A

SUMMER TRAINING REPORT

ON

“Comparative Analysis of Stock

Brokers in Chandigarh Region”

At

SHAREKHAN PVT. LTD.

In partial fulfillment for the degree of

Master of Business Administration

(Session 2007-2009)

Submitted to

Chitkara Business School, Rajpura

UNDER THE GUIDANCE OF : Submitted by:

Mr. HARPREET SINGH VIJAY RANA

H.O.D. OF MBA DEPARTMENT ROLL NO. 7005220239

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DECLARATION

I’m Vijay Rana, a student of Chitkara Business School, Which is

approved by PTU, Jalandhar hereby declare that the project entitled

“Comparative Analysis Of Stock Brokers In Chandigarh Region” at

SHAREKHAN Ltd., is the original work done by me and the information

provided in the study is authentic to the best of my knowledge. This

study report has not been submitted to any other institution or

university for the award or any other degree.

This report is based on my personal opinion hence cannot be referred

to legal purpose.

(Vijay Rana)

Date: -

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CONTENTS

1. ACKNOWLEDGEMENT 7

2. INTRODUCTION 10

Introduction to stock exchange

Introduction of the company

3. COMPANY PROFILE 18

4. REVIEW OF LITERATURE 37

5. RESEARCH METHODOLOGY 40

Objective of study

Type of research

Sample design

Size of sample

Sources of data collection

6. COMPARATIVE ANALYSIS 46

7. FINDING & ANALYSIS 50

8. SUGGESTIONS 60

9. LIMITATIONS 61

10. CONCLUSION 62

11. APPENDIX(Questionnaire) 63

12. BIBLIOGRAPHY 67

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PREFACE

“A good broker system must be able to cope with an extremely

complex and dynamic environment.”

The microstructure of the stock market in which brokers work is highly

dynamic and volatile. Many stocks are available to be bought and sold,

each exhibiting its own patterns and characteristics that are highly

unpredictable. With so many options and considerations that need to

be taken into account, it is an extremely arduous task for a broker to

investigate aspects of the stock market and consistently provide

effective advice to their clients.

Thus, brokers perform their day-to-day tasks with the aid of a broker

system. Such a system should provide tools for interacting with

exchanges and performing analysis. As a consequence, these broker

systems are quite large and complicated by themselves.

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This research aims is to analysis Stock broker on the basis of their

services, products, growth, and their subsidiaries. Because Stockbrokers

are one of the main participants in stock exchanges worldwide, they

often act as an agent for their clients, making trades on their behalf.

They also act as advisors, providing suggestions to their clients on what

stocks to buy and sell.

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ACKNOWLEDGEMENT

Preservation, inspiration and motivation have always played a key role

in the success of any venture. In the present world of competition and

success, training is like a bridge between theoretical and practical

working; willingly I prepared this particular Project. First of all I would

like to thank the supreme power, the almighty god, who is the one who

has always guided me to work on the right path of my life. I would like

to thank Mr. Gurpreet Singh Kohli for granting me permission to

undertake the training in their esteemed organization.

I express my sincere thanks to Mr. Harpreet Singh (Head of

department), Mr. Harpal Singh Saini (Co-ordinator) & others

faculty members of M.B.A. department, for the valuable suggestion and

making this project a real successful.

I also thanks to Mr. Atul Gauri (Team Leader), Mr. Dharmender

Kumar (software guide) for their time-to-time guidance and support in

completing the project. I also thank the other staff of SHAREKHAN

who devoted their valuable time by helping me to complete my project.

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Last but not least, my sincere thanks to my parents and

friends who directly or indirectly helped me to bring this project into

the final shape.

VIJAY RANA

DATE:-

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Executive Summary

There is growing competition between brokerage firms in post reform India. For investor it is always difficult to decide which brokerage firm to choose.

Research was carried out to find which brokerage house people prefer and to figure out what people prefer while investing in stock market.

This study suggest that people are reluctant while investing in stock and commodity market due to lack of knowledge

Main purpose of investment is returns and liquidity, commodity market is less preferred by investors due to lack of awareness. The major findings of this study are that people are interested to invest in stock market but they lack knowledge.

Through this report we were also able to understand, what are our Company’s (Sharekhan Ltd.) positive and strong points, on the basis of which we come to know what can be the basis of pitching to a potential client. We also gave suggestions to the company, what improvement can be done to our product.

