Project Report of Share Khan Nanda Krishna 1111

8/2/2019 Project Report of Share Khan Nanda Krishna 1111

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A

Project Report

ON

CUSTOMER SATISFACTION OF

Demat Account

SUBMITTED BYS.N.KISHORE

OSMANIA UNIVERSITY

In partial fulfillment of the Award of

MASTERS DEGREE IN BUSINESS ADMINISTRATION

K.G.R INSTITUTE OF TECHNOLOGY &

MANAGEMENT

(Affiliated to Osmania University & Approved by AICTE)

Rampally (Vill), Ghatkesar(Mdl),

R.R DISTHyderabad

2010-12


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COMPANY GUIDE FACULTY GUIDE

P.SRINIVASARAO SRINVASARAO

ANNEXURE-1

DECLARATION

I hereby declare that this Project Report titled CUSTOMER

SATISFACTION ON DEMAT ACCOUNT submitted by me to the

Department of Business Management, O.U., Hyderabad, is a bonfied work

undertaken by me and it is not submitted to any other University or Institution for

the award of any degree diploma / certificate or published any time before.

Name and Address of the Student Signature of the

Student


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ANNEXURE II

CERTIFICATION

This is to certify that the Project Report title

CUSTOMER SATISFACTION ON DEMAT ACCOUNT submitted

in partial fulfillment for the award of MBA Programme of

Department of Business Management, O.U. Hyderabad,

was carried out by S.N.KISHORE under my guidance. This

has not been submitted to any other University or

Institution for the award of any degree/diploma/certificate.

Name and address of the Guide Signature of the Guide


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ACKNOWLEDGEMENT

I take the opportunity to express my deep and sincere gratitude to the

management of INDIA INFOLINE for their gesture of allowing me to under take this

project and its various employees who lent their hand towards the compilation of this

study.

The co-operation I received form the wide cross-section of employees of INDIA

INFOLINE makes it difficult to style out individual for acknowledgement.

However, I am particularly indebted to P.SRINIVASA RAO (branch

manager, ) for allowing me to carry out my project work in the organization and for

apprising me of the situation with necessary background and helping me to completethis project work.


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I am also thankful for our college prinicipal Mr.Dr SRINIVASARAO

and also faculty of Marketing Mr SRINVASARAO for providing their guidance to

complete this project work.

I would like to thank for all those who helped me directly or indelicately for

successful completion of my project.

PREFACE

The successful completion of this project was a unique

experience for me because by visiting many place and

interacting various person, I achieved a better knowledge

about sales. The experience which I gained by doing this

project was essential at this turning point of my career this

project is being submitted which content detailed analysis

of the research under taken by me.

The research provides an opportunity to the student to

devote his/her skills knowledge and competencies required

during the technical session.


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The research is on the topic CUSTOMER

SATISFACTION AT INDIAN INFOLINE Demat

Account.

Acknowledgement

It was a great opportunity for us to work with INDIAN INFOLINE Ltd., pioneersin the field of Finance Industry. We are extremely grateful to all those who haveshared their expertise and knowledge with me and without whom the completion

of this project would have been virtually impossible.

Firstly, we would like to thank our Company Guide P.SRINIVASA RAO Sir whohas been a constant source of inspiration for us during the completion of this

project. He gave us invaluable inputs during our endeavor to complete this project.

We are indebted to all staff of INDIAN INFOLINE Ltd for their valuable supportand cooperation during the entire tenure of this project. Not to forget, all those whohave kept our spirits surging and helped delivering our best.

We thank our faculty guide Mrs. SRINIVASA RAO who helped us out at everycritical situation that We faced in our project and gave us her valuable advice tosolve problems.


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We want to give our special thanks to all members of KGRITM, for providing usopportunity to work on this project with this great organization.

At last We would like to thank all the respondents met in the preparation, whogave their valuable time to provide us required information and their honest

support to complete our project in time.

CERTIFICATE OF

COMPLETION

This is certify that the Final Project report entitled Demat Account submitted Summer

Internship report of the requirement for the degree of MBA, is a work carried out by

S.N.KISHORE - HT.NO 225610672061 under my supervision and guidance.


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Comapany Guide:

(_______________________)

CONTENTS Pg .no

Chapter-1

Introduction

product profile

Limitations of the study

9

17

27

Chapter-II

Objective&scope of study

55

Chapter-III

Company profile

Research and methodology

56


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chapter-IV 64

Data analysis& interptetation

Chapter-v

Findings 76Suggestions

Annexure

Chapter-VI

Bibliography

introduction

Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly200 years ago. The earliest records of security dealings in India are meager andobscure. The East India Company was the dominant institution in those days and

business in its loan securities used to be transacted towards the close of theeighteenth century.

By 1830's business on corporate stocks and shares in Bank and Cotton presses tookplace in Bombay. Though the trading list was broader in 1839, there were only halfa 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 brokersincreased into 60.

In 1860-61 the American Civil War broke out and cotton supply from UnitedStates of Europe was stopped; thus, the 'Share Mania' in India begun. The numberof brokers increased to about 200 to 250. However, at the end of the AmericanCivil War, in 1865, a disastrous slump began (for example, Bank of Bombay Sharewhich had touched Rs 2850 could only be sold at Rs. 87).

In 1887, they formally established in Bombay, the "Native Share and StockBrokers' Association" (which is alternatively known as "The Stock Exchange"). In1895, the Stock Exchange acquired a premise in the same street and it wasinaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated.


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Thus in the same way, gradually with the passage of time number of exchangeswere increased and at currently it reached to the figure of 24 stock exchanges.

TRANSACTION CYCLE:

A person holding assets (Securities/Funds), either to meet his liquidity needs or to

reshuffle his holdings in response to changes in his perception about risk and return

of the assets, decides to buy or sell the securities. He selects a broker and instructs

Placing

Order

Settlement

of trades

Decision to

trade

Trade

Execution

Clearing of

Trades

Funds or

Securities Transaction

Cycle


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him to place buy/sell order on an exchange. The order is converted to a trade as

soon as it finds a matching sell/buy order. At the end of the trade cycle, the trades

are netted to determine the obligations of the trading members securities/funds as

per settlement cycle. Buyer/seller delivers funds/ securities and receives

securities/funds and acquires ownership of the securities.

A securities transaction cycle is presented above. Just because of this Transaction

cycle, the whole business of Securities and Stock Broking has emerged. And as an

extension of stock broking, the business of Online Stock broking/ Online Trading/

E-Broking has emerged.

At the end of the American Civil War, the brokers who thrived out of Civil War in1874, found a place in a street (now appropriately called as Dalal Street) wherethey would conveniently assemble and transact business. In 1887, they formallyestablished in Bombay, the "Native Share and Stock Brokers' Association" (whichis alternatively known as The Stock Exchange "). In 1895, the Stock Exchangeacquired a premise in the same street and it was inaugurated in 1899. Thus, theStock Exchange at Bombay was consolidated.

HISTORY OF ONLINE TRADING:

Online stock trading is very old concept for big institutions who tradethru private networks owned by Reuter's "Instinet" and a system called"Posit" since 1969. But it becomes internet based for lay men only in late 90s.

Funny, that actually idea was first time used by a company making Beercalled "WIT beer" to help its shareholders trade its shares. Thats how "WIT

Capital" was born which is considered pioneer of this concept. It was mademainstream and household name by a offshoot of Charles Schwab & Co calledeSchwab which is used by millions of people in USA. Lot of NRI's i know playin US stock market even when they come to India for holidays via websiteof eSchwabe.


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There are other serious players like E*trade, DATEK online etc. All thiscompanies ask you to start account with US $5000 and you can buy and sellstock using these funds. They also issue you a check book which you can useto make payments from this account. Or use their ATM card to withdraw cashfrom your stock trading account.

Today practically every big name brokerage firm offers online stock tradingas it reduces their costs. Earlier they had army of brokers on phone withclients executing trade, which is done by computers accepting orders fromclients directly. This firm now offers human access to high net worth accounts, andto rest at charge per trade.

E- Broking - A small beginning:

You have some money to dabble with. Trading shares on BSE/NSE has alwaysbeen your dream. When will you ever find the time? And besides, the hassle offinding a broker is not easy. Realizing there is untapped market of investors whowant to be able to execute their own trades when it suits them, brokers have takentheir trading rooms to the Internet. Known as online brokers, they allow you to buyand sell shares via Internet.

