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A

PROJECT REPORT

On

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In the partial fulfillment of

MASTERS OF BUSINESS ADMINISTRATION

Financial Services Management

(Session2010-2012)

Faculty Of Management Studies, MLSU

Udaipur

Rajasthan

Under the guidance of:- Submitted by:-

Mr. Abhishek Goswami Ravi Soni

MBA- FSM (IIIrd semester)


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DECLARATION

I hereby declare that the project entitled Comparative Analysis Of Stock Brokers With

IndiaBulls submitted in partial fulfillment of MBA- FSM degree is my original work done at

IndiaBulls, Jaipur from 5 July 2011 to 20 August 2011.

I also declare that it has not been previously submitted for any other degree at any other

institutions.

Ravi Soni

MBA- FSM


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EXECUTIVE SUMMARY

The objective of the project was to learn about the various products that the IndiaBulls has to

offer to the customers. The main purpose of study is to know about the competitive edge of

IndiaBulls over other stock brokers & for this purpose only a comparative analysis has been

done with other stock brokers.

In this report along with the analysis organization structure, functioning of

departments, promotion etc. of IndiaBulls have also been described . A questionnaire was also

designed in order to evaluate certain facts which will be helpful in order to complete the study.

The first part of the report consists of Introduction to the industry, the next part includesIntroduction to the organization and after that study report has been given. A SWOT analysis

was also done to know about the strengths, weaknesses, opportunities and threats of the

organization. In the end conclusions and recommendations were given on the basis of the study

done.


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TABLE OF CONTENTS

*Introduction 6-7

*Growth of IndiaBulls 8

*Product & services offered by IndiaBulls 9

*Overview of company people 10

*Vision 11

*IndiaBulls securities limited 12

*IndiaBulls offerings 13-14

*Benefits 15

*Competitors 16-18

*Comparative analysis between different stock brokers 19-23

*Organization structure 24

*Functioning of departments 25-26

*SWOT analysis of IndiaBulls 27

*Edge of IndiaBulls over others 28-30

*Depository services 31

*Promotion 32

*Research methodology 33-34

*Sample design & data collection 35-36

*Details of actual work done 37-40

*Interpretation & analysis 41-49

*Findings of study 50*Recommendation & benefits to company 51-52

*Limitations 53

*Suggestions 54

*Bibliography 55


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INTRODUCTION

IndiaBulls Group is one of the top business houses in the country with business interests in RealEstate, Infrastructure, Financial Services and Power sectors. IndiaBulls Group companies are

listed in Indian and overseas financial markets. The Networth of the Group exceeds USD 3

billion. IndiaBulls has been conferred the status of a Business Superbrand by The BrandCouncil, Superbrands India.

IndiaBulls and its group companies have attracted USD 800 million of equity capital in foreign

direct investment (FDI) since March 2000. Some of the large shareholders of IndiaBulls are the

largest financial institutions of the world such as Fidelity Funds, Capital International, Goldman

Sachs, Merrill Lyinch, George and Farallon Capital.

The Group Companies

IndiaBulls Financial Services is an integrated financial services powerhouse providing Consumer

Finance, Housing Finance, Commercial Loans, Life Insurance, Asset Management and Advisory

services. IndiaBulls Financial Services Ltd is amongst 68 companies constituting MSCI -

Morgan Stanley India Index. IndiaBulls Financial is also part of CLSAs model portfolio of 30

Best Companies in Asia. IndiaBulls Financial Services in partnership with MMTC Limited, the

largest commodity trading company in India, has set up Indias 4th Multi-Commodities

Exchange.

IndiaBulls Real Estate Limited is Indias third largest property company with development

projects spread across residential projects, commercial offices, hotels, malls, and Special

Economic Zones (SEZs) infrastructure development. IndiaBulls Real Estate partnered with

Farallon Capital Management LLC of USA to bring the first FDI into real estate. IndiaBulls Real

Estate is transforming 14 million sqft in 16 cities into premium quality, high-end commercial,

residential and retail spaces.


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IndiaBulls Real Estate has diversified significantly in the following business verticals within the

real estate space: Real Estate Development, Project Advisory & Facilities Management:

Residential, Commercial (Office and Malls) and SEZ Development, Power : Thermal and Hydro

Power Generation.

IndiaBulls Securities Limited is Indias leading capital markets company with All- India

Presence and an extensive client base. IndiaBulls Securities possesses state of the art trading

platform, best broking practices and is the pioneer in trading product innovations. Power

IndiaBulls, in-house trading platform, is one of the fastest and most efficient trading platforms in

the country. IndiaBulls Securities Limited is the first brokerage house to be assigned the highest

rating BQ1 by CRISIL.


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GROWTH OF INDIABULLS

Year 2000-01:

One of Indias first trading platforms was set up by IndiaBulls Financial Services Ltd. with

the development of an in-house team.

Year 2001-03:

The service offered by IndiaBulls was increased to include Equity, F&O, Wholesale

Debt, Mutual fund, IPO Financing/Distribution and Equity Research.

