Reject Report

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Summer Training Project Report

on

Product & Services of

Share khan Ltd.

Submitted in Partial fulfillment of requirement of award of MBA

degree of

GGSIPU, New Delhi

Submitted By

Name- Praveen Dubey

Enrolment No- 11515603911

Semester/Batch: 3rd/MBA (2011-13)

Northern India Engineering College

(Affiliated to GGSIPU)

FC-26, Shastri Park, Delhi-110053


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Acknowledgement

Expression of feelings by word makes them less significant when it comes

to make statement of gratitude.

With regard to my Project with Share Khan, New Delhi, I would like to thank

each and everyone who offered help, guidelines and support whenever

required.

I am extremely grateful to my college guide, Mrs. Divya Gangwar

(H.O.D) and a l l the facul ty member of my co l lege for the i r

val uab le sug ges ti ons and guidance.

I express my deep sense of gratitude to my company mentors, Mr.

Jaipal Singh (Assistant Manger) without whose support and

cooperation this project could not have been completed

successfully.

Last , but not the least my hear t fe l t love for my parents and

my friends, whose constant support and blessings kept me

enthusiastic throughout this project.


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INDEX

S.no. Topic Page no.

1. Objectives 4-4

1. Company profile 5-8

2. Product & services 9-16

3. Literature review 18-20

4. Research methodology

Limitations

21-24

5. Analysis

Data collection method

25-42

6. Findings, conclusion & suggestions 43-46

7. Bibliography 47-47

8. Annexure 48-50


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Chapter-1

OBJECTIVE

To know about the product and services of Sharekhan Ltd.

To find out the awareness level of online share trading.

To find the preferred mode of investments.

To find out the level of satisfaction of investors towards products and services of

Sharekhan Ltd.

To find out the problems faced by investors regarding customer care services of

brokerage firms.


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CHAPTER- 2

COMPANY PROFILE

Sharekhan is one of the leading retail brokerage of SSKI Group which was

running sucessfully since 1922 in the country. It is the retail broking arm of the Mumbai-

based SSKI Group, which has over eight decades of experience in the stock broking

business. Sharekhan offers its customers a wide range of equity related services

including trade execution on BSE, NSE, Derivatives, depository services, online trading,

investment advice etc.

The firms online trading and investment site - www.sharekhan.com - was

launched on Feb 8, 2000. The site gives access to superior content and transaction

facility to retail customers across the country. Known for its jargon-free, investor friendly

language and high quality research, the site has a registered base of over one lakh

customers. The number of trading members currently stands at over 3 Lacs. While

online trading currently accounts for just over 2 per cent of the daily trading in stocks in

India, Sharekhan alone accounts for32 per cent of the volumes traded online.

The content-rich and research oriented portal has stood out among its

contemporaries because of its steadfast dedication to offering customers best-of-breed

technology and superior market information. The objective has been to let customers

makeinformed decisionsand to simplify the process of investing in stocks.

On April 17, 2002 Sharekhan launched Speed Trade, a net-based executable

application that emulates the broker terminals along with host of other information

relevant to the Day Traders. This was for the first time that a net-based trading station of

this caliber was offered to the traders. In the last six months SpeedTrade has become a

de facto standard for the Day Trading community over the net.

Sharekhans ground network includes over 588 centres in 148 cities in India, of

which 32 are fully-owned branches.


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Sharekhan has always believed in investing in technology to build its business.

The company has used some of the best-known names in the IT industry, like Sun

Microsystems, Oracle, Microsoft, Cambridge Technologies, Nexgenix, Vignette,

Verisign Financial Technologies India Ltd, Spider Software Pvt Ltd. to build its trading

engine and content. The Morakhiya family holds a majority stake in the company.

HSBC, Intel & Carlyle are the other investors.

With a legacy of more than 80 years in the stock markets, the SSKI group

ventured into institutional broking and corporate finance 18 years ago. Presently SSKI is

one of the leading players in institutional broking and corporate finance activities. SSKI

holds a sizeable portion of the market in each of these segments. SSKIs institutional

broking arm accounts for 7% of the market for Foreign Institutional portfolio investment

and 5% of all Domestic Institutional portfolio investment in the country. It has 60

institutional clients spread over India, Far East, UK and US. Foreign Institutional

Investors generate about 65% of the organizations revenue, with a daily turnover of

over US$ 2 million. The Corporate Finance section has a list of very prestigious clients

and has many firsts to its credit, in terms of the size of deal, sector tapped etc. The

group has placed over US$ 1 billion in private equity deals. Some of the clients include

BPL Cellular Holding, Gujarat Pipavav, Essar, Hutchison, Planetasia, and Shoppers

Stop.

It tie ups with 11 banks:

ICICI

HDFC

IDBI

OBC

Yes bank

Axis bank

City bank

Indian bank

Bank of India


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Centurian bank of Punjab

FEATURES OF SHAREKHAN LIMITED

Experience-

SSKI has more than eight decades of trust and credibility in the Indian stock market. In

the Asia Money broker's poll held recently, SSKI won the 'India's best broking house for

2004' award. Ever since it launched Sharekhan as its retail broking division in February

2000, it has been providing institutuonal-level research and broking services to

individual invcestors.

