved in the securities

trading.Indian stock market marks to be one of the oldest stock market in Asia. Stock

Market which is a market where the trading of company stock, both listed company

securities and unlisted take place. It is different from stock exchange because it also puts

all stock indices and stock index movements on the same platform.The most tracked

index on NSE, CNX Nifty also has more number of stocks than the BSE Sensex. While,

the Nifty represents 50 stocks, the Sensex represents only 30 stocks. The presence of

more stocks on Nifty also gives a better valuation than Sensex

18

NSDL

Although India had a vibrant capital market, which is more than a century old, the

paper-based settlement of trades caused substantial problems like bad delivery and

delayed transfer of title till recently. The enactment of Depositories Act in August 1996

paved the way for establishment of NSDL, the first depository in India. This depository

promoted by institutions of national stature responsible for economic development of the

country has since established a national infrastructure of international standard that

handles most of the trading and settlement in dematerialized form in Indian capital

market. Using innovative and flexible technology systems, NSDL works to support the

investors and brokers in the capital market of the country. NSDL aims at ensuring the

safety and soundness of Indian marketplaces by developing settlement solutions that

increase efficiency, minimize risk and reduce costs. At NSDL, we play a quiet but central

role in developing products and services that will continue to nurture the growing needs

of the financial services industry.

In the depository system, securities are held in depository accounts, which is more or less

similar to holding funds in bank accounts. Transfer of ownership of securities is done

through simple account transfers. This method does away with all the risks and hassles

normally associated with paperwork. Consequently, the cost of transacting in a

depository environment is considerably lower as compared to transacting in certificates.

19

1.) Stockbrokers :

A Stock broker is a member of a recognized stock exchange, who is permitted to do

trades on the screen-based trading system of different stock exchanges. He is

enrolled as a member with the concerned exchange and is registered with SEBI.

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 :

Sub broker is a person who is registered with SEBI as such and is affiliated to a member

of a recognized stock exchange.

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 dealing

in securities. For getting registered with SEBI, he must fulfill certain rules and regulation

20

DEMATERIALIZATION

The dematerialization system is an alternative to the physical existence of securities. In this

system securities are converted into the electronic form and deposited in a depository

account in the name of the investor .In order to dematerialize certificates, an investor will

have to first open an account with a DP and then request for the dematerialization of

certificates by filling up a Dematerialization Request Form (DRF), which is available with

the DP, and submitting the same along with the physical certificates. The investor has to

ensure that before the certificates are handed over to the DP for demat, they are defaced by

marking "Surrendered for Dematerialization" on the face of the certificates.

Procedure for selling dematerialized securities

The procedure for selling dematerialized securities in stock exchanges is similar to

the procedure for selling physical securities. Instead of delivering physical securities

to the broker, you instruct your DP to debit your account with the number of

securities sold by you and credit your broker's clearing account. This delivery

instruction has to be given to your DP using the delivery instruction booklet received

from the DP at the time of opening the account. The procedure for selling securities is

given here below:

1) Investor sells securities in any of the stock exchanges linked to NSDL through a

broker.

2) Investor gives instruction to DP to debit his account and credit the broker's (clearing

member pool account.

3) Before the pay-in day, investor's broker gives instruction to his DP for delivery to

clearing corporation.

4) The broker receives payment from the stock exchange (clearing corporation).

21

5) The investor receives payment from the broker for the sale in the same manner

payment is received for a sale in the physical mode.

Demat Account

Demat account allows you to buy, sell and transact shares without the endless paperwork

and delays. It is also safe, secure and convenient.

In India, a demat account, the abbreviation for dematerialized account, is a type of

banking account which dematerializes paper-based physical stock shares. The

dematerialized account is used to avoid holding physical shares: the shares are bought

and sold through a stock broker.This account is popular in India. The Securities and

Exchange Board of India (SEBI) mandates a Demat account for share trading above 500

shares

Is a demat account a must?

