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Summer Internship Report

On

COMPARATIVE ANALYSIS OF INDIA INFOLINE LTD WITH 5 LEADING STOCK

BROKING HOUSES IN INDIA

( KOTAK SECURITIES, KARVY, INDIABULLS,

HDFC SECURITIES, ICICI DIRECT.)

By

RAHI GOMBER

ENROLLMENT NUMBER- A0102109008MBA- ENTREPRENEURSHIP

MBA Class of 2011

Under the Supervision of

Prof. Anubha srivastav

In Partial Fulfillment of Award of Master of Business Administration

AMITY BUSINESS SCHOOLAMITY UNIVERSITY UTTAR PRADESH

SECTOR 125, NOIDA-201303 , UTTAR PRADESH, INDIA



DECLARATION

I, Rahi Gomber student of Masters of Business Administration from Amity Business School,

Amity University Uttar Pradesh hereby declare that I have completed Summer Internship on

“The comparative analysis of india infoline with 5 leading stock broking houses in India.

I further declare that the information presented in this project is true and original to the best of

my knowledge.

Date: 16/07/2010 RAHI GOMBER

Enroll. No: A0102109008

Place: Noida MBA Class of 2011



ACKNOWLEDGEMENT

Sometimes words fall short to show gratitude, the same happened with me during this project.

The immense help and support received from India Infoline limited (IIFL) overwhelmed me

during the project.

My sincere gratitude to MR.ABHAY SAWHNEY (VP, IIFL) for providing me with an

opportunity to work with a prestigious institute as IIFL

I also thank PROF. ANUBHA SRIVASTAV , faculty guide, Amity Business School, Noida

who has sincerely supported me with the valuable insights into the completion of this project.

I am grateful to MR. DIVYADEEP ARORA (Sales Manager, Noida, IIFL) and all of the

members of IIFL-Noida branch, who have helped me in the successful completion of this

project.

Student Name : Rahi Gomber

Enrollment No. A0102109008

Programme: MBA(E&L) 2009-11



CONTENTS

SERIAL NO CHAPTER NAME PAGE NO.

1 INTRODUCTION 5

2 BACKGROUND OF STOCK EXCHANGE

7

3 INTRODUCTION OF THE

COMPANY

10

4 HISTORY OF IIFL 14

5 COMPANY PHILOSOPHY 15

6 MARKET SHARE OF THE

COMPANY

21

7 CURRENT SCENARIO 23

8 COMPETITOR ANALYSIS 28

9 RESEARCH METHODOLOGY 32

10 DATA COLLECTION 34

11 ANALYSIS AND INTERPRETATION 35

12 RECOMMENDATION 53

13 CONCLUSION 54

14 REFRENCES 55

15 ANNEXURE 56



ABSTRACT

There is growing competition between brokerage firms in India. For investor it is always

difficult to decide which brokerage firm to choose.

Research was carried out to find where does the company india infoline stands in comparison

with other 5 leading stock broking houses in india in terms of brokerage, margin money ,

marketing strategies .



Research was also carried out to find which brokerage house people prefer and to figure out what

people prefer while investing in stock market.

This study suggests 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 the Company’s (india infoline

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. Suggestions have been given to the company as to what

improvement can be done to its product.

INTRODUCTION

In 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 .

As the per-capita-income of the country 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.

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.

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 Association of the Exchange”. On or about 9 th 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 1916and478 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.



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.

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

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.

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.

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. programme, we received the opportunity from India

Infoline 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.

INTRODUCTION OF THE COMPANY

India infoline is a one-stop financial services shop, most respected for quality of its advice,

personalised service and cutting-edge technology.

The India Infoline group, comprising the holding company, india infoline limited and its wholly-

owned subsidiaries, straddle the entire financial services space with offerings ranging from



equity research, equities and derivatives trading, commodities trading, portfolio management

services, mutual funds, life insurance, fixed deposits, goi bonds and other small savings

instruments to loan products and investment banking.

India Infoline also owns and manages the websites www.indiainfoline.com and www.5paisa.com

the company has a network of over 2100 business locations (branches and sub-brokers) spread

across more than 450 cities and towns. the group caters to approximately a million customers.

The company also has its global presence in U.S.A , Dubai , Singapore.

Management Team

Mr. Nirmal Jain

Chairman & Managing Director

India Infoline Ltd.

Nirmal Jain, MBA (IIM, Ahmedabad) and a Chartered and Cost Accountant, founded India’s

leading financial services company India Infoline Ltd. in 1995, providing globally acclaimed

financial services in equities and commodities broking, life insurance and mutual funds

distribution, among others. Mr. Jain began his career in 1989 with Hindustan Lever’s

commodity export business, contributing tremendously to its growth. He was also associated

with Inquire-Indian Equity Research, which he co-founded in 1994 to set new standards in

equity research in India.

