MBA - Operations_Project Report

8/10/2019 MBA - Operations_Project Report

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CHAPTER- 1

INTRODUCTION

1.1 OVERVIEW OF INDUSTRY AS A WHOLE

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NSE launched internet trading in early February 2000. It is the frst

stock exchange in the country to provide a webbased access to

investors to trade directly on the exchange. !he process " #og on to the

brokers site o$ your choice where you get real ti%e &uotes' place a buy

or sell order on the spot' and direct the site to debit the re&uisite

a%ount. In so%e ti%e you get confr%ation and a$ter the trade

settle%ent your bank and depository account will re(ect the changes

which you can view anywhere' anyti%e. )nline trading has beco%e

sea%less. *ll that you need is a +,' a %ode%' subscription to an

Internet Service Provider (ISP),a saving and a depository account

with any bank providing online trading $acility. *long with stocks one

can trade in %utual $unds and invest%ent instru%ents. !he advantage

with online trading that you can operate in both -SE and NSE

depending on the broking fr%.

NSE introduced $or the frst ti%e in India a $ully auto%ated screen

based trading. It uses a %odern $ully co%puteried trading syste%

designed to o/er investor across the length and breadth o$ country a

sa$e and easy way to invest. !he NSE trading syste% called National

Exchange for Automated Trading (NEAT) is a $ully auto%ated

screenbased trading syste% which adopts the principle o$ an order

driven %arket.

1ith over 20 %illion shareholders' India has the third largest investor

base in the world a$ter the S* and 3apan. )ver 4000 co%panies are

listed on stock exchanges' which are serviced by approxi%ately 5600

stockbrokers. !he Indian capital %arket is signifcant in ter%s o$ the

degree o$ develop%ent' volu%e o$ trading and its tre%endous growth

potential.

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STOCK EXCHANGE

* stock exchange' share %arket or bourse is a corporation or %utual

organiation which provides $acilities $or stock brokers and traders' to

trade co%pany stocks and other securities. Stock exchanges also

provide $acilities $or the issue and rede%ption o$ securities' as well a'

other fnancial instru%ent and capital events including the pay%ent o$

inco%e and dividends. !he securities traded on a stock exchange

include" shares issued by co%panies' unit trusts and other pooled

invest%ent products an bonds. !o be able to trade a security on a

certain stock exchange' it has to be listed there.

National Sto! E"#an$%

!he national stock exchange o$ India li%ited 7NSE8 is a 9u%baibased

stock exchange. It is the largest stock exchange in India and the third

largest in the world in ter%s o$ volu%e o$ transaction. NSE is %utually

owned by a set o$ leading fnancial institutions' banks' insurance

co%panies and other fnancial inter%ediaries in India but its ownership

and %anage%ent operate as separate entities. In 9arch 200:' the NSE

had a total %arket capitaliation o$ ;'


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secondlargest stock %arket in south *sia in ter%s o$ %arket

capitaliation.

&o'(a) Sto! E"#an$%

!he -o%bay stock exchange 7or -SE8 is there oldest stock exchange in

*sia. It is located at ?alal street' 9u%bai' India.

!he -o%bay stock exchange was established in @=56. there are around

;=00 Indian co%panies listed with the stock exchange' and has a

signifcant trading volu%e. *s o$ %ay 2005' the e&uity %arket

capitaliation o$ the co%panies listed on the -SE was about >s.;0.5

trillion 7SA444billion8.

!his topic includes the practical experience co%pany products that are

$ollowed by studying the consu%er pre$erence or interest towards

share %arket. !his is a %arketB which is uncertain so%eti%es it gives

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huge proft and also viceversaB it depends upon the invest%ent

custo%er %ade. !his is a better option to have better returns on the

invest%ents then investing in banks' %utual $und or bond et. -ut risk is

high in this case.

!his products o/ers custo%er two type o$ invest%ent option

INTRADAY and DELIVERY both has !he topic is to study the

consu%er pre$erences towards invest%ent in stock %arket.

?e%at account is a pool o$ various scripts and securities' whereas

online trading is a tool o$ purchasingCselling o$ scripts online. !hese

scripts are then trans$erred to depository account a$ter three days.

!here own benefts and li%itations but a better way to have %ore

returns on invest%ent. Intraday %eans investing in a share %arket $or

a day i.e. purchasing and selling o$ sharekhan in one day. ?elivery is

purchasing share and selling those share next day. !he charges that

co%pany charge in ter%s o$ brokerage is di/erent in both the cases.

Done are the days when you le$t orders with your broker' received

con$or%ations on the price and &uality o$ the shares at the end o$ the

day and the pay%ent %ade up$ront or received a$ter delays. our

securities settle%ent took days to re(ect in your account. Internet has

changed the way you do trading. !he entire process is speedy with

li%ited to eropaper work. NSE launched internet trading in early

February 2000. it is the frst stock exchange in the country to provide a

webbased access to investors to trade directly on the exchange. !he

process " #og on to the brokers site o$ your choice where you get real

ti%e &uotes' place a buy or sell order on the spot' and direct the site to

debit the re&uisite a%ount. In so%e ti%e you get confr%ation and

a$ter the trade settle%ent your bank and depository account will

re(ect the changes which you can view anywhere' anyti%e. )nline

trading has beco%e sea%less. *ll that you need is a +,' a %ode%'

subscription to an Internet Service Provider (ISP),a saving and a

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depository account with any bank providing online trading $acility.

*long with stocks one can trade in %utual $unds and invest%ent

instru%ents. !he advantage with online trading that you can operate in

both -SE and NSE depending on the broking fr%.

1.* Co'+an) +,ol%

S#a,% !#an is the ,%tail (,o!in$ a,' o /0'(ai-(a%2 SSKI

G,o0+' which has over eight decades o$ experience in the stockbroking business. SSI owns :6G in Share han -alance ownership is

HS-,' frst ,arlyle and Intel +acifc.

It has been into (,o!in$ in% 34 )%a,. *nd has $ocused on

providing e&uity solutions to every seg%ent. It boasts o$ largest ground

network o$ 6== share shops across 2@< cities in India.

Sharekhan o/ers its custo%ers a wide range o$ e&uity related services

including trade execution on -SE' NSE' ?erivatives' depository

services' online trading' invest%ent advice etc.

!hrough its onlin% t,a2in$ +o,tal 555.#a,%!#an.o'' it provides

%ultichannel access to the stock %arkets to its custo%ers. !he

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website was launched on Feb =' 2000. !he site gives access to superior

content and transaction $acility to retail custo%ers across the country.

nown $or its argon$ree' investor $riendly language and high &uality

research' the site has a registered base o$ over one lakh custo%ers.

!he nu%ber o$ trading %e%bers currently stands at over < #acs. 1hile

online trading currently accounts $or ust over 2 per cent o$ the daily

trading in stocks in India' Sharekhan alone accounts $or 6* +%, %nt

o t#% 7ol0'% t,a2%2 onlin%.