Year 2003-04:

In this particular year IndiaBulls ventured into Distribution and Commodities Trading

business.

Year 2004-05:

This was one of the most important years in the history of IndiaBulls. In this year:

IndiaBulls came out with its initial public offer (IPO) in September 2004.

IndiaBulls started its Consumer Finance business.

IndiaBulls entered the Indian Real Estate market and became the first companyto bring FDI in Indian Real Estate.

IndiaBulls won bids for landmark properties in Mumbai.

Year 2005-06:

In this year the company acquired over 115 acres of land in Sonepat for residential home site

development. The world renowned investment banks like Merrill Lynch and Goldman Sachs

increased their shareholding in IndiaBulls. It also became a market leader in securities brokerage

industry, with around 31% share in Online Trading. The worlds largest hedge fund, Farallon

Capital and its affiliates committed` 2000 million for IndiaBulls subsidiaries Viz. IndiaBulls

Credit Services Ltd. and IndiaBulls Housing


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PRODUCTS AND SERVICES OFFERED BY INDIABULLS

IndiaBulls

Securities

Equity research

Commodities

Internet trading

Online IPO

Consumer finance

SME loans

Commercial

vehicle loan

Insurance

Mortgage

Home loans

Loans against

Property

Real estate

Organized

Retail

Commercial

development

Residential

development


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AN OVERVIEW OF COMPANY PEOPLE

The company was established by three engineers from IIT Delhi, and has attracted significant

amount of investments from venture, private equity and institutional investors. The details are as

follows:-

Mr. Sameer Gehlaut Mr. Rajiv Rattan Mr. SaurabhMittal

Chairman, CEO President, CFO Co-Founder

Whole-time Director Whole-time Director Director

Mechanical Engineer Electrical Engineer Electrical Engineer

IIT Delhi IIT Delhi IIT Delhi

Worked for Halliburton in Worked in Worked inUnited States Schlumberger Schlumberger

Acquired Inorbit Securities MBA fromin 2000 to establish Harvard Business

Indiabulls School


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VISION

To achieve and retain leadership, India Bulls shall aim for complete customer satisfaction, by

combining its human and technological resources, to provide superior quality financial services.

In the process, India bulls will strive to exceed Customers expectations.

:-

As per the Quality Policy, IndiaBulls will:-

Build in-house processes that will ensure transparent and harmoniousrelationships with its clients and investors to provide high quality of services.

Establish a partner relationship with its investor service agents and vendorsthat will help in keeping up its commitments to the customers.

Provide high quality of work life for all its employees and equip them withadequate knowledge & skills so as to respond to customers needs.

Continue to uphold the values of honesty & integrity and strive to establish

unparalleled standards in business ethics.

Use state-of-the art information technology in developing new and innovativefinancial products and services to meet the changing needs of investors and

clients.

Strive to be reliable source of value-added financial products and servicesand constantly guide the individuals and institutions in making a judicious

choice of same.


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INDIABULLS SECURITIES LIMITED :-

The Company's primary business activity is to carry on business of stock and share broker on

National Stock Exchange of India Limited and Bombay Stock Exchange Limited. The Company

also provides depository services,mutual fund and initial public offering (IPO) distribution to its

clients. The Company is a depositary participant with the National Securities Depository Limited

(NSDL) and Central Depository Services (India) Limited (CDSL) for settlement of

dematerialized shares. It performs clearing services for all securities and commodities

transactions. Clients of the brokerage business are able to use the depositary services to execute

trades through the Company and settle transactions. ISL is a corporate member of capital market

& derivative segment of The National Stock Exchange of India Ltd.

IndiaBulls Commodities Private Limited (ICPL), a 100% subsidiary of IndiaBulls Securities

Limited, offers commodity brokerage services to its customers. ICPL is a registered Trading-

cum-Clearing member of Multi Commodity Exchange of India Ltd. (MCX) and National

Commodity and Derivatives Exchange Ltd (NCDEX).

.


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INDIABULLS OFFERS

Broker Assisted trade execution

Automated online investing

Access to all IPOs [Initial Public offer]

Sales of Equity, Derivatives and commodities instruments listed on NSE,BSE, NCDEX and MCX

:- IndiaBulls retail equity business primarily covers

secondary market equity broking. It caters to the needs of individual Indian and Non-residentIndian (NRI) investors. They offer broker assisted trade execution and automated online

investing and trading facilities to the customers. Automated online investing and trading includes

automated order placement and execution of market and limit equity orders; and advanced

trading platforms for active traders. All investors have full access to real -time quotes,

personalized portfolio tracking, charting and quote applications, real-time market commentary,

real-time quotes and news.