Mr. R Venkataraman

Executive Director

http://www.indiainfoline.com/


http://www.5paisa.com/






India Infoline Ltd.

R Venkataraman, co-promoter and Executive Director of India Infoline Ltd., is a B. Tech

(Electronics and Electrical Communications Engineering, IIT Kharagpur) and an MBA (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 USA and with BZW and Taib Capital Corporation

Limited. He was also Assistant Vice President with G E Capital Services India Limited in

their private equity division, possessing a varied experience of more than 16 years in the

financial services sector.

The Board of Directors

Apart from Nirmal Jain and R Venkataraman, the Board of Directors of India Infoline Ltd.

comprises:

Mr Nilesh Vikamsey

Independent Director

India Infoline Ltd.

Mr. Vikamsey, Board member since February 2005 - a practising Chartered Accountant and

partner (Khimji Kunverji & Co., Chartered Accountants), a member firm of HLB

International, headed the audit department till 1990 and thereafter also handles financial

services, consultancy, investigations, mergers and acquisitions, valuations etc; an ICAI study

group member for Proposed Accounting Standard — 30 on Financial Instruments —



Recognition and Management, Finance Committee of The Chamber of Tax Consultants

(CTC), Law Review, Reforms and Rationalization Committee and Infotainment and Media

Committee of Indian Merchants’ Chamber (IMC) and Insurance Committee and Legal

Affairs Committee of Bombay Chamber of Commerce and Industry (BCCI).

Mr. Vikamsey is a director of Miloni Consultants Private Limited, HLB Technologies(Mumbai) Private Limited and Chairman of HLB India.

Mr Sat Pal Khattar

Non Executive Director

India Infoline Ltd.

Mr Sat Pal Khattar, - Board member since April 2001 - Presidential Council of Minority

Rights member, Chairman of the Board of Trustee of Singapore Business Federation, is also

a life trustee of SINDA, a non profit body, helping the under-privileged Indians in Singapore.

He joined the India Infoline board in April 2001. Mr Khattar is a Director of public and

private companies in Singapore, India and Hong Kong; Chairman of Guocoland Limited

listed in Singapore and its parent Guoco Group Ltd listed in Hong Kong, a leading property

company of Singapore, China and Malaysia. A Board member of India Infoline Ltd, GatewayDistriparks Ltd — both listed — and a number of other companies he is also the Chairman of

the Khattar Holding Group of Companies with investments in Singapore, India, UK and

across the world.

Mr Kranti Sinha


India Infoline Ltd.

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

Agra University . 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, Larsen &

Toubro Limited, LICHFL Care Homes Limited, Gremach Infrastructure Equipments and

Projects Limited and Cinemax (India) Limited.

Mr Arun K. Purvar


India Infoline Ltd.

Mr. A.K. Purvar – Board member since March 2008 – completed his Masters degree in

commerce from Allahabad University in 1966 and a diploma in Business Administration in

1967. Mr. Purwar joined the State Bank of India as a probationary officer in 1968, where he

held several important and critical positions in retail, corporate and international banking,

covering almost the entire range of commercial banking operations in his illustrious career.

He also played a key role in co-coordinating the work for the Bank's entry into the field of insurance. After retiring from the Bank at end May 2006, Mr. Purwar is now working as

Member of Board of Governors of IIM-Lucknow, joined IIM–Indore as a visiting professor,

joined as a Hon.-Professor in NMIMS and he is also a member of Advisory Board for

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

taken over as Chairman of IndiaVenture Advisors Pvt. Ltd., as well as IL & FS Renewable

Energy Limited. He is also working as Independent Director in leading companies in

Telecom, Steel, Textiles, Autoparts, Engineering and Consultancy.

HISTROY OF INDIAINFOLINE

The IndiaInfoline Group was originally incorporated on October 18, 1995 as Probity

Research and Services Private Limited at Mumbai under the Companies Act, 1956 with



Registration No. 11 93797. The IndiaInfoline Group commenced its operations as an

independent provider of information, analysis and research covering Indian businesses,

financial markets and economy, to institutional customers. We became a public limited

company on April 28, 2000 and the name of the Company was changed to Probity Research

and Services Limited. The name of the Company was changed to India Infoline.com Limited

on May 23, 2000 and later to India Infoline Limited on March 23, 2001. In 1999, The

IndiaInfoline Group identified the potential of the Internet to cater to a mass retail segment

and transformed our business model from providing information services to institutional

customers to retail customers. Hence we launched our Internet portal, www.indiainfoline.com

in May 1999 and started providing news and market information, independent research,

interviews with business leaders and other specialized features.