Share khanJs groundn%t5o,! inl02% o7%, 833 %nt%, in 193

iti% in In2ia: o$ which


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1ith a legacy o$ %ore than =0 years in the stock %arket' the SSKI

group ventured into institutional broking and corporate fnance @=

years ago. +resently SSKI is one o$ the leading players in institutional

broking and corporate fnance activities. SSKIholds a sieable portion

o$ the %arket in each o$ these seg%ents. SSKIJs institutional broking

ar% accounts $or 5G o$ the %arket $or $oreign institutional port$olio

invest%ent and 6G o$ all do%estic institutional port$olio invest%ent in

the country. It has :0 institutional clients spread over India' $a east'

and us. Sharekhan is the retail broking ar% o$SSKI' an organiation

with %ore than eight decades o$ trust and credibility in the stock

%arket.

SSKI GROUP CO/PANIES

SSKI investor services #td 7sharekhan)

S.S.kantilal ishwarlal securities

SSKIcorporate fnance

I2,%a'productions

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TECHNOLOGY USED &Y CO/PANY

Sharekhan has always believed in investing in technology to build its

business. !he co%pany has used so%e o$ the bestknown na%esin the I! industry' like sun 9icrosyste%s' oracle' 9icroso$t'

nexgenix' spider so$tware pvt. #td. to build its trading engine and

content.

SHAREKHAN &USINESS

@. -rokering house

2. white $eathering house production

VISION

!o be the best retail brokering brand in the retail business o$ stock

%arket.

/ISSION

!o educate and e%power the individual investor to %ake better

invest%ent decisions through &uality advice and superior service

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K%) Statiti a(o0t S#a,%!#an

To+ Loation

-o%bay *rea' India;1*6< ?elhi *rea' India;*1


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-ranch 9anager 9?

To+ S#ool niv. o$ 9u%bai

niv. o$ +une

?elhi niv.

Inst. o$ !ech. and9anage%ent

South Duarat niv.

18?

?

?

8?9?

/%2ian A$% 2= yearsG%n2%, 9ale

Fe%ale

34?

*4?

Ta(l%= 1.*

Co'+ani% ,%lat%2 to S#a,% !#an

+arent ,o%pany

SSI

Ca,%%, +at# o, S#a,%!#an %'+lo)%%

-e$ore"

*. *nand >athi...

*$ter" >eligare 9otilal )swal...

Sharehan.co% is an online trading $acility $ounded in @4442000 with

a $ocus on e&uities' derivatives and co%%odities brokerage execution

on the National Stock Exchange o$ India #td. 7NSE8' -o%bay Stock

Exchange #td. 7-SE8' National ,o%%odity and ?erivatives Exchange

India 7N,?E8 and 9ulti ,o%%odity Exchange o$ India #td. 79,8.

Sharekhan #i%ited o/ers online security broking and port$olio services

to institutions and large corporate houses as well as individual

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investors. Sharekhan #i%ited was $or%erly known as SSI Investor

Services +rivate #i%ited. !he co%pany is based in 9u%bai' India.

1.6 P,o(l%' o S#a,% K#an

Share khan has been strongly co%%itted not only to environ%ental

conservation progra%s but also expresses the increasingly inseparable

balance between the econo%ic concerns and the environ%ental and

social issues $aced by a business. * business %ust not grow at the

expense o$ %ankind and %anJs $uture but rather %ust serve %ankind.

Share han has $ailed to evolve into a widespread internet

broking fr% because o$ its un$ocused pro%otional strategies

7advertise%ents in electronic %edia' newspapers' etc8 across the

length and breadth o$ India. *lthough it is a well known broking

house in so%e states like 9aharashtra' Duarat' etc. it still lacks

considerable awareness in the northern parts o$ India where its

co%petitors have been building their reputation very rapidly.

!he other o$ Share han is that they give %ore attention to HNIs

7high net worth individuals8 as co%pared to retail investors.

9ost o$ the processing and clarifcations 7account opening'

pay%ents' etc8 are routed to the head oOce in 9u%bai due to

lack o$ decision P%aking powers o$ local branches which delays

the speedy execution o$ decision

1.9 Co'+%tito, Ino,'ation

8+aia.o'

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Co'+an) &a!$,o0n2

Indiain$oline was $ounded in @446 and was positioned as a research

fr%. In 2000 ebroking was started under the brand na%e o$ 6

paisa.co%. *part $ro% o/ering online trading in stock %arket the

co%pany o/ers %utual $unds online. It also acts as a distributor o$

various fnancial services i.e. D)I securities' ,o%pany Fixed ?eposits'

Insurance. #i%ited ground network' present in 20 ,ities.

Onlin% Ao0nt T)+%

QInvestor !er%inal" Investors C Students

Q!rader !er%inal" ?ay !raders C HNIJs

PRICING FOR RETAIL CLIENTS

In7%to, T%,'inal

QAo0nt O+%nin$=>s 600

QD%'at 1tY,=>s 260

QInitial /a,$in=>s 26007,o%pulsory8

Q/in /a,$in R%taina(l%=>s @000

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Q&,o!%,a$%=

!rading 0.@0G each side R S!

?elivery 0.60G each side R S!

PRICING FOR HNI CLIENTS

T,a2%, T%,'inal


QD%'at 1tY,=>s 260

QInitial /a,$in=>s 60007,o%pulsory8

Q/in /a,$in R%taina(l%=>s @00

Q&,o!%,a$%=

!rading 0.@0G each side R S!

?elivery 0.60G each side R S!

7Negotiable to 0.06G each side L 0.26G8

QAo0nt A% C#a,$%

9onthly >s =00' adustable against -rokerage

early >s =000' adustable against brokerage

D%al Clin#%, 7B 8 Paia

QDo5nti'%

>ecent past 6 paisa !rader !er%inal 7!.!8 is experiencing high

$re&uency downti%e between < P


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Q/an0al Ao0ntin$

!he 6 paisa accounting syste% is %anual' )nline $und trans$er through

bank is not credited instantly. #i%it is provided E)? $or shares sold

$ro% ?+' or call si%ilarly li%it released $or shares soldunder -!S! is

%anual ?elay in receiving payout o$ clear $unds $ro% trading to -ank

*ccount

Q/in Ao0nt &alan%

,oncept o$ 9in >s @'000 to be %aintained in $or% o$ cash C securities

to keep account active. !his can be withdrawn only on closure o$

account.

Kota!t,%%t

Co'+an) &a!$,o0n2

otakstreet is the retail ar% o$ kotak securities. otak Securities li%ited

is a oint venture between otak 9ahindra -ank and Dold%an Sach.

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Onlin% Ao0nt T)+%

Q!win *dvantage C Dreen ,hannel=2 ?+Js' #i%it against shares

QFree 1ay=Flat >s 444 ,over ,harge p.%' 0.0 co%petitor

,ontract Note.