:- Automated Online Business contributes

more than 34.6% of their overall revenues. They control more than 20% market share in the online

business. Clients are able to obtain financial information and execute trades on an automated basis

through their online channel using product offerings like Power IndiaBulls and IndiaBulls Market

Trader. This channel is designed to provide added convenience for clients and minimize our costs of

responding to and processing routine client transactions. Online channels include the IndiaBulls

Group Professional Network that provides access via our web-site www.indiabulls.com to information

and trading service on the Internet. Additionally, Power IndiaBulls online trading system is designed

for the high volume trader and provides enhanced trade information and order execution integrated

software-based trading platform.


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There are 3 mediums of using / accessing their Trading Services.

Power IndiaBulls (PIB)

IndiaBulls Signature Account

Relationship manager(RM)

:- The Power IndiaBulls software is ideally suited for the active

trader. This software gets installed on the client machine and is similar to a Dealer Terminal over

the Internet. The terminal has a lot of features that makes it extremely usable from the point of

view of a trader who is active in the market.

Some of the product features are

Integrated market watches for cash and derivatives

Multiple tick by tick charting

Advanced Technical Analysis

Single key stroke order entry

Multiple customizable market watches

Easy to use risk management reports

Secured Socket Layer connectivity with server

Two second order confirmation turnaround time even during peak hours.

:- A multitude of ways to access the

account either through priority access to Relationship Manager over phone or

online access to the Account & Research Tools

FEATURE:-

Priority ServiceEnjoy priority telephone access that gives direct accessto the Relationship Manager.

Premium ResearchBenefit from full access to IndiaBulls Equity Analysis ,our objective, fact-based approach to rating stocks.

Online AccountingStay on the top of your investments with a snapshot of

your Account Statements. Get access to Portfolio statement and access to

digital contract notes.


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BENEFITS:-

ControlStay on top of your investments with convenient access to your

account online or by phone.

ConfidenceSupport your investing decisions with premium in-depthresearch - IndiaBulls Equity Analysis.

ValueEnjoy competitive commissions and get the service and support youneed at a fair price

It offers the unique feature of relationship manager.

:- Relationship Manager driven sales model,provide high quality service and exploit cross-sell opportunities.

Companys clients benefit from the personal attention and advice of the trained and motivated

relationship managers. All our relationship managers are qualified and educated professionals,

who have been extensively trained in-house to provide the products and services to the clients.

These relationship managers are encouraged to develop long-term relationships with the clients

and can access a variety of resources within our Company, such as insurance specialists, research

services and others to add value to our clients. Most of our clients have dedicated relationshipmanagers irrespective of the channel they use.

:- ISL is engaged in the

business of Internet based trading and is registered with SEBI as a stockbroker, trading and

clearing member of NSE, member of BSE and as a depositary participant with National

Securities Depository Limited (NSDL) and Central Depository Services (India) Limited

(CDSL). ISL is also a member of the National Securities Clearing Corporation Limited


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THE COMPETITORS

:

Strengths of the 5paisa or infoline are:

1. Very fast execution speed.

2. Rates are very competitive then other providers.

3. Easy online fund transfer facility from leading Banks including ICICI, HDFC,

CITI and UTI banks.

4.Free facility of subscribing to mutual funds, equity IPOs and other investmentproducts.

:

Strengths of the ICICI direct are:

1. 3-in-1 account integrates your banking, broking and demat accounts. All accounts are from ICICI

and very well integrated. This feature makes ICICI the most interesting player in online trading

facility. There is absolutely no manual interfere require. This is truly online trading environment.

2. Unlike most of the online trading companies in India which require transferring money to the

broker's pool or towards deposits, at ICICI Direct you can manage your own demat and bank

accounts through ICICIdirect.com. Money from selling stock is available in ICICI bank account

as soon as the ICICI Direct receive it.

3. Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal Savings Schemes all from one

website. General Insurance is also available from ICICI Lombard.

4. Trading is available in both BSE and NSE .


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Strengths of the Religare are:-

1. Religare gives interest on unutilized cash when investor is waiting to makenext trade or online investment.

2. Religare Allow their investor to trade without having to worry about cash

margin. Investor can get exposure (on cash segment) as high as 20 times for intraday trades.

3. They provide intraday reports and historical charting.

4. Lifetime free DP account.

5. Varity of fee structure to fulfill need of different type of investors.

:

Strengths of the Sharekhan are:

1. Online trading is very user friendly and one doesn't need any software to

access.

2. They provides good quality of services like daily SMS alerts, mail alerts, stockrecommendations etc.

3.Sharekhan has ability to transfer funds from most banks. 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 modernbanks .


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HDFC security is the subsidiary of HDFC (Housing Development Financial

Corporation). www.hdfcsec.com would have an exclusive discretion to decide the customers

who would be entitled to its online investing services. www.hdfcsec.com also reserves the right

to decide on the criteria based on which customers would be chosen to participate in these

services .The present web site (www.hdfcsec.com) contains features of services that they

offer/propose to offer in due course. The launch of new services is subject to the clearance of the

regulators, i.e, SEBI, NSE and BSE.