In May 2000, the name of our Company was changed to India Infoline.com Limited to reflect

the transformation of our business. Over a period of time, we have emerged as one of the

leading business and financial information services provider in India.

In the year 2000, The India Infoline Group leveraged it’s position as a provider of financial

information and analysis by diversifying into transactional services, primarily for online

trading in shares and securities and online as well as offline distribution of personal financial products, like mutual funds and RBI Bonds. These activities were carried on by our wholly

owned subsidiaries.

The India Infoline Group’s broking services was launched under the brand name of

5paisa.com through our subsidiary, India Infoline Securities Private Limited and

www.5paisa.com, the e-broking portal, was launched for online trading in July 2000. It

combined competitive brokerage rates and research, supported by Internet technology besides

investment advice from an experienced team of research analysts, we also offer real time

stock quotes, market news and price charts with multiple tools for technical analysis.

Acquisition of Agri Marketing Services Limited ("Agri")



In March 2000, The IndiaInfoline Group acquired 100% of the equity shares of Agri

Marketing Services Limited, from their owners in exchange for the issuance of 508,482 of

our equity shares. Agri was a direct selling agent of personal financial products including

mutual funds, fixed deposits, corporate bonds and post-office instruments. At the time of our

acquisition, Agri operated 32 branches in South and West India serving more than 30,000

customers with a staff of, approximately 180 employees. After the acquisition, we changed

the company name to India Infoline.com Distribution Company Limited.

The India Infoline group, comprising the holding company, India Infoline Ltd (NSE:

INDIAINFO, BSE: 532636) and it’s subsidiaries, is one of the leading players in the Indian

financial services space. India Infoline offers the entire gamut of financial services covering

investment products ranging from Equities and derivatives, Commodities, Portfolio

Management Services, Mutual Funds, Life Insurance, Fixed deposits, Loans, Investment

Banking, GoI bonds and other small savings instruments. It owns and manages the website,

www.indiinfoline.com, which is one of India’s leading online destinations for personal

finance, stock markets, economy and business.

A forerunner in the field of equity research, India Info line’s research is acknowledged by

none other than Forbes as ‘Best of the Web’ and ‘…a must read for investors in Asia’. IndiaInfoline’s research is available not just over the internet but also on international wire

services like Bloomberg (Code: IILL), Thomson First Call and Internet Securities where it is

amongst the most read Indian brokers.

A network of 753 business locations spread over 346 cities across India, facilitates the

smooth acquisition and servicing of a large customer base. All these offices are connected

with the corporate office in Mumbai with cutting edge networking technology.

The group caters to a customer base of over 500,000 over a variety of mediums viz. online,

over the phone and at our branches. The Group is strengthening its institutional broking and

investment banking services and has built a team of experienced research analysts, sales and

trading professionals.



IIFL refers to IndiaInfoline Ltd and its subsidiaries. The consolidated figures will give a more

meaningful picture of the Company to the investors. Reference to the company or

IndiaInfoline is to the business done by the company and its subsidiaries, unless otherwise

specified.

VISION

“Our vision is to be the most respected company in the financial services space”

MISSION

“To become a full-fledged financial services company known for its quality of advice,

personalized services and cutting edge technology”

COMPANY PHILISOPHY

The IndiaInfoline Group is committed to placing the Investor First, by continuously striving



to increase the efficiency of the operations as well as the systems and processes for use of

corporate resources in such a way so as to maximize the value to the stakeholders. The Group

aims at achieving not only the highest possible standards of legal and regulatory compliances,

but also of effective management.

Company Structure

India Infoline Limited is listed on both the leading stock exchanges in India, viz. the

Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also amember of both the exchanges. It is engaged in the businesses of Equities broking,

Wealth Advisory Services and Portfolio Management Services. It offers broking services

in the Cash and Derivatives segments of the NSE as well as the Cash segment of theBSE. It is registered with NSDL as well as CDSL as a depository participant, providing

a one-stop solution for clients trading in the equities market. It has recently launched itsInvestment banking and Institutional Broking business.

A SEBI authorized Portfolio Manager; it offers Portfolio Management Services to

clients. These services are offered to clients as different schemes, which are based ondiffering investment strategies made to reflect the varied risk-return preferences of

clients.

India Infoline Media and Research Services Limited.



The content services represent a strong support that drives the broking, commodities, mutual

fund and portfolio management services businesses. Revenue generation is through the sale of

content to financial and media houses, Indian as well as global.