Technology

With our online trading account you can buy and sell shares in an instant from any PC

with an internet connection. You will get access to our powerful online trading tools that

will help you take complete control over your investment in shares.

Accessibility

Sharekhan provides ADVICE, EDUCATION, TOOLS AND EXECUTION servies for

investors. These services are accessible through our centres across the country (Over

588 locations in 148 cities) over the internet (through the website www.sharekhan.com)

as well as over the Voice Tool.

Knowledge

In a business where the right information at the right time can translate into direct

profits, you get access to a wide range of information on our content-rich portal,

sharekhan. You will also get a useful set of knowledge-based tools that will empower

you to take informed decisions.


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Convenience

You can call our Dial-N-Trade number to get investment advice and execute your

transactions. We have a dedicated call-centre to provide this service via a Toll FreeNumber1800-22-7500 & 1800-22-7050 from anywhere in India.

Customer Service

Our customer service team will assist you for any help that you need relating to

transactions, billing, demat and other queries. Our customer service can be contracted

via a toll-free number, email or live chat on www.sharekhan.com.

Investment Advice

Sharekhan has dedicated research teams of more than 30 people for fundamental and

technical researchs. Our analysts constantly track the pulse of the market and provide

timely investment advice to you in the form of daily research emails, online chat, printed

reports and SMS on your mobile phone.

Benefits

Free Depository A/c

Secure Order by Voice Tool Dial-n-Trade.

Automated Portfolio to keep track of the value of your actual purchases.

24x7 Voice Tool acess to your trading account.

Personalised Price and Account Alerts delivered instantly to your Cell Phone & E-

mail address.

Special Personal Inbox for order and trade confirmations.

On-line Customer Service via Web Chat.

Anytime Ordering.


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CHAPTER- 3

PRODUCTS & SERVICES

CLASSIC ACCOUNT

This is an User Friendly Product which allows the client to trade through website

www.sharekhan.com and is suitable for the retail investor who is risk-averse and hence

prefers to invest in stocks or who do not trade too frequently.

Features

Online trading account for investing in Equity and Derivatives via

www.sharekhan.com

Live Terminal and Single terminal forNSE Cash, NSE F&O & BSE.

Integration of On-line trading, Saving Bank and Demat Account.

Instant cash transfer facility against purchase & sale of shares.

Competative transaction charges.

Instant order and trade confirmation by E-mail.

Streaming Quotes (Cash & Derivatives).

Personlized market watch.

Single screen interface for Cash and derivatives and more.

Provision to enter price trigger and view the same online in market watch.

TRADE-TIGER

TRADE-TIGER is an internet-based software application, that enables you to buy

and sell in an instant.

It is ideal foractive traders and jobberswho transact frequently during days sessionto capitalise on intra-day price movement.

Features

Instant order Execution and Confirmation.

Single screen trading terminal for NSE Cash, NSE F&O & BSE.


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Technical Studies.

Multiple Charting.

Real-time streaming quotes, tic-by-tic charts.

Market summary (Cost traded scrip, highest calue etc.)

Hot keys similar to broakers terminal.

Alerts and reminders.

Back-up facility to place trades on Direct Phone lines.

DIAL-N-TRADE

Along with enabling access for your trade online, the CLASSIC and TRADE-TIGER

ACCOUNT also gives you our Dial-ntrade serives. With this service, all you have to do

is dial our dedicated phone lines 1-800-22-7500, 3970-7500.

PORTFOLIO MANAGEMENT SERVICES

1. ProPrime: - Research & Fundamental Analysis.

2. ProTech: - Technical Analysis.

-Thrifty Nifty

-Beta Portfolio

3. ProArbitrage: - Exploit price analysis

IPO ON-LINE

You can apply all the forthcoming ipo online hasselfree, paperless and time

saving work.


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CHARGE STRUCTURE

Structrue for Post Paid - Account Individuals: -

We offer an On-line Trading Account along with the Demat A/c for the benefits to the

employees of your company.

Charge Classic Account

Account Opening

Brokerage

Rs. 750*/- with 5000 margin money

Intra-day-0.10 % & Delivery-0 .50 %

(*750 is Adjuested as brokegare for 6

month)

Monthly

Commitment

Rs. NIL

Second Slab

Brokerage

Rs.15000 as margin money

& A\C opening free

0.05% for Intra Day & 0.25% for Delivery

Third Slab

Brokeragae

Rs.25000 as margin money

& A/C opening free

0.05% for Intra Day & 0.25% for Delivery


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Depository Charges

Margin money Rs. 5,000-10,000 (at least)

Annual Maintanance Charges Rs. NIL first year, Rs.400/= p.a.

PRODUCT DETAILS

Online Trading:

CLASSIC ACCOUNT: A/C Opening charges: Rs. 750/-

DEMAT A/C free for first year and Rs.400 from 2nd year onwards (Annual Maintenance

charges). Trading through website Live terminal. No brokerage commitment required.

NSE and BSE online. Both Cash & F&O.