PRODUCT OFFERED BY HDFC SECURITY

Online trading for Resident & Non Resident Indians.

Cash-n-Carry on both NSE and BSE.

Day trading on both NSE and BSE.

Trade on Futures & Options on the NSE.

Online IPO's.

Telephone-based Broking (Equity & Derivatives).


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COMPARATIVE ANALYSIS BETWEEN DIFFERENT STOCK BROKERS

After the whole study I found out the following results:-

There are the two type of the transaction: -

1.Intrabased

2. Delivery based


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Indiabulls security ltd: Charge a 0.05 % on intra based and 0.25 % on delivery

based transactions per 100 rupees.

ICICI Direct: charge a 0.75 % on delivery based and 0.15 % on intra based

transactions per 100 rupees.

Indiainfoline security ltd:

Charges a 0.01 % brokerage for intraday transactions. For trades that do result in delivery which

is less than 20% of total trades, statistically speaking there is a nominal charge of 0.5 % for

securities handling.

Religare Securities Limited:. Religare security ltd charges a 0.3 % on delivery

based and 0.03 % on non delivery based transaction. Service charges and other

charges are separately

Sharekhan: Sharekhan charges a 0.10 % on non delivery based and 0.50 % on

delivery based transactions.

HDFC Securities: HDFC charges 0.15 % on intraday transactions and 0.50 %

on delivery transaction


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COMPETITIVE ANALYSIS

The Indian retail brokerage industry consists of companies that primarily act as agents for the

buying and selling of securities (e.g. stocks, shares, and similar financial instruments) on a

commission or transaction fee basis

.

It has two main interdependent segments: Primary market and the Secondarymarket

Objective:

Analyze retail brokerage industry taking into account the health of the capital markets,

Derivative Market and the intensity of competition among the brokerage companies.

Doing Competitive Analysis for IndiaBulls.

The major growth drivers for brokerage revenue and trading volume are:

Adoption of technology screen-based trading, electronic matching, and

paperless securities

Centralized operations, effective risk management, and control on large interconnectedoperations spanning multiple locations, which is enabled by telecom

connectivity and low costs

Increasing access to capital and the ability to provide margin finance

Parameter Assessment for Doing Competitive analysis

A differentiating aspect is a comparative assessment of the top retail brokerageson various value indicators, comprising of

Product

Pricing

Service delivery model

Unique selling proposition

Customers need to analyze the Brokerage Firms Based on these 5


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Parameters :-

Brokerage & Miscellaneous charges

Quote Software

Execution Platform

Demat Account

Back office Support.

Brokerage & Miscellaneous charges: This accounts for all the charges that

you incur for your trading/investing. A few examples would be: Demat Account maintenance,

Brokerage, Annual account Fee, Telephone based trading charges, trading software usage

charges, etc. We should understand what all charges we are bound to incur from our broker.

Quote Software: This is used mainly for technical study and for live quotes.

Many people dont evaluate quote software. We typically use software that have stumbled upon

and stick with it just because we have eventually grown comfortable using it. Does it allow us to

back test our strategy? Does it allow customizing technical signals/parameters? Does it allow

adding new indicators? Does it allow us to see historic data? For, what period is intraday data

available? We might need all this information. We should be clear on what we need and ensure

our quote software provides it all.

Execution Platform: Its nothing but a platform that allows us to execute our

trade fast. It should automate trade management and execution, and should give protection

against human errors.


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Demat Account:Demat account should only be opened with a well known and

established brokerage firm in the market.

Back office Support: People while trading face lots of problem because of lack

of good back office support. Relationship Managers trading without their clients knowledge,

funds not being transferred, trades not being executed, slow execution etc are a few examples.

IndiaBulls Securities Trading Products

They provide three products for trading. They are

Cash account

Intraday account

Margin trading

Cash account provides the client to buy 4 times of cash balance in his

trading account.

Intraday product provides the client to buy 8 times of his cash balance in the

trading account.

Mantra accountcalled as margin trading, is a special account to buy on

leverage for a longer duration


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ORGANIZATION STRUCTURE

Senior Vice President

Regional Manager

Branch Manager,

Senior Sales Manager

Support System Sales Function

RM/ SRM

Back Office Local

Executive Compliance Officer

ARM

Dealer


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President

FUNCTIONING OF DEPARTMENTS

SALES

KEY ASPECTS OF RMS ROLE

a)CLIENT ACQUISITION

Primary responsibility is to register clients who have the potential ofgenerating high brokerage annually

Focus not only on account opening but also on margin money fromclients

Educate the customers on Indiabulls Trading platform so that he

can trade on his own Ensure smooth handling of the clients in terms of margin collection

and relationship management

Achieve monthly targets as given by the Vice President(VP) /Assistant Vice President (AVP) or above.

b) REVENUE GENERATION

Primary responsibility is to generate revenue in excess of 3/4/5 times of own salary on amonthly basis from the allocated/acquired base of clients

Prepare the plan of action; maintain the daily activity report anddaily revenue plan so that you can meet your brokerage targets.

