My Final Project On Sharekhan - For Merge eu1m

SHAREKHAN PVT. LTD

CHAPTER 1 INDUSTRY PROFILE 1.1 Indian Stock Exchanges -an umbrella growth The Second World War breaks out in 1939. It gave a sharp boom, which was followed by slump. But, in 1943, the situation changed radically, when India was fully mobilized as a supply base. On the of the restrictive controls on cotton, bullion, seeds and other commodities, those dealing in them found in the stock market as the only outlet for their activities. They were anxious to the trade and numerous others swelled their number. Many new associations were constituted for the purpose and stock exchange in all parts of the country was floated. The Uttar Pradesh Stock Exchange Limited (1940), Nagpur Stock Exchange Limited (1940) and Hyderabad Stock Exchange Limited (1944) were incorporated. In Delhi two stock exchanges Delhi Stock and Share Brokers association limited and the Delhi stocks and share Exchange Limited were floated and later in June 1947, amalgamated into the Delhi Stock Exchange Association Limited. 1.2 Trading pattern of Indian stock market

Trading in Indian stock exchange is limited to listed securities of public limited companies. They are broadly divided into two categories, namely, specified securities (forward list) and non – specified securities (cash list). Equity shares of dividend paying, growth oriented companies with a paid up capital of at least Rs 50 million and a market normally, put in the specified group and the balance in non-specified group.

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SHAREKHAN PVT. LTD 1.3Two types of transactions can be carried out on the Indian stock exchanges: A. Spot delivery transactions “for delivery and payment within the time or on the date stipulated when entering into the contract which shall not be more than 14 days following the date of the contract” B. Forward transitions “delivery and payment can be extended by further period of 14 days each so that the overall period does not exceed 90 days from the date of the contract. The latter is permitted only in the case of specified shares. The brokers who carry over the outstanding pay carry over charges (can-tango or backwardation) which are usually determined by the rates of interest prevailing. 1.4 Trading Terminology Member–Client Agreement form: -This form is an agreement entered into between client and broker in the presence of witnesses wherein the client agrees (is desirous) to trade/invest in the securities listed on the concerned Exchange through the broker after being satisfied of broker’s capabilities to deal in the same. Stock Exchange: - It is a place where the buyer and seller meet to trade in shares in an organized manner. There are at present 25 recognized stock exchanges in the country that are governed by the Securities (Regulation) Act, 1956. Market order: - There are several types of orders that you can dictate to a broker. The most common type, which is a regular buy or sell order, is called a market order. Limit order: - Where in you ask the broker to trade only if the price reaches a specific level. Stop loss order: - You tell the broker to sell your shares if the price drops to a certain level to prevent significant loss because if it drops to that level it is likely to drop further and your losses are likely to increase

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SHAREKHAN PVT. LTD

Bullish market: -When the market goes up it is called a bullish market. Bearish market: -when the market goes down it is called a bearish market. Position: -When you act upon a stock and buy into it, you are taking a position. A position is an amount of money committed to an investment in anticipation of favorable price movements. There are two kinds of positions: •

Long positions

•

Short positions

A) Long positions

are what most people do. When you buy long, that means you are

anticipating an upward movement in the price, and that is how you profit. People usually buy stocks at prices expecting to sell them later at higher prices and hence make profits. B) Short positions

are the tricky ones. When you buy short, you are anticipating a fall in

the price and the fall is the source of your profits. The shares will be sold and when the price falls they will be repurchased and given back and the difference is the where the investor profits. Of course, the investor who borrowed the shares carries the risk of not having the price move as anticipated, in which case he may lose money in repurchasing the stocks.

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SHAREKHAN PVT. LTD

1.5 Index: An index is a stock-market indicator created as a statistical measure of the performance of an entire market or segment of a market based on a sample of securities from the market. An index is thus a means to evaluate the overall performance of a market or of a segment of the market. Index measures aggregate market movements. Apart from being a general market indicator, indices are used as a benchmark to evaluate individual portfolio performance. Professional money managers will always try to outperform the market, i.e. they will always try to do better than the indices. We have 2 renowned indices viz. (a) BSE Sensitive (BSE Sensex) and (b) S&P Nifty 50 (Nifty) National Stock Exchange (NSE) With liberalization of the Indian economy, it was found inevitable to lift the Indian stock market trading system on par with the international standards. On the basis of the recommendations of high powered Pherwani committee, industrial development bank of India, industrial credit and Investment Corporation of India, industrial finance corporation of India, all insurance corporations, selected commercial banks and others incorporated the National Stock exchange in 1992. Trading at NSE can be classified under two broad categories. a) Wholesale debt market and b) Capital market Whole debt market operations are similar to money market operations institutions and corporate bodies enter into high value transitions in financial instruments such as government securities, treasury bills, public sector unit bonds, commercial paper, certificate of deposit, etc. SES- GOI -Faculty Of Management Academic Year 2010-12 4

SHAREKHAN PVT. LTD

There are two kinds of players in NSE a) Trading and b) Participants Recognized of NSE are called trading who trade on behalf of themselves and their clients. Participants include trading and large players like banks who take direct settlement responsibility. Trading at NSE takes place through a fully automated screen based trading mechanism, which adopts the principle of an order driven market. Trading can stay at their offices and execute the trading, since they are linked through a communication network. The prices at which the buyer and seller are willing to transact will appear on the screen. When the prices match the transition will be completed and a confirmation slip will be printed at the office of the trading member. NSE has several advantages over the traditional trading exchanges. They are as follows. NSE brings an integrated stock market trading network across the nation. Investors can trade at the same price from anywhere in the country since inter market operations are streamlined coupled with the country wide access to the securities. Delays in communication, late payments and the malpractice’s prevailing in the traditional trading mechanism can be done away with grater operational efficiency and informational transparency in the stock market operations, with the of total computerized network. Unless stock market provides professionalized service, small investors and foreign investors will not be interested n capital market operations. And capital market being one of the major sources of long term finance for industrial projects, Indian cannot Alford to damage the capital market path. In this regard NSE gains vital importance in the Indian capital market system.