EXPOSURE : 10 TIMES for Intraday (ON MARGINE MONEY)

: 4 TO 6.7 TIMES for 5 days (ON MARGINE MONEY)

Online IPO's available

We have tie up with Nine banks for online fund transfering i.e. HDFC, ICICI, IDBI,CITI, Union Bank of India, Oriental Bank of Commerce, INDUSIND, UTI bank , Bank of

india, Deutsche Bank & Yes Bank for online money transfer.

FOLLOWING DOCUMENTS REQUIRED TO OPEN AN A/c WITH SHAREKHAN LTD.:


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Photo ID Proof Residence Proof (Permanent)

Pan Card (Mandetory)

Passport Driving Licence

Voter's ID MAPIN UIN Card

Passport (valid) Voter's ID Driving

Licence (valid) Bank Statement (latest)

Telephone Bill (latest) Electricity Bill (lates)

Ration Card Flat Maintanance Bill (latest)

Insurance Policy (latest) Leave-

Licence/Purchase Agreement

2 Photographs (Passport size,Coloured & front face)

One margin money cheque in favour of "Sharekhan Ltd." & one cancelled

cheque for Bank linkup facility.

Xerox copy of Bank Passbook (in case of Account holder's name is not printed

on cheque leaf).

Product & Services

Equity/Cash Market Trading

Trading is done according to the availability of the fund.

Derivative

Future

Option

IPO

4.Mutual Fund

Currency

NSEL (National Spot Exchange Limited)

PMS (Portfolio Management System)

Commodity

MCX (Multi Commodity Exchange), and

NCDX (National Commodity & Derivative Exchange)


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Benefits:-

Free depository A/c

Instant cash transfer

Multiple bank option

Dial-N-Trade

Automated portfolio

24x7 Voice tool access to your trading account

Live chat facility

Online customer service

Buy/sell even single share Anytime ordering

Sharekhan offers the following Services:-

1) Classic Account:-

This is a user friendly product which allows the client to trade through website

www.sharekhan.com and is suitable for the retail investors who is risk-averse and

hence prefers to invest in stocks or who does not trade too frequently .

Features:

Online trading account for investing in Equity and Derivatives

via www.sharekhan.com

Live Terminal and Single terminal for NSE Cash, NSE F&O & BSE.

Integration of On-line trading, Saving Bank and Demat Account.

Instant cash transfer facility against purchase & sale of shares.

Competitive transaction charges.

Instant order and trade confirmation by E-mail.

Streaming Quotes (Cash & Derivatives).

Personalized market watch.

Single screen interface for Cash and derivatives and more.
http://www.sharekhan.com/http://www.sharekhan.com/http://www.sharekhan.com/http://www.sharekhan.com/http://www.sharekhan.com/http://www.sharekhan.com/http://www.sharekhan.com/


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Provision to enter price trigger and view the same online in market watch.

2) SPEED TRADESPEED TRADE is an internet-based software application that enables you to buy and

sell inan instant. It is ideal for active traders and jobbers who transact

frequently during days session to capitalize on intra-day price movement.

Features

Instant order Execution and Confirmation.

Single screen trading terminal for NSE Cash, NSE F&O & BSE. Technical Studies.

Multiple Charting.

Real-time streaming quotes, tic-by-tic charts.

Market summary (Cost traded scrip, highest clue etc.

Hot keys similar to brokers terminal.

Alerts and reminders.

Back-up facility to place trades on Direct Phone lines.

Live market debts.

3) DIAL-N-TRADE

Along with enabling access for trade online, the CLASSIC and SPEEDTRADE

ACCOUNT also gives Dial-n-trade services. With this service, one can dial

Sharekhans

dedicated phone lines 1800-22-7500, 3970-7500. Beside this, Relationship Managers

are always available on Office Phone and Mobile to resolve customer queries.

4) SHARE MOBILE

Share khan had introduced Share Mobile, mobile based software where one can watch

Stock Prices, Intra Day Charts, Research & Advice and Trading Calls live on the Mobile.


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(As per SEBI regulations, buying-selling shares through a mobile phone are not yet

permitted.)

5) PREPAID ACCOUNT

Customers pay Advance Brokerage on trading Account and enjoy uninterrupted trading

in their Account. Beside this, great discount are also available (up to 50%) on

brokerage.

Prepaid Classic Account: - Rs. 2000Prepaid Speed trade Account: - Rs. 6000

6) IPO ON-LINE

Customers can apply to all the forthcoming IPOs online. This is quite hassle-free,

paperless and time saving. Simply allocate fund to IPO Account, Apply for the IPO and

Sit Back & Relax.

7) Mutual Fund Online

Investors can apply to Mutual Funds of Reliance, Franklin Templeton Investments, ICICI

Prudential, SBI, Birla, Sundaram, HDFC, DSP Merrill Lynch, PRINCIPAL and TATA with

Share khan.