There are 2 types of online trading service: discount brokers and full serviceonline broker. Discount online brokers allow you to trade via Internet at reducedrates. Some provide quality research, other dont. Full service online brokerage islinked to existing brokerages. These brokers allow their clients to place online

orders with the option of talking/ chatting to brokers if advice is needed. Brokeragerates here are higher. 5Paisa.com, ICICIDirect.com, IndiaBulls.com, INDIANINFOLINE.com, Geojit securities.com, HDFCsec.com, Tatatdw.com,Kotakstreet.com are some of the online broking sites in India. With Net trading insecurities and rapid consolidation between multiple stock exchanges, theinternational securities marketplace is fast becoming a "global village" through thecreation of a universal virtual equity market.


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Compared to the Western countries, online trading is still in its infancy in India.With trading turnover at around Rs. 10 crores per day from online tradingcompared to a combined gross turnover of around Rs. 9000-10,000 crores handled

by the BSE and NSE together, online trading has a long way to go.

INTERNET TRADING IN INDIA:

In the past, investors had no option but to contact their broker to get real timeaccess to market data. The Net brings data to the investor on line and net brokingenables him to trade on a click. Now information has become easily accessible to

both retail as well as big investors.

The development of broking in India can be categorized in 3 phases:

1. Stock brokers offering on their sites features such as live portfolio manager, livequotes, market research and news to attract more investors.

2. Brokers offering on line broking and relationship management by providing andoffering analysis and information to investors during broking and non-brokinghours based on their profile and needs, that is, customized services.

3. Brokers (now e-brokers) will offer value management or services such as initialpublic offerings on line, asset allocation, portfolio management, financial planning,tax planning, insurance services and enable the investors to take better and well-considered decisions.

In the US, 82 per cent of the deals are done on line. The European on line brokingmarket is expected to be of $8 billions and is likely to raise five fold by 2002. InIndia, presently Internet trading can take place through the order routing system,

which will route client orders to exchanges trading systems for execution of tradeson stock exchanges (NSE and BSE). This will also require interface with banks tofacilitate instant cash debit or credit and the depository system for debit or credit ofsecurities.

OBJECTIVES OF INTERNET TRADING


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Increase transparency in the markets.

Enhance market quality through improved liquidity, by increasing quotecontinuity and market depth.

Reduce settlement risks due to open trades, by elimination of mismatches.

Provide management information system (MIS).

Introduce flexibility in system, to handle growing volumes easily and tosupport nationwide expansion of market activity.

Besides, through Internet trading three fundamental objectives of securitiesregulation can be easily achieved, these are: Investor protection, creation ofa fair and efficient market and, reduction of the systematic risks.

Other leading cities in stock market operations:

Ahmedabad gained importance next to Bombay with respect to cotton textileindustry. After 1880, many mills originated from Ahmedabad and rapidly forgedahead. As new mills were floated, the need for a Stock Exchange at Ahmedabadwas realized and in 1894 the brokers formed "The Ahmedabad Share and StockBrokers' Association".What the cotton textile industry was to Bombay and Ahmedabad, the jute industrywas to Calcutta. Also tea and coal industries were the other major industrial groupsin Calcutta. After the Share Mania in 1861-65, in the 1870's there was a sharp

boom in jute shares, which was followed by a boom in tea shares in the 1880's and1890's; and a coal boom between 1904 and 1908. On June 1908, some leading

brokers formed "The Calcutta Stock Exchange Association".

In the beginning of the twentieth century, the industrial revolution was on the wayin India with the Swadeshi Movement; and with the inauguration of the Tata Ironand Steel Company Limited in 1907, an important stage in industrial advancementunder Indian enterprise was reached.Indian cotton and jute textiles, steel, sugar,

paper and flour mills and all companies generally enjoyed phenomenal prosperity,due to the First World War.

In 1920, the then demure city of Madras had the maiden thrill of a stock exchangefunctioning in its midst, under the name and style of "The Madras StockExchange" with 100 members. However, when boom faded, the number ofmembers stood reduced from 100 to 3, by 1923, and so it went out of existence.In 1935, the stock market activity improved, especially in South India where therewas a rapid increase in the number of textile mills and many plantation companieswere floated. In 1937, a stock exchange was once again organized in Madras -


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Madras Stock Exchange Association (Pvt) Limited. (In 1957 the name waschanged to Madras Stock Exchange Limited).

Lahore Stock Exchange was formed in 1934 and it had a brief life. It was mergedwith the Punjab Stock Exchange Limited, which was incorporated in 1936.

Indian Stock Exchanges - An Umbrella Growth:

The Second World War broke out in 1939. It gave a sharp boom, which wasfollowed by a slump. But, in 1943, the situation changed radically, when India wasfully mobilized as a supply base.

On account of the restrictive controls on cotton, bullion, seeds and othercommodities, those dealing in them found in the stock market as the only outlet for

their activities. They were anxious to join the trade and numerous others swelledtheir number. Many new associations were constituted for the purpose and StockExchanges in all parts of the country were floated.

The Uttar Pradesh Stock Exchange Limited (1940), Nagpur Stock ExchangeLimited (1940) and Hyderabad Stock Exchange Limited (1944) were incorporated.In Delhi two stock exchanges - Delhi Stock and Share Brokers' AssociationLimited and the Delhi Stocks and Shares Exchange Limited - were floated andlater in June 1947, amalgamated into the Delhi Stock Exchange Association

Limited.

RANGE OF PRODUCT AND SERVICES:

Market Size: Growth of Online Brokerage market:

In five years of its existence in India, online broking has grown to account for a

tenth of the total trading volumes. If the numbers are considered for only the retailsegments, the growth is starker. Almost half of the Rs 5,000 crore-6,000 croredaily market volumes on the NSE are accounted for by non-retail entities such asforeign institutional investors, domestic institutions, mutual funds and arbitragetraders. Institutions aren't online customers anyway. Of the rest of the retailsegment, current estimates suggest that online broking's reach is close to 30 percent.


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As of September this year, there were 11.7 lakhs Internet trading accountsregistered with the NSE, of which roughly 9.5 lakhs are unique users. It's still asmall proportion of the estimated 3 crore Internet users in the country. As more

surfers take to trading online, analysts expect their number to keep doubling everyyear until 30-40 per cent of India's overall trades are done online, as is the case insome mature Internet markets like South Korea's.

The Internet's effect here has more to do with the bandwidth it has created for bothbrokers and clients. Banga, director of India bulls offers an example. "Traders fromAjmer use our online platform. It would otherwise have been prohibitively loss-making to open a branch there." Thanks to the new channel, volumes are growing

faster in the non-metros, where transparency is low in offline trading. "Thesecustomers were made to pay higher charges by small brokers, since they weren'taware of the market rates," says Vikash Shankar of INDIAN INFOLINE.com.Thatis one of the reasons why more than 60 per cent of INDIAN INFOLINEs onlinetrading turnover comes from non-metros.

Formation of the National Stock Exchange (NSE):

With the liberalization of the Indian economy, it was found inevitable to lift theIndian stock market trading system on par with the international standards. On the

basis of the recommendations of high-powered Pherwani Committee, the NationalStock Exchange was incorporated in 1992 by Industrial Development Bank ofIndia, Industrial Credit, and Investment Corporation of India, Industrial FinanceCorporation of India, all Insurance Corporations, selected commercial banks andothers.

Trading at NSE can be classified under two broad categories:

(a) Wholesale debt market and(b) Capital market.


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Wholesale debt market operations are similar to money market operations -institutions and corporate bodies enter into high value transactions in financialinstruments such as government securities, treasury bills, public sector unit bonds,commercial paper, certificate of deposit, etc.

There are two kinds of players in NSE:

(a) Trading members and

(b) Participants.Recognized members of NSE are called trading members who trade on behalf ofthemselves and their clients. Participants include trading members and large

players like banks who take direct settlement responsibility.