QNo C0to'iation o o''%,ial T%,'

No Flexibility in #everage P ?ependent on !ype o$ *ccount 7 ; to :

ti%es only8 No (exibility in -rokerage' driven by slab structure

Q/an) Ot#%, C#a,$%

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>s 22.6 p.% towards ?+ *9, charges

?+ inco%ing charges extra' 0.02G

>s @'000 as retainable 9argin to keep account active

>s 26 per call a$ter 20 calls $or the %onth

INDIA&ULLS

Co'+an) &a!$,o0n2

India -ulls is a retail fnancial services co%pany present in 50 locations

covering :2 cities. It o/ers a $ull range o$ fnancial services and

products ranging $ro% E&uities to Insurance. ;60 R >elationship

9anagers who act as personal fnancial advisors

Onlin% Ao0nt T)+%

QSi$nat0,% Ao0nt=+lain Kanilla *ccount with $ocus on E&uity

*nalysis. !he e&uity analysis is a paid service even $or *Cc holders

QPo5%, In2ia (0ll=*ccount with sophisticated trading tools' low

co%%issions and priority access to >.9

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P,iin$ o I& Ao0nt

Si$nat0,% Ao0ntQAo0nt O+%nin$=>s 260

QD%'at=>s 200 i$ +)* is signed' No *9, $or this ?+

QInitial /a,$in= NI#

Q&,o!%,a$%=Negotiable

Po5%, In2ia &0ll


QD%'at=>s 200 i$ +)* is signed' No *9, $or this ?+

QInitial /a,$in= NI#

Q&,o!%,a$%=Negotiable

D%al Clin#%, 7B In2ia &0ll

QPOA o, Cli%nt D/AT

*ll shares held by client trading with I- are %oved to I- +ool *ccount

and the sa%e is shown as a re(ection in client ?+ account. ,harges are

levied to %ove shares $ro% I- pool *ccount to client ?+ account

QPai2 R%%a,# S%,7i%

*ccess to a research even $or an I- trading account holder is charged a%in o$ >s 600 a %onth

Q/a,$in 0n2in$ #oa"

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!he interest on $unding starts on leveraged delivery trades $ro% !R@

day itsel$ 2@G p.a' on a daily basis

QT#% ,ol% o R%lation#i+ /ana$%,

Each >9 is looked upon as a revenue generator and he gets a G on

business generated $ro% client. !his can lead to over leveraged

7Interest8 L high $re&uency 7-rokerage8 trading' which %ay not be in

the best interest o$ the client.

ICICIDi,%t

Co'+an) &a!$,o0n2

I,I,I 1eb !rade #i%ited 7I1!#8 %aintains I,I,Idirect.co%. I1!# is an

aOliate o$ I,I,I -ank #i%ited and the 1ebsite is owned by I,I,I -ank

#i%ited

Ao0nt T)+%

QICICI Di,%t %-in7%t Ao0nt= +lain Kanilla *ccount with

$ocus on < in @ advantage. ?i/erentiated in services within the account

@. ,ash on spot

2. 9argin +lus

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+re%iu% trading inter$ace o$ I,I,I?irect #ink is given to ?-, partners

and HNIJs


QS#%'%= For short periods >s 560 is re$undable against brokerage

generated in a &tr. !hese sche%es are introduced


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Q/o,nin$ T,a2% I0%

-eing one o$ the websites with largest no o$ a$ter hour orders which are

pushed @stthing in the %orning' creates a choking o$ orders to the

exchange' causes delay o$ confr%ations $or new order placed during

the early %orning trades.

QR%t,ition o &TST

!he sale o$ shares purchased is restricted to !R@ day and is not

per%itted on !R2 ?ay.

QNo l%7%,a$% o, D%li7%,) t,a2%

?elivery is restricted to the total %oney allocated into the trading

account.

QNo %"i(ilit) on l%7%,a$% on Int,a-2a) t,a2%

!he leverage o$ ; ti%es is available $or intra day trades.

QR%t,ition o &an! Ao0nt

!he choice o$ bank is restricted to I,I,I -ank.

QHi$#%, &,o!%,a$% ,at% 5it# la(

!he delivery brokerage is pegged at 0.56G and trading at 0.@0G each

side' this %akes is very unviable $or custo%ers dealing in large

volu%es. *lthough progressively the delivery and trading brokerage

reduce as volu%es go up.

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1.8 S.W.O.T. Anal)i o S#a,% K#an

* swot analysis $ocuses on there internal and external environ%ents.

Exa%ining strengths and weaknesses in the internal environ%ent and

opportunities and threats in the external environ%ent

STRENGTHS

S%,7i%

*s a product share khan is a extre%ely innovative product with very

less cost services like online trading $acility institutional and do%estic

broking. ,usto%ied research with al%ost =0G eOciency etc. share

khan an edge over its research provides other support services that

%ake retail investors %ore confdent and assured with their trading.

S9S alerts 7allowing traders and investors to %ake the %ost o$ the

available opportunities8. So$ter intangible $eatures like a%agers' e&uity

driving pre$erence. !hrough eOcient trading processes investors can

place their orders directly on the internet do all the in$or%ation seeking

and basically own the investing process.

Dit,i(0tion n%t5o,!

Sharekhan with al%ost 260 branches spread across @2< cities bee$ed

up by co%prehensive online research advice and transaction services.

In near $uture expect to %ake 200000retail custo%ers being serviced

through centralied call centreC web solution. :0 branches se%i

branches servicing aTuent aggressive through highly skilled fnancial

advisors. 260 independent advisory roles through $unda%ental L

technical research and new initiatives are being %ade in port$olio

%anage%ent services L co%%odities trading.

/a,!%tin$

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Sharekhan is a product o$ SSI a veteran e&uities solutions co%pany

with over decades o$ experience in the Indian stock %arkets.

Sharekhan does not clai% expertise in too %any things. ShraekhanJs

expertise lies in stocks and that what it talks about with authority. Sowhen he saves that investing in stocks should not be con$used with

trading in stocks or a port$oliobased strategy is better than betting on

a single horse. It is so%ething that is spoken with years o$ $ocused and

experience in the stock %arkets.

P,o20t

,o%panyJs product line is &uite (exible in the sense that there is a

product $or every kind o$ investors. *lso all the products cover all the

products o/ered by the other co%petitors like low cost user$riendly

online trading services etc.

WEAKNESS

#ocalied presence due to insuOcient invest%ents $or country

wide expansion.

#ack o$ awareness a%ong custo%ers because o$ nonaggressive

pro%otional strategies 7print %edia' newspapers' etc8.

#esser e%phasis on custo%er retention.

Focuses %ore on HNIs than retail investors which results in

%eager %arketshare as co%pared to close co%petitors.

OPPORTUNITIES

!he external environ%ent analysis %ay reveal certain opportunities $or

proft and growth.