A Sharekhan outlet offers the following services:

Online BSE and NSE executions (through BOLT & NEAT terminals)

Free access to investment advice from Sharekhan's Research team

Sharekhan Value Line (a monthly publication with reviews of recommendations,

stocks towatch out for etc)

Daily research reports and market review (High Noon & Eagle Eye)

Pre-market Report (Morning Cuppa)

Daily trading calls based on Technical Analysis

Cool trading products (Daring Derivatives and Market Strategy)

Personalized Advice

Live Market Information


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Depository Services: Demat & Remat Transactions

Derivatives Trading (Futures and Options)

Commodities Trading

IPOs & Mutual Funds Distribution


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CHAPTER- 4

Literature Review

1. Stock

The stock or capital stock of a business entity represents the original capital paid into or

invested in the business by its founders. It serves as a security for the creditors of a

business since it cannot be withdrawn to the detriment of the creditors. Stock is distinct

from the property and the assets of a business which may fluctuate in quantity and

value.

The stock of a business is divided intoshares, the total of which must be stated at the

time of business formation. Given the total amount of money invested in the business, a

share has a certain declared face value, commonly known as thepar valueof a share.

Ownership of shares is documented by issuance of a stock certificate. A stock

certificate is a legal document that specifies the amount of shares owned by the

shareholder, and other specifics of the shares, such as the par value, if any, or the class

of the shares.

2. Stock derivatives

A stockderivativeis any financial instrument which has a value that is dependent on the

price of the underlyingstock.Futuresandoptionsare the main types of derivatives on

stocks. The underlying security may be a stock indexor an individual firm's stock, e.g.

single-stock futures.

Stock futures are contracts where the buyer is long, i.e., takes on the obligation to buy

on the contract maturity date, and the seller isshort, i.e., takes on the obligation to sell.

Stock index futures are generally not delivered in the usual manner, but by cash

settlement.

Astock optionis a class of option. Specifically, acall optionis the right (notobligation)

to buy stock in the future at a fixed price and aput optionis the right (notobligation) to

sell stock in the future at a fixed price. The most popular method of valuing stock
http://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Share_(finance)http://en.wikipedia.org/wiki/Share_(finance)http://en.wikipedia.org/wiki/Share_(finance)http://en.wikipedia.org/wiki/Par_valuehttp://en.wikipedia.org/wiki/Par_valuehttp://en.wikipedia.org/wiki/Par_valuehttp://en.wikipedia.org/wiki/Stock_certificatehttp://en.wikipedia.org/wiki/Stock_certificatehttp://en.wikipedia.org/wiki/Shareholderhttp://en.wikipedia.org/wiki/Shareholderhttp://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Underlyinghttp://en.wikipedia.org/wiki/Underlyinghttp://en.wikipedia.org/wiki/Futures_contracthttp://en.wikipedia.org/wiki/Futures_contracthttp://en.wikipedia.org/wiki/Futures_contracthttp://en.wikipedia.org/wiki/Option_(finance)http://en.wikipedia.org/wiki/Option_(finance)http://en.wikipedia.org/wiki/Option_(finance)http://en.wikipedia.org/wiki/Stock_indexhttp://en.wikipedia.org/wiki/Stock_indexhttp://en.wikipedia.org/wiki/Single-stock_futureshttp://en.wikipedia.org/wiki/Single-stock_futureshttp://en.wikipedia.org/wiki/Long_(finance)http://en.wikipedia.org/wiki/Long_(finance)http://en.wikipedia.org/wiki/Long_(finance)http://en.wikipedia.org/wiki/Short_(finance)http://en.wikipedia.org/wiki/Short_(finance)http://en.wikipedia.org/wiki/Short_(finance)http://en.wikipedia.org/wiki/Equity_derivative#Stock_Index_Futureshttp://en.wikipedia.org/wiki/Equity_derivative#Stock_Index_Futureshttp://en.wikipedia.org/wiki/Stock_optionhttp://en.wikipedia.org/wiki/Stock_optionhttp://en.wikipedia.org/wiki/Stock_optionhttp://en.wikipedia.org/wiki/Call_optionhttp://en.wikipedia.org/wiki/Call_optionhttp://en.wikipedia.org/wiki/Call_optionhttp://en.wikipedia.org/wiki/Put_optionhttp://en.wikipedia.org/wiki/Put_optionhttp://en.wikipedia.org/wiki/Put_optionhttp://en.wikipedia.org/wiki/Put_optionhttp://en.wikipedia.org/wiki/Call_optionhttp://en.wikipedia.org/wiki/Stock_optionhttp://en.wikipedia.org/wiki/Equity_derivative#Stock_Index_Futureshttp://en.wikipedia.org/wiki/Short_(finance)http://en.wikipedia.org/wiki/Long_(finance)http://en.wikipedia.org/wiki/Single-stock_futureshttp://en.wikipedia.org/wiki/Stock_indexhttp://en.wikipedia.org/wiki/Option_(finance)http://en.wikipedia.org/wiki/Futures_contracthttp://en.wikipedia.org/wiki/Underlyinghttp://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Shareholderhttp://en.wikipedia.org/wiki/Stock_certificatehttp://en.wikipedia.org/wiki/Par_valuehttp://en.wikipedia.org/wiki/Share_(finance)http://en.wikipedia.org/wiki/Security_(finance)


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options is theBlack Scholesmodel. Apart fromcall options granted to employees, most

stock options are transferable.