Trading at NSE takes place through a fully automated screen-based tradingmechanism, which adopts the principle of an order-driven market. Tradingmembers can stay at their offices and execute the trading, since they are linkedthrough a communication network. The prices at which the buyer and seller arewilling to transact will appear on the screen. When the prices match the transactionwill be completed and a confirmation slip will be printed at the office of the tradingmember.

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 sinceinter-market operations are streamlined coupled with the countrywide accessto the securities.

Delays in communication, late payments and the malpractices prevailing in

the traditional trading mechanism can be done away with greater operationalefficiency and informational transparency in the stock market operations,with the support of total computerized network.

Unless stock markets provide professionalized service, small investors and foreigninvestors will not be interested in capital market operations. And capital market

being one of the major sources of long-term finance for industrial projects, India


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cannot afford to damage the capital market path. In this regard NSE gains vitalimportance in the Indian capital market system.

About IIFL

The IIFL (India Infoline) group, comprising the holding company, India

Infoline Ltd (NSE: INDIAINFO, BSE: 532636) and its subsidiaries, is one of

the leading players in the Indian financial services space. IIFL offers advice

and execution platform for the entire range of financial services covering

products ranging from Equities and derivatives, Commodities, Wealth

management, Asset management, Insurance, Fixed deposits, Loans,Investment Banking, Gold bonds and other small savings instruments. IIFL

recently received an in-principle approval for Securities Trading and

Clearing memberships from Singapore Exchange (SGX) paving the way for

IIFL to become the first Indian brokerage to get a membership of the SGX.

IIFL also received membership of the Colombo Stock Exchange becoming

the first foreign broker to enter Sri Lanka. IIFL owns and manages the

website, www.indiainfoline.com, which is one of Indias leading online

destinations for personal finance, stock markets, economy and business.

HIERARCHY

C.E.O.Country Head

Cluster Head

Regional Head

Branch Head

City Sales

Manager

Dealer

Sales

Executives

1........ .2 3. 4..

Trainee


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INDIAN INFOLINE has dedicated research teams forfundamental and technical research. Which constantly trackthe pulse of the market and provide timely investment advicefree of cost to its clients which has a strike rate of 70-80%.


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Weakness:

Localized presence due to insufficient investmentsfor country wide expansion.

DISCUSSION ON TRAINING

Students work profile(role and responsibilities) :

I worked there with INDIAN INFOLINE LTD. with a profile of sales

trainee. This profile offers me to understand the need of customerand provide them the best deal possible with maximization of theprofit, both for the company as well as for the customer.

The most important aspect for the role of trainee is trust. Sofar fulfillment of the targets one needs to:

Capitalize on the old and loyal clientage which can bebuilding slowly by advising people in the best possible way.

Generating new leads through various activities.

Generation of leads :

Since I was new in the field so I had to start from scratch and

generate new leads to sustain in the market.

Cold calling is one of the trusted ways of getting to the customerswithout meeting them. Although the rate of conversion remainedvery less, for cold calling the quality and accent remains a veryimportant criterion. This activity gives me mixed result. I often got


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success and generated many leads through it but it also landedme in awkward position where the customer were in differentmood and made us hear words for which a marketer should bealways prepared to hear. Corporate calls always remained more

difficult to crack with respect to retail sector.

The corporate were the most difficult and most temping to get thebusiness from. It took me one one day to crack Hi-tech Gears. AtINDIAN INFOLINE LTD. after getting the product knowledge in thefirst week at the branch I was also allotted distributor to workwith. In the initial phase I was accompanied by more experiencedstaff. After I became known to the market and procedure I startedattending calls alone only.

After the third week my performance also improved and I wasable to get close to the targets, though it looked difficult toachieve in the beginning. To get awareness of the every product Iattended diversified calls. This helped me to implement crossselling to get better results.

LIMITATIONS:

1. Cold Calling:

Voice and accent plays a major role.

The right time to call a customer cannot be decided, as the customer may in

a different mood at the time of calling.

Time consuming


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Less success rate

2. Corporate:

Time consuming

Contacts with higher authorities play a major role

Description of live experience :

I was supposed to use the database provided by the company to make cold calls orby directly meeting people to get new leads.

While making cold calls, we need to have:

Good Communication Skills (Voice quality is clear and articulate)

Persistent and able to bounce back from rejection

Good organizational skills.

Ability to project a telephone personality (Enthusiasm, friendliness)


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Flexibility: can adapt to different types of clients and new situations.

Using a good database is very essential.

Eighty percent of our business comes from 20 percent of our customers" is afrequent statement at any sales convention. There's hardly a sales executive who isnot aware of the 80/20 rule.

While talking to customers, I analyze their needs. Whether they want to go forinvestment purpose or insurance or both. Suggest them the plan that best suitsthem. If they agree to it then either we send across the agents to close the deal orclose it themselves.


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Problems faced while selling products:

Customer dissatisfied with the services.

People fear that INDIAN INFOLINE Being a Private company and a newentrant may

be able to sustain or not.

Past experience, word of mouth.

Misguidance by agents.

People do not want insurance products.

Lack of knowledge and less awareness about demat account.

People risk appetite is very low, so they are afraid of mutual fund as well

. History & Milestones

1995

Commenced operations as an Equity Research firm

1997

Launched research products of leading Indian companies, key sectors and the

economy Client included leading FIIs, banks and companies.


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1999

Launched www.indiainfoline.com

2000

Launched online trading through www.5paisa.com Started distribution of life

insurance and mutual fund

2003

Launched proprietary trading platform Trader Terminal for retail customers

2004

Acquired commodities broking license

Launched Portfolio Management Service

2005

Maiden IPO and listed on NSE, BSE

2006

Acquired membership of DGCX

Commenced the lending business

2007

Commenced institutional equities business under IIFL

Formed Singapore subsidiary, IIFL (Asia) Pte Ltd

2008
http://www.indiainfoline.com/http://www.5paisa.com/http://www.indiainfoline.com/http://www.5paisa.com/


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Launched IIFL Wealth

Transitioned to insurance broking model

2009

Acquired registration for Housing Finance

SEBI in-principle approval for Mutual Fund

Obtained Venture Capital license

2010

Received in-principle approval for membership of the Singapore Stock

Exchange

Received membership of the Colombo Stock Exchange

Mr. Nirmal Jain

Chairman, India

Infoline Ltd.

Mr. Nirmal Jain is the founder and Chairman of India Infoline Ltd. He is a PGDM (Post

Graduate Diploma in Management) from IIM (Indian Institute of Management)

Ahmedabad, a Chartered Accountant and a rank-holder Cost Accountant. His

professional track record is equally outstanding. He started his career in 1989 with

Hindustan Lever Limited, the Indian arm of Unilever. During his stint with Hindustan

Lever, he handled a variety of responsibilities, including export and trading in agro-


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commodities. He contributed immensely towards the rapid and profitable growth of

Hindustan Levers commodity export business, which was then the nations as well as

the Companys top priority. He founded Probity Research and Services Pvt. Ltd. (later

re-christened India Infoline) in 1995; perhaps the first independent equity research

Company in India. His work set new standards for equity research in India. Mr. Jain

was one of the first entrepreneurs in India to seize the internet opportunity, with thelaunch of www.indiainfoline.com in 1999. Under his leadership, India Infoline not only

steered through the dotcom bust and one of the worst stock market downtrends but

also grew from strength to strength.

Mr. R. Venkataraman

Managing Director , India

Infoline Ltd.

Mr. R Venkataraman, Co-Promoter and Managing Director of India Infoline Ltd, is a

B.Tech (electronics and electrical communications engineering, IIT Kharagpur) and anMBA (IIM Bangalore). He joined the India Infoline Board in July 1999. He previously

held senior managerial positions in ICICI Limited, including ICICI Securities Limited,

their investment banking joint venture with J P Morgan of US, BZW and Taib Capital

Corporation Limited. He was also the Assistant Vice President with G E Capital

Services India Limited in their private equity division, possessing a varied experience

of more than 19 years in the financial services sector.

Mr. Kranti Sinha

Independent Director , India


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Infoline Ltd.