Identify and acquire high net worth individuals (HNI) clients.

c) CLIENT SERVICING

Guide clients in terms of investment and trading Rigorous follow up with the allocated clients.

Explain ledgers, contract notes and charges . This maintainscomplete transparency with the clients .

Ensure that clients are receiving all relevant documents on time

Visit the top revenue generating clients at least once a week.

Call up clients for trading, margin calls and for margin collection.

Develop and maintain relation with the Clients. Ask for references.


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2. OPERATIONS

All work related to:

Punchingin kits

Punchingin cheques

Checking client account status

Maintaining vouchers of expenses

Payment of various bills

3. LOCAL COMPLIANCE

To check whether the dealer is putting correct order or not.

Issuing warning letters.

Verifying the signatures of clients


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SWOT ANALYSIS OF INDIABULLS

STRENGTHS WEAKNESSES

Integrated technology platform Lack of banking arm

Pan India distribution network Loss of relationship manager leads to loss ofclients

Relationship manager facility

Power Indiabulls has dev

eloped into brand

Strong sales & marketing team

OPPORTUNITIES THREATS

Changing demographics with higherdisposable income

Economic slowdown

Rapid penetration of computers & internet Political instability

Market size & characteristics Volatile movement in market indices

Competition

Substitutes

Low product differentiation


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OFFERINGS

IndiaBulls offers two products: -Get More At IndiaBulls.

1. NIB - Normal IndiaBulls

2. PIB - Power IndiaBulls

-

A multitude of ways to access your account either through priority access to Relationship

Manager over phone OR online access to your Account & Research Tools.

Enjoy priority telephone access that gives you direct access to your RelationshipManager.

Stay on the top of your investments with a snapshot of your Account Statements.

Get access to Portfolio statement and access to digital contract notes.

: -

Features of PIB:

Live Streaming Quotes

Fast Order Entry

Live Charts

Technical Analysis

Live News and Alerts


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IndiaBulls: A Cut Above The Rest

Service Industry is base on differentiation of the product and service IndiaBulls is

different from its competitors because of following reason

InternalMarketing: -

The main aim of internal marketing is to train and motivate employees to serve customers. The

selection, training and motivation of the employees will make a huge difference in customer

satisfaction.

In IndiaBulls the employees are well trained and motivated to work and they work

delicately. Because IndiaBulls know that employees attitude will promote stronger customer

loyalty. IndiaBulls designed a sound training programme and support and rewards for good

performance. They can use Internet, internal newsletters, daily remainders, and employee

roundtables to reinforce customer-centered attitude.

External Marketing: -

Describe the normal work to prepare, price, distribute and promote the service to customers. It is

mainly for customers to provide better service for this purpose IndiaBulls is providing following

unique services to his customers: -

1. Relationship Managers who are dedicated to supporting

customers trading and investing needs. They always keep in touch with client and they give

various tips to client by which he can invest in good stocks.

2. Dealers everyday gives confirmations of the clients whole day

trading in the evening after signing out from the Market.


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IndiaBulls is providing funding for trading to its client on nominal rates of

interest i.e. on 18% limit of funding is as follow

Delivery- for delivery trading IndiaBulls providing 2 times funding

Intraday- for this type of trading IndiaBulls is proving 8 times

funding without charging any interest.

Risk management team of IndiaBulls taking care of client portfolio and

whenever the value of his portfolio will go decrease by 30% client always

informed by his Relationship Manager.

IndiaBulls is providing a software called Power IndiaBulls as describe

above if a client have his own PC and Internet then he can trade from his

home or office.


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DEPOSITORY SERVICES: -

IndiaBulls is a depository participant with the National Securities Depository Limited and

Central Depository Services (India) Limited for trading and settlement of dematerialized shares.

IndiaBulls performs clearing services for all securities transactions through its accounts.

Company offer depository services to create a seamless transaction platform execute trades

through IndiaBulls Securities and settle these transactions through the IndiaBulls Depository

Services.

NRI Account

You can now enjoy the convenience of hassle-free and fast way of trading in the Indian

Equity Markets through IndiaBulls NRI Investor Services Our unique integrated service creates

one window for all your trading, depository and banking needs. You can buy and sell on your

computer using our NRI Trading Account Services, which have been seamlessly integrated with

your IndiaBulls Depository Account and with the HDFC NRE/NRO Bank Account.

IndiaBulls NRI Trading Account - Provides access to comprehensive tradingtools for independent NRI investors

IndiaBulls Depository Services - Integrated services for seamless

delivery

HDFC Bank Account - NRE/NRO Accounts with built in tax managementsolutions and facility to source all regulatory approvals

IndiaBulls Equity Analysis - Premium Research on 540+ companiesupdated daily


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PROMOTION: -

IndiaBulls is turning to marketing public relations to directly support corporate and product

promotion and image making. Because public is any group that has an actual or potential interest

in or impact on a companys ability to achieve its objective. IndiaBulls has its team relationship

manager that monitors the attitudes of organizations publics and distributes information and

communications to built goodwill. They are performing following five functions:-

1. Press Relations: - They present news about the organization in the most

positive light.