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SHAREKHAN PVT. LTD

Bombay Stock Exchange (BSE) The stock exchange, Mumbai, popularly known as BSE was established in 1875 as “The native share and stock brokers association”. It is the oldest one in Asia, even older than the Tokyo stock exchange, which was established in 1878. It is a voluntary nonprofit making association of persons (AOP) and is currently engaged in the process of converting itself into demutualized and corporate entity. It has evolved over the years into its present status as the premier stock exchange in the country. It is the first stock exchange in the country to have obtained permanent recognition in 1956 from the government of India under the securities contracts (Regulation) Act, 1956. The exchange, while providing an efficient and transparent market for trading n securities, debt and derivatives upholds the interests of the investors and ensures redressed of their grievances whether against the companies or its own member brokers. It also strives to educate and enlighten the investors by conducting investor education programs and making available to them necessary informative inputs. A governing board having 20 directors is the apex body, which decides the policies and regulates the affairs of the exchange. The governing board consists of 9 elected directors, who are from the broking community (one third of them retire ever year by rotation), three SEBI nominees, six public representatives and an executive director and chief executive officer and a chief operating officer. The executive director as the chief executive officer is responsible for the day to day istration of the exchange and he is assisted by the chief operating officer and other heads of departments. The exchange has inserted new rule no 126 a in its rules, bye laws and regulations pertaining to constitution of the executive committee of the exchange. Accordingly, an executive committee, consisting of three elected directors, three SEBI nominees or public representatives, executive director and CEO and Chief operating officer has been constituted. The committee considers judicial and quasi matters in which the governing board has powers SES- GOI -Faculty Of Management Academic Year 2010-12 6

SHAREKHAN PVT. LTD as an appellate authority, matters regarding annulment of transitions, ission, continuance and suspension of member brokers, declaration of a member broker as defaulter, norms, procedures and other matters relating to arbitration, fees, deposits, margins and other monies payable by the member brokers to the exchange etc.

CHAPTER 2 COMPANY PROFILE 2.1 HEAD OFFICE ShareKhan Limited A-206, Phoenix House, Phoenix Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai 400 013 Phones: 022-24982000. Email:[email protected] Sharekhan Ltd, India’s.

Leading stock broker is the retail arm of SSKI, an

organization with over eight years’ experience in the stock market. With more than 331 share shops in 131 cities, India’s premier online trading destination, and Over 2000 brokers, 10000 sub brokers and 1 crore investors. Sharekhan offers trade execution facilities for cash as well as derivatives, on BSE and NSE, Sharekhan services varies from Equities and derivatives, online Trading, Depository services, Equity research, depository services, mutual funds, IPOs, commodities trading on the MCX & NCDEX. And most importantly, it bring to you investment advice tempered by eight years’ experience.

2.2 Sharekhan Vision: “To be the best retail broking brand in the Indian Equities market” 2.3 Sharekhan Mission: “To educate and empower the individual investor to make better investment decisions through quality advice and superior service.” Stock broking services it is an undisputed fact that the stock market is unpredictable and yet enjoys a high success rate as a wealth management and wealth accumulation option. SES- GOI -Faculty Of Management Academic Year 2010-12 7

SHAREKHAN PVT. LTD The difference between unpredictability and a safety anchor in the market is provided by in depth knowledge of market functioning and changing trends, planning with foresight and choosing one & rescue’s options with care. This is what we provide in our stock broking services. We offer services that are beyond just a medium for buying and selling stocks and shares. Instead we provide services, which are multi-dimensional and multi-focused in their scope. There are several advantages in utilizing our stock broking services, which are the reasons why it is one of the best in the country. We offer trading on a vast platform national stock exchange, Bombay stock exchange. More importantly, we make trading safe to the maximum possible extent, by ing for several risk factors and planning accordingly. We are assisted in this task by our in depth research, constant and sound advisory facilities. Our highly skilled research team, comprising of technical analysts as well as fundamental specialists, secure result oriented information on market trends, market analysis and market predictions. This crucial information is given as a constant to our customers, through daily reports delivered thrice daily & ndash; the pre-session report, where market scenario for the day is predicted. Share Khan Ltd, India’s leading stock broker and is the retail arm of SSKI, on organization with over 8 year experience in the stock market. With more than 331 share shop in 131 cities India’s premier online trading destination, and over 200 brokers, 1000 sub broker and 1 corer investor. Share Khan expertise lies in stocks and that’s he talk about with authority so when he say that investing in stocks should not be confused with trading in stocks or portfolio-based strategy is better than betting on a single horse, it is something that is spoken with years of focused learning and experience in the stock market. And these beliefs are reflected in everything Share Khan does for you. Share Khan also provides Mutual Fund, loans, investment guidelines etc. Share Khan Style of Management, structure, Infrastructure facilities makes the employee to work, with positive attitudes to accomplish the organization goal. Today Share Khan is one of the largest networks of branded broking outlets in the country servicing SES- GOI -Faculty Of Management Academic Year 2010-12 8

SHAREKHAN PVT. LTD 100,000 clients & among the top 3 branded retail service providers.