Mr. Kranti Sinha Board member since January 2005 completed his masters from

the Agra University and started his career as a Class I Officer with Life Insurance

Corporation of India. He served as the Director and Chief Executive of LIC Housing

Finance Limited from August 1998 to December 2002 and concurrently as the

Managing Director of LICHFL Care Homes (a wholly-owned subsidiary of LIC Housing

Finance Limited). He retired from the permanent cadre of the Executive Director of

LIC; served as the Deputy President of the Governing Council of Insurance Institute of

India and as a member of the Governing Council of National Insurance Academy, Pune

apart from various other such bodies. Mr. Sinha is also on the Board of Directors of

Hindustan Motors Limited and Cinemax (India) Limited.

Mr. A. K. Purwar

Independent Director , India

Infoline Ltd.

Mr. Purwar is currently the Chairman of IndiaVenture Advisors Pvt. Ltd., investmentmanager to IndiaVenture Trust Fund I, the healthcare and life sciences focussedprivate equity fund sponsored by the Piramal Group. He has also taken over as the

Chairman of IL & FS Renewable Energy Limited in March 2008 and India InfolineInvestment Services Ltd in November 2009. He is working as Independent Director inleading companies in Telecom, Steel, Textiles, Power, Auto components, RenewableEnergy, Engineering Consultancy, Financial Services and Healthcare Services. He isan Advisor to Mizuho Securities in Japan and is also a member of Advisory Board for

Institute of Indian Economic Studies (IIES), Waseda University, Tokyo, Japan.

Mr. Purwar was the Chairman of State Bank of India, the largest bank in the countryfrom November 02 to May 06 and held several important and critical positions like

Managing Director of State Bank of Patiala, Chief Executive Officer of the Tokyobranch covering almost the entire range of commercial banking operations in his

illustrious career at the bank from 1968 to 2006. Mr. Purwar also worked as Chairmanof Indian Bank Association during 2005 2006. Mr. Purwar has received the CEO of

the year Award from the Institute for Technology & Management (2004);


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Outstanding Achiever of the year Award from Indian Banks Association (2004);Finance Man of the Year Award by the Bombay Management Association in 2006.

Overview of Demat Account :

Demat account allows you to buy, sell and transact shares without the endlesspaperwork and delays. It is also safe, secure and convenient.

In India, a demat account, the abbreviation fordematerialized account, is a typeof banking account which dematerializes paper-based physical stock shares. Thedematerialized account is used to avoid holding physical shares: the shares are

bought and sold through a stock broker.

This account is popular in India. The Securities and Exchange Board of India(SEBI) mandates a demat account for share trading above 500 shares. As of April2006, it became mandatory that any person holding a demat account should

possess a Permanent Account Number(PAN),and the deadline for submission ofPAN details to the depository lapsed on January 2007.

Is a demat account a must?

Now a day, practically all trades have to be settled in dematerialized form.Although the market regulator, the Securities and Exchange Board of India (SEBI),has allowed trades of up to 500 shares to be settled in physical form, nobody wants

physical shares any more. So a demat account is a must for trading and investing.
http://en.wikipedia.org/wiki/Shareshttp://en.wikipedia.org/wiki/Stock_brokerhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Securities_and_Exchange_Board_of_Indiahttp://en.wikipedia.org/wiki/Permanent_Account_Numberhttp://en.wikipedia.org/wiki/Shareshttp://en.wikipedia.org/wiki/Stock_brokerhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Securities_and_Exchange_Board_of_Indiahttp://en.wikipedia.org/wiki/Permanent_Account_Number


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Why demat?

The demat account reduces brokerage charges, makes pledging/hypothecation of

shares easier, enables quick ownership of securities on settlement resulting inincreased liquidity, avoids confusion in the ownership title of securities, and

provides easy receipt of public issue allotments.

It also helps you avoid bad deliveries caused by signature mismatch, postal delaysand loss of certificates in transit. Further, it eliminates risks associated withforgery, counterfeiting and loss due to fire, theft or mutilation. Demat accountholders can also avoid stamp duty (as against 0.5 per cent payable on physicalshares), avoid filling up of transfer deeds, and obtain quick receipt of such benefitsas stock splits and bonuses.

What is dematerialization?

Dematerialization is the process by which physical certificates ofan investor areconverted to an equivalent number of securities in electronic form

and creditedinto the investors account with his/her DP.


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Why DEMAT a/c likes a BANK a/c?

Just as you have to open an a/c with a bank if you want to saveyour money, make cheque payments etc, you need to open ademat a/c if you want to buy or sell stocks. So it just like a banka/c where actual money replaced by shares.

Example : lets say your portfolio has 100 of SATYAM, 200 of IBMand 120 of TCS shares. All these will show in youre a/c. so youdont have to possess any physical certificate that you own these

shares. They all are held electronically in youre a/c.

Steps involved in opening a demat account :


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First an investor has to approach a DP and fill up an accountopening form. The account opening form must be supported bycopies of any one of the approved documents to serve as proof ofidentity (POI) and proof of address (POA) as specified by SEBI.Besides, production of PAN card in original at the time of openingof account has been made mandatory effective from April 01,2006.All applicants should carry original documents for verification byan authorized official of the depository participant, under hissignature.

Further, the investor has to sign an agreement with DP in adepository prescribed standard format, which details rights andduties of investor and DP. DP should provide the investor with acopy of the agreement and schedule of charges for their futurereference. The DP will open the account in the system and give anaccount number, which is also called BO ID (Beneficiary OwnerIdentification number).

The DP may revise the charges by giving 30 days notice inadvance. SEBI has rationalized the cost structure for

dematerialization by removing account opening charges,transaction charges for credit of securities, and custody chargesvide circular dated January 28, 2005.

Further, SEBI has vide circular dated November 09, 2005 advisedthat with effect from January 09, 2006, no charges shall be leviedby a depository on DP and consequently, by a DP on a Beneficiary

Owner (BO) when a BO transfers all the securities lying in hisaccount to another branch of the same DP or to another DP of thesame depository or another depository, provided the BOAccount/s at transferee DP and at transferor DP are one and thesame, i.e. identical in all respects.


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In case the BO Account at transferor DP is a joint account, the BOAccount at transferee DP should also be a joint account in thesame sequence of ownership.

Rights:

1. You can open more than one depository account in thesame name with single DP/ multiple DPs.

2. No minimum balance is required to be maintained in adepository account.

3. You can give a onetime standing instruction to your DPto receive all the credits coming to your depository accountautomatically.

DEMAT Benefits? A safe and convenient way to hold securities.

immediate transfer of securities.

No stamp duty on transfer of securities(0.5 % on physicalshares).

Elimination of risks associated with physical certificates suchas bad delivery, fake securities , delays , theft etc.

Reduction in paper work.

Reduction in transaction cost.


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No odd lot problem , even one share can be sold.

Nomination facility.

Holding investment in equity and debt instruments in asingle account.etc.

DEMAT Conversion :-

1. Surrender the certificates of physical shares fordematerialization to your depository participants.

2. Depository participant intimates depository of the requestthrough the system.

3. Depository participant submit the certificates to the registrarto the issuer company.

4. Registrar confirms the dematerialization request fromdepository.

5. After dematerializing the certificates, registrar updatesaccounts and informs depository of the completion ofdematerialization.

6. Depository updates its accounts and informs the depositoryparticipant.

7. Depository participant updates demat a/c of the investor.

What is a Depository?

A depository is an organisation which holds securities of investorsin electronic form at the request of the investors through aregistered Depository Participant. It also provides services relatedto transactions in securities.


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SEBI registered depositorys :-

NSDL :- National securities depository limited

CDSL :- Central depository services limitedMinimum net worth required for a depository is 100 crores

NSDL:

Although India had a vibrant capital market, which is morethan a century old, the paper-based settlement of trades causedsubstantial problems like bad delivery and delayed transfer oftitle till recently. The enactment of Depositories Act in August1996 paved the way for establishment of NSDL, the first

depository in India. This depository promoted by institutions ofnational stature responsible for economic development of thecountry has since established a national infrastructure ofinternational standard that handles most of the trading andsettlement in dematerialized form in Indian capital market. Usinginnovative and flexible technology systems, NSDL works tosupport the investors and brokers in the capital market of thecountry. NSDL aims at ensuring the safety and soundness ofIndian marketplaces by developing settlement solutions that

increase efficiency, minimize risk and reduce costs. At NSDL, weplay a quiet but central role in developing products and servicesthat will continue to nurture the growing needs of the financialservices industry.