2.Product Publicity: - All Relationship managers are sponsoring efforts topublicize product offerings by IndiaBulls i.e. NIB and PIB.

3. Corporate Communication: - They promoting understanding of theorganization through internal and external communications.

4.Counseling: - All RMs advise management about public issues and company positions and

image during good and crises.

IndiaBulls is promoting its product by advertising by following medium:

Electronic media: - By advertise its product via Television

Print media: - By various newspapers, brochures, etc.

Infrastructure: - IndiaBulls also try to demonstrate its service quality through physical evidence

and presentation. Because if we talk about online security trading then we have to say that

physical evidence is important for the company in IndiaBulls office all client come every day

and they trade but with the time passing IndiaBulls is growing and number of client increasing

day by day so space of office is not sufficient for both staff members and clients.


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TITLE OF THE PROJECT

Project Profile:

COMPARITIVE ANALYSIS OF STOCK BROKERS IN JAIPUR

REGION

Each research study has its own specific purpose. It is like to discover to

question through the application of scientific procedure. But the main aim of my

research is to find out th e truth that is hidden and which has not been discovered

as yet. My research study has two objectives:-

OBJECTIVE OF THE PROJECT:

PRIMARY OBJECTIVE: - How IndiaBulls Securities Ltd is best service provideras a stock broker in the Tri-city region.

SECONDARY OBJECTIVE: -

1. To know about the awareness towards stock brokers and share market.

2.To study about the competitive position of IndiaBulls Securities Ltd in

competitive market.

3. To know the perception and psychology of investors towards share trading.

4.To study about the effectiveness & efficiency of IndiaBulls Securities Ltd in

relation to its competitors.

5. To know the perception and psychology of investors towards share trading.

6.To study about whether people are satisfied with IndiaBulls Securities

Services & Management System or not.

7.To study about the difficulties faced by clients while Trading in IndiaBulls

Securities Ltd.

8. To study about the need of improvement in existing Trading system


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RESEARCH METHODOLOGY

Research Methodology refers to the search for Knowledge. It is a way to

systematically solve the research problem. In it we study the various steps that are generally

adopted by the researcher in studying his research problem along with logic behind them .

TYPES OF RESEARCH

On the basis of theoretical study a research has many types. All of these are distributed on the

nature of research. Some of these are like

1. Descriptive and Analytical

2. Qualitative and Quantitative

3. Conceptual and empirical

4. Applied and fundamental5. One time research

My research is based on Descriptive, Qualitative and Quantitative research.

Descriptive Research:- Descriptive research includes surveys and fact finding

enquires of different kinds. The major purpose of descriptive research is

description of the state of affairs as it exists at present. Researcher has no

control over the variables of this type of research.

Qualitative Research:- In our research we need comparison between different

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

is especially 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

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.


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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 adoptin selecting item for the sample

Generally Sample designs are two types

1. PROBABILITY RESEARCH DESIGN

2. NON PROBABILITY RESEARCH DESIGN

I used the probability research design.

Sampling unit may be a geographical one, such as state, district, village etc. The researcher will

have to decide one or more of such units that he has to select for his study.

In my research study Jaipur as a sampling unit.

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

a sample.

In my research sample size is 70.

But I also studied the 5 stock broker companies related to security market like

India infoline, ICICI direct, HDFC securities, Religare etc. for the

appropriate collection of the information.


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DATA COLLECTION

While deciding about the method of data collection to be used for the study the

researcher should keep two types of data.

1. Primary Data: - which is collected by new research called primary data.

Personal Interview

Close observation

Survey conduction

2. Secondary Data: - already existing data is called secondary data. I collected

them by following method

Internet

Books

Survey Method: - Survey refers to the method of securing information

concerning phenomena under study from all or selected number of respondents of the concerned

area. In a survey the investigator examines those phenomena which exist in the universe

independent of his action. We used the Scheduling Method.

Scheduling: - In this method the enumerators along with schedules, go to

respondents, put to them the questions from the Performa in the order the questions are listed and

recorded the replies in the space meant for the same in the performa.


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DETAILS OF WORK DONE

As per my project which is Comparative Analysis of Stock Brokers in Jaipur Region I have to

compare the different stock brokers present in the Jaipur region and I have to find out how many

people know about the stock market and whether they are interested in investing.

I have also learned how demat accounts are opened and what all documents

are required to open an account.

ACCOUNT OPENING

To avail the services of a depository an investor is required to open an

account with a depository participant of any depository.

PROCEDURE FOR OPENING AN ACCOUNT

A demat account are opened on the same lines as that of a Bank Account. Prescribed

Account opening forms are available with the DP, needs to be filled in. Standard

Agreements are to be signed by the Client and the DP, which details the rights and

obligations of both parties

The DP officials will make available the relevant account opening form (depending on

whether the client is a retail investor or corporate client/clearing member) and specify the

list of documents regarding references that should be submitted along with the form. It

will also give a copy of the relevant agreement to be entered with the client, in duplicate.