Now a day, practically all trades have to be settled in dematerialized form. Although the

market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades

of up to 500 shares to be settled in physical form, nobody wants physical shares any

more. So a demat account is a must for trading and investing.

]

22

Why Demat Account?

The demat account reduces brokerage charges, makes pledging/hypothecation of shares

easier, enables quick ownership of securities on settlement resulting in increased

liquidity, avoids confusion in the ownership title of securities, and provides easy receipt

of public issue allotments.

It also helps you avoid bad deliveries caused by signature mismatch, postal delays and

loss of certificates in transit. Further, it eliminates risks associated with forgery,

counterfeiting and loss due to fire, theft or mutilation. Demat account holders can also

avoid stamp duty (as against 0.5 per cent payable on physical shares), avoid filling up of

transfer deeds, and obtain quick receipt of such benefits as stock splits and bonuses.

23

Benefits of Demat Account

1) A safe and convenient way to hold securities.

2) Immediate transfer of securities.

3) No stamp duty on transfer of securities;

4) Elimination of risks associated with physical certificates such as bad delivery, fake

securities, delays, thefts.

5) Reduction in paperwork involved in transfer of securities;

6) Reduction in transaction cost.

7) No odd lot problem, even one share can be sold.

8) Nomination facility.

9) Change in address recorded with DP gets registered with all companies in which

investor holds securities electronically eliminating the need to correspond with each

of them separately.

10) Transmission of securities is done by DP eliminating Correspondence with

companies.

11) Automatic credit into demat account of shares, arising out of

bonus/split/consolidation/merger etc.

12) Holding investments in equity and debt instruments in a single account.

24

Benefits of having Anand Rathi Demat Account.

• It’s cost effective

You pay comparatively lower transaction fees. As an Introductory offer, we invite you to

pay a flat fee of just Rs. 550/- and transact through Anand Rathi.

• Its offers single –

Through Anand Rathi associates, you can transact in equity, equity and derivatives,

offshore investments mutual funds, IPO’s life insurance, general insurance, money

transfer, money changing and credit cards, amongst others.

• Its convenient-

You can access Anand Rathi services through

•The internet

•The phone (call & transact)

It provides you value- added services at http://www.rathi.com/ you will get

• Reliable research, including views of external experts with an enviable track record

• Live news updates from Reuters and Dow Jones

• CEO’s / expert views on the economy and financial markets

• Tools that help you plan your investments, tax, retirement, etc. in the personal finance

section

• Risk Analyzer for analysis of your risk profile

• Asset allocators to build an appropriate investment portfolio

• Innovative use of technology for facilitating

25

ANAND RATHI DEMAT CHARGES

Demat Account Opening Charges Rs.550/-

Rs.100 (Above Rs. 10,000)

Demat Account Maintenance

Charges

Rs. 330/- per annum

Rs.2100-(Lifetime AMC free)

Account Closing Charges Rs. 100/-

Brokerage: 40 paisa (delivery)

8 paisa (intra-day)

Depositary Services Included in AMC

Process of Account Opening

26

LEAD MANAGEMENT SYSTEM (LMS)/ REFERENCES

CONTACT

TELEPHONE AND PERSONAL VISIT

APPOINMENT

DEMONSTRATION

AGREE DISAGREE

DOCUMENTATION

FILLING THE FORM

SUBMISSION THE FORM

LOGIN OF THE FORM

SENDIND ACCOUNT OPNING KIT TO CUSTOMER

TRADING

Demat Account Opening Requirements

27

NO

For opening a Trading Account through Anand Rathi Securities one either needs to have

a Saving Account with HDFC/UTI/ICICI Bank & Demat Account with Anand Rathi

Ltd., i.e. one can link his / her existing HDFC/ UTI/ICICI Bank Savings Account with

Trading Account or else, we would assist in opening a 3 - in - 1 Account.