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E7%,-in,%ain$ 'a,!%t

*$ter the NSE brought the screen based trading syste% stock %arkets

are now %ore secured which has attracted lot o$ retail investors and

the de%and is increasing day by day. !his has resulted in i%proved

li&uidity and heavy volu%es on transaction. Share khan is one o$ the

early entrants here. *s to how %uch it will roar swi$t it can swoop on

the %arket' the $uture alone can answer such &ueries. Sharekhan has

been a %ega player and is known $or being a %over o$ stocks. It is also

known $or putting big deals through and enoys good networking with

the FIIs. It has been dyna%ic enough to %ove with the ti%es and

capture the opportunities that the %arket throws up $ro% ti%e to ti%e.

I'+,o7in$ t%#nolo$)

In county like India technology is always i%proving which gives the

co%pany a chance to keep on i%proving their product with ti%e

whereas $or the s%all players like local brokers it will be diOcult tokeep the sa%e pace as the changing technology. *lso with SE-I lying

down so%e strict guidelines s%all brokers are fnding it harder to retain

custo%ers with no research depart%ent and s%all capital. !he

traditional business players %ay not have syste%s technology'

custo%er services etc capable o$ directly servicing so %any retail

custo%ers.

E20ation l%7%l

!he education level in the country is i%proving year as $ar as

technology goes. 1ith that the understanding o$ the stock %arket is

also increasing and a lot o$ retail investors are steeping in the %arkets

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which are being shown by increasing volu%es' transactions and

indices.

THREATS

*ggressive pro%otional strategies by close co%petitors %ay

ha%per Share hanJs acceptance by new clients.

#ack o$ suOcient branchoOces $or speedy delivery o$ services.

)ther players are providing %argin $unds to investors on easy

ter%s where as there is no such $acility in share khan.

9ore and %ore players are venturing into this do%ain which can

$urther reduce the earnings o$ Share han.

1. PESTLE Anal)i o S#a,% K#an

PESTLEanalysis stands $or U+olitical' Econo%ic' Social'

and !echnological analysisU and describes a $ra%ework o$ %acro

environ%ental $actors used in the environ%ental scanningco%ponent

o$ strategic %anage%ent. So%e analysts added #egal and rearranged

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http://en.wikipedia.org/wiki/Environmental_scanninghttp://en.wikipedia.org/wiki/Strategic_managementhttp://en.wikipedia.org/wiki/Environmental_scanninghttp://en.wikipedia.org/wiki/Strategic_management


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the %ne%onic to S#E+!BV@Winserting Environ%ental $actors expanded

it to +ES!E# or +ES!#E

CO/POSITION

+olitical $actors are basically to what degree

the govern%entintervenes in the econo%y. Specifcally' political

$actors include areas such as tax policy' labour

law' environ%ental law' trade restrictions' tari/s' and political

stability. +olitical $actors %ay also include goods and serviceswhich the govern%ent wants to provide or be provided 7%erit

goods8 and those that the govern%ent does not want to be

provided 7de%erit goodsor %erit bads8. Further%ore'

govern%ents have great in(uence on the health' education'

andin$rastructureo$ a nation

Econo%ic $actors include econo%ic growth' interest

rates' exchange ratesand the in(ation rate. !hese $actors have%aor i%pacts on how businesses operate and %ake decisions. For

exa%ple' interest rates a/ect a fr%Xs cost o$ capitaland there$ore

to what extent a business grows and expands. Exchange rates

a/ect the costs o$ exporting goods and the supply and price o$

i%ported goods in an econo%y

Social $actors include the cultural aspects and include health

consciousness' population growth rate' age distribution' career

attitudes and e%phasis on sa$ety. !rends in social $actors a/ect thede%and $or a co%panyXs products and how that co%pany operates.

For exa%ple' an aging population %ay i%ply a s%aller and less

willing work$orce 7thus increasing the cost o$ labor8. Further%ore'

co%panies %ay change various %anage%ent strategies to adapt to

these social trends 7such as recruiting older workers8.

26
http://en.wikipedia.org/wiki/PEST_analysis#cite_note-1http://en.wikipedia.org/wiki/Governmenthttp://en.wikipedia.org/wiki/Tax_policyhttp://en.wikipedia.org/wiki/Labour_lawhttp://en.wikipedia.org/wiki/Labour_lawhttp://en.wikipedia.org/wiki/Environmental_lawhttp://en.wikipedia.org/wiki/Trade_restrictionhttp://en.wikipedia.org/wiki/Tariffshttp://en.wikipedia.org/wiki/Merit_goodhttp://en.wikipedia.org/wiki/Merit_goodhttp://en.wikipedia.org/wiki/Demerit_goodhttp://en.wikipedia.org/wiki/Healthhttp://en.wikipedia.org/wiki/Educationhttp://en.wikipedia.org/wiki/Infrastructurehttp://en.wikipedia.org/wiki/Economic_growthhttp://en.wikipedia.org/wiki/Interest_ratehttp://en.wikipedia.org/wiki/Interest_ratehttp://en.wikipedia.org/wiki/Exchange_ratehttp://en.wikipedia.org/wiki/Inflation_ratehttp://en.wikipedia.org/wiki/Cost_of_capitalhttp://en.wikipedia.org/wiki/PEST_analysis#cite_note-1http://en.wikipedia.org/wiki/Governmenthttp://en.wikipedia.org/wiki/Tax_policyhttp://en.wikipedia.org/wiki/Labour_lawhttp://en.wikipedia.org/wiki/Labour_lawhttp://en.wikipedia.org/wiki/Environmental_lawhttp://en.wikipedia.org/wiki/Trade_restrictionhttp://en.wikipedia.org/wiki/Tariffshttp://en.wikipedia.org/wiki/Merit_goodhttp://en.wikipedia.org/wiki/Merit_goodhttp://en.wikipedia.org/wiki/Demerit_goodhttp://en.wikipedia.org/wiki/Healthhttp://en.wikipedia.org/wiki/Educationhttp://en.wikipedia.org/wiki/Infrastructurehttp://en.wikipedia.org/wiki/Economic_growthhttp://en.wikipedia.org/wiki/Interest_ratehttp://en.wikipedia.org/wiki/Interest_ratehttp://en.wikipedia.org/wiki/Exchange_ratehttp://en.wikipedia.org/wiki/Inflation_ratehttp://en.wikipedia.org/wiki/Cost_of_capital


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!echnological $actors include technological aspects such

as >L?activity' auto%ation' technology incentives and the rate

o$technological change. !hey can deter%ine barriers to entry'

%ini%u% eOcient production level and

in(uence outsourcingdecisions. Further%ore' technological shi$tscan a/ect costs' &uality' and lead to innovation.

Environ%ental $actors include ecological and environ%ental

aspects such as weather' cli%ate' and cli%ate change' which %ay

especially a/ect industries such as touris%' $ar%ing' and insurance.

Further%ore' growing awareness o$ the potential i%pacts o$ cli%ate

change is a/ecting how co%panies operate and the products they

o/er' both creating new %arkets and di%inishing or destroying

existing ones.