3. Shareholder

A shareholder (or stockholder) is an individual or company (including a corporation)

that legally owns one or moresharesof stock in ajoint stock company. Both private and

public traded companies have shareholders. Companies listed at thestock marketare

expected to strive to enhanceshareholder value.

4. Trading

The shares of a company may in general be transferred from shareholders to other

parties by sale or other mechanisms, unless prohibited. Most jurisdictions have

established laws and regulations governing such transfers, particularly if the issuer is a

publicly-traded entity.

The desire of stockholders to trade their shares has led to the establishment of stock

exchanges. A stock exchange is an organization that provides a marketplace for trading

shares and other derivatives and financial products. Today, investors are usually

represented bystock brokerswho buy and sell shares of a wide range of companies on

the exchanges.

5. Buying

There are various methods of buying andfinancingstocks. The most common means is

through astock broker. Whether they are afull serviceordiscountbroker, they arrange

the transfer of stock from a seller to a buyer. Most trades are actually done through

brokers listed with a stock exchange.

There are many different stock brokers from which to choose, such as full service

brokers or discount brokers. The full service brokers usually charge more per trade, but

give investment advice or more personal service; the discount brokers offer little or no

investment advice but charge less for trades. Another type of broker would be abankor

credit unionthat may have a deal set up with either a full service or discount broker.
http://en.wikipedia.org/wiki/Black_Scholeshttp://en.wikipedia.org/wiki/Black_Scholeshttp://en.wikipedia.org/wiki/Black_Scholeshttp://en.wikipedia.org/wiki/Employee_stock_optionhttp://en.wikipedia.org/wiki/Employee_stock_optionhttp://en.wikipedia.org/wiki/Employee_stock_optionhttp://en.wikipedia.org/wiki/Individualhttp://en.wikipedia.org/wiki/Individualhttp://en.wikipedia.org/wiki/Company_(law)http://en.wikipedia.org/wiki/Company_(law)http://en.wikipedia.org/wiki/Corporationhttp://en.wikipedia.org/wiki/Corporationhttp://en.wikipedia.org/wiki/Share_(finance)http://en.wikipedia.org/wiki/Share_(finance)http://en.wikipedia.org/wiki/Share_(finance)http://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Stock_markethttp://en.wikipedia.org/wiki/Stock_markethttp://en.wikipedia.org/wiki/Stock_markethttp://en.wikipedia.org/wiki/Shareholder_valuehttp://en.wikipedia.org/wiki/Shareholder_valuehttp://en.wikipedia.org/wiki/Shareholder_valuehttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Shareshttp://en.wikipedia.org/wiki/Shareshttp://en.wikipedia.org/wiki/Stock_investorhttp://en.wikipedia.org/wiki/Stock_investorhttp://en.wikipedia.org/wiki/Stock_brokerhttp://en.wikipedia.org/wiki/Stock_brokerhttp://en.wikipedia.org/wiki/Stock_brokerhttp://en.wikipedia.org/wiki/Financinghttp://en.wikipedia.org/wiki/Financinghttp://en.wikipedia.org/wiki/Financinghttp://en.wikipedia.org/wiki/Stock_brokerhttp://en.wikipedia.org/wiki/Stock_brokerhttp://en.wikipedia.org/wiki/Stock_brokerhttp://en.wikipedia.org/wiki/Full_servicehttp://en.wikipedia.org/wiki/Full_servicehttp://en.wikipedia.org/wiki/Full_servicehttp://en.wikipedia.org/wiki/Discounts_and_allowanceshttp://en.wikipedia.org/wiki/Discounts_and_allowanceshttp://en.wikipedia.org/wiki/Discounts_and_allowanceshttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Credit_unionhttp://en.wikipedia.org/wiki/Credit_unionhttp://en.wikipedia.org/wiki/Credit_unionhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Discounts_and_allowanceshttp://en.wikipedia.org/wiki/Full_servicehttp://en.wikipedia.org/wiki/Stock_brokerhttp://en.wikipedia.org/wiki/Financinghttp://en.wikipedia.org/wiki/Stock_brokerhttp://en.wikipedia.org/wiki/Stock_investorhttp://en.wikipedia.org/wiki/Shareshttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Shareholder_valuehttp://en.wikipedia.org/wiki/Stock_markethttp://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Share_(finance)http://en.wikipedia.org/wiki/Corporationhttp://en.wikipedia.org/wiki/Company_(law)http://en.wikipedia.org/wiki/Individualhttp://en.wikipedia.org/wiki/Employee_stock_optionhttp://en.wikipedia.org/wiki/Black_Scholes


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6. Selling

Selling stock is procedurally similar to buying stock. Generally, the investor wants to buy

low and sell high, if not in that order(short selling); although a number of reasons mayinduce an investor to sell at a loss, e.g., to avoid further loss.

As with buying a stock, there is a transaction fee for the broker's efforts in arranging the

transfer of stock from a seller to a buyer. This fee can be high or low depending on

which type of brokerage, full service or discount, handles the transaction.After the

transaction has been made, the seller is then entitled to all of the money

7. Bear and Bull Markets

A bull market is one where prices are rising, whereas a bear market is one where prices

are falling.