Please note that as per SEBI vide Circular dated 26th-August-2004, has specified

Uniform Documentary Requirements, for clients intending to open a trading with any

SEBI Registered Broker. As per the said Guideline, we would require following

documentation:

Identity Proof : (Self Attested copies)

Pan Copy

Passport Copy

Driving License

Voter ID

Mapin Card

Address Proof: (Self Attested copies)

Passport

Driving License

Voter ID

Ration Card

Bank Passbook/Statement (Attested by banker)

Rental Agreement/lease Agreement

28

SWOT

analysis  is

a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities,

and Threats involved in a project or in a business venture. It involves specifying the

objective of the business venture or project and identifying the internal and external

factors that are favorable and unfavorable to achieve that objective. 

Strength:-

16 years of research and broking experience

Understandings of the markets

All financial needs under one roof

Scalable and robust infrastructure

Full fledge research unit comprising of both fundamental & technical research

Dedicated, Qualified and Loyal staff

Flexible Brokerage charges

Low annual maintenance charge

Weakness:-

Low Brand Image in the market.

Low Professionalism.

Low Advertisements.

Opportunity:-

29

Large potential market for delivery and intra-day transactions.

Open interest of the people to enter in to stock market for investing

Attract the customers who are dissatisfied with other brokers & DPs.

Up growing markets in commodity and forex trading

Threats:-

Decreasing rates of brokerage in the market. A Increasing competition against other

brokers & DP’s

Poor marketing activities for making the company known among the customers. A

threat of losing clients for any kind of weakness of the company. An Indirect threat

from instable stock market, i.e., low/no profit of ANAND RATHI's clients would

lead them to go for other broker/DP.

COMPETITOR ANALYSIS

30

Competitor analysis in marketing and strategic management is an assessment of the

strengths and weaknesses of current and potential competitors. This analysis provides

both an offensive and defensive strategic context to identify opportunities and threats.

Some businesses think it is best to get on with their own plans and ignore the

competition. Others become obsessed with tracking the actions of competitors (often

using underhand or illegal methods). Many businesses are happy simply to track the

competition, copying their moves and reacting to changes.

Competitor analysis has several important roles in strategic planning:

1) To help management understand their competitive advantages/disadvantages relative

to competitors.

2) To generate understanding of competitors’ past, present (and most importantly) future

strategies.

3) To provide an informed basis to develop strategies to achieve competitive advantage

in the future.

4) To help forecast the returns that may be made from future investments (e.g. how will

competitors respond to a new product or pricing strategy?).

31

Competitors of Anand Rathi

During the survey the local Competitors were as follows :

1)

2)

3)

4)

5)

32

Information and Details of the competitors :

1)

Sharekhan is online stock trading company of SSKI Group, provider of India-based

investment banking and corporate finance service. ShareKhan is one of the largest stock

broking houses in the country.

Sharekhan's equity related services include trade execution on BSE, NSE, Derivatives,

commodities, depository services, online trading and investment advice. Trading is

available in BSE and NSE. Along with Sharekhan.com website, ShareKhan has around

510 offices (share shops) in 170 cities around the country.

Share khan has one of the best state of art web portal providing fundamental and

statistical information across equity, mutual funds and IPOs. You can surf across 5,500

companies for in-depth information, details about more than 1,500 mutual fund schemes

and IPO data. You can also access other market related details such as board meetings,

result announcements, FII transactions, buying/selling by mutual funds and much more.

Trade In: BSE and NSE

33

Advantages of Sharekhan:

1. Sharekhan’s online trading is very user friendly and one doesn't need any

software to access.

2. A good quality of customer services like daily SMS alerts, mail alerts, stock

recommendations etc are provided to its customers.

3. Its ability to transfer funds from most banks makes it different. Unlike ICICI

Direct, HDFC Sec, etc., so investor not really needs to open an account with a

particular bank as it can establish link with most modern banks for their trading

transactions.