#egal $actors include discri%ination law' consu%er law' antitrust

law' e%ploy%ent law' and health and sa$ety law. !hese $actors can

a/ect how a co%pany operates' its costs' and the de%and $or its

products.

27
http://en.wikipedia.org/wiki/R%26Dhttp://en.wikipedia.org/wiki/Automationhttp://en.wikipedia.org/wiki/Technological_changehttp://en.wikipedia.org/wiki/Barrier_to_entryhttp://en.wikipedia.org/wiki/Outsourcinghttp://en.wikipedia.org/wiki/Innovationhttp://en.wikipedia.org/wiki/Climate_changehttp://en.wikipedia.org/wiki/Discrimination_lawhttp://en.wikipedia.org/wiki/Consumer_lawhttp://en.wikipedia.org/wiki/Antitrust_lawhttp://en.wikipedia.org/wiki/Antitrust_lawhttp://en.wikipedia.org/wiki/Employment_lawhttp://en.wikipedia.org/wiki/Health_and_safety_lawhttp://en.wikipedia.org/wiki/R%26Dhttp://en.wikipedia.org/wiki/Automationhttp://en.wikipedia.org/wiki/Technological_changehttp://en.wikipedia.org/wiki/Barrier_to_entryhttp://en.wikipedia.org/wiki/Outsourcinghttp://en.wikipedia.org/wiki/Innovationhttp://en.wikipedia.org/wiki/Climate_changehttp://en.wikipedia.org/wiki/Discrimination_lawhttp://en.wikipedia.org/wiki/Consumer_lawhttp://en.wikipedia.org/wiki/Antitrust_lawhttp://en.wikipedia.org/wiki/Antitrust_lawhttp://en.wikipedia.org/wiki/Employment_lawhttp://en.wikipedia.org/wiki/Health_and_safety_law


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CHAPTE ! "

#$%ECTI&E AN' ETH#'##*+

*.1 SIGNIFICANCE

!his proect will acco%plish to understand the proble% $aced by the

new client with respect to online share trading and fnd ways to solve

their &ueries at %icroscopic level. !he study also ai%s to highlight the

possible hurdles that a prospective client $aces who are interested to

investing in securities but is unaware o$ the syste% o$ online share

trading. Its also ai%s at fnding out the brand i%age o$ the organiation

a%ongst the general investors and give in$or%ation to the

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%anage%ent about the new develop%ents in the %arket adopted by

the co%petitors and the areas where the co%pany needs to i%prove.

!his is a li%ited study which takes into consideration the various

operations per$or%ed by the co%pany. !his data can be exported to

take in the trends across the industry. !he signifcance $or the industry

lies in studying these trends that e%erge $ro% the study. It is a rapidly

changing and evolving sector.

*t sharekhan our goal is not only to sell a bike' but also to help you

every step o$ the way in %aking our world a better place to live in.

besides its will to provide a high &uality service to all o$ its custo%er.

Sharekhan takes a stand as a socially responsible enterprise respect$ul

o$ its environ%ent and respect$ul o$ the i%portant issues.

Sharekhan has been strongly co%%itted not only to environ%ental

conservation progra%%es but also expresses the increasingly

inseparable balance between the econo%ic concerns and theenviron%ental and social issues $aced by a business. * business %ust

not grow at the expense o$ %ankind and %anJs $uture but rather %ust

serve %ankind.

!he best is yet to co%e. SH*>EH*N is powering its way through a

%arket that is still to unleash its true potential' as barely two percent

o$ the population had been penetrated so $ar.

*.* /ANAGERIAL USEFULNESS OF THE STUDY

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!he stock %arket is one such institution whose very existence has

been challenged by the growth in in$or%ation technology. It has turned

very idea o$ a stock %arket on its head.

!echnology has i%pact the working o$ stock %arkets in every sense.

However' use$ul starting point $or this study would be the study o$

de%aterialiation' or de%at as it is popularly known as. !his is si%ply

because de%at has change the way stocks are held and traded and

there$ore has e/ect on every other $unction o$ the %arket.

?e%aterialiation in si%ple ter%s %eans the conversion o$ shares $ro%

physical to electronic $or%.

?e%at' enabled by the use o$ technology is probably is single %ost

i%portant $actor which has repercussions on every aspect o$ the stock

%arkets.

?e%at in India started with the creation o$ NS?# 7National stock

depository li%ited8 in @44:. !I was one o$ the frst institutions to use

de%at when it decided to de%aterialie 60G o$ its holdings in @445.

SE-I gave a boost to de%at' with co%pulsory trading on shares in

de%at $or% in specifed scrips by institutional investors $ro% 3an @6'

@44=.

Ta(l%"N0'(%, o ,i+ 0n2%, o'+0lo,) 2%'at an2 7al0% o

2%'at #a,%

Ti'%lin%No. o ,i+ Y%a, Val0% o 2%'at

#a,%

9ar @444


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,onse&uently' an increasing percentage o$ the share trading is done in

de%at $or%"

!he exhibit below shows the percentage o$ de%at shares in the total

value traded at NSE over a period o$ : years.

Ta(l%= +%,%nta$% o t,a2% in 2%'at o,'

Ti'%lin% P%,%nta$% o t,a2% in 2%'at o,'

*pr @44= 2.6G

?ec @444 54.


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out o$ $or de%at credit allot%ents' trading co%pulsorily in de%at $or%

within an option o$ holding shares in physical $or% $or retail investors.

-SE' the frst exchange to be set up in India' started as a (oorbased

exchange. However' NSE' setup as an alternative to -SE' was anelectronic 7co%puteried8 exchange. 1ith advance%ents in

technology' both these exchanges %oved to S-!S 7Screen -ased

!rading Syste%8 in Y445.

1hile NSE introduced NE*! 7NSEJs )nline !rading Syste%8 in 9ay

@445' -SE introduced -)#! 7-SEJs )nline !rading Syste%8 in

Septe%ber @445 in 9u%bai.

!he outco%e has pheno%enal with respect to the nu%ber o$ trades

taking place on these two exchanges.

Further' trading in stocks has reached retail investors ho%e via the

Internet in 200


33/68

It %akes o/exchange transactions attractive due to absence o$

trading costs.

)n the other hand rapid (ow o$ in$or%ation has also %eant increased

volatility in the %arkets. In fnancial ter%s' volatility is"

!he degree to which the price o$ a security' co%%odity' or %arket rises

or $alls within a shortter% period. *n obvious reason $or %arket

volatility is technology. !his includes %ore ti%ely in$or%ation

disse%ination' i%proved technology to %ake trades and %ore kinds o$

fnancial instru%ents. !he $aster in$or%ation is disse%inated' the

&uicker %arkets can react to both negative and positive news.

I%proved trading technology %akes it easier to %ake it easier to takeadvantage o$ arbitrage opportunities' and the resulting price align%ent

arbitrage causes. Finally' %ore kinds o$ fnancial instru%ents allow

investors %ore opportunity to %ove their %oney to %ore kinds o$

invest%ents positions when conditions change.