2.4 An Overview

Evolution Indian stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago. The earliest record of security dealings in India are manager and obscure. The East India Company was the dominant institution in those days and business in its loan securities used to be transacted towards the eighteenth century. By 1830’s business on corporate stocks and shares in Bank and Cotton presses took place in Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers recognized by banks and merchants during 1840 and 1850. The 1850’s witnessed a rapid development of commercial enterprise and brokerage business attracted many men into the field and by 1860 the number of brokers increased into 60. In 1860-61 the American civil war broke out and cotton supply from United States of Europe was stopped; thus, the share mania in India begun. The number of brokers increased to about 200 to 250. However, at the end of the American civil war, in 1865 destroys slop began (for example, bank of bonbal = y share which had touched Rs 2850 could only be sold at Rs. 87). At the end of the American civil war, the brokers who thrived out of civil War in 1874, found a place in a street (now appropriately called as dalal street)Where they would conveniently assemble and transact business. In 1887, they were formally established in Bombay, the “native share and stock brokers’ association (Which is alternatively known as the stock exchange) in 1895, the stock exchange acquired a premise in the same street and it was SES- GOI -Faculty Of Management Academic Year 2010-12 9

SHAREKHAN PVT. LTD inaugrarated in 1899. Thus, the stock exchange at Bombay was consolidated.

2.5 Competitors Information Today’s world is full of competition; Service industries are also in the era competition. The financials and investment industry is also highly competitive in nature with almost well established firms diversifying and entering into this industry. Sharekhan is a completely SERVICE DRIVEN organization competing with its Competitors like. Geogith Today Sharekhan Financial Services Ltd is one of the largest and most respected retail brokerage companies from India where Kerala State Industrial Development Corporation (KSIDC) has taken equity participation making it the only brokerage company in India where a state financial corporation has taken equity participation. Sharekhan serves more than 250,000 clients who are serviced through 350 branch offices and handles trading turnover of more than US$ 3000 million per year. It is also the first company to offer Internet based broking service in India. Indian Bulls The market capitalization of Indi bulls is around USD 800 million, and the Consolidated net worth of the company is around USD 500 million. Some of the large shareholders of India bulls are the largest financial institutions of the world such as Fidelity Funds, Capital International, Goldman Sachs, Merrill Lynch, Lloyd George and Farallon Capital. Revenue of the company grew at a CAGR of 184% from FY03 to FY06. During the same period, profits of the company grew at a CAGR of 268%. Karvey

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SHAREKHAN PVT. LTD The birth of the Karvey was on a modest scale in 1981. It began with the vision and enterprise of a small group of practicing Chartered ants who founded the flagship company….. Karvey Consultants Limited. But , today it is ranked among the top five in the country in all its Business segments, services over 16 million individual investors in various capacities, and provides investors services to over 300 corporate .

2.6 Infrastructure Facility: Sharekhan is an equities focused organization tracing its lineage to SSKI, a veteran equities solutions company with over 8 decades of experience in the Indian stock markets. Employees are Assets of the organization, In order to get best performance from the employees Sharekhan mainly focus on, Infrastructure (Ports/ Logistics, Energy, Telecom) Technology & Media. Sharekhan provides the best infrastructure facilities all over 331 share shops in131 cities, which create an good internal environment so that the employees can work freely and modern technology based networks. The following type of infrastructure facility was provided by sharekhan. • Secure and ergonomic work bays for clients with fully operational facilities such round-the-clock security and facilities such as cafeterias, rest rooms and recreational areas. • Well equipped and networked global delivery centers handling voice and data driven operations • All branches are designed with Internet trading on Reuters TIB Mercury Platform. • Fitted out delivery facilities and dedicated technology center with all-purpose redundancies with regard to power and storage capacities. ed 27 X 7 by internal technology team besides a third party technology services provider. • Dedicated and redundant network and telecom connectivity • Secure and ergonomic work bays for clients with fully operational facilities such round-the-clock security and facilities such as cafeterias, rest rooms and recreational areas.

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SHAREKHAN PVT. LTD • Updated configured computer systems along with the air conditional office rooms.

Quality Policy:

• Build in-house processes that will ensure transparent and harmonies relationships with its clients and investors to provide high quality services. • Establish a partner relationship with its investor agents and vendors that will help in keeping up its commitments to the customers. • Provide high quality of work life for all its employees and equip them with adequate knowledge & skills so as to respond to customer’s needs. • Use state -of-the art information technology in developing new and innovative financial products and services to meet the changing needs of investors and clients. • Strive to be a reliable source of value-added financial products and services and constantly guide the individuals and institutions in making a judicious choice of it. 2.6 Achievement’s/Awards Sharekhan Ltd, India’s. Leading stock broker is the retail arm of SSKI, an organization with over eight years’ experience in the stock market. With more than 331 hare shops in 131 cities 1. Over 2000 brokers, 10000 sub brokers and 1 crore investors 2. Over US$ 5 billion of private equity deals 3. Sharekhan is among the top 3 branded retail service providers 4. No. 2 player in online business 5. Largest network of branded broking outlets in the country servicing 100,000 clients 6. Winners of the 2005 CNBC Awaj award 7. Full Fledged IT driven operations SES- GOI -Faculty Of Management Academic Year 2010-12 12

SHAREKHAN PVT. LTD

2.7 SWOT Analysis The SWOT Analysis is the name given to the analysis of the firms imminent Strengths, Weakness, Opportunities, and Threats. This analysis helps the form in realizing the firm’s strengths and building upon them in order to overcome its weakness so that it can take advantage of opportunities in order to overcome the threats. The analysis of both internal and external to any organization. Strengths Sharekhan stock broking Ltd believes that the following elements will contribute to the company’s success as an integrated stock broking service provider in India and provide the company with a solid foundation to execute its business strategy: 1. One of the oldest firms in investment services. 2. Diversified into all sectors of investment like, investment banking, A Stock broking, online etc. 3. Good brand name in investment area. 4. Strong and high quality infrastructure 5. Efficient margin system and surveillance. 6. Dynamic & Progressive Leadership. 7. Responsive to changes in market conditions and product profiles.