In the depository system, securities are held in depositoryaccounts, which is more or less similar to holding funds in bankaccounts. Transfer of ownership of securities is done throughsimple account transfers. This method does away with all the risks

and hassles normally associated with paperwork. Consequently,the cost of transacting in a depository environment isconsiderably lower as compared to transacting in certificates.

DEPOSITORY PARTICIPANTS:
http://www.nsdl.co.in/about/milestone.htmlhttp://www.nsdl.co.in/about/shareholder.htmlhttp://www.nsdl.co.in/about/milestone.htmlhttp://www.nsdl.co.in/about/shareholder.html


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A Depository Participant (DP) is described as an agent of thedepository. They are the intermediaries between the depositoryand the investors. The relationship between the DPs and thedepository is governed by an agreement made between the two

under the Depositories Act. In a strictly legal sense, a DP is anentity that is registered as such with SEBI under the provisions ofthe SEBI Act. As per the provisions of this Act, a DP can offerdepository-related services only after obtaining a certificate ofregistration from SEBI. SEBI (D&P) Regulations, 1996 prescribe aminimum net worth of Rs.50 lakh for stockbrokers, R&T agentsand non-banking finance companies (NBFC), for granting them acertificate of registration to act as DPs. If a stockbroker seeks toact as a DP in more than one depository, he should comply withthe specified net worth criterion separately for each such

depository. No minimum net worth criterion has been prescribedfor other categories of DPs. However, depositories can fix a highernet worth criterion for their DPs. NSDL requires a minimum networth of Rs.100 lakh to be eligible to become a DP as againstRs.50 lakh prescribed by SEBI (D&P) Regulations.

Instruments :

The changes in the regulatory framework of the capital marketand fiscal policies have also resulted in newer kinds of financialinstruments (securities) being introduced in the market. Also, a lotof financial innovation by companies who are now permitted toundertake treasury operations has resulted in newer kinds ofinstruments - all of which can be traded being introduced. Thevariations in all these instruments depend on the tenure, thenature of security, the interest rate, the collateral security offeredand the trading features, etc

Debentures

Bonds

Preference Share

Equity Shares


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Government securities

Capital Market Processes

Initial Public Offering (IPO)

Private Placement

Preferential Offer/Rights Issue

Private Placement

Benefits of Depository System:

In the depository system, the ownership and transfer of securitiestakes placeby means of electronic book entries. At the outset, this systemrids the capital market of the dangers related to handling ofpaper. NSDL provides numerous direct and indirect benefits, like:

Elimination of bad deliveries

In the depository environment, once holdings of an investor aredematerialized, the question of bad delivery does not arise i.e.they cannot be held "under objection". In the physicalenvironment, buyer was required to take the risk of transfer andface uncertainty of the quality of assets purchased. In adepository environment good money certainly begets goodquality of assets. Elimination of all risks associated withphysical certificates

Dealing in physical securities have associated security risks oftheft of stocks, mutilation of certificates, loss of certificates duringmovements through and from the registrars, thus exposing theinvestor to the cost of obtaining duplicate certificates andadvertisements, etc. This problem does not arise in the depositoryenvironment.


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No stamp duty

For transfer of any kind of securities in the depository. This waiverextends to equity shares, debt instruments and units of mutualfunds.

Immediate transfer and registration of Securities

In the depository environment, once the securities are credited tothe investors account on pay out, he becomes the legal owner of

the securities.

There is no further need to send it to the company's registrar forregistration.Having purchased securities in the physical environment, theinvestor has tosend it to the company's registrar so that the change ofownership can be registered. This process usually takes aroundthree to four months and is rarely completed within the statutory

framework of two months thus exposing the investor toopportunity cost of delay in transfer and to risk of loss in transit.

To overcome this, the normally accepted practice is to hold thesecurities in street names i.e. not to register the change ofownership.

However, if the investors miss a book closure the securities arenot good fordelivery and the investor would also stand to loose his corporateentitlements.


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Faster settlement cycle

The exclusive demat segments follow rolling settlement cycle of T+2 i.e. thesettlement of trades will be on the 2nd working day from the trade day. This willenable faster turnover of stock and more liquidity with the investor.

Faster disbursement of non-cash corporate

benefits like rights, bonus, etc.

NSDL provides for direct credit of non-cash corporate entitlements to aninvestors account, thereby ensuring faster disbursement and avoiding riskof loss of certificates in transit.

Reduction in brokerage by many brokers for

trading in dematerialized securities

Brokers provide this benefit to investors as dealing in dematerialized securitiesreduces their back office cost of handling paper and also eliminates the risk of

being the introducing broker.

Reduction in handling of huge volumes of paper

Periodic status reports to investors on their holdings andtransactions, leading to better controls.

Elimination of problems related to change of address ofinvestor, transmission, etc

In case of change of address or transmission of demat shares, investors are savedfrom undergoing the entire change procedure with each company or registrar.


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Investors have to only inform their DP with all relevant documents and therequired changes are effected in the database of all the companies, where theinvestor is a registered holder of securities.

Elimination of problems related to sellingsecurities on behalf of a minor

A natural guardian is not required to take court approval for selling dematsecurities on behalf of a minor.

Ease in portfolio monitoring

Since statement of account gives a consolidated position of investmentsin all instruments.

Buying and Selling of Dematerialization

INTRODUCTION:

The procedure for buying and selling dematerialized securities is similar to theprocedure for buying and selling physical securities. The difference lies in theprocess of delivery (in case of sale) and receipt (in case of purchase) of securities.

In case of purchase:-

The broker will receive the securities in his account on the payout day.


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The broker will give instruction to its DP to debit his account and creditinvestors account.

Investor will give Receipt Instruction to DP for receiving credit by fillingappropriate form. However one can give standing instruction for credit in toones accounts that will obviate the need of giving Receipt Instruction everytime.

In case of sale:-

The investor will give delivery instruction to DP to debit his account and credit thebrokers account. Such instruction should reach the DPs office at least 24 hoursbefore the pay-in as otherwise DP will accept the instruction only at the investorsrisk.

Rights

1. Dematerialized securities can be traded on those stock exchanges connectedto NSDL. At present, NSE, BSE, CSE, DSE, LSE, BGSE, OTCEI, MSE, ISE& ASE are connected to NSDL. At these stock exchanges, two segmentswould be available to trade in dematerialized securities :

o Unified (erstwhile physical) segment - In this segment deliveryobligation can be met by delivering dematerialized or physical securities atthe option of the seller. However, for a select list of securities prescribed

by SEBI, securities cannot be delivered in physical form in the unifiedsegment, of stock exchanges connected to NSDL. This list presentlycovers 160 securities. This list has been expanded to cover a total of 200securities with effect from January 17, 2000. Over a period, this list wouldcover all actively traded securities.


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o Exclusive demat segment - In this segment delivery obligationcan be met by delivering dematerialized securities only. Physical securitiescannot be delivered in the exclusive demat segment.

Procedure

Trading in dematerialized securities is done through your broker just like trading inphysical securities. After your broker executes the trade, your DP will help todeliver shares to your broker (in case you sell) on the basis of valid instructiongiven by you to your DP and receive shares from your broker (in case you buy) on

basis of valid instruction given by your broker to his DP.

Buy dematerialized securities

1.You purchase securities in any of the stock exchanges connected to NSDLthrough a broker of your choice and make payment to your broker. Make sureyou tell your broker you want only demat shares.

2.Broker arranges payment to clearing corporation/ clearing house of the stockexchange.

3.Broker receives credit in his clearing account with his DP on the pay-outday. He can immediately transfer these securities to your depository account,

provided your account is already active.

4.Broker gives instructions to his DP to debit his clearing account and credityour depository account.


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5.You give instruction to your DP for receiving credit in your depositoryaccount. If you have given standing instruction to receive credits, no separateinstruction for receiving credit will be required.

6.If the instructions match, your account with your DP is credited.

Sell dematerialized securities

1.You sell your dematerialized securities in any of the stock exchanges linkedto NSDL through a broker of your choice.

2.You give instruction to your DP for debit of your depository account andcredit of your brokers clearing member account at least 24 hours i.e. oneworking day prior to the pay-in date or before the deadline prescribed by yourDP, so that your brokers clearing account is credited at the time arranged withhim.