Disadvantages of Sharekhan:

1. Sharekhan charges minimum brokerage of 10 paisa per stock would not let you

trade stocks below 20 Rs. If one trade, you will lose majority of your money in

brokerage.

2. There are lots of hidden rules and charges in Sharekhan.

3. To book limit order trades during after-hours is not provided by them.

4. The holders of Classic account cannot trade commodities.

5. The customers cannot purchase mutual funds online.

34

SHAREKHAN Demat Account Charges:

Demat Account Opening Charges Rs.750/-

Demat Account Maintenance

Charges

Rs. 400/- per annum

Account Closing Charges Rs. 100/-

Brokerage: 10 paisa (delivery)

5 paisa (intra-day)

Depositary Services Included in AMC

Intra Day Trading 25 times

2 )

35

ICICIDirect (or ICICIDirect.com) is stock trading company of ICICI Bank. Along with

stock trading and trading in derivatives in BSE and NSE, it also provides facility to invest

in IPOs, Mutual Funds and Bonds. Trading is available in BSE and NSE.

Trade In: BSE and NSE

Advantages of ICICI Direct :

1) 3-in-1 account integrates your banking, broking and demat accounts. All accounts

are from ICICI and very well integrated.

2) Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal Savings

Schemes all from one website.

Disadvantages of ICICI Direct

1) Getting access to ICICI Direct.com website during market session can be

frustrating.

2) ICICI Direct brokerage is high and not negotiable.

3) Not all stocks are available under Margin Plus

4) The choice of bank is restricted to ICICI Bank

ICICI Demat Account Charges:

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Demat Account Opening Charges Rs.750/-

Demat Account Maintenance

Charges

Rs. 500/- per annum

Account Closing Charges Rs. 100/-

Brokerage: 10 paisa (delivery)

5 paisa (intra-day)

Depositary Services Included in AMC

Intra Day Trading 25 times

3)

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A subsidiary of Kotak Mahindra Bank, Kotak Securities is a stock broking and

distribution arm of Kotak Mahindra Bank and was set up in 1994. It is a corporate

member of both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

Kotak securities online trading is the online trading portal of the Kotak Securities Ltd, the

leading stock broking house of India. The online division of Kotak Securities Limited

provides services like internet broking services, online IPO and mutual fund investments.

Trade In : BSE and NSE

Advantages of Kotak Securities Limited:

1. Kotak provides a Call & Trade facility to its customers wherein they can place and

track their orders through phone when they are away from home.

2. They provide daily SMS alerts, market pointers, periodical research reports, stock

recommendations etc.

3. Kotak provides exclusive online tool to monitor what is happening in the market and

also investor can view gains/losses in real-time.

Disadvantages of Kotak Securities Limited:

1. In online trading sometimes delay comes. So it can be frustrating.

Kotak Securities Demat Account Charges:

Fee Heads Charges

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Account Opening Charges Rs. 750/-

Account Maintenance Charges Individual Rs. 30/- pm

Corporate Rs 50/- pm

Brokerage: 59 paisa (delivery)

6p (intra-day)

Depository Services Rs.100 to Rs. 500

Intra Day Trading 7 Times

4)

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Angel Trade Stock Trading / Angel Trade Demat / Angel Trade Brokerage

Angel Group has emerged as one of the top 3 retail broking houses in India. Incorporated

in 1987, it has memberships on BSE, NSE and the two leading commodity exchanges in

India i.e. NCDEX & MCX. Angel is also registered as a depository participant with

CDSL.

Angel's retail stock broking house offering a gamut of retail centric services.

* E-broking

* Investment Advisory

* Portfolio Management Services

* Wealth Management Services

* Commodities Trading

Trade In: BSE and NSE.

Trading Platforms:

Angel Trade provides 4 trading platforms, 2 are browser based & 2 are application based.

1. Angel investor:

It is a browser based trading platform. The rates are updated on clicking the refresh

button. This facility ensures it is not blocked by firewall. Thus it is useful for investor

who needs to access information from places where firewall blocks such data.