*.6 O&>ECTIVE OF THE STUDY

,usto%er *c&uisition through sales o$ !rading C ?e%at *ccounts in

order to get a deep insight as to how the )rganiation actually

per$or%s these $unctions.

nderstanding the ,o%%odity and ?erivative %arket and the way

work is per$or%ed in these seg%ents.

Investigate the diOculties $aced by the existing clients o$ Share

han with respect to its internet trading services

!he pri%ary obective o$ this study is to gain an insight into the

basics o$ internet trading with respect to Indian capital %arket.

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!o ascertain the proble%s those are hindering the acceptance o$

internet trading a%ong the prospective investors.

!o conduct 9arket >esearch in various parts o$ the city in order to

get statistical data $or co%%enting on the $uture o$ online share

trading in India.

*.9 SCOPE OF THE STUDY

1ith growing acceptance and popularity o$ internet trading the

study ai%s at providing a deeper insight into this new feld o$

security trading in India.

*ssess the penetration o$ internet trading with respect to the

growth o$ broadband connectivity provided by various Inter

Service +roviders 7IS+s8. to help Share han in developing a

better custo%er ac&uisition retention strategy in relation to retail

as well as institutional investors.

*.8 /ETHODOLOGY

!he leads $or custo%er ac&uisition pri%arily ca%e $ro% the

&uestionnaires flled up by prospective custo%ers. *part $ro%

these custo%ers were also pitched through personal re$erences

and contacts. 9oreover the organiation takes every possible

e/ort in order to spread %ass awareness. *s a result o$ this

publicity ca%paign' in(uenced prospective custo%ers approach

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the organiation. !here are various ways to %ake people aware

about the organiation as such 9arketing >esearch' ,anopy'

+ersonal >e$erences' +opup windows having collaboration with

various portals e.g. >edi/%ail.co% etc. +erson with ade&uate

interest leaves his contact in$or%ation. #ater on these leads are

contacted personally $or $urther develop%ent.

!he organiation has eOcient sales stu/ that excels in this ob.

+art ti%e trainees are also appointed $or the sa%e. !his work

$orce been per$ectly supervised by the 9anagers. !hus all these

$actors su% up into a result oriented work $orce. !hese leadswere the contacted through tele calling and a$ter developing a

relationship' they were pitched in at the addresses provided by

the%. *$ter giving the% a presentation about the product and its

advantages over its co%petitors' they were pro%ised o$ a ?e%o

by co%pany sales $orce in case a sale had resulted. *lso

re$erences were collected $ro% such people and the sa%e

%ethodology was repeated. For each and every custo%er

personal &uarries have been entertained a$ter the sale is done.

9ethodology is a way to syste%atically solve to research

proble%. it %ay be understood as a science o$ studying how

research is done scientifcally. In it we study the various steps

that are generally adopted by a researcher in studying his

research proble% along with logic behind hi%. 1hy research

study has been undertaken' how research proble% has been

defned' in what way and why the hypothesis has been

$or%ulated' what data collected and what particular %ethod has

been adopted' why particular techni&ue o$ analying data has

been used and a host o$ si%ilar other &uestions are usually

35


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answered when we talk o$ research %ethodology concerning a

research proble% or study.

>esearch is a process o$ refning hu%an experience $or being

e%bodied in the stock o$ knowledge. In course o$ this refning

operation a researcher has to $ollow various specifc steps. First'

any develop%ent in the scientifc knowledge is $ounded on the

basis o$ previous knowledge in that area o$ study. Further' a

researcherJs &uest is to adopt a suitable %ethodology to pursue

his current research endeavor. !his enables hi% to get reliable

results' which are help$ul to $or% so%e concrete conclusions.

+resent research ai%s to investigate the level o$ custo%er

satis$action a%ongst di/erent product types o$ Sharekhan.

-oth type i.e. +ri%ary as well as Secondary data are used in this

report.

Zuestionnaire and )bservation as pri%ary data while >esearch

reports' pa%phlets' and sites o$ Sharekhan group are used $or

secondary data.

+resent research is descriptive in nature.

,onvenient sa%pling techni&ue is used in this report.

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CHAPTER 6

CONCEPTUAL DISCUSSION

;THEORITICAL &ACKDROP LITERATUREREVIEWealti%e +o,tolio t,a!in$with price al%,t

and' o$ course' the assurance o$ secure transactions.

T#% Dial-n-T,a2%service enables one to place orders $or buying

and selling shares through telephone by dialing any one o$ our

two nu%bers 71-344-**-J484or 6464J448' enter your TPIN

n0'(%,7which is provided at the ti%e o$ opening your account8

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and on authentication )o0ll (% 2i,%t%2 to a t%l%(,o!%,who

will buy and sell shares $or you.

*. RESEARCH

!o cater to the di/erent needs o$ each investor sherkhan provides

a co%prehensive set o$ research reports' so that you can %ake

the right invest%ent decisions regardless o$ your investing

pre$erences.

A. SHAREKHAN SHOPS

It has 814 #a,% #o+ across @50iti% in India. !here it provides a

host o$ trading related services custo%er service sta/ will also help

you with any accounts related &ueries you %ay have.

* Sharekhan outlet o/ers the $ollowing services"

)nline -SE and NSE executions 7through -)#! L NE*! ter%inals8

Free access to invest%ent advice $ro% Share khanJs >esearch tea% Sharekhan Kalue #ine 7a %onthly publication with reviews o$

reco%%endations' stocks to watch out $or etc8

?aily research reports and %arket review 7High Noon L Eagle Eye8

+re%arket >eport 79orning ,uppa8

?aily trading calls based on !echnical *nalysis

,ool trading products 7?aring ?erivatives and 9arket Strategy8

+ersonalied *dvice

#ive 9arket In$or%ation

?epository Services" ?e%at L >e%at !ransactions

?erivatives !rading 7Futures and )ptions8

,o%%odities !rading

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I+)Js L 9utual Funds ?istribution

Internetbased )nline !rading" Speed !rade

&.DE/AT

?e%aterialiation and trading in the de%at

%ode is the sa$er and $aster alternative to

the physical existence o$ securities. ?e%at

as a parallel solution o/ers $reedo% $ro%

delays' the$ts' $orgeries' settle%ent risks

and paper work. !his syste% works

through depository participants 7?+s8 who o/er de%at services and

the securities are held in the electronic $or% $or the investor directly

by the ?epository.

Sharekhan ?epository Services o/ers de%aterialiation services to

individual and corporate investors.

6. /UTUAL FUNDS

Share khanJs clients will now also be able to invest in 9utual $unds

through the%. !hey have already started this service $or a $ew %utual

$unds' and in the near $uture will be expanding our scope to include a

whole lot %ore. *pplying $or a %utual $und through us is open to

everybody' regardless o$ whether you are a Sharekhan custo%er.

!o invest in a $und' all you have to do is download the application $or%'

print it out' fll it in and send it over to the%.