8. Stock Exchange

It is a common platform where buyers and sellers come together to transact in stocks

and shares. It may be a physical entity where brokers trade on a physical trading floor

via an "open outcry" system or a virtual environment.

9. Index

An Index comprises stocks that have large liquidity and market capitalization. Each

stock is given a weightage in the Index equivalent to its market capitalization. At the

NSE, the capitalization of NIFTY (fifty selected stocks) is taken as a base capitalization,

with the value set at 1000. Similarly, BSE Sensitive Index or Sensex comprises 30

selected stocks.

10. Initial Public Offer

An IPO is an abbreviation for Initial Public Offer. When a company goes public for the

first time or issues a fresh stock of shares, it offers it to the public directly. This happens

in the primary market.
http://en.wikipedia.org/wiki/Short_sellinghttp://en.wikipedia.org/wiki/Short_sellinghttp://en.wikipedia.org/wiki/Short_sellinghttp://en.wikipedia.org/wiki/Short_selling


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CHAPTER- 5

RESEARCH METHODOLOGY

To fulfill these objectives i.e. to find out, Investors Behaviour towards products and

services provided by Sharekhan Ltd, the researcher interacted with the Businessman,

Bank Employees, Army Personnel who were investing in various financial products and

services at that time. I visited almost 100 investors.

Data collection method

To achieve the primary data of 'Investors Behaviour towards Shares provided by

Sharekhan Ltd. Investor's survey was conducted through a questionnaire. Thisquestionnaire contains questions with 2 to 5 options.

1. A pilot survey was conducted before finalizing the questionnaire.

2. Data collection was also done with help of Random sampling method.

3. After completion of survey, the data was analysed & conclusions were drawn.

4. At the end of all the information was compiled in the form of a Project Report.

SAMPLE AREA : Jhandewalan, New Delhi

SAMPLE SIZE : 100


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LIMITATIONS

Though special care was taken to find out realistic picture of the present scenario for

what the research was conducted still the study may suffer from some drawbacks.

These drawbacks may be due to following reasons :

The questionnaire was exclusively close ended, so respondents might not beable to give exact facts what they wanted because they were having only limited

choice.

Some respondents may have distorted the figures / facts or may have notdisclosed the true information because of the hesitation to tell the right data like-

salary.

No tool for the cross-checking of the facts / figures was employed.

As most of the times respondents were busy and were unable to spend aconsiderable amount of time. So they may not have been able to give the exact

figures / facts.

Despite a great care was taken to choose sample size and sample unit, it might notbe accurate to my desire or perception.


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COMPARISON BETWEEN MAJOR COMPETITORS OF SHAREKHAN DURING JULY, 2012

Companyname UNICON RELIGARE INFOLINE SHAREKAHN LTD.

Contactdetails

1800 103 3388 1860 25 88888 011 41514991 1-800-22-7500

Servicesoffered

Equities

Commoditi

es

IPO

Mutual

Fund Insurance

Distribution

Wealth

Mgmt.

PMS

Investment

Banking

Property

Broking

Equities

Commodities

IPO

Mutual Fund

Insurance

Distribution

Debt Funds PMS

Asset Mgmt.

Equities

Commodities

WMS

Credit and

Finance

Insurance

InvestmentBanking

Equities

Commodities

IPO

Mutual Fund

Wealth

Mgmt.

PMS Investment

Banking

Property

Broking

Brokerage Average

1.5-2 paisa

Intraday 0.03

Delivery 0.30

Basic 0.05

Variable 0.02

Delivery 0.50

Intraday 0.05Delivery 0.10

AMC NO CHARGE Rs. 500 Rs. 1000 NO CHARGESoftwareoffered

Unisoft (NIIT),

Uniconswift

Odeon TT5/TT advance TRADE TIGERFAST TRADENEWFAST TRADECLASSIC

SOFTWARE


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CHAPTER-6

ANALYSIS

Q.1 How many respondents invest money?

0

10

20

30

40

50

60

70

80

90

100

Yes No

No. of Respondents

No. of Respondents

InvestNo. of Respondents

Yes 100

No 0


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Q.2 Where they invested?

Investment OptionsNo. of Respondents

Bank 6

Govt. Securities 8

Bonds 3

Gold 12

Insurance 15

Property 26

Shares 16

IPO 8

Mutual Funds 6

0

5

10

15

20

25

30

No. of Respondents

No. of Respondents


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Q.3. Do they have the knowledge of share market?

Yes

20%

NO

80%

No. of respondents

Response No. of respondents

Yes 20

NO 80


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Q.4. Do they have d-mat account?

0

10

20

30

40

50

60

70

80

90

100

Yes No

No. of Respondents

No. of Respondents

D-mat AccountNo. of Respondents

Yes 95

No 5


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Q.5 What is the source of their investment information ?

Source No. of Respondents

Consultants22

Friends 38

Family 12

Any other 28

22

38

12

28

0

5

10

15

20

25

30

35

40

Consultants Friends Family Any other

No.o

fRespondents

Sources


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Q.6. Do they invest into the share market?