2. Angel Trade:

It is a browser based trading platform. The rates are updated automatically. This platform

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is useful for investors & traders to access market from different terminals.

3. Angel Diet:

It is an application based trading platform where rates are updated automatically. All

segments are available on a single screen. This is ideal platform for the daily traders.

4. Angel Anywhere:

It is an application based trading platform where rates are updated automatically. This is

ideal for investors & traders who are inclined towards trading based on charts & technical

tools.

Advantages of Angel Trade:

1. User friendly browser-based / application based online trading platform.

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2. The auto square off time is at 3:15 and an investor can buy up to 4 times the value

in his account.

3. Trading account can be linked with popular private banks like HDFC Bank, ICICI

Bank, UTI bank etc.

4. Trading is available in both BSE and NSE.

Disadvantages of Angel Trade:

1. Online money transfer from trading account to bank account is not available:

Trading account can be linked with popular private banks like HDFC Bank, ICICI

Bank, UTI bank etc. A trader can transfer money from his bank to the trading account

online. But the reverse transactions are not yet available online.

This means money, a trader gets after selling shares doesn’t get credited in his bank

account directly. The trader has to call Angel Trade and request for the deposit. This

takes couple of working days.

Website: http://www.angeltrade.com

Angel Broking Demat Charges

Fee Heads Charges

Account Opening Charges Rs. 491/-

Account Maintenance Charges 1st year free. 2cnd year onwards

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Rs. 300/- pa

Brokerage: 40p (delivery)

8p (intra-day)

Depository Services Included in AMC

Intra Day Trading 25 times

5)

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Motilal Oswal Securities Stock Trading / Motilal Oswal Securities Demat / Motilal

Oswal Securities Brokerage

Incorporated in 1987, Motilal Oswal Securities Ltd is a well diversified financial services

firm offering a range of financial products and services such as Wealth Management,

Broking & Distribution, Commodity Broking, Portfolio Management Services,

Institutional Equities, Private Equity, Investment Banking Services and Principal

Strategies.

Company have a diversified client base that includes retail customers (including High Net

worth Individuals), mutual funds, foreign institutional investors, financial institutions and

corporate clients. They are headquartered in Mumbai and as of September 30th, 2009,

had a network spread over 576 cities and towns comprising 1,257 Business Locations

operated by them. As at September 30th, 2009, company had 5,80,667 registered

customers.

Type of Account:

1.Most E-Broking is complete online stock trading solution for Indiaian stock market.

Following are the features of MOSt E-Broking account:

* Easy single screen trader with instant trade confirmation similar to exchange based

trading terminals.

* Access to various online reports like margin report, Demat A/c details, trades executed,

turnover report, net position report with mark to market profit/loss and realized profit.

* Online transfer funds through HDFC Bank.

Website: http://www.motilaloswal.com

Motilal Oswal Demat Account Charges

Demat Account Opening Charges Rs.750/-

Demat Account Maintenance Rs. 400/- per annum

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Charges

Account Closing Charges Rs. 100/-

Brokerage: 10 paisa (delivery)

5 paisa (intra-day)

Depositary Services Included in AMC

Intra Day Trading 6 Times

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. In it we study the

various steps that are generally adopted by a researcher in studying his research problem

along with logic behind him. Why a research study has been undertaken, how a research

problem has been defined, in what way and why the hypothesis has been formulated,

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what data have been collected and what particular method has been adopted, why

particular technique of analyzing data has been used and a host of similar other questions

are usually answered when we talk of research methodology concerning a research

problem or study.

Research Objectives :

1) The main objective is selling and promotions of the DMAT Account cum Online

Trading Account.

2) To make a comparative study to know the different companies

3) To collect the real time information about preference level of customers using Demat

account and their inclination towards various other brokerage firms.

4) To provide pricing strategy of competitors to fight cut throat competition.