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INTRODUCTIONIn most industrialized countries, a substantial part of financial

wealth is not managed directly by savers, but through a financial

intermediary, which implies the existence of an agency contract

between the investor (the principal) and a broker or portfolio manager

(the agent). Therefore, delegated brokerage management is arguably

one of the most important agency relationships intervening in the

economy, with a possible impact on financial market and economic

developments at a macro level.

In most of the metros, people like to put their money in stock

options instead of dumping it in the bank-lockers. Now, this trend pick

pace in small but fast developing cities like Chandigarh, Gurgaon, Jaipur

etc. My research is based on the residents of Chandigarh and its nearby

areas.

As the per-capita-income of the city is on the higher side, so it is

quite obvious that they want to invest their money in profitable

ventures. On the other hand, a number of brokerage houses make sure

the hassle free investment in stocks. Asset management firms allow

investors to estimate both the expected risks and returns, as measured

statistically. There are mainly two types of Portfolio management

strategies.

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1. Passive Portfolio Strategy

2. Active Portfolio Strategy

1. Passive Portfolio Strategy: A strategy that involves minimal

expectation input, and instead relies on diversification to match

the performance of some market index. A passive strategy

assumes that the marketplace will reflect all available information

in the price paid for securities

2. Active Portfolio Strategy: A strategy that uses available

information and forecasting techniques to seek a better

performance than a portfolio that is simply diversified broadly.

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BACKGROUND OF STOCK EXCHANGE IN INDIA

The emergence of stock market can be traced back to 1830. In Bombay,

business passed in the shares of banks like the commercial bank, the

chartered mercantile bank, the chartered bank, the oriental bank and

the old bank of Bombay and shares of cotton presses. In Calcutta,

Englishman reported the quotations of 4%, 5%, and 6% loans of East

India Company as well as the shares of the bank of Bengal in 1836. This

list was a further broadened in 1839 when the Calcutta newspaper

printed the quotations of banks like union bank and Agra bank. It also

quoted the prices of business ventures like the Bengal bonded

warehouse, the Docking Company and the storm tug company.

Between 1840 and 1850, only half a dozen brokers existed for the

limited business. But during the share mania of 1860-65, the number of

brokers increased considerably. By 1860, the number of brokers was

about 60 and during the exciting period of the American Civil war, their

number increased to about 200 to 250. The end of American Civil war

brought disillusionment and many failures and the brokers decreased in

number and prosperity. It was in those troublesome times between

1868 and 1875 that brokers organized an informal association and

finally as recited in the Indenture constituting the “Articles of

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Association of the Exchange”. On or about 9th day of July,1875, a few

native brokers doing brokerage business in shares and stocks resolved

upon forming in Bombay an association for protecting the character,

status and interest of native share and stock brokers and providing a

hall or building for the use of the members of such association.

As a meeting held in the broker’ Hall on the 5 th day of February, 1887, it

was resolved to execute a formal deal of association and to constitute

the first managing committee and to appoint the first trustees.

Accordingly, the Articles of Association of the Exchange and the Stock

Exchange was formally established in Bombay on 3rd day of December,

1887. The Association is now known as “The Stock Exchange”.

The entrance fee for new member was Re.1 and there were 318

members on the list, when the exchange was constituted. The numbers

of members increased to 333 in 1896, 362 in 1916and 478 in 1920 and

the entrance fee was raised to Rs.5 in 1877, Rs.1000 in 1896, Rs.2500 in

1916 and Rs. 48,000 in 1920. At present there are 23 recognized stock

exchanges with about 6000 stock brokers. Organization structure of

stock exchange varies.

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14 stock exchanges are organized as public limited companies, 6 as

companies limited by guarantee and 3 are non-profit voluntary

organization. Of the total of 23, only 9 stock exchanges have been

permanent recognition. Others have to seek recognition on annual

basis.

These exchange do not work of its own, rather, these are run by some

persons and with the help of some persons and institution. All these are

down as functionaries on stock exchange. These are

1. Stockbrokers

2. sub-broker

3. market makers

4. Portfolio consultants etc.

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1.) Stockbrokers

Stock brokers are the members of stock exchanges.

These are the persons who buy, sell or deal in securities. A certificate of

registration from SEBI is mandatory to act as a broker. SEBI can impose

certain conditions while granting the certificate of registrations. It is

obligatory for the person to abide by the rules, regulations and the buy-

law. Stock brokers are commission broker, floor broker, arbitrageur etc.