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SHAREKHAN PVT. LTD Weakness 1. Concentrated in Cities 2. Less Advertising 3. High brokerage charge 4. Declining profit margins due to raw material cost push.

Opportunities 1. Only a very small population of India is invested in company still potential 2. Cash in the opportunity of the Bull Run in the Indian market. 3. Growing interest in the stock market 4. Increasing awareness in the equity investment 5. Massive development in capital market in India

Threats: 1. Competition 2. Changing technology

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SHAREKHAN PVT. LTD

2.8 Work flow model (end to end) CUSTOMER QUERY

CALL DESK ONLINE DESK

ONLINE DESK

SALES REP

APPLICATION

PROCESSING

GENERATION OF CLASSIC AC

PORTFOLIO ANALYSIS & RESEARCH

PAYMENT OF INVESTMENT IN DP AC

TRADING THROUGH SES- GOI -Faculty Of Management Academic Year 2010-12 SHAREKHAN

15

SHAREKHAN PVT. LTD

HOLDING & STATEMENT

CUSTOMER SERVICE

RETURNS

2.9 Organization structure of sski group

SSKI

SSKI CORPORATE FINANCE

SSKI SECURITIES PVT LTD

SSKI INSTITUTIONA L

DREAM PRODUCTI ON

SERVICES

BRANCHES

ONLINE

OFFLINE

BROKER FRANCHISE INDIREC S SUB SES- GOI -FacultyTOf Management Academic Year 2010-12 DIRECT

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2.10 Branch office structure Branch Manager

Relationshi p Manager (Online)

Dealers

Unit Manager

Relationship Manager (Franchise)

Alternativ e Channel

Relationship Manager (Offline)

Dealers Back Office

Telecallers Marketin g

Executive

Marketin g Executive

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SHAREKHAN PVT. LTD

CHAPTER 3 RESEARCH METHODOLOGY

3.1 REVIEW OF LITERATURE --- INVESTMENT BASICS Investment is the use of money to earn income or profit. The term also refers to employment of funds for capital goods, which are used to produce further goods or services. There are basically two types of assets that people may invest in:  Hard assets:Hard assets are essentially ‘physical products’, which have certain intrinsic value on of the usefulness they provide to owner. Some examples are: land property, vehicles, consumer durable, gold, etc. Depending on the specific hard asset, the value may go up or down over time.

 Financial assets:-

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SHAREKHAN PVT. LTD Financial assets are ‘securities’, which have a certain more value at any given point of time. This value could be higher or lower than the original price at which they are bought. By itself, financial assets are of no use unless they are used towards meeting some need or goal.

The three important characteristics of any financial assets are:

 Return - The potential return possible with this asset.

 Risk - How risky is this asset or what are the chances of its value going down,

 Liquidity - How easy is it to convert this asset into cash.

3.2 INVESTMENT OPPORTUNITIES A) Savings bank with commercial banks: A safe, liquid and convenient investment option, it gives an interest rate of an average 4.5% per annum, ideal parking funds for emergencies or unexpected expenses, the holder may keep an average balance equal to three months of his living expenses. Objective: To provide high liquidity and safety to the holders. Risk: The savings rate is usually very low as compared to the other financial instruments and it cannot offset inflation. B) Bank fixed deposits: Being 0 safe investment option hunk fixed deposits give interest rates around 5.25% to 8%. A bank fixed deposit is recommended for those looking for preservation of capital along with current income in the short term. However over long term the returns may not keep pace with inflation.

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SHAREKHAN PVT. LTD Objectives: To provide regular and fixed income to the holders who wish to have regular and steady savings and earnings, Risk: Although not rated, fixed deposits facilitate 100% assurance of principal with interest rates regulated by RBI. But there is inflation risk involved. C) Bonds and debentures: They are long-term debt instruments with interest rate ranging between 9-18% per annum. Though the risk is high, they offer better returns when compared to bank fixed deposits. Objective: It is the safest investment and loans can be borrowed against bonds or debentures. Risk: The inflation and interest fluctuation affects investment decision. They have no commercial ratings. D) Company deposits: Fixed investment schemes offered by various Public limited companies or the private sector may be cumulative or non-cumulative. They can be offered to the public as well as the existing shareholders and employees. Objective: It confers faster capital appreciation and hence it is suitable for regular income holders and an investor can borrow against the deposits depending on the credit rating. Risk: It is an unsecured investment and there is no asset backing and provides limited protection against inflation risk. E) Gold: In India gold is mere of a sense of security and a fixed asset rather than for any use or for the purpose of making profit or income. Gold may he invested either in the form of gold shares which are banned in India, gold coins, gold bars, gold jewelry etc. Objective: gold offsets inflation rates to some extent and offers well appreciation over a long period of time. Risk: there are no regular earnings and the rates fluctuate. Even the rates of Capital appreciations are not fixed or certain. F) Real estate: Land and house property are the main real estate investments. These investments are taken by and large number of people for hedging the inflation rates. Objective: in India, it is found that almost all banks and financial institutions SES- GOI -Faculty Of Management Academic Year 2010-12 20

SHAREKHAN PVT. LTD Consider land as good collateral. Hence, it is considered a safe investment. Risk: investment in real estate involves a lot of pressures in of tax payment for capital appreciation, stamp duties etc. G) Shares: It is the most risky investment with highest returns in the long run. Sensex Indicate the price movements of shares on weighted average basis. Objective: to provide high capital appreciation and very high rates of dividend. Risk: being highly volatile the price movements depends on the market and company performance. The earning may even become negative.