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6. P/S

!his is a product which allows the custo%er to be co%pletely hands o/

as all the e&uity decisions o$ the custo%er are taken y the

pro$essionals appointed by the fr%.

!he product is classifed into three categories"

+ro!ech

+ro+ri%e

+ro*rbiterage

P,oT%#

+roduct )/erings

Ni$ty !hri$ty"

Ni$ty $utures are bought and sold and the exposure does not

exceed the value o$ the

port$olio. !he advantage is

that Ni$ty allows %aking profts

even in $alling %arkets

-eta +ort$olio "

Here =0G o$ the port$olio is traded in

delivery 7cash

%arket8 and the rest 20G in the

Future and )ption seg%ent 7e.g.

-uying calls Cput etc.8!his results in

a higher and sa$er return as risk is undertaken only on the 24G o$ the

port$olio

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P,oP,i'%

+roduct )/erings

!he *ggressive Sche%e"

Ideal $or investors looking at higher returns and are ready to

take higher risks.

!he port$olio consists o$ the $ollowing stocks"

Expected growth in proftability

>elatively low valuations

9id to s%allcap co%panies

!he -alanced Sche%e"

Ideal $or investors looking at steady returns with low risk

appetite consists o$ a blend o$ consistent a blue chip stocks

ensuring a balanced growth.

P,oA,(it%,a$%

It spots risk $ree opportunities which o/er higher return than other risk

$ree instru%ents available in the %arket. )n spotting the opportunity

the stock is bought and the $uture is sold so as to lock in the spread. In

this way the sche%e %oves $ro% one opportunity to another.

ACCOUNT OPENING

!heir de%at and trading aCc opening charges 7co%bined8 are >s 460C

and it as %andatory to open both the accounts there i.e. you cannot

open ust de%at or trading aCc with the%. *nnual 9aintenance ,harges

are not charged $or frst 2 years and therea$ter levied >s. 260 p.a.

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&ROKERAGEslabs are as $ollows"

Invest%ent

*%ount

-rokerage7in G8Intraday ?elivery

6000@0'000 0.@0 0.60@0'00060'000 0.06 0.2660'000@'00'000 0.0< 0.


51/68

2. S+%%2 t,a2% t%,'inal Speedtrade is a power$ul trading

and research plat$or% that has live strea%ing &uotes'

trading calls' advanced charting' %arket news and a single

trading screen $or -SE L NSE. It is not provide to all the

clients. )nly those clients are eligible $or it that can

generate a &uarterly brokerage o$ >s.@600. )therwise'

they are bound to pay the penalty o$ the re%ainder.

,o%paratively it has got %ore and advanced $eatures' e.g."

one can see %ore nu%ber o$ scripts at a ti%e on the

screen.

?ialntrade 7calling the dealers on phone and getting the trade

done through the%8

R./. FACILITY

>elation %anagers are the people who provide their clients with the

regular tips $or trading in e&uity %arket and thereby assist the% in

getting the %axi%u% returns.

In sherkhan' relationship %anagers are not provided to all the clients.

!his $acility is only %ade available to those clients whoJs port$olio is

above >s. 2' 00'000C.

TECHNICAL REPORTS

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!heir clients receive ; %ails per day in$or%ing the% about the %ost

probable share %arket %ove%ents $or that day.

!heir !echnical !rading calls based on the &,a7% #%a,t St,at%$)has

consistently given a strike rate o$ =5G on calls with a @2 %onths o$

price target and 46G $or calls based on


53/68

6.6 SHAREKHAN SERVICES

Dial-n-t,a2%

*long with enabling access $or your trade online' the classic and

Speedtrade account also gives you our dialntrade services. 1ith

this service' all you have to do is dial our dedicated phone lines @

=00225600 and based syste% $ro authentication.

No wait ti%e. )n entry o$ phone id and !+IN' the call is

trans$erred.

!rusted' pro$essional advice o$ !albrokers' who o/er r

undiluted sharekhan research inputs.

IPN ON-Lin%

,an apply the entire $ollowing I+) online $or $ree.

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R%%a,# ti+= ,o%pany provide ;: e%ails to therecusto%ers per day.

P,% /a,!%t=pre%arket report covering views' events and%ore.

Da,in$ 2%,i7ati7%=covers $utures and option co%%entaryand trading calls.

Hi$# Noon=is ai%ed at traders' this technical daily newsletter

carries punters calls and s%art chart. It is released at noon to be

acted upon during the course o$ the day.

Pot-/a,!%t ,%+o,t= updates you day happening.

Ea$l% E)%= is ai%ed at traders' this technical daily newsletter

carries punters calls' hit list and s%art chart. ItJs released at the

end o$ the day to be acted on $ollowing day.

In7%to, %)%= is ai%ed at investors' this $unda%ental daily

newsletter carries %ost i%portant news report' research update

on our stock idea and other $unda%ental reports.

Sto! i2%a= ai%ed at investors and it presents our best stock

picks in todayJs %arket.

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CHAPTER 9

DATA ANALYSIS

55


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Anal)i

)n the basis o$ the pri%ary data collected through &uestionnaires L

personal interviews conducted with co%paniesJ e%ployees and clients

analysis was done and $ollowing are the &uestion wise results"T)+% o In7%to,

56

Fi$0,%= 9.1


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S%all investors pre$er to invest in the stock %arket through >eligare

Securities #td.' India -ulls Financial Services #td. L I,I,I ?irect.co%.

>eliance 9oney is being pre$erred %ore by %ediu% investors.

Sharekhan is suitable $or big investors.

/%2i0' o T,a2%

57

Fi$0,%= 9.*


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It has been observed that tradersJ inclination towards online trading is

increasing. Investors who opt $or online trading are %ore in >eligare

and Indiabulls as their so$tware ter%inal is very e/ective. )Tine

traders are %ore in Sharekhan and I,I,I ?irect.co% as their ter%inal is

very expensive as well as inaccurate. >eliance9oney o/ers only

internet based trading.

T%#nial R%+o,t

58Fi$0,%= 9.6


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>eligare send %arket tips through E%ails to the clients. 9oreover

>elationship 9anager also keeps on giving %arket tips to their

respective clients. Indiabulls provide %arket tips through e%ails and

so%eti%es through s%s. -oth these co%panies are irregular in sending

technical reports to their clients. )n the other hand' Sharekhan and

I,I,I ?irect.co% are very regular in sending technical reports to their

clients. Share khan send ; reports through %ails which include

pre%arket report be$ore 4"66' post %arket report' a$ternoon report and

evening report. I,I,I ?irect.co% sends their %arket tips through e

%ails only.

4@G o$ the respondents says that Sharekhan is nu%ber one in the

%arket.

!he co%%on reasons behind this arte as $ollows"

Dood returns

*dvisory

,usto%ied services

)nly 4G o$ the respondents fnd that Sharekhan is not nu%ber one in

the %arket.

-ut the reasons o$ this thing was not even clear to the respondents as

they fll they need %ore custo%ied services and %ore returns out o$

their invest%ent.