Detail of registered brokers

Total no. of registered

brokers as on 31.03.2008

Total no. of sub-brokers as

on 31.03.2008

9000 24,000

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2.) Sub-broker

A sub-broker acts as agent of stock broker. He is not a

member of a stock exchange. He assists the investors in buying, selling

or dealing in securities through stockbroker. The broker and sub-broker

should enter into an agreement in which obligations of both should be

specified. Sub-broker must be registered SEBI for a dealing in securities.

For getting registered with SEBI, he must fulfill certain rules and

regulation.

3.) Market Makers

Market maker is a designated specialist in the

specified securities. They make both bid and offer at the same time. A

market maker has to abide by bye-laws, rules regulations of the

concerned stock exchange. He is exempt from the margin

requirements. As per the listing requirements, a company where the

paid-up capital is Rs. 3 crore but not more than Rs. 5 crore and having a

commercial operation for less than 2 years should appoint a market

maker at the time of issue of securities.

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4.) Portfolio consultants

A combination of securities such as stocks,

bonds and money market instruments is collectively called as portfolio.

Whereas the portfolio consultants are the persons, firms or companies

who advise, direct or undertake the management or administration of

securities or funds on behalf of their clients.

Partial fulfillment for degree of M.B.A. programmed, we received the

opportunity from Sharekhan Ltd. for our summer training project

report. It is basically a stock brokering company which deals in security

and derivative market, Commodity market, mutual funds and Insurance

etc.

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INTRODUCTION OF THE COMPANY

Sharekhan is one of the leading retail brokerage of Citi Venture which is running successfully since 1922 in the country. Earlier it was 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.

Earlier 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. 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. SSKI’s 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 organization’s revenue, with a daily turnover of over US$ 2 million.

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 make informed decisions and to simplify the process of investing in stocks.

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WORK STRUCTURE OF SHAREKHAN

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 Citi Venture holds a majority stake in the company. HSBC, Intel & Carlyle are the other investors.

On April 17, 2002 Sharekhan launched Speed Trade and Trade Tiger, are 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.

Sharekhan’s ground network includes over 700+ Shareshops in 130+ cities in India.

The firm’s 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 3 Lacs customers. The number of trading members currently stands at over 7 Lacs. While online trading

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currently accounts for just over 5 per cent of the daily trading in stocks in India, Sharekhan alone accounts for 27 per cent of the volumes traded online.

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$ 5 billion in private equity deals. Some of the clients include BPL Cellular Holding, Gujarat Pipavav, Essar, Hutchison, Planetasia, and Shopper’s Stop.

Finally, Sharekhan shifted hands and Citi venture get holds on it.

PRODUCTS OFFERED BY SHAREKHAN

1- Equity Trading Platform (Online/Offline).

2- Commodities Trading Platform (Online/Offline).

3- Portfolio Management Service.

4- Mutual Fund Advisory and Distribution.

5- Insurance Distribution.

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REASONS TO CHOOSE 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 institutional-level research and broking services to individual investors.

Technology

With their online trading account one can buy and sell shares in an instant from any PC with an internet connection. Customers get access to the powerful online trading tools that will help them to take complete control over their investment in shares.

Accessibility

Sharekhan provides ADVICE, EDUCATION, TOOLS AND EXECUTION services for investors. These services are accessible through many centers across the country (Over 650 locations in 150 cities), over the Internet (through the website www.sharekhan.com) as well as over the Voice Tool.

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Knowledge

In a business where the right information at the right time can translate into direct profits, investors get access to a wide range of information on the content-rich portal, www.sharekhan.com. Investors will also get a useful set of knowledge-based tools that will empower them to take informed decisions.

Convenience

One can call Sharekhan’s Dial-N-Trade number to get investment advice and execute his/her transactions. They have a dedicated call-center to provide this service via a Toll Free Number 1800-22-7500 & 39707500 from anywhere in India.

Customer Service

Its customer service team assist their customer for any help that they need relating to transactions, billing, demat and other queries. Their customer service can be contacted 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 research. Their analysts constantly track the pulse of the market and provide timely investment advice to customer in the form of daily research emails, online chat, printed reports etc.

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Benefits

· Free Depository A/c

· Instant Cash Tranfer

· Multiple Bank Option.