3.3 STATEMENT OF THE PROBLEM: To find the effectiveness of SHAREKHAN to other e-broking sites intermediaries method personal investment and also to obtain both qualitative and quantitative data to the above mention study. To find out the customer satisfaction at the sharekhan Pvt. Ltd and to analyze and identify the parameters plays an important role to attract the new clients or advantages of the company makes the holder to stay in this company.

3.4 OBJECTIVE OF THE STUDY Primary: To study the level of the customer satisfaction

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SHAREKHAN PVT. LTD Secondary: To find common problems found by customers visiting the service Center

List of the information needed are as follows: 1. Quality of the service offered 2. Creature comforts 3. Problems faced by the customers about timings, charges incurred, etc. 4. The perception about the commission 5. The speed of the transaction 6. The convincing nature of the executive 7. To resolve complaint 8. The information provided by company.

Present and future investment pattern of the respondent • To study the brand image of share khan to other firm providing online trading service • To understand why do people prefer particular trading site, if they are already member of any online trading sites • To understand why do people prefer to trade with traditional brokers • To know which is the most frequently visited website by investors to know about market • To know whether investors are willing to become member of sharekhan and why or why not. • To give suggestion to improve product, and to make sharekhan more acceptable

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SHAREKHAN PVT. LTD

3.5 Operational definitions and theoretical background of basic concept

1. Investment: The acquisition of financial assets, such as company shares. 2. “Investors” are the people who own such assets: “Investments “are what they hold. In the sense of a list of assists, this is a stock concept. 3. Online trading:

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SHAREKHAN PVT. LTD It is a service offered on the internet for purchase and sale of shares. In the real world, investors place orders on his stockbrokers either verbally (personally & telephonically) or in a written form. 4. Delivery based transaction: Is one where it results in actual delivery of the underlying scripts. These are buy/sell transactions undertaken by long term investors who desire capital appreciation in their Investments. 5. Square based transaction: Is one where the transaction is done without any intention of the delivery of the underlying scripts? These are buy-sell orders or buy-sell orders within the same settlement. 6. Settlement: A settlement cycle on stock exchange is an period for transaction of securities.

3.6 Advantages/benefits of using brands:  High brand equity provides a number competitive advantage.  The seller will enjoy reduce marketing cost, because of consumer loyalty.  The firm can charge high price then it competitors because the brand has a higher perceived quality.

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SHAREKHAN PVT. LTD

3.7 Research design Research design is a statement or specification of procedure for collecting and analyzing the information required to the solution of some specific problem. Step in selecting research design:  Study the problem SES- GOI -Faculty Of Management Academic Year 2010-12 25

SHAREKHAN PVT. LTD  Sources for collecting necessary information.

 Selection of most appropriate design.  Specification of other detail for investigation. . 3.8 Limitation of the study 1. Due to time constraints sample size restricted to 56 respondents. Other reason for sample size being less is A) Sample size consists of those, who invest in shares. No brokers wants to revel who is customer, they are concerned that researchers might take away their clients. B) Most of the trade takes place through telephone. So there is no particular place where investors can be met Still care was taken to see through the size which is reasonable enough to give a proper insight to the Problem. 2. Generalization may not be valid due to small size of samples 3. The recommendation which is obviously based on data is restricted to the limited area only

3.9 Methodology The methodology is the plan, structure and strategy of the investigation process that sets out to obtain answer to the study. The methodology followed for the collecting information are using two sources of data namely

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SHAREKHAN PVT. LTD Methodology of data collection I) Research Methodology 2) Research Method 3) Sampling Design 4) Tools and Technique of Data Colllct1qn 5) Data Collection and Sources of Data

Source of data 1) Primary Data The method which was adopted to collect the information is ‘personal interview’ method. Personal interview and discussion was made with Unit manager and other personnel in the organization for this purpose. There is no formal design of questionnaire used in this study. The other primary data collected are * Data regarding the portfolio and also the concerned information. * Organization structure * Product and service details.

2) Secondary Data The various sources that were used for the collection of secondary data are * Various text looks were used to understand the concepts of portfolio management.

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SHAREKHAN PVT. LTD * Websites- various sites like www.www.bseindia.com, www.nseindother.com * Annual reports of different companies * Newspapers such as Economic Times, Financial express* Magazines such as Business World, Business Today, Investors Guide, Capital Market. Methodology of data collection Research methodology is the most important thing about the survey is the component of the research methodology, without which the researcher would not have been able to obtain facts and figures from the target customers. Face to face conversation back up by the question list was a useful tool to the study for both the investor respondent and experts. The more operated at the field level was to introduce one’s a MPA student conducting the survey on effectiveness of e-broking to intermediary channel of personal investment. Research Method There are five research methods to the study of the investigation of a problem. 1) Observation 2) Test marketing 3) Experimental 4) Consumer 5) Survey

For the study the survey method was felt more appropriate due to face to face conversation. The survey can be further divided into three categories which are called research instrument or tools. 3.10 Research Tool The survey method consists of three methods to obtain information for the study. 1) Personal interview SES- GOI -Faculty Of Management Academic Year 2010-12 28

SHAREKHAN PVT. LTD 2) Mail 3) Telephone 3.11 Sample Design Sampling design is the basic unit containing the elements of population to be sampled. Example: city blocks, house hold, business organization. For the study the survey was conducted in Bangalore city. The sample unit for the study was investors [here investors is with reference to those who invest in shares 1. A sample size of 56 customers was chosen. The sampling methods are classified into two categories. Tools for data collection Data collection and sources of data once research design is planned and finalized the research will proceed with the task of collecting the data. The researcher may require primary and secondary data. Primary data collection: The method which was adopted to collect the information is ‘personal interview’ method. Personal interview and discussion was made with Unit manager and other personnel in the organization for this purpose. There is no formal design of questionnaire used in this study. The other primary data collected are 1. Data regarding the portfolio and also the concerned information. 2. Organization structure 3. Product and service details.