It undertakes equities research which is acknowledged by none other than Forbes as 'Best of theWeb' and '…a must read for investors in Asia'. India Infoline's research is available not just over

the internet but also on international wire services like Bloomberg (Code: IILL), Thomson FirstCall and Internet Securities where India Infoline is amongst the most read Indian brokers.

India Infoline Commodities Limited.

India Infoline Commodities Pvt Limited is engaged in the business of commodities broking. Our

experience in securities broking empowered us with the requisite skills and technologies to allow

us offer commodities broking as a contra-cyclical alternative to equities broking. We enjoymemberships with the MCX and NCDEX, two leading Indian commodities exchanges, and

recently acquired membership of DGCX. We have a multi-channel delivery model, making it

among the select few to offer online as well as offline trading facilities.

India Infoline Marketing & Services

India Infoline Marketing and Services Limited is the holding company of India Infoline

Insurance Services Limited and India Infoline Insurance Brokers Limited.

(a) India Infoline Insurance Services Limited is a registered Corporate Agent with the Insurance

Regulatory and Development Authority (IRDA). It is the largest Corporate Agent for ICICIPrudential Life Insurance Co Limited, which is India's largest private Life Insurance Company.

India Infoline was the first corporate agent to get licensed by IRDA in early 2001.

(b) India Infoline Insurance Brokers Limited is a newly formed subsidiary which will carry out

the business of Insurance broking. We have applied to IRDA for the insurance broking licence

and the clearance for the same is awaited. Post the grant of license, we propose to alsocommence the general insurance distribution business.

India Infoline Investment Services Limited

Consolidated shareholdings of all the subsidiary companies engaged in loans and financing



activities under one subsidiary. Recently, Orient Global, a Singapore-based investmentinstitution invested USD 76.7 million for a 22.5% stake in India Infoline Investment Services.

This will help focused expansion and capital raising in the said subsidiaries for various lending

businesses like loans against securities, SME financing, distribution of retail loan products,consumer finance business and housing finance business. India Infoline Investment Services

Private Limited consists of the following step-down subsidiaries.

(a) India Infoline Distribution Company Limited (distribution of retail loan products)

(b) Moneyline Credit Limited (consumer finance)

(c) India Infoline Housing Finance Limited (housing finance)

IIFL (Asia) Pte Limited

IIFL (Asia) Pte Limited is wholly owned subsidiary which has been incorporated in Singapore to pursue financial sector activities in other Asian markets. Further to obtaining the necessary

regulatory approvals, the company has been initially capitalized at 1 million Singapore dollars.

MILESTONES ACHIEVED

1995

Incorporated as an equity research and consulting firm with a client base that included leadingFIIs, banks, consulting firms and corporates.

1999

Restructured the business model to embrace the internet; launched archives.indiainfoline.commobilized capital from reputed private equity investors.

2000

Commenced the distribution of personal financial products, launched online equity trading;

entered life insurance distribution as a corporate agent. Acknowledged by Forbes as ‘Best of the

Web’ and ‘...must read for investors’.

2004

Acquired commodities broking license; launched Portfolio Management Service.

2005

Listed on the Indian stock markets.

2006

Acquired membership of DGCX; launched investment banking services.



2007

Launched a proprietary trading platform; inducted an institutional equities team; formed a

Singapore subsidiary; raised over USD 300 mn in the group; launched consumer finance

business under the ‘Moneyline’ brand.

2008Launched wealth management services under the ‘IIFL Wealth’ brand; set up India Infoline

Private Equity fund; received the Insurance broking license from IRDA; received the venturecapital license; received in principle approval to sponsor a mutual fund; received ‘Best broker-

India’ award from Finance Asia; ‘Most Improved

‘Brokerage- India’ award from Asiamoney.

2009

Received registration for a housing finance company from the National Housing Bank; received‘Fastest growing Equity Broking House - Large firms’ in India by Dun & Bradstreet.

2010Received in-principle approval for Securities Trading and Clearing memberships from SGX.

MARKET SHARES OF COMPANY

Retail broking :

IndiaInfoline has around 3 lakhs customers. It has a tie-up with Bank of Baroda for e-broking.

Institutional broking :

IndiaInfoline has roped in Bharat Parajia, director of sales at CLSA in Singapore, H Nemkumar,

CLSA's country head for India, Aniruddha Dange, CLSA's head of research in India, and

Vasudev Jagannath, CLSA's head of sales in India. While Parajia will join as head of

institutional sales at India Infoline, Dange will be head of research and Nemkumar head of

investment banking.

Each one of them is bringing in more than 10 years of experience with a top institutional

brokerage in Asia. The CLSA foursome will also pick up