· 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 Mobile Phone & E-mail address.

· Live Chat facility with Relationship Manager on Yahoo Messenger

· Special Personal Inbox for order and trade confirmations.

· On-line Customer Service via Web Chat.

· Enjoy Automated Portfolio.

· Buy or sell even single share

· Anytime Ordering.

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Sharekhan offers the following products:-

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 do 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.

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

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SPEEDTRADE

SPEEDTRADE is an internet-based software application that enables you to buy and sell in an instant.

It is ideal for active traders and jobbers who transact frequently during day’s 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 broker’s terminal.

· Alerts and reminders.

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

· Live market debts.

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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 sharekhan’s dedicated phone lines 1-800-22-7500, 3970-7500.

Beside this, Relationship Managers are always available on Office Phone and Mobile to resolve customer queries.

ShareMobile

Sharekhan had introduced ShareMobile, A mobile based software where one can watch Stock Prices, Intra Day Charts, Reasearch & Advice and Trading Calls live on the Mobile.

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

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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. 2000

Prepaid Speed trade Account : - Rs. 6000

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.

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 Sharekhan.

Zero Balance ICICI Saving Account

Sharekhan had tied-up with ICICI bank for Zero Balance Account for Sharekhan’s Clients. Now their customers can have a Zero Balance Saving Account with ICICI Bank after your demat Account creation with Sharekhan.

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CHARGE STRUCTURE

Fee Structure for General Individuals: -

Charge Classic Account Speed Trade Account

Account Opening Rs. NIL Rs. NIL

Monthly

Commitment

Rs. NIL Rs. NIL

Brokerage Intra-day – 0.05 %

Delivery - 0.50 %

Intra-day - 0.05%

Delivery - 0.50%

* Taxes as per govt.

Depository Charges

Account Opening Charges Rs. NIL

Annual Maintenance Charges Rs. NIL first year.

Rs. 300/= p.a. from second calendar year onward

EXPOSURE: 4 TO 6.7 TIMES (ON MARGIN MONEY)

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MAJOR PLAYERS IN THE REGION

1. Karvy

2. Indiainfoline

3. ICICI direct

4. HDFC security

5. Indiabulls

KARVY is a premier integrated financial services provider, and ranked

among the top five in the country in all its business segments, services

over 16 million individual investors in various capacities, and provides

investor services to over 300 corporate, comprising the who is who of

Corporate India. Karvy has a professional management team and ranks

among the best in technology, operations and research of various

industrial segments.

History of Karvy :- The birth of Karvy was on a modest scale in 1981. It

began with the vision and enterprise of a small group of practicing

Chartered Accountants who founded the flagship company, Karvy

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Consultants Limited. They started with consulting and financial

accounting automation and carved inroads into the field of registry and

share accounting by 1985. Since then, karvy utilized its experience and

superlative expertise to go from strength to strength, to better their

services, to innovate, diversify and in the process, evolved as one of

India’s premier integrated financial service enterprise.

PRODUCT AND SERVICES OF KARVY GROUP

1. Karvy comtrade.

2. Karvy consultant ltd.

3. Karvy merchant banking.

4. Karvy global services ltd.

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ICICI DIRECT

ICICI Web Trade Limited (IWTL) maintains www.icicidirect.com (herein

after referred to as the "Website") whereas IWTL is an affiliate of ICICI

Bank Limited and the Website is owned by ICICI Bank Limited. IWTL has

launched and established an online trading service on the Website.

PRODUCTS AND SERVICES OF ICICI DIRECT

1. Investing in Mutual funds

2. Personal Finance

3. Customer Service Features

4. IPO’s

5. Margin Trading

6. Margin PLUS Trading

7. Call Trade

8. Trading on NSE/BSE

9. Trade in derivatives

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INDIAINFOLINE SECURITY PRIVATE LTD

India Infoline.com Securities Pvt. Ltd. is a wholly owned subsidiary of

India Infoline.com Ltd and is the stock broking arm of India

Infoline.com. The subsidiary was formed to comply with regulatory

guidelines. www.5paisa.com is a focused website for online stock

market trading. 5paisa.com is a trade name owned by the India

Infoline.com group. IILSPL has applied for trading membership of the

BSE under Securities and Exchange Board of India (Stock Brokers and

Sub-Brokers) Rules 1992.