CHAPTER-4 ANAYLYSIS AND INTERPRETATION OF DATA TABLE -1 Table Showing the Occupation of Respondent CATEGORY SERVICE

NO OF RESPONDANT 19

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PERCENTAGE 38

SHAREKHAN PVT. LTD BUSINESS RETIRED STUDENT HOUSEWIFE TOTAL

6 0 23 02 50

12 0 46 4 100

Interpretation: The above table indicates that the majority of the respondents were in student (46%) service (38%), business (12%), housewives (4%) and retired people (0%). TABLE- 2 Showing Investment Pattern of Respondents (Current) CATEGORY

NO OF RESPONDANT

PERCENTAGE

20 5 6 6 3 10

40 10 12 12 6 20

(INVESTMENT AVENEWS) SHARES MUTUAL FUND FIXED DEPOSITE BONDS RBI RELIEF BONDS ASSETS (CAR,REAL

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SHAREKHAN PVT. LTD ESTATE)

Interpretation: As sample units include only those who invest in shares, all respondents invested in shares having 40%. Assets and fixed deposit are the next best having 20% and 12%. Followed by mutual fund and bonds having 10% and 12% respectively. And RBI bond having 6%.

TABLE-3 Showing Future Investment Interest of Respondent CATEGORY(INVESTMENT AVENEWS) NO OF RESPONDANT PERCENTAGE SHARES 15 30 MUTUAL FUND 4 8 FIXED DEPOSITE 10 20 BOND 5 10 RBI RELIEF BOND 6 12 ASSETS(CAR, REAL ESTATE) 10 20

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SHAREKHAN PVT. LTD

Interpretation: The future interest of investors is in shares and assets having 30% and 38% respectively. Followed by RBI relief bond, fixed deposits and mutual fund.

GRAPH-1 Representing Present and Future Investment CATEGORY(INVESTMENT AVENEWS) SHARES MUTUAL FUND FIXED DEPOSITE BOND RBI RELIEF BOND ASSETS (CAR,REAL ESTATE)

NO OF

PERCENTAGE

RESPONDANT 15 5 10 5 6 9

30% 10% 20% 10% 12% 18%

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SHAREKHAN PVT. LTD

Interpretation: • There is a dramatic fall of investment as only 48% of present investors are interested in future. • RBI relief fund is relatively stagnant as there no much change in it. • Investment in fixed deposit also shows a fall by huge margin of 20%. • Assets also decreased by 18%.

1. Shares 2. Mutual fund. 3. Fixed deposit 4. Bonds 5. RBI relief bond. 6. Fixed assets

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SHAREKHAN PVT. LTD

TABLE-4 Table Showing the Brand Awareness of Various E-Broking Service Provider CATEGARY SHAREKHAN ICICI DIRECT HDFC KOTAK STREET 5 PAISE HOME TRADE INVEST SMART

NO OF RESPONDANT 49 24 24 24 29 25 17

PERCENTAGE 88 43 43 40 52 45 30

Interpretation: The above graph indicate that the majority of the investors respondents are aware SES- GOI -Faculty Of Management Academic Year 2010-12 34

SHAREKHAN PVT. LTD Of sharekhan.com and moderate number among them know about HDFC, Kotak Street, 5 paisa and invest smart.

GRAPH-2 Graph Showing the Brand Awareness of Various E-Broking Service Providers

TABLE-5 Table Showing Whether Investor Respondent Have Computer or Not CATEGORY INVESTOR RESPONDENT

NO OF RESPONDENT 50

PERCENTAGE 100%

HAVING COMPUTER INVESTOR RESPONDENT

00

00%

50

100%

NOT HAVING COMPUTER

TOTAL

Interpretation: The above table states that 100 % respondents have personal computer.

TABLE-6 SES- GOI -Faculty Of Management Academic Year 2010-12 35

SHAREKHAN PVT. LTD Table showing whether respondent having internet connection or not (OUT OF 50 RESPONDENT HAVING COMPUTER) CATEGORY

NO OF

PERCENTAGE

INVESTOR RESPONDENT HAVING INTERNET

RESPONDENT 48

96

CONNECTION INVESTOR REPONDENT NOT HAVING

2

4

50

100

INTERNET CONNECTION

TOTAL

Interpretation: Out of 50 people having computer 96% has internet connection and 4% don’t have internet connection.

TABLE-7 Table Showing the Most Frequently Visited Websites by Respondents for Collecting Information CATEGORY MONEY CONTROL.COM EQUITY CONTROL.COM YAHOO.COM INVESTORAMA INDIATIMES.COM

NO OF RESPONDENT 14 11 21 09 08

PERCENTAGE 25 20 38 16 14

Interpretation: Table showing 38% respondent visit yahoo finance, other sites are also visited for financial information.

TABLE-8 SES- GOI -Faculty Of Management Academic Year 2010-12 36

SHAREKHAN PVT. LTD Table Showing Whether Respondents Trade With Intermediaries or Through Online Trading Sites CATEGORY RESPONDENT TRADING

NO OF RESPONDENT 18

PERCENTAGE 39

ONLINE (SHAREKHAN) RESPONDENT TRADING

28

61

46

100

THROUGH INTERMEDIARY

TOTAL

Interpretation: Table shows that 39% are trading through e-brokers, 61% through brokers.