3.On the pay-in day, your broker gives instruction to his DP for delivery to

clearing corporation/clearing house of the relevant stock exchange.

4.The broker receives payment from the clearing corporation / clearing house.

5.You receive payment from the broker for the sale in the same manner youwould receive payment for a sale in the physical mode.

Points To Remember

1.Trading continues to be through brokers. In case of any problem inexecution of trade, contact your broker and if he fails to resolve the problemyou may contact the stock exchange.


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2.When you buy securities through the stock exchange, your brokers clearingaccount is credited to the extent of the securities purchased, on receipt ofinstruction from clearing corporation/ clearing house of the stock exchange.Your depository account is credited only when your broker gives a deliveryinstruction to his DP. Securities are not directly credited to your account by theclearing corporation/ clearing house of the stock exchange. In case your brokerdoes not give a delivery instruction, contact him or concerned stock exchangeor SEBI. If your depository account is not credited, in spite of your brokergiving valid instruction to his DP, contact the DP and if he fails to resolve thesame you may contact NSDL.

3.When you sell securities, you have to give a delivery instruction to your DPto transfer the securities to your brokers clearing account. They are notautomatically debited from your account by NSDL or by the clearingcorporation/ clearing house of the stock exchange. In case the DP defaults inexecuting your instruction, the DP is liable to compensate you for the lossincurred, provided your instruction was in order and has been submitted to theDP at least 24 hours i.e. one working day prior to the pay-in date or before thedeadline prescribed by DP. In case the DP fails to resolve your problem, youcan contact NSDL.


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Need for the Study

The need of the study arises because of the reason that a trainee must understandthe company, its achievements and tasks, products and services and also to collect

information about its competitors, its products and services offered. So that, after

understanding and collecting information about the organization and its

competitors, a trainee will be able to work well for the organization.

From the study we have learned very much, about the company as well as the

strategy of the customers, which helps us a lot at our working days.

Competitors

HDFC BANK is one of the leading Depository Participant (DP) in the country withover 8 Lac demat accounts.

HDFC Bank Demat services offers you a secure and convenient way to keep trackof your securities and investments, over a period of time, without the hassle ofhandling physical documents that get mutilated or lost in transit.


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HDFC BANK is Depository participant both with National Securities DepositoriesLimited (NSDL) and Central Depository Services Limited (CDSL).

Features & Benefits :

As opposed to the earlier form of dealing in physical certificates with delays intransaction, holding and trading in Demat form has the following benefits:

Settlement of Securities traded on the exchanges as well as off market transactions.

Shorter settlements thereby enhancing liquidity.

Pledging of Securities.

Electronic credit in public issue.

Auto Credit of Rights / Bonus / Public Issues /Dividend credit through ECS.

Auto Credit of Public Issue refunds to the bank account.

No stamp duty on transfer of securities held in demat form.

No concept of Market Lots.


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Change of address, Signature, Dividend Mandate, registration of power ofattorney, transmission etc. can be effected across companies held in demat form bya single instruction to the Depository Participant (DP).

Holding / Transaction details through Internet / email.

In case you need any more information or have any queries , feedback &complaints , you may please mail us at [email protected]

Secured & easy transaction processing

HDFC Bank Ltd provides convenient facility called 'SPEED-e' (Internet basedtransaction) whereby account holder can submit delivery instructions electronicallythrough SPEED-e website (https://speede.nsdl.com). SPEED-e offers securedmeans of transaction processing eliminating preparation of instruction slips andsubmission of the same across the counter to the depository participant. The'IDEAS' facility helps in viewing the current transactions and balances (holdings)

of Demat account on Internet on real time basis.

Disclaimer:

Whatever have been stated above are in the good interest of the Investor / Demat

Applicants / holders to provide a brief picture about the depository system. You are

requested go through the guidelines of the depositories before taking any further

action. For detailed guidelines, you are requested to approach your nearest HDFC

Bank branch. HDFC Bank will not be responsible for any misunderstanding / act

based on the above. Also HDFC Bank might ask for additional information /

documentation than what has been stated above to process your application /

instruction.
mailto:[email protected]://speede/mailto:[email protected]://speede/


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ICICI DIRECT

ICICI Direct (or ICICIDirect.com) is stock trading company of ICICI Bank. Alongwith stock trading and trading in derivatives in BSE and NSE, it also providesfacility to invest in IPOs, Mutual Funds and Bonds.

Trading is available in BSE and NSE.

ICICI Direct offers 3 different online trading platforms to its customers.

Type of Account:

1. Share Trading Account:

Share Trading Account by ICICI Direct is primarily for buying and selling ofstocks in BSE and NSE.

This account allows Cash Trading, Margin Trading,


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Margin PLUS Trading, Spot Trading, Buy Today Sell Tomorrow and Call andTrade on phone.

ICICIDirect.com website is the primary trading platform for this trading account.They also provide installable application terminal based application for highvolume trader.

2. Wise Investment Account:

1. Online Mutual funds investment allows investor to invest on-line in around19 Mutual Fund companies. ICICI Direct offers various options whileinvesting in Mutual Funds like Purchase Mutual Fund, Redemption andswitch between different schemes, Systematic Investment plans, Systematicwithdrawal plan and transferring existing Mutual Funds in to electronicmode. This account also provides facility to invest in Government of IndiaBonds and ICICI Bank Tax Saving Bonds.

2. Active Trader account gives more personalized investment options to theinvestors. It allows investor to use online and offline stock trading. It also

provides with independent market expertise and support through a

dedicated Relationship Manager from ICICI.

Active Trader also provides commodity trading.

Brokerage and fees

Account opening fees : Rs 750/- (One time nonrefundable)

Brokerage: ICICIDirect.com brokerage varies on volume of trade and inclusive ofdemat transaction charges, service taxes and courier charges for contract notes. It


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ranges from 0.1% to 0.15% for margin trades, 0.2% to 0.425% for squared offtrades and 0.4% to 0.85% on delivery based trades.

Disadvantages of ICICI Direct:

1. Getting access to ICICIDirect.com website during

market session can be frustrating.

5Paisa.com

5paisa is the trade name of India Infoline Securities Private Limited (5paisa),member of National Stock Exchange and The Stock Exchange, Mumbai. 5paisa is

a wholly owned subsidiary of India Infoline Ltd, Indias leading and most popularfinance and investment portal. 5paisa has emerged as one of leading players in e-

broking space in India.

The companys brokerage is one of the lowest in the industry. It also provides theresearch on commodities. Investors can benefit from its analysis and adviceavailable at the click of the mouse. For those who prefer to trade the traditionalway, India Infoline investor points are available across the country.

India Infoline was founded by a group of professionals in 1995. Its institutionalinvestors include Intel Capital, one of the leading technology companies in theworld promoted by the U K government, ICICI, TDA and Reeshanar. Thecompany offers a slew of products such as stock and derivatives broking,commodities broking and mutual funds.


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India Bulls

Indiabulls is India's leading retail financial services company with 77 locationsspread across 64 cities. Its size and strong balance sheet allows providing variedproducts and services at very attractive prices, our over 750 Client RelationshipManagers are dedicated to serving your unique needs.

Indiabulls is lead by a highly regarded management team that has invested croresof rupees into a world class Infrastructure that provides real-time service & 24/7access to all information and products. The Indiabulls Professional Networkoffers real-time prices, detailed data and news, intelligent analytics, and electronic

trading capabilities, right at your finger-tips. This powerful technology iscomplemented by our knowledgeable and customer focused RelationshipManagers.

Indiabulls offers a full range of financial services and products ranging fromEquities, Derivatives, Demat services and Insurance to enhance wealth.

Kotak Securities Limited (kotakstreet.com):


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Kotak Securities Ltd., a strategic joint venture between Kotak Mahindra Bank andGoldman Sachs (holding 25% - one of the worlds leading investment banks and

brokerage firms) is Indias leading stock broking house with a market share of 5 - 6%. Kotak Securities Ltd. has been the largest in IPO distribution - It was rankednumber One in 2003-04 as Book Running Lead Managers in public equityofferings by PRIME Database. It has also won the Best Equity House Award fromFinance Asia - April 2004.