Research Design :

A research design is the arrangement of conditions for collection and

analysis of in a manner and aims to combine relevance to the research purpose with

economy in procedure. In fact the research design is the conceptual structure within

which research was conducted. Research design is needed because it facilitates the

smooth sailing of the various research operations thereby making research as efficient as

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possible yielding maximum information with minimal expenditure of effort, time and

money.

1) Descriptive research design : was adopted . Descriptive research is those

studies, which are concerned with describing the characteristics of a particular

individual or a group. Since the aim is to obtain the accurate information about the

customer in terms of his interest towards investment in stock sector. The techniques

of questioning customer in order to know their consumer behavior, their interests,

their needs. It is very important for the sales executive to study the mind of the

customer so that the personal visit would not be a waste of time, money and efforts.

2) Qualitative Research : - In the research comparison between different

stock brokers was needed . So this based on all qualitative data. In short, Qualitative

research isespecially important in the behavioral sciences where the aim is to discover

the underline motives of human behavior. Through such research we can analyses

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

make people like or dislike a particular thing.

3) Quantitative research: - Quantitative research is based on the measurement of

quantity or amount. It is applicable to phenomena that can be expressed in terms of

quantity. So we can use it in our research for collection of all the numerical data.

DATA SOURCES

Primary data, secondary data or both were collected. Secondary data are

data that were collected for another purpose and already exist somewhere.

PRIMARY DATA:

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The Primary Data Is Collected Using Sampling Method and by Survey using

Questionnaire and Tele-Calling.

SECONDARY DATA:

Secondary data includes information regarding present market scenario, information

regarding competitors are collected by internet, magazines and news papers.

CO NTA C T METHO D:

The marketing researchers have four choices to contact the respondents:

1) Mail.

2) Telephone.

3) Personal Meeting.

4) Online.

RESEARCH INSTRUMENT : . These questionnaires include Close Ended as well

as Open Ended questions. The questionnaire is attached at the end.

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 :

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1.)PROBABILITY RESEARCH DESIGN

2.) NON PROBABILITY RESEARCH DESIGN

In this project probability research design was used.

Sampling Units :

1) Different properties dealers

2) Charted accountants

3) Lawyers

4) Travel agencies

5) Transport business

6) Businessmen

7) Shop Keepers

8) Corporate employees

Sample Size:

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

sample”

The sample size in this project is 100 Respondents .

DATA ANALYSIS AND INTERPRETATION

1) In which of these Financial Instruments do you invest into?

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Interpretation: 28% of the respondents have invested in Bank FD and 24% of the

respondents invested in also, 20% invested in insurance, 10% have invested in Mutual

Fund and 10% have invested in Commodities. Result was a very few of the respondent

were aware of the share market

2) Do you know about Dmat Account ?

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Aware of Demat

Percentage of respondent

Yes 72%

No 28%

Interpretation:As mentioned earlier that a “Demat Account” holds shares in electronic form, which had

been a breakthrough in the long era of shares which were traded in Paper Form.

As shown in the above graph, as high as 72% people are aware of Demat Account as

these people are into share trading and have done Rematerialization of Share Certificates,

easy accessibility for online trading etc. Only a few people here 28 % are not aware of it

because of the reasons like, not interested in share trading, still finding shares in paper

form much more convenient, not being able to access the online facility provided for

trading because of lack of technological updation , people who are risk assertive, lack

of knowledge about the trading done through Demat Account

3) Do you have any Demat Account ?

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ACCOUNTS PERCENTAGE

Yes 60%

No 40%

Interpretation :

Only 60% respondents have Demat and trading account and remaining 40 % says no

because they don’t know the information on share market.

4) Are you aware of online Share trading?

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Interpretation :

With the increase in cyber education, the awareness towards online share trading has

increased by leaps and bounds. This awareness is expected to increase further with the

increase in Internet education.

5) Heard about Anand rathi and their Facilities?