IILSPL is in the business of providing broking services online via the

Internet ("E-broking Services") and has been permitted by the NSE by

way of registration permission no: NSEIL/CMO/INET/1103/2000 dated

03/July/2000, and will be applying for permission to the BSE, to provide

E-broking Services to its clients. IILSPL is a TRADING MEMBER of the

National Stock Exchange of India.

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PRODUCT OFFERED BY IILSPL

Stock market:-IILSPL deals in stock market by trading in equity and

derivatives.

Personal finance:- It Deals In Mutual Fund And Insurance.

Online Trading :- It provides services in stock and commodity trading

(through Internet).

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HDFC SECURITY

HDFC security is the subsidiary of HDFC (Housing Development

Financial Corporation). www.hdfcsec.com would have an exclusive

discretion to decide the customers who would be entitled to its online

investing services. www.hdfcsec.com also reserves the right to decide

on the criteria based on which customers would be chosen to

participate in these services .The present web site (www.hdfcsec.com)

contains features of services that they offer/propose to offer in due

course. The launch of new services is subject to the clearance of the

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

PRODUCT OFFERED BY HDFC SECURITY

· Online trading for Resident & Non Resident Indians.

· Cash-n-Carry on both NSE and BSE.

· Day trading on both NSE and BSE.

· Trade on Futures & Options on the NSE.

· Online IPO's.

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· Telephone-based Broking (Equity & Derivatives).

INDIABULLS SECURITIES LIMITED

Indiabulls Securities Limited was incorporated as GPF Securities Private

Limited on June 9, 1995. The name of the company was changed to

Orbis Securities Private Limited on December 15, 1995 to change the

profile of the company and subsequently due to the conversion of the

company into a public limited company; the name was further changed

to Orbis Securities Limited on January 5, 2004. The name of the

company was again changed to Indiabulls Securities Limited on

February 16, 2004 so as to capitalize on the brand image of the term

“Indiabulls” in the company name. ISL is a corporate member of capital

market & derivative segment of The National Stock Exchange of India

Ltd. At present, ISL accounts for approximately 3% of the total daily

turnover of the Exchange with 32,359 client relationships and 70

branches spread across the country as of April 30, 2004.

INDIABULLS CREDIT SERVICES LIMITED:- Indiabulls Credit Services has

been valued at Rs. 263 crore with the Rs. 87.6-crore infusion. Indiabulls

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Credit Services Ltd, the recently formed subsidiary of broking firm,

Indiabulls Financial Services Ltd. Faralon Capital, a San Francisco-based

private equity fund, and its affiliates have acquired 33.3 per cent stake

for Rs 87.6 crore.

INDIABULLS REAL ESTATE:- Indiabulls through its group companies has entered Indian Real Estate business in 2005. It is currently evaluating several large-scale projects worth several hundred million dollars. Indiabulls became the first company to bring FDI in Indian Real Estate through a JV with Farallon Capital Management, a respected US based investment firm.

PRODUCT OFFERED BY INDIA BULLS

Equity & Debt Stock Broking

Insurance

Commodity trading

Depository Services

Derivatives Broking Services

Equity Research Services

Mutual Fund Distribution

IPO Distribution

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REVIEW OF LITERATURE

According to SEBI, Professional Rating of market intermediaries, as a

concept, is a matter of debate and discussions. The need for rating is

felt not only from the point of view of greater disclosure requirements

for investor’s interests, considering the important role such

intermediaries play, being an interface between investors and

exchanges but also from the point of view of measuring the adequacy

of systems and controls to meet internal as well as external compliance

requirements.

So that need for Intermediaries Rating services (Brokers), In view of the

developments that are taking place in the capital markets, the need to

constantly upgrade and improve systems and procedures in operation

as well as skill sets has gained considerable importance. Besides

compliance with regulatory requirements both in letter and spirit has

assumed significance so as to mitigate risk and ensure adequate

protection of investors’ interest.

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And Rating objectives / benefits are rated entity would be in a position

to brand its image and capitalize the same for generating more

business. In a nutshell, the product may accrue significant benefits to all

stakeholders including the investors, stock brokers themselves, the

regulator and others who will benefit from the transparency and the

consequential focus on efficiency.

According to SEBI and Intermediaries Regulation and Supervision

Department, different factors are consider for rating process

Organization structure, Policy on Investors interest, Risk Management

Policy and System, Organization process and procedures, Management

policy on compliance, Financials, History/Background, Firm’s

positioning.