The company has a full fledged research division involved in Macro Economicstudies, sectoral research and company specific equity research combined with astrong and well networked sales force which helps deliver current and up to datemarket information and news.

Kotak Securities Ltd is also a depository participant with National Securities

Depository Limited (NSDL) and Central Depository Services Limited (CDSL)providing dual benefit services wherein the investors can use the brokerageservices of the company for executing the transactions and the depository servicesfor settling them.

The company has 42 branches servicing around 1, 00,000 customers.Kotakstreet.com the online division of Kotak Securities Limited offers InternetBroking services and also online IPO and Mutual Fund Investments.

Kotak Securities Limited manages assets over 1700 crores under PortfolioManagement Services (PMS) which is mainly to the high end of the market. KotakSecurities Limited has newly launched Kotak Infinity as a distinct discretionaryPortfolio Management Service which looks into the middle end of the market.

Motilal Oswal Securities Ltd. (MOSt):


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One of the top-3 stock-broking houses in India, with a dominant position in bothinstitutional and retail broking, MOSt is amongst the best-capitalized firms in the

broking industry in terms of net worth.

MOSt was founded in 1987 as a small sub-broking unit, with just two peoplerunning the show. Focus on customer-first-attitude, ethical and transparent

business practices, respect for professionalism, research-based value investing andimplementation of cutting-edge technology have enabled it to blossom into athousand-member team.The institutional business unit has relationships with several leading foreigninstitutional investors (FIIs) in the US, UK, Hong Kong and Singapore. In a recentmedia report MOSt was rated as one of the top-10 brokers in terms of businesstransacted for FIIs.

The retail business unit provides equity investment solutions to more than 50,000investors through 270 outlets spanning 150 cities and 22 states. MOSt providesAdvice-Based Broking, Portfolio Management Services (PMS), E-BrokingServices, Depository Services, Commodities Trading, and IPO and Mutual FundInvestment Advisory Services. Its Value PMS Scheme gave a 160% post-tax returnfor the year ended March 2004.

With value investing at the core of its investment philosophy, a strong research

team consistently provides high-performance ideas.

MOSts equity research has been consistently ranked very highly in surveysconducted by leading international publications like Asiamoney and InstitutionalInvestor. In Asia Money Brokers Poll 2003 MOSt has been rated as the BestDomestic Research House - Mega Funds ,while in 2000 and 2002 it has been ratedas the Best Domestic Equity Research House and Second best amongst IndianBrokerage firms respectively.

IDBI Capital Market Services Ltd.
http://www.motilaloswal.com/eag.htmhttp://www.motilaloswal.com/pms.htmhttp://www.motilaloswal.com/ebroking.htmhttp://www.motilaloswal.com/ebroking.htmhttp://www.motilaloswal.com/depository.htmhttp://www.motilaloswal.com/commodities/commodities.htmhttp://www.motilaloswal.com/mutual.htmhttp://www.motilaloswal.com/eag.htmhttp://www.motilaloswal.com/eag.htmhttp://www.motilaloswal.com/pms.htmhttp://www.motilaloswal.com/ebroking.htmhttp://www.motilaloswal.com/ebroking.htmhttp://www.motilaloswal.com/depository.htmhttp://www.motilaloswal.com/commodities/commodities.htmhttp://www.motilaloswal.com/mutual.htmhttp://www.motilaloswal.com/eag.htm


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IDBI Capital is a leading Indian securities firm offering a complete suite ofproducts and services to individual, institutional and corporate clients.

IDBI Capital Market Services Ltd. (IDBI Capital), a wholly owned subsidiary ofIndustrial Development Bank of India (IDBI), is a leading Indian securities firm,

offering a complete suite of products and services to individual, institutional andcorporate clients. Our services include fixed income trading, equities brokerage,debt and equity derivatives, research, private placements, depository services,

portfolio management and distribution of financial products. Over the last fiveyears, we have emerged as a leading player in each of these businesses.

March 1995 - Commenced Equity Broking on NSE CM segment

July 1995 - Built agent Distribution Network across the country

October 1996 - Commenced Debt Broking on NSE WDM segment

December 1996 - Started operations as a Depository Participant

1996 - Started to act as Arranger to Privately Placed Bond issues

April 1998 - Commenced operations as a Portfolio Manager

February 1999 - Acquired membership of BSE, Mumbai

November 1999 - Started operations as a Primary Dealer

June 2000 - Acquired Derivatives memberships of BSE and NSE

March 2002 - Achieved an outright secondary market turnover exceedingRs100,000 cr in G-Secs

October 2002- Commenced trading in Interest Rate Swaps

Refco - Sify Securities India Pvt. Ltd

Refco-Sify Securities India Pvt. Ltd., headquartered in Mumbai, is a joint venturebetween the Refco Group Holding Ltd., USA; and Satyam Infoway Limited


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(NASDAQ: SIFY) to offeronline and offline equity and derivatives trading forretail customers as well as execution and clearing services for financial institutions.

Refco also provides clients with prime brokerage services, fixed income, equities,foreign exchange, OTC derivatives and asset management.

Refco is a leader in providing clients with the latest technological advances inproducts and services. Its proprietary systems and global infrastructure provide theflexibility to meet all client requirements.

Client service is what sets Refco apart from its competitors. Refco understands theunique business requirements of each of its clients and tailors its products andservices to meet those requirements.

UTI SECURITIES LTD.: (UTISEL)

UTI Securities Ltd was incorporated on June 24, 1994 by Unit Trust of India as a100% subsidiary and on the repealing of the UTI Act, the capital is now held bythe Administrator of the Specified Undertaking of Unit Trust of India (ASUUTI).UTI Securities has been working as an independent professional entity for

providing financial intermediary and advisory services to its corporate and retailclientele.

The Company has presence in major cities with 20 branches and 50 franchisees toservice a wide range of clients. The company has also invested in the joint-venturecompany with Standard Chartered Bank viz. Standard Chartered UTI Securities(P) Ltd. that is engaged in primary dealership and Government securities. Thecompany is very soon going to start Commodity Trading through its subsidiary,USEc Commodities Ltd, which provides facility of commodity trading on NCDEXand MCX.

KARVY

Karvy is a premier integrated financial services provider, and ranked among thetop five in the country in all its business segments, services over 16 million


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individual investors in various capacities, and provides investor services to over300 corporate, comprising the who is who of Corporate India. Karvy has a

professional management team and ranks among the best in technology, operationsand research of various industrial segments.

History of Karvy :- The birth of Karvy was on a modest scale in 1981. It beganwith the vision and enterprise of a small group of practicing Chartered Accountantswho founded the flagship company, Karvy Consultants Limited. They started withconsulting and financial accounting automation and carved inroads into the field ofregistry and share accounting by 1985. Since then, karvy utilized its experienceand superlative expertise to go from strength to strength, to better their services, toinnovate, diversify and in the process, evolved as one of Indias premier integratedfinancial service enterprise.

OBJECTIVE

The primary objective is:

Checking the awareness level of online share trading.

Evaluation of preferred investments in various mode and industry.

To collect the real time information about preference level of customersusing Demat account and their inclination towards various other brokeragefirms e.g. India bulls, Angel broking, India infoline, Religare, Alan- kit,

Unicon.

To expand the market penetration of INDIAN INFOLINE ltd.

To provide pricing strategy of competitors to fight cut throat competition.

Study of influencing factors affecting the purchase decision.


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Analyzing the preferred broking house.

Checking the satisfaction level of the customers towards preferred broking

house.

The secondary objective is:

To make clients and let them know about the different services offered bythe INDIAN INFOLINE.

To understand the problem faced by customers and finding way to solve thequeries.

RESEARCH METHODOLOGY

INTRODUCTION

Research Methodology refers to search of knowledge .one can also define researchmethodology as a scientific and systematic search for required information on aspecific topic.

The word research methodology comes from the word advance learner sdictionary meaning of research as a careful investigation or inquiry especiallythrough research for new facts in my branch of knowledge for example someauthor have define research methodology as systematized effort to gain newknowledge.


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Methodology of the project starts with

In the first phase we are trained and they teach us different thingsabout market.

After that they conduct a mock viva, in this they ask about the real lifeproblem faced by the customers.