GRAPH-3 Graph Showing Whether Respondents Trade With Intermediaries or Through Online Trading Sites

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SHAREKHAN PVT. LTD

TABLE-9

Showing The Importance Adopted By Respondents When They Opt For Purchasing EBroking Sites (Sharekhan.Com). CATEGORY BROKARAGE PRODUCT FEATURE SERVICE BRAND IMAGE

NO OF RESPONDENT 02 05 20 05

PERCENTAGE 06 16 62 16

Interpretation: Service is the most important criteria for an e-broking sites with 62 % and 16% are concerned about product feature and brand image and brokerage is concern with 6%.

Graph-4

SES- GOI -Faculty Of Management Academic Year 2010-12 38

SHAREKHAN PVT. LTD Showing The Importance Adopted By Respondents When They Opt For Purchasing EBroking Sites (Sharekhan. Com)

Table-10 Table Showing Whether Respondents Face Any Problem with Online Trading Site (Sharekhan.Com). (Out of 18 Respondents Who Trade Online) CATEGORY RESPONDENT FACING

NO OF RESPONDENT 2

PERCENTAGE 06

30

94

PROBLEM WITH SHAREKHAN RESPONDENT NOT FACING PROBLEM WITH SHAREKHAN

Interpretation: Above table shows that 94% don’t face any problem with Sharekhan, whereas 6% faces problem. TABLE-11 SES- GOI -Faculty Of Management Academic Year 2010-12 39

SHAREKHAN PVT. LTD Table Showing Whether Respondents Who Trade with Intermediary Channel Would Like To Become a Member of Sharekhan.Com (Out of 38 Respondents Who Trade With Intermediary Channel) CATEGORY

NO

REPONDENT TRADING WITH INTERMEDIARIES

REPONDENT 07

INTERESTED IN BECOMING A SHAREKHAN.COM RESPONDENT WHO TRADE WITH

OF PERCENTAGE

11

39 61

INTERMEDIARIES INTERESTED IN THEM

Interpretation: Above table shows that 39% of investor respondents want to become the member of Sharekhan.com whereas 61% of them trade with intermediary channel.

TABLE-12 Showing the Preference of Respondents to Trade with Intermediary Channel or Through E-Broker. NO OF RESPONDENT TRADING

32

NO OF RESPONDENT TRADING

18

WITH INTERMEDIARY CHANNEL (MINUS) NO OF RESPONDENTS

07

THROUGH BROKER (MINUS) NO OF RESPONDENTS

03

WANT TO SWITCH FROM

WANT TO SHIFT FROM E-BROKER

INTERMEDIARY CHANNEL OF

TO INTERMEDIARY CHANNEL

INVESTMENT TO E-BROKER (PLUS) NO OF RESPONDENTS

03

(PLUS) NO OF RESPONDENTS

WANT SWITCH FROM E-BROKER

WANT TO SHIFT FROM

TO INTERMEDIARY CHANNEL

INTERMEDIARY CHANNEL TO E-

07

BROKER

TOTAL

28

22

Interpretation: Above table shows that out of 32 respondents trading with intermediaries 7 of them want to switch to e-Broker. 1 8 respondents who trade with e-Broking sides 3 of them 1tce problem want Lu switch to intermediaries SES- GOI -Faculty Of Management Academic Year 2010-12 40

SHAREKHAN PVT. LTD

GRAPH 5 Graph Showing The Preference Of Respondents To Trade With Intermediary Or Trading Through e-Brokers.

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SHAREKHAN PVT. LTD

4.2 QUESTIONNAIRE DEAR SIR/MADAM, I am MBA student of SARSWATI EDUCATION SOCIETY GROUP OF INSTITUTIONS FACULTY OF MANAGEMENT, doing project at Share khan, we know that your time is more precious than ours, we request you to please spend some time by helping us by providing necessary information which we think is mutually beneficial. The information is only for research purpose and confidential NAME OF RESPONDENT: ……………………………………………………… AGE: ……………………

GENDER: …………

OCCUPATION OF THE RESPONDENT: ………….... MONTHLY INCOME……………….…………….. 1) Are you member of Sharekhan? • Yes

[

]

• No

[

]

2) What type of the you have SES- GOI -Faculty Of Management Academic Year 2010-12 42

SHAREKHAN PVT. LTD • Classic

[

]

• Speed trade

[

]

3) How long you have been getting service from this Sharekhan Pvt. Ltd? • For the past 3 months

[

]

• For the past 6 months

[

]

• For the past 1 year

[

]

• For the past 5 years

[

]

4) Why do you prefer to trade with Sharekhan Pvt. Ltd.? • Brokerage charge

[ ]

• Product Feature

[ ]

• Service

[ ]

• Brand Image

[ ]

5) How long have you been investing in stocks? • New

[ ]

• 1 to 5 years

[ ]

• 5 to 10 years

[ ]

• More than 10 years

[ ]

6) Commission charged on every Buy, • Very high

[

]

• High

[

]

• Optimum

[

]

SES- GOI -Faculty Of Management Academic Year 2010-12 43

SHAREKHAN PVT. LTD • Low

[

]

7) Commission charged on every Sell. • Very high

[

]

• High

[

]

• Optimum

[

]

• Low

[

]

8) Rate the company in of service? • Excellent

[

]

• Good

[

]

• Fair

[

]

• Poor

[

]

9) Do you have the Computer? • Yes

[

]

• No

[

]

10) Whether you have Internet connection • Yes

[

]

• No

[

]

11) Have you faced any problems? • Yes

[

]

• No

[

]

SES- GOI -Faculty Of Management Academic Year 2010-12 44

SHAREKHAN PVT. LTD 12) If ‘yes’ mention what problem you faced. --------------------------------------------------------------------------------------------------13) Are you satisfied with the information provided by the Company? ---------------------------------------------------------------------------------------------------14) Which service has satisfied you ? • ONLINE

[

]

• OFFLINE

[

]

15) Executives response at front office and online • EXCELLENT [

]