The client will submit the duly filled in account opening form and client has to visit

personally for opening the account in DP. The DP officials have to do in person

verification and affix the IN PERSON VERIFICATION stamp on the account opening

form. It should also furnish such documents regarding references, as specified by the DP,

along with the account opening form. After executing the agreement the client has to

forward it to the DP.


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The DP officials will verify that the account opening form is duly filled in. It will also

verify the enclosed documents, if any. Incomplete forms will be forwarded to the client

for rectification.

For Corporate Clients, the DP officials will verify if the board resolution for

the authorized signatories is enclosed.

In case the documents are not proper, the DP officials will reject the form

and intimate the client of the same, stating the reasons for doing so.

If the form is in order; the DP officials will accept the same and affix the stamp verified

with original on each and every proof after seeing the original proofs.

After completion of all documentation, the DP officials will verify the pan from income

tax website. And affix the stamp PAN VERIFIED with date and sign on the stamp.

The DP officials will enter the client details as mentioned in the account opening form in

the DPM (software provided by NSDL & CDSL to the Participant) screen provided for

the purpose. In case of NSDL A/c opening the SR. Assist will capture all the details in

the DPM and record the clients signature (on the form) as specimen for authorizations in

the future.

After entering client details in the system, a client account number will be generated by

the DPM. The DP officials will enter this in the account opening form. After that the

officers will verify the details in the DPM captured by the SR. Assist. and activate the

account.

The DP officials are not allowed to give the demat a/c no to the clients

until the a/c is activate, this is applicable for both NSDL & CDSL.

When the demat a/c is activated the DP officials have to send the client master and the

copy of agreement between DP and client at the clients address

The account holder is called 'beneficial owner' in a depository system and the

account is known as 'beneficiary account'.


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DOCUMENTS REQUIRED FOR DEMAT ACCOUNT.

Proof of Identity (POI):

Passport

Voter ID card

Driving license

PAN card with photograph

Identity card with applicants photograph issued by

1. Central or state government and its department

2. Statutory/regulatory authorities

3. Public sector undertakings

4. Scheduled commercial banks

5. Public financial institutions

6. College affiliated to universities

Proof of Address (POA):

Ration card

Passport

Voter ID card

Driving License

Bank passbook

Verified copies of :

1. Electricity bills (not more than 2 months old)2. Residence landline telephone bill (not more than 2 months old)

3. Leave & license agreement/agreement to sell (duly attested)

4. Self declaration by supreme court/high court judges, giving the new address

in respect of their own accounts.


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Passport-size photograph

Copy of PAN card along with original PAN card for verificationBank details:

Copy of cancelled cheque with printed name from the bank.

Copy of bank passbook with name and address and copy of cancelledcheque.

Bank statement with name and address (duly authorized by the bank, if statement is on

plain paper) not more than 4 months old and copy of cancelled cheque of MICR & bank

detail verification.

In case of minor

Date of birth certificate duly notarized

Proof of address and identity documents of the guardian both minor andguardians photograph and guardian to sign across both photographs

PAN card of minor as well guardian is mandatory

In case of NRI

Foreign address and RBI approval date attested copy of RBI approval

NRO-Indian address alonwith proofs

Bank account details

In case of joint holdings

In case of joint holdings, POI and POA documents alongwith PAN card must be submitted in

respect of all account holders.


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INTERPRETATION & ANALYSIS

Research is conducted for finding the solution of the problem. So to find the solution of the

problem data analysis and interpretation is must. There are some questions related to this

research to interpret the result.

The sample size in this study consisted of 70 individuals and data analyzed from

the response of these 70 individuals.


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Question no. 1

Do you know about investment options available ?

Interpretation

Only 80% people know the exact meaning of investment. Because of remaining

20% take his/her residential property as an investment. According to law purpose

this is not an investment because of it is not create any profit for the owner.


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Question no. 2

Are you aware of DeMat acaount?

The basic purpose of this question is to know about awareness of demat

account among respondents.

The above table clearly shows that from a sample size of 70 respondents, 60

individuals were aware of demat account


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Question no. 3 :-

Most preferable investment scenario

Today scenario is changed so that most area covered by the derivative and

securities market. It is 28% of the total population


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Question no. 4 :-

What is the basic purpose of your investment?

Interpretation

75% people are interested in liquidity, returns and tax benefits.And remaining 25% are interested in capital appreciations, risk covering, and

Others.


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Question no. 5

Most important things you take into your mind while making investments?

75% people are considered the both factors risk as well as returns but, only 25%

considered the risk or returns factor


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Question no.6

Do you have any demat & trading account?