They provide leads and after that we make calls.

Then after that we have to provide details of product and convincethem.

Then we have to visit them and get the formed filled from them.

Maintaining dairy of clients and contacting them at regular basis.

Get the knowledge of technical as well as fundamental methods.

Observe the patterns of the scripts.

Exploratory Research:

Exploratory research is a type of research conducted because a problemhas not been clearly defined. Exploratory research helps determine the bestresearch design, data collection method and selection of subjects. Given itsfundamental nature, exploratory research often concludes that a perceived

problem does not actually exist.

Exploratory research often relies on secondary research such as reviewingavailable literature and/or data, or qualitative approaches such as informaldiscussions with consumers, employees, management or competitors, andmore formal approaches through in-depth interviews, focus groups,

projective methods, case studies or pilot studies.


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The results of exploratory research are not usually useful for decisionmakingby themselves, but they can provide significant insight into a given situation.Although the results of qualitative research can give some indication as to the"why", "how" and "when" something occurs, it cannot tell us "how often" or "howmany."

Exploratory research is not typically generalizable to the population at large.

Research is exploratory when you use no earlier model as a basis of your study.The most usual reason for using this approach is that you have no other choice.

Normally you would like to take an earlier theory as a support, but there perhaps isnone, or all available models come from wrong contexts.

Exploratory research means that hardly anything is known about the matter at theoutset of the project. You then have to begin with a rather vague impression ofwhat you should study, and it is also impossible to make a detailed work plan inadvance.

Analysis in exploratory research is essentially abstraction and generalization.Abstraction means that you translate the empirical observations, measurements etc.into concepts; generalization means arranging the material so that it disengagesfrom single persons, occurrences etc. and focuses on those structures (invariances)that are common to all or most of the cases.It will seldom be possible to divide exploratory study into such clear phases as iscommon in the case that the object has been studied earlier. According toAlasuutari (1993 p.22), in qualitative analysis of empirical findings, you candistinguish two phases but these two overlap:

simplification of observations

interpretation of results (or "solving the enigma")

In the simplification phase, the material is inspected from the theoretical point ofview of the study project, and only the points relevant from this angle are noted.Details differing from one individual to another at random are omitted or pushedaside so that the general lines of the data can be discerned more easily.


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Simplification continues by finding the relationships between separate bservationsor cases. Some tools for this work are comparison and classification. The goal is tofind the general rule or model that is valid in all or most of the observations. Thismodel can be, for example, development or evolution, causality, or a consciousaction to attain an outcome which is typical in normative research. -- In any casethe analysis starts from separate cases and aspires to create one or a few generalmodels.

"Solving the enigma" does not always mean answering exactly those questions thatwere asked at the outset of the project. Sometimes the most interesting questionsare found at the end of the research, when the researcher has become an expert onthe subject. It is often said that "data teach the researcher".

The purpose ofdescriptive exploratory research is to extract a structure from the

source material which in the best case can be formed as a rule that governs all theobservations and is not known earlier (per the definition of exploratory study).Finding the unknown structure may need some creative innovation, because eventhe most sophisticated computerized analysis methods cannot automaticallyuncover which type of structure is concealed in data. Usually you first have toformulate a tentative pattern for the assumed structure in the observations and thenyou can ask the computer to estimate how well the data corresponds to the model,cf. Tools for Analysis.

METHODS OF DATA COLLECTION

In the project work Primary data secondary data (both) sources of data has beenused .

1. Primary data collection:

In dealing with real life problem it is often found that data at hand are inadequate,and hence, it becomes necessary to collect data that is appropriate. There areseveral ways of collecting the appropriate data which differ considerably in contextof money costs, time and other resources at the disposal of the researcher.


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and how it was collected and analyzed since they did it themselves. Secondarysources on the other hand are sources that are based upon the data that wascollected from the primary source.

Secondary sources take the role of analyzing, explaining, and combining theinformation from the primary source with additional information. Secondary dataanalysis is commonly known as second-hand analysis. It is simply the analysis of

preexisting data in a different way or to answer a different question than originallyintended. Secondary data analysis utilizes the data that was collected by someoneelse in order to further a study that you are interested in completing. Commonsources of secondary data are social science surveys and data from governmentagencies, including the Bureau of the Census, the Bureau of Labor Statistics andvarious other agencies. The data collected is most often collected via surveyresearch methods. Data from experimental studies may also be used.

Sources of secondary data:

Sources of secondary data may be classified into qualitative and quantitative.Examples of qualitative sources are biographies, memoirs, newspapers, etc.Quantitave sources include published statistics (e.g., census, survey), data archives,market research, etc.[1] Today, with the aid of our internet capabilities, thousandsof large scale datasets are at the click of a mouse for secondary data analyst.

Globally, there are many sources available. These sources can arrive from the dataarranged by governmental and private organizations, to data collected by anysocial researcher.

Secondary data analysis is a growing research tool in our modern day society.Social scientists have the opportunity to explore massive amounts of secondarydata.

Collecting, reviewing, and analyzing secondary data

The Design and Purpose of Research

Secondary data analysis consists of collecting data that was compiled throughresearch by another person and using that data to get a better understanding of aconcept. A good way to begin your research using secondary data that you arecollecting to further support your concept is to clearly define the goals of your


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research and the design that you anticipate using. An important thing to rememberwhen defining your plan is to ensure that you have established what kind of datayou plan on using for your research and the exact goal. Establishing what type ofresearch design is an important component. In terms of using secondary data forresearch it helps to create an outline of what the final product will look likeconsisting of all the types of data to be used along with a list of sources that wereused to compile the research. In order to use secondary data three steps must becompleted:

1. locate the data

2. evaluate the data

3. verify the data

Locating the data can be easily done with the advancements of searching sourcesonline. However, people need to be aware of the details when searching onlinesince pages can be out of date or poorly put together.

Therefore, use caution and pay attention to whether it is a reliable data sourceonline and check when the last update was. To evaluate the data a researcher mustcarefully examine the secondary data they are considering to ensure that it meetstheir needs and purpose of study. The person must look at the population and what

the sample strategy and type were. It is also important to look at when the data wascollected, how it was collected, how it was coded and edited, along with theoperational definitions of measures that were used. Finally, the data must beverified to ensure good quality material to be used in new research.

Determining the Types of Data and Information Needed to Conduct

Analysis

Data and information collection for secondary data analysis will depend entirely

upon the subject that is central to the focal point of the study. The purpose ofconducting secondary data analysis is to further develop an improvedunderstanding of the subject matter at hand. Some important types of data andinformation that should be collected and summarized include demographicinformation, information gathered by government agencies (i.e. the Census), andsocial science surveys. There is also the possibility of reanalyzing data that wascollected in experimental studies or data collected with qualitative measures that


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can be applied in secondary data analysis. The most important component is toensure that the information and data being collected needs to relate to the subjectof study.

Determine the Quality of Sources of Data

In secondary data analysis, most individuals who do not have much experience inresearch training or technical expertise can be trained accordingly. However, thisadvantage is not without difficulty as the individual must be able to judge thequality of the data or information that has been gathered. These key tips will assistyou in assessing the quality of the data: Determine the original purpose of the datacollection, attempt to discover the credentials of the source(s) or author(s) of theinformation, consider if the document is a primary or secondary source, verify thatthe source well-referenced, and finally find out the: date of the publication; the

intended audience, and coverage of the report or document.

RESEARCH DESIGN

For the proper analysis of data simple quantitative technique such as percentagewere used. It help in marketing more accurate generalization From the data

available .The data which was collected from a sample of population wasassumed to be representing entire population was interested .Demographicfactor like age, income and educational background was used for theclassification purpose .

On The Job Training

On the job training is an important component of our training. It is an attempt tobridge the gap between the academic institution and the corporate world. DuringOJT, which would be a simulation of real work environment, requires you to


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undergo the rigor of professional environment, both in form and in substance. Inthe process, it provides an opportunity for us to satisfy our inquisitiveness aboutcorporate, provides exposure to technical skills, and helps us to acquire socialskills by being in constant interaction with the professionals of other organizations.

During OJT we are required to undertake assignment\jobs along with the day-to-day function

Documents

Project Report of Share Khan Nanda Krishna 1111