• GOOD

[

]

• FAIR

[

]

• POOR

[

]

16) Respectively of the unit manager. • VERY RESPECCTIVE

[

]

• SOME WHAT RECEPTIVE

[

]

• NOT RECEPTIVE

[

• NOT AT ALL RECEPRIVE

] [

]

17) What is your source of stock market information? A. T. V. Channels

[

]

CNBC

[

]

NDTV Profit

[

]

SES- GOI -Faculty Of Management Academic Year 2010-12 45

SHAREKHAN PVT. LTD B. News Paper

[

]

Economic times

[

]

BROKER

[

FRIENDS/ RELATIVES OTHERS

] [

[

]

]

18) Are you satisfied with the documentation process? • Yes [ ] • No

[ ]

CHAPTER-5 FINDING 1. It was found that 38% of respondents have service as occupation followed by business having 12% retired person 0% student having 46% and housewives having 4%. 2. It was found that share khan leads with 88% as far as brand awareness is concerned followed by 5 paisa with 52%, 45% of the respondent were of home trade.com in case of kotak street.com and HDFC .So sharekhan have a big advantage 3. It was found that 32% of the respondent has both computer & internet connection & are trading through e-brokers and others still prefer to trade with intermediary channel 4. It was found that yahoo fiancé & money control.com are the most frequently websites to obtain information. 5. It was found 18 respondents out of 50 were trading through online, forms 32% of the sample size, and remaining 50% respondent trade through intermediary channel. 6. It was found that service is the major criteria that kept in mind while opting for any ebroking site. 61% of the respondents opt for e-broking because of the service .22% of

SES- GOI -Faculty Of Management Academic Year 2010-12 46

SHAREKHAN PVT. LTD respondents because they found that product features are good followed by brand image & broking having 11 % and 6% respectively 7. It was found that as far as preference is concerned either to trade through e- broking or through intermediary, majority of respondents 61% of them prefer to trade with intermediaries and rest 39 % of them prefer to trade online. 8. It was found that out of 18 respondents trading online 3 of them (Le. 16% faces problem, whereas 15% of them were satisfied or not facing any problem (this problem is restricted to only sharekhan.com) 9. Problems faced by investors are according to a respondent he can’t see all the shares in his portfolio at a times which is feasible in other sites 10. A respondent’ said that the brokerage charged by sharekhan.com is comparatively higher than the other brokers with whom he trade It was found that following reasons for which respondents want to become a member of sharekhan.com 1. A respondent say that the product features are good especially on the spot segment where funds can be received on sale transaction date itself. 2. ‘A respondent was not satisfied respondent with the services provided by his intermediary broker like payment of money, which may take as many of 15 to 20 days 3. A respondent says that brokerage is low compared what he is paying to his broker which is 4%

5.1

SUGGESTIONS 1. It was seen that the research that 96% of respondent having computer with

internet still prefer to trade with broker so, initial offers like brokerage free transactions can be given so that once respondent get used to trade online, they will continue with it because say a respondent after trading for some time loses some money then he would like to trade more to recover. This being pessimistic view on the other side if he gains it might raise his confidence level and he will trade more

SES- GOI -Faculty Of Management Academic Year 2010-12 47

SHAREKHAN PVT. LTD 2. Internet ment can be used as a tool to make the investors know about the product. Even though most of the respondents are aware of sharekhan.com it may not help which can be seen in research, that only 11% of the respondent buy because of service and 23% because of product so educating the investors, the advantage of share khan 3. It should be possible to see all the shares in the portfolio at a time because it is more convenient to an investor 4. There should be more limits on the maximum amount to be traded because small investor Find it difficult 5. The squaring of time should be 3 pm if possible should be delayed that investor can trade more 6. Employees should pay attention to customers when they come to office either for opening or for a query they should not be neglected 7. Arrangements can be made so that the investors can sell shares very next day if he doesn’t trade. This is very essential because a hard core investor can’t wait for 3 days to get shares credited to his 8. Target the new hidden customer for whom the net can bring out convenience like NRI, women etc. 9. It is very important to know how many clients the existing infrastructure can caster effectively. It is no use trying to rope 20,000 investors when the ability of the infrastructure is only for 10000 10. As the whole is set up and one is moving from offline to online the war and the differentiation factor could be technology one has to constantly innovate & offer better product.

5.2 SUMMARY & CONCLUSION

CONCLUSION SES- GOI -Faculty Of Management Academic Year 2010-12 48

SHAREKHAN PVT. LTD My view is that new competition will make both sides better in end meaning. the investor will get improved service for lower cost the mean time investors has to decide for himself how much help he really need and how much he is willing to pay here what consider.

Intermediary channel While these firms\individuals have high commission & fees, they do offer a range of service and amenities that others do not offer. Those begin with research & advice. During a bull market, when the stocks are going up consistently, good ideas are a dime a dozen but period of unpredictability that do it ourselves investor are left harming in thaw wind with no one them to turn but themselves.

E-broking My view is that all the investors could make a lot more decisions on their own. That of course is what the online trading is all about. If an investor has firm idea about a stock than he wants, why not he gets it as cheaply as possible With a pure online broker investor want have the option of visiting branch office to make a deposit in person or to speak with someone face to face. An investor relationship will be limited to email and phone s While trading online can be cheap, it can also be a horror show during times of high volume in the market servers clog up and create extensive trade delays

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SHAREKHAN PVT. LTD

5.3 BIBLIOGRAPHY WEBSITES: Sharekhan.com Icicidiect.com Kotakstreet.com Hdfc.com Indiabulls.com 5paisa. corn

BOOKS: • *Beri 2003, marketing research, McGraw hill • *Kotler 2000, marketing

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SHAREKHAN PVT. LTD

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