Only 60% respondents have de-mat and trading account and remaining 40%

says no because they dont know why shares move up and down


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Question no. 7

Specify the reason of satisfaction with the current broking house

We can see that most of the clients are satisfied with their broking houses because of the lower

brokerage charges which is followed by services they provide.


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Question no. 8

In which company you have demat and trading account?

In IndiaBulls Securities Ltd 38% respondents have de-mat & trading account

because of better services and no annual maintenance and other charges except

for brokerage chargesv


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FINDING OF THE STUDY

According to the survey most ofthe clients of IndiaBulls Securities Ltdsays that it is pocket friendly.

Coming to faith 70% say IndiaBulls Securities Ltd is better than othersstock brokers due to customers satisfaction.

Lack of promotional activities undertaken by IndiaBulls Securities Ltd. inJaipur Region.

Main purposes of investments are returns & liquidity.

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

Businessmen are more interested in the stock market than the others.

Commodity market is less preferred by the investors.

People want to invest their money in the security market but they haventthe proper knowledge.

People are not aware of hedging in stock market.

People pay more emphasis on brokerage than service provided bybrokerage houses.


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RECOMMENDATIONS

Commitment should be equalized for every person.

Provide the facility of free demonstrations for all.

Improvement in the opening of De-mat & contract notice procedure isrequired.

There should be a limited number of clients under the relationship manger.So that he can handle new as well as old customer properly.

Some promotional activities are required for the awareness of thecustomer.

People at young age should be encouraged to invest in stock market.

Seminars should be held for providing information to prospective andpresent clients.


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BENEFITS TO COMPANY

Research, as a general concept, is the process of gathering information to learn about something

that is not fully known. Nearly everyone engages in some form of research.

1) Will help you better communicate: By conducting the research Indiabulls Securities Limited

will be able to communicate to its clients easily. If the company has proper information

regarding the market then they will be able to provide the required services to its clients on time.

2) Will help identify opportunities: By conducting research the company can check the

competition. They will also be able to know that are they missing something they can capitalize

on. What can they do better than they can? Are their clients in need of something nobody else is

offering?

3) Will minimize risk: Just like any situation, if the company is well prepared then they will be

less likely to loose and more likely to win. If the research is conducted on timely basis then they

can also retain their clients for longer period of time.

4) Will create benchmarks to help you measure progress: If the research is conducted then

they will come to know how well they are doing. By setting the standard high from the start, thecompany will be in a better position for sustained growth.

5) Will help to set competitive price: The research will also help to set better price as against its

competitors in the market, like, many stock broking houses have low account opening charges as

compared to Indiabulls Securities Limited.


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LIMITATIONS

As only JAIPUR was dealt in survey so it does not represent the view ofthe total Indian market.

Size of the research may not be substantial.

There was lack of time on the part of respondents.

The survey was carried through questionnaire and the questions were

based on perception.

There may be biasness in information by market participant.

Complete data was not available due to company privacy and secrecy.


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SUGGESTIONS

Aggressive Promotions: Indiabulls Securities compared to its competitors

concentrates less on advertising and promotions, especially through electronic media. Its

competitors like Sharekhan, ICICI and Kotak are advertising aggressively through media. Hence

Indiabulls should concentrate more on advertising through print and electronic media.

Tapping Rural Market: The Indian rural investors markets are relatively

untapped, with only small firms meeting the current demand. Indiabulls Securities can gain the

First Mover Advantage over its competitors, especially in areas were commercial crops are

grown and the standard of living is high. These people do not have much option to invest other

than banks and post offices.

Reduce the initial account opening charges: The charge for opening a

trading and demat account in Indiabulls securities is high compared to its competitors. This

influences the potential investors to open their account with another company which provides the

same at lower prices. Thus it acts as a mental barrier for potential customers, who tend to

overlook all other benefits offered by Indiabulls. Hence Indiabulls should consider reducing their

account opening charges.

Bring in more product differentiation: Product differentiation here means

that Indiabulls securities should bring in more customized services and more value proposition

for large investors. It can reduce the brokerage charges for large investors which will encourage

them to invest more in the company.

Invest more on R&D: Indiabulls should concentrate on its research and

development since most of its competitors are investing on R&D. This will help the company to

read the market better and will also be in a better position to understand the needs of the

customers.


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BIBLIOGRAPHY

Websites Visited

www.sebi.gov.in

www.nseindia.com

www.bseindia.com

www.indiabulls.com

www.icicidirect.com

www.sharekhan.com

www.hdfcsec.com

www.religareonline.com
http://www.sebi.gov.in/http://www.nseindia.com/http://www.bseindia.com/http://www.indiabulls.com/http://www.icicidirect.com/http://www.sharekhan.com/http://www.hdfcsec.com/http://www.religareonline.com/http://www.religareonline.com/http://www.religareonline.com/http://www.hdfcsec.com/http://www.sharekhan.com/http://www.icicidirect.com/http://www.indiabulls.com/http://www.bseindia.com/http://www.nseindia.com/http://www.sebi.gov.in/


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