According to Michal Parness, Founder & CEO

Investors don’t Make Money in the Stock Market. One reason the

institutions make so much money is that they are trading. They make

money every time you buy or sell. They make money whether you win

or lose. That means that when you’re investing, you’re basically just

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sitting there. You’re not going anywhere. You’re not making money as

an investor.

Trading the Trend: The Only Way to Make Money in the Market

If you don’t know this already, “Trend Trading” means trading trends

based on human emotions. Not lagging indicators. Not complex

statistical analysis and not Ph.D. level mathematical equations. With

trend trading, you look for market movement. That could mean stocks

that are going to move up or down during the course of a day

(intraday). You’ll play the gaps up and down, often several days a week.

The “Trend trading” means being aware and taking advantage of trends

like the run-ups that happen around earning sessions. These are trends

that have worked time and time again in the market. They consistently

yield results.

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RESEARCH METHODOLOGY

Objective Of Research

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

Question through the application of scientific procedure. But the main

aim of our research to find out the truth that is hidden and which has

not been discovered as yet. Our research study has two objectives:-

PRIMARY OBJECTIVE: -How Sharekhan Ltd is best services providers as

a stock broker in the Tri-city region.

SECONDARY OBJECTIVE: -

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

market.

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2. To study about the competitive position of Sharekhan Ltd in

Competitive Market.

3. To study about the effectiveness & efficiency of Sharekhan Ltd in

relation to its competitors

4. To study about whether people are satisfied with Sharekhan Services

& Management System or not

5. To study about the difficulties faced by persons while Trading in

Sharekhan.

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

TYPES OF RESEARCH

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

are distributed on the nature of research. Some of these are like

1. Descriptive and Analytical

2. Qualitative and Quantitative

3. Conceptual and empirical

4. Applied and fundamental

5. One time research

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Our research is based on Descriptive, Qualitative and Quantitative

research.

Descriptive Research:- Descriptive research includes surveys and fact

finding enquires of different kinds. The major purpose of descriptive

research is description of the state of affairs as it exists at present.

Researcher has no control over the variables of this type of research.

Qualitative Research:- In our research we need comparison between

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

Qualitative research is especially important in the behavioral sciences

where the aim is to discover the underline motives of human behavior.

Through such research we can analyses various factors which motivate

to people to behave in a particular manner or which make people like

or dislike a particular thing.

Quantitative research:- Quantitative research is based on the

measurement of quantity or amount. It is applicable to phenomena

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that can be expressed in terms of quantity. So we can use it in our

research for collection of all the numerical data.

SAMPLE DESIGN

“A sample design is a definite plan for obtaining a sample from a given

population. It refers to the technique or the procedure the researcher

would adopt in selecting item for the sample”

Generally Sample designs are two types

1. PROBABILITY RESEARCH DESIGN

2. NON PROBABILITY RESEARCH DESIGN

We used the probability research design.

SAMPLING UNITS

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Sampling unit may be a geographical one, such as state, district, village

etc. The researcher will have to decide one or more of such units that

he has to select for his study.

In my research study Chandigarh as a sampling unit.

SIZE OF SAMPLE

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

constitute a sample”

In our research sample size is 100.

But we also study the 5 stock broker companies related to security &

commodity market like India-infoline, ICICI direct, HDFC securities,

Karvy consultant ltd. for the appropriate collection of the information.

SOURES OF DATA COLLECTION

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

study the researcher should keep to types of data.

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1. Primary

2. Secondary Data.

We use in our research primary data, as well as secondary data.

Primary means collected a fresh, and the first time data and secondary

means which are already available like annual report, magazines etc.

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

concerning phenomena under study from all or selected number of

respondents of the concerned area. In a survey the investigator

examines those phenomena which exist in the universe independent of

his action. We used the Scheduling Method.

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

go to respondents, put to them the questions from the Performa in

the order the questions are listed and recorded the replies in the

space meant for the same in the Performa.

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COMPARATIVE ANALYSIS

After the whole study, we find out the following results:

Results on the Basis of charges

There are the two type of the transaction:-

1. Intra-day based

2. Delivery based

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All the figures are in paisa/100 rupees.

Comment:- According to the survey HDFC securities charge maximum

brokerage as compare to others whereas India Infoline Ltd. charge only

0.20 paisa on maximum investment.