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Aware of online share

trading

Percentage of

respondent

Yes 72%

No 28%

Interpretation:

This pie-chart shows that Anand Rathi has a low Brand awareness in terms of a premier

Retail stock broking company. This brand image should be further leveraged by the

company to increase its market share over its competitors. It is to be noted that the

customers are not aware of the facilities provided by the company meaning thereby, that,

the company should concentrate more towards promotional tools and increase its focus

on product awareness rather than brand awareness.

6) Which Broker do you prefer for Trading?

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Awareness of Anand rathi

Percentage of respondent

Yes 36%

No 64%

36%

64%

Awareness of Anand rathi Facilities

yes

No

Interpretation : 38% of the respondent prefer ShareKhan, 20% of the respondents

prefer Kotak securities, 14 % of respondents prefer ICICI direct ,12% prefer Angel

Broking, 9% prefer MotiLal Oswal and 7 prefer other Brokerage firms that includes

Anand Rathi, India Infoline, BMA, SMC,HDFC ,Edelweiss etc.

7) Which feature Do You Prefer in Brokerage Firm ?

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COMPANY PERCENTAGESHAREKHAN 38%KOTAK SECURITIES 20%ICICI DIRECT 14%ANGEL BROKING 12%MOTILAL OSWAL 9%OTHERS 7%TOTAL 100

Interpretation: Most People prefer cheap brokerage fees. Followed by Services and Security of their investments.

8) Are You Satisfied with service of your Company?

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Satisfaction Percentage of respondent

Brokerage 57%

Service 25%

Security 18%

Interpretation : 80% of the respondents are satisfied with their company’s service

only 20% are not satisfied with the services and convenience of the company.

FINDINGS

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1) According to this data very few people know about the share market in the region

(Dombivli, Kalyan, Ulhasnagar ,Ambarnath, Badlapur)

2) People like to invest their money in to bank fixed deposit rather than share

market.

3) Majority of the respondent are aware of Demat Account and they have Demat

Account.

4) According to this data the best preferred broking firm is Sharekhan followed by

ICICI DIRECT.

5) The brand image of Anand Rathi is low and is known amongst very few people.

6) Most People prefer cheap brokerage fees. Followed by Services and Security of

their investments.

7) 80% of the people are satisfied with their broking firm.

LIMITATIONS

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1) Lack of awareness of share market and Anand Rathi as a stock broker firm .

2) Some people are comfortable with traditional system. As people are doing trading

from their respective brokers, they are quite comfortable to trade via physical form of

paper, they want to trade off line, i.e. through telephone or directly.

3) Lack of Techno Savvy people and poor internet penetration.

4) Some respondents either do not have time or willing does not respond, as they are

quite annoyed with the phone call.

5) The study is limited to the different schemes available under the Demat account

selected.

6) Some people think that as all the shares are in electronic form and they don’t have

any physical proof. Sometimes this leads to a great misconception of the entire

process.

7) There cannot give proper comment on competitor’s services till we use it. As we all

know services are intangible and we cannot predict its quality, it is a thing to feel not

to see.

SUGGESTIONS

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1) The Brand image of ANAND RATHI Ltd. is average in market and the company should provide better service which will lead to customer satisfaction. And also change the Market strategy.

2) Anand Rathi should focus on print and electronic media advertisements to make more people aware about them.

3) Some promotional activities are required for the awareness of the customer, seminars should be held for providing information to prospective and present customers about Share Market and Trading.

4) They should provide proper guidance to their customers about demat.

5) They should provide should offers and facilities to their customers to increase their attractiveness about demat.

6) For opening an account they require lots of signatures in a kit, which should be reduced.

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CONCLUSION

I hope the effort at our end will be of use for all the trading community of Mumbai Region and they will be able to make use of the available info as one should be able to negotiate the best brokerage rate and avail the services provided by different brokerage firms. Happy Trading

 

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BIBLIOGRAPHY

www.rathi.com

www.google.com

www.indianmoney.com

www.rathionline.com/

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