Response No. of respondents

YES 60

NO 40

0

10

20

30

40

50

60

YES NO

No. of respondents

No. of respondents


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Q.7. In which company they have your d-mat account?

0

5

10

15

20

25

30

35

40

4542

2830

No.o

fRespondents

CompaniesSharekhan Indiabulls Others

Companies No. of Respondents

Sharekhan 42

India bulls 28

Any Other 30


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Q.8. How much they want to invest in shares?

CapacityNo. of Respondents

Rs.5000-50000 33

Rs.50001-1 lac 37

Rs.1 lac - 2 lacs 18

Above 2 lacs 12

0

5

10

15

20

25

30

35

40

Rs.5000-50000 Rs.50001-1 lac Rs.1 lac - 2 lacs Above 2 lacs

33

37

18

12

No.o

fRespondents

Capacity


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Q.9. What is the duration of investment?

DurationNo. of Respondents

0-6 months 48

6 months-1yr 22

1 yr - 2 yrs 19

Above 2 yrs 11

0

5

10

15

20

25

30

35

40

45

50

0-6 months 6 months-1yr 1 yr - 2 yrs Above 2 yrs

48

22

19

11No.o

fRespondents

Investment Duration


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Q.10. How do they deal with their broker?

TradingNo. of Respondents

Off-line 12

On-line 88

0

20

40

60

80

100

Off-lineOn-line

On-line

88%

Off-line

12%

Trading Pattern of Investors


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Q.11 What type of investor they were?

TypeNo. of Respondents

Regular 55

Once in Time 18

Sometimes 27

Regular Investor- Who invest frequently on daily or weekly basis

Once in TimeInvestor- Who does not trade frequently.

Sometimes- Who does trading once in a month

55

18

27

0

10

20

30

40

50

60

Regular Once in Time Sometimes

No.o

fResponden

ts

Investment Type


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Q.12. How much risk involved in share market?

RiskNo. of Respondents

High 67

Moderate 19

Low 14

0

10

20

30

40

50

60

70

High Moderate Low

No.of Respondents

No.of Respondents


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Q.13 Why do they have d-mat account with other brokerage firm other than Sharekhan

Ltd?

0

10

20

30

40

50

60

70

80

Yes No

No. of Respondents

No. of Respondents

ReasonsNo. of Respondents

Better Service 39

Easy Available 18

Near to Operate 15

Any other 28


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Q.14. Are you updated with information relating to your investing pattern?

Updation No. of Respondents

Yes 71

No 29

Yes

No

71

29

Updation with Information

No.of Respondents


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Q.15. Did you face any problem dealing with broker?

0

20

40

60

80

Yes

No

27

73

No. of Respondents

Faced Problem No. of Respondents

Yes 27

No 73


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Q.16. What type of problem they faced?

Problem Type No.of Respondents

Brokerage 9

Updation 24

Better Service 35

Any other 32

9

24

35

32

0

5

10

15

20

25

30

35

40

Brokerage Updation Better Service Any other

No.o

fResp

ondents

Types of Problem


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Q.17. Would they like to switch their D-mat A/c, if they get the opportunity in Sharekhan

Ltd?

Responses No. of respondents

Yes 60

No 20

Undetermined 20

No. of respondents

0

10

20

30

40

50

60

YesNo

Undetermined

No. of respondents

No. of respondents


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Q.18. Reasons to choose Sharekhan Ltd.?

Factors No. of responsesProduct & services 40

Trading softwares 20

Less brokerage 25

No AMC 15

0

5

10

15

20

25

30

35

40

45

Product &

services

Trading

softwares

Less brokerage No AMC

No. of responses

No. of responses


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CHAPTER-7

FINDINGS

After studying the data obtained from the respondents and other sources I am

able to say following thing or various findings of my study are as follows.

Sharekhan has a good reputation in the minds of the investors as integral service

provider and offering a large variety of the services. Sharekhan is known by majority

of the public for its services..

Its highly competitive manpower, latest technology, comprehensive infrastructure,

and total customer focus has positioned it to as emerging giant. All these factors

have made it possible to diversify its services to such a large extant and attracting a

huge database of the investors.

As far as Shares investor services and distribution of Shares is concerned, the

response of investors towards share market is not so satisfactory.

Many of people dont know about various products and services provided by

Sharekhan Ltd.

Investors like to invest in the equity schemes and short term plans because they

have risk taking ability and want quick returns on their investment.

Investors want proper, fair and timely guidance for various investments because it is

their hard earned money and safety of the investment is the major issue.


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SUGGESTIONS

1) FOR COMPANY

SEGMENT THE CUSTOMERS:- Understanding the different needs of different

customers and serving each customer individually i.e. mass customization should be

the approach of the company.

POSITION THE SERVICE IN THE MARKE PLACE:- Customer should be aware of the

cost and benefits of different services.

CREATING A COMPETITIVE POSITION:-Company should know its strengths as wellas its weakness and accordingly try to take a position at which it can sustain.