So at last here I would like to reco%%end that i$ Sharekhan gives %ore

e%phasis on custo%ied services then %ore and %ore custo%ers get

satisfed.

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CHAPTER 8- FINDINGS AND

RECO//ENDATION S

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Int%,+,%tation" !his shows that although the %utual $unds %arket is

on the rise yet' the %ost $avored invest%ent continues to be in the

Share 9arket. So' with a %ore transparent syste%' invest%ent in the

Stock 9arket can defnitely be increased.

Int%,+,%tation" 1ith the increase in cyber education' the awareness

towards online share trading has increased by leaps and bounds. !hisawareness is expected to increase $urther with the increase in Internet

education.

O7%,all Satiation

61

Awareness of online share trading

Yes -- 91%

No-- 9%

Fi$0,%= 8.1

Fi$0,%= 8


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,usto%ers are satisfed with the services which are being provided to

>eligare. Indiabulls' I,I,I ?irect.co% and >eliance %oney have satisfed

their clients to so%e extent only. ,usto%ers are not satisfed with

Share khanJs per$or%ance.Sharekhan provide e/ective service only to

the big investors. S%all investors are not given due i%portance and

attention.

Ati7%n% o G,i%7an% %ll

>eligare clients fnd grievance cell o$ the co%pany active to so%e

extents only. Indiabulls is highly ine/ective in redressing custo%er

grievances. Share khanJs grievance cell is not e/ective and custo%ersreceive very indi/erent responses. I,I,I ?irect.co% and >eliance

%oney are particular in redressing their custo%ersJ grievances.

*$ter having an experience o$ two %onths in sales o$ de%at account I

would like to suggest the $ollowing things"

,o%pany has an advantage o$ reach tips $or which sharekhan is

known $or' the custo%er who are new they need relationship

%anagers who will tell the% about invest%ent so it should be

provided to all the custo%er on de%and this will lead to

custo%er satis$action and will hip to have %ore re$erences $ro%

the satisfed custo%er.

!he co%pany also have the advantage o$ brokerage charges it

need so%e revision so that the custo%er who are locking $or the

less brokerage can open there account in our co%pany taking

into consideration the di/erent proposal. It can reduce $or a HNI

client.

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!he co%pany has shown the growth trend and it has reached at

no.2 it can %ove to no.@ because it has an advantage o$ its

services. *s sharekhan is already tieup with @0 banks $or online$und trans$er that reduces the paper work $or custo%er and ease

in trading.

!he co%pany should revise the advertising strategy to increase

its brand awareness. I suggest %aking advertise%ent on

television so that %axi%u% %arket can be targeted.

,o%pany should $ocus on custo%er satis$action at every levels

o$ the account procedure.

-rokerage can be reduced with the attractive proposal with

HNI.

>elationship %anager should be given on the custo%er

de%and. ,o%pany should use the tool o$ advertising $or %arketing

the brand and the product.

>eduction in brokerage would attract the custo%er o$

indiabulls' 6paisa and other co%petitorJs having less

brokerage then us.It would increase the %arket share or

client ac&uisition.

!he account opening ti%e should be reduced to %axi%u%

6days because custo%er losses the opportunity o$

invest%ents.

!he co%pany shows the positive trend in growth but it can

be increased %ore i$ it $ocuses on building the brand e&uity

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Conl0ion

!alking about S#a,%!#anit is one o$ the %ost well known players in

this seg%ent and boasts is o$ high clientele because o$ its good andregular research tips' tieups with al%ost all %aor banks 7@0 banks to

be precise8 as well as co%petent >elationship 9anagers. -ut the only

stain on its na%e because o$ the $act that it doesnJt care %uch $or its

s%all custo%ers who are not even provided an >.9. *lso their ter%inal

charges are also &uiet high as co%pared to that o$ its co%petitors.

1hile there are %any $actors that need to be understood' one si%ple

$act is worthy o$ note. !he average age o$ the Indian Internet user as

cited by a recent I?, survey is 25 years. !he average age o$ the head

7and fnancial decision taker8 o$ the Indian e&uityinvestor household'

as revealed by the SE-IN,*E> study o$ Indian investors in 2000 is ;6

years. !he older' experienced e&uity investor is not online today and

the $act that older' %ature investors are not MtechpositiveJ and hence

unlikely to %ove to online trading is a %aor barrier to the growth o$ e

broking in India.

Here' the nu%bers o$ banks with a strong online presence are very $ew

again' do%inated by new private banks and $oreign banks. -oth have

lesser reach owing to a s%aller network in the country. !he relative

inability o$ large publicsector banks to o/er$acilities $or Internet

banking is a barrier in this regard. -esides' Internet penetration in India

is still very low and concerns about security also tend to predo%inate.

In %arkets like the S' online brokerages are advertised very heavily.

)nline trading in India has so $ar not seen si%ilar levels o$ aggressive

advertising' with the exception o$ I,I,I ?irect and India bulls. -esides'

only scripts that have been co%pulsorily de%aterialied can be traded

on the net here.

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ANNEXURES

UESTIONNAIRE

Name: ..... Occupation:

Pone: .....

(1) Do you invest in stock market?

Yes No

(2)You a!e a c"ient o# $ic is a !o&e!a'e ouse.

(3) What is your Experience in the market?

(ess tan a )ea! 1-4 )ea! *o!e tan 4 )ea!s

(4) What is your Trading re!erence?

+pecu"ation ,nestment ot

(5) What is your Average investment period? (ess tan 3 monts. 3 to 9 monts.

9 monts to 2 )ea!. *o!e tan 2 )ea!.

(6) Factors influencing the investment decisions?

/ice #!om !o&e! u!!ent ne$s

eie$s in inancia" *a'aines /ice #!om !iens

+e"# a"uation Ote!s

(7) How much is! are you willing to ta!e?

i' (o$ *oe!ate

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(") How much Appreciation do you e#pect from your$nvestments?

up to 15% 15%-25% 25%-35%

mo!e tan 35%

(%) How much loss are you willing to ta!e?

(ess an 5% 5-10% mo!e tan 10%

(1")Any suggestions:

........

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&I&LIOGRAPHY

&oo! an2 N%5+a+%,=

!he Econo%ic !i%es' -usiness Standard' -usiness line

Securities 9arket 7-asic8 9odule "N,F9

Econo%ic !i%es.

!raining it +rovided by the Sharekhan.

Indian fnancial syste% by 9. H*N

NS?# ?epository operations %odule "N,F9

URL=

www.indiain$oline.co%

www.econo%icsti%es.co%

http"CCwww.investopedia.co%CarticlesC

www. nseindia.co%

www.bseindia.co%

www.%oneycontrol.co%

www.sharekhan .co%
http://www.economics/http://www.investopedia.com/articles/http://www.bseindia.com/http://www.moneycontrol.com/http://www.economics/http://www.investopedia.com/articles/http://www.bseindia.com/http://www.moneycontrol.com/

MBA - Operations_Project Report

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