Results On the basis of Account opening charges

HDFC securities ltd:- Account opening charges w.e.f. April 2005 are as follows:- Rs.749, if the customer has an existing relationship with HDFC

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Sharekhan ltd:- There is no ACCOUNT OPENING CHARGES but require

margin money of Rs 5000 for trading purposes.

ICICI direct:- A one-time charge of Rs. 750 at the time of account

opening will be charged. You may later upgrade your Invest account to

an ICICI direct.com share trading account when you desire to trade in

equity.

India Infoline:- There is a nominal charge of Rs. 500 only towards stamp

duty, legal and processing fees for opening the account. This includes

the registration and account opening charges. Bank and Depository

Participant (DP) account opening charges, if applicable, are payable

separately.

KARVY consultants ltd:- Account Opening Charges Are 452 But now

SEBI banned on opening of new demat account of Karvy.

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Indiabulls:- Account opening charges are Rs. 900. There is no AMC and

no margin money is required.

Comment:- India Bulls charge maximum account opening charges but

there are no such charges in Sharekhan pvt. Ltd.

Results on the basis of customer preferences

1. According to survey 70 % peoples are satisfied with Sharekhan Ltd

because of their RM’s facility and power of Sharekhan Ltd software.

2. According to survey, Sharekhan Ltd open new branches for

individually handle to their customer, but in ICICI direct, HDFC security

there is no separate offices for this .So people prefer Sharekhan Ltd.

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Results On The Basis Of Facilities

Basis of difference

Sharekhan Ltd.

Karvy India Infoline

ICICI direct

Indiabulls HDFC

Share trading

Yes Yes Yes Yes Yes Yes

Commodity trading

Yes Yes Yes Yes Yes Yes

d-mat opening rights

Yes No Yes Yes Yes No

Karvy and HDFC securities are not providing complete range of trading

facilities.

FINDINGS & ANALYSIS

1) Do you know about investment options available?

KNOWLEDGE %AGE

Yes 80%

No 20%

TOTAL 100

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COMMENT

Only 80% people knows the exact meaning of investment. Because of

remaining 20% take his/her residential property as an investment.

According to law purpose this is not an investment because of it is not

create any profit for the owner.

2) Most preferable investment scenario.

INVESTMENT SCENARIO

%AGE

Banks 24%

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Derivatives & securities market

28%

Insurance 4%

Bonds 20%

Real estate 20%

Others 4%

TOTAL 100

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COMMENT

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

and securities market. It is 28% of the total population.

3) What is the basic purpose of your investment?

INVESTMENT PURPOSE

PERCENTAGE

Liquidity 30%Returns 25%Capital appreciation

10%

Tax benefits 20%

Risk covering 5%

Others 10%

TOTAL 100

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COMMENT:- 75% people are interested in liquidity, returns and tax

benefits. And remaining 25% are interested in capital appreciations, risk

covering, and others.

4) Most important things you take into your mind while making

investments?

FACTOR %AGE

Risk 8%

Returns 17%

Both 75%

TOTAL 100

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COMMENT

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

only 25% considered the risk or returns factor.

5) Awareness related to security markets

KNOWLEDGE PERCENTAGE

Complete 8%

Partial 75%

Nil 17%

TOTAL 100

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COMMENT

On that basis, we conclude that 17% people know nothing about the

securities investments and 75% people have partial knowledge about it,

so, some promotional activities are required for increasing the

awareness about security market.

6) Do you have any de-mat & trading account?

ACCOUNTS PERCENTAGE

Yes 60%

No 40%

TOTAL 100%

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COMMENT

Only 75% respondents have de-mat and trading account and remaining

25% says no because they don’t know why shares move up and down.

7) In which company you have d-mat and trading account?

COMPANY PERCENTAGE

SHAREKHAN 38%

INDIAINFOLINE 20%

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ICICI DIRECT 14%

INDIA BULLS 12%

KARVY 9%

Others 7%

TOTAL 100

COMMENT

In Sharekhan Ltd 38% respondents have de-mat & trading account because of better services and no annual maintenance and other charges.

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8) Specify the reason of satisfaction with the current broking house.

SATISFACTION PERCENTAGE

Operating expenses 18%

Services 25%

Brokerage 57%

TOTAL 100

FINDINGS

According to the survey most of the customers of “Sharekhan Ltd” says

that it is pocket friendly.

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Coming to faith 70% say Sharekhan Ltd is better than others stock

brokers due to customers satisfaction.

Lack of promotional activities undertaken by Sharekhan securities Ltd.

in Chandigarh Region.

Main purposes of investments are returns & liquidity.

Investors take risk as well as returns into their mind while making the

investment.

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

Commodity market is less preferred by the investors.

People want to invest their money in the security market but they

haven’t the proper knowledge.

People are not aware of hedging in stock market.

People pay more emphasis on brokerage than service provided by

brokerage houses.

SUGGESTIONS

Commitment should be equalized for every person.

Provide the facility of free demonstrations for all.

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Improvement in the opening of De-mat & contract notice

procedure is required.

There should be a limited number of clients under the relationship

manger. So that he can handle new as well as old customer

properly.

Some promotional activities are required for the awareness of the

customer.

People at young age should be encouraged to invest in stock

market.

Seminars should be held for providing information to prospective

and present customers.

LIMITATIONS

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As only CHANDIGARH dealt in survey so it does not represent the

view of the total Indian market.

Size of the research may not be substantial.

There was lack of time on the part of respondents.

The survey was carried through questionnaire and the questions

were based on perception.

There may be biasness in information by market participant.

Complete data was not available due to company privacy and

secrecy.

CONCLUSION

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On the basis of the study it is found that Sharekhan Ltd is better

services provider than the other stockbrokers because of their timely

research and personalized advice on what stocks to buy and sell.

Sharekhan Ltd. provide the facility of Trade tiger as well as relationship

manager facility for encouragement and protect the interest of the

investors. It also provides the information through the internet and

mobile alerts that what IPO’s are coming in the market and it also

provides its research on the future prospect of the IPO.

Study also concludes that people are not much aware of commodity

market and while it’s going to be biggest market in India.

The company should also organize seminars and similar activities to

enhance the knowledge of prospective and existing customers, so that

they feel more comfortable while investing in the stock market.

APPENDIX

63

QUESTIONNAIRE

DATE:

NAME

OCCUPATION

AGE

CONTACT NO.

1) Do you know about Investment options available?

a) Yes b) No

2) Do you know about the different types of investment alternatives?

a) Insurance & mutual funds b) Banks

c) Real estate d) Share market

e) Commodity f) Others

3) What is the basic purpose of your investment?

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a) Liquidity b) Returns

c) Capital appreciation d) Risk covering

e) Tax benefits

4) What are the most important things you take into account, while

making any investment?

a) Risk b) Returns c) Both

5) Do you have any knowledge of share markets?

a) Partial b) Complete c) Nil

6) Do you have any D-mat & Trading account?

a) Yes b) No

7) In which company you have D-mat & Trading account?

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a) Sharekhan Ltd b) Karvy

c) Indiainfoline d) ICICI direct

e) Indiabulls f) HDFC securities

g) Others

8) Are you satisfied with you present broking company?

a) Yes b) No

9) What is the reason? Please specify.

a) Services _______________________________________

b) Brokerage _____________________________________

c) Operating expenses ______________________________

d) Others ________________________________________

10) What is your trading exchange preference?

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a) NSE b) BSE

c) MCX d) NCDEX

12) Do you know about Sharekhan Ltd?

a) Yes b) No

Suggestion:-

BIBLIOGRAPHY

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Books:

BERI

G C. MARKETING RESEARCH

NEW DELHI, TATA Mc GRAW-HILL PUBLISHING COMPANY LIMITED.

KOTHARI

RESEARCH METHODOLOGY

NEW DELHI, VIKAS PUBLISHING HOUSE PVT.LTD.1978.

GOYAL, DR.ALOK,

FINANCIAL MARKET OPERATION

NEW DELHI, V.K. (INDIA) ENTERPRISES .

Magazines :

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VALUELINE (SHAREKHAN MONTHLY RESEARCH MAGAZINE)

CAPITAL MARKET (5PASISA.COM), NEW DELHI.

THE FINAPOILS (YOUR PERSONAL FINANCE ADVISOR FROM KARVY).

Internet:

http://WWW.MONEYCONTROL.COM

http://WWW.CAPITALINE.COM

http://WWW.SHAREKHAN LTD.COM

http://WWW.INDIAINFOLINE.COM

http://WWW.ICICIDIRECT.COM

http://WWW.HDFCSECURITY.COM

http://WWW.KARVY.COM

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