ANTICIPATING COMPETITIVE RESPONSE:- Before embarking on a specific plan of

action, management should consider the possibility that one or more of the competitors

might pursue the same market position.

CHANGING PERCEPTION THOUGH ADVERTISING :- Sometimes, however

weaknesses are perceptual rather than and real and hence can be changed through

advertising.

UNDERSTANDING THE DEMAND PATTERN :- According to the changes in demand

of the product, following strategies may be followed :

Product variations

Modifying the timings and location of the delivery

Pricing strategies

Communications effortsCUSTOMER LOYALTY :- If you currently retain 70 percent of your customers and you

start a program to improve that to 80 percent, youll add an additional 10 percent to your

growth rate.


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USE COMPLAINTS TO BUILD BUSINESS :- When customers are not happy with your

business they usually wont complain to you instead, theyll probably complain to just

everyone else they knowand take their business to your competition next time. Thats

why an increasing number of businesses are making follow-up calls or mailing

satisfaction questionnaires after the sale is made. They find that if they promptly follow

up and resolve a customers complaint, the customer might be even more likely to do

business then the average customer who didnt have a complaint.

2) FOR INVESTORS

ASSESS YOURSELF: One should identify the degree of risk bearing capacity one has

and also clearly state the expectations from the investments. Irrational expectations will

only bring pain.

INVEST, DONT SPECULATE: Dont put all the eggs in one basket: This old age

adage is of utmost importance. No matter what the risk profile of a person is, it is always

advisable to diversify the risks associated. So putting ones money in different asset

classes is generally the best option as it averages the risks in each category.

BE REGULAR: Investing should be a habit and not an exercise undertaken at ones

wishes, if one has to really benefit from them.

DO YOUR HOMEWOK:Always go through with financial news of the market.

FIND THE RIGHT FUNDS: Finding the right funds is important and one should also

use these funds for tax efficiency.

KEEP TRACK OF YOUR INVESTMENTS: Finding the right fund is important but evenmore important is to keep track of the way they are performing in the market.


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CONCLUSION

The basic objective of Shares is to provide a diversified portfolio so as to reduce the risk

in investments at a lower cost. The Shares industry worldwide is based on this premise.sInvestors who take up Shares route for investments believe that their risk is minimized

at lower costs, and they get an optimum portfolio of securities that match their risk

appetite.

It is unfortunate that the fund managers are not taking due care for minimizing the risk

and are in a race to post higher and higher returns during the phase of bull-run. They

should understand that the investors forget the high returns posted in any specific

period very soon but they take hell lot of time to forget the burns they get during periodsof losses. Hence for maintaining the confidence of the retail investors it is very important

to control wild fluctuations in the NAVs.

Poor performance, poor servicing to clients and failure of third party service providers,

are the three major risk factors identified in the survey. These are also going to be

crucial in a rapidly growing competitive scenario. Under this setting, it is not just growth

that should be the focus area but also better management of all risks and hence, AMCs

would do well to keep the investor and his interest in mind before taking any decision.


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CHAPTER-9

BIBLIOGRAPHY

WWW.SHAREKHAN.COM

Kothari, C. (2012). Resaerch Methodology(2nd Edition ed.). New Delhi: New

Age International Pvt.Ltd.

M.Y.Khan. (2012). Financial Management. New Delhi: Tata McGraw-Hill.

Research on the Indian Capital Market: A Review,Vikalpa, 19(1) (with S.K.

Barua and V. Raghunathan)

Indian Money Market: Market Structure, Covered Parity and Term Structure,

ICFAI Journal of Applied Finance, 3(2)
http://www.sharekhan.com/http://www.sharekhan.com/


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ANNEXURE

QUESTIONNAIRE

Q.1 Did you invest your money?

Yes No

Q.2 Where have you invested?

Bank Govt. Securities Bonds

Gold Insurance Property

Shares IPO

Q.4 Do you have knowledge about share market?

Yes No

Q.3 Do you have d-mat account?

Yes No

Q.4 What is the source of your investment information ?

Consultants Friends

Family Any Other

Q.5 In which company you have your d-mat account?

Sharekhan Karvy Any Other

Q.6 How you got the information about Sharekhan?

Newspaper Magazine

Friends Local Channel


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Q.7 How much are you interesting to invest in shares?

Rs.5000 50000 Rs.50001- 1 Lac

Rs.1 Lac 2 Lacs Above 2 Lacs

Q.8 What is the duration of your investment?

0-6 months 6 months 1 yr

1 yr 2 yrs Above 2 yrs

Q.9 In which way you deal with your broker?

On-line Off-line

Q.10 What type of investor you are?

Regular Once in time Some times

Q.11 How much risk involved in the share market?

High Moderate Low

Q.12 Why do you have your d-mat account with anyone?

Better Service Easy available

Near to operate Any other

Q.13 Are you updated with information relating to your investing pattern?

Yes No

Q.14 Did you face any problem dealing with broker?

Yes No


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Q.15 What type of problem you are facing?

Brokerage Up dation

Better Service Any other

Q.16 Would they like to switch into Share khan?

Yes No

Q.17 Why would they like to switch into Share khan?

Product services trading software

brokerage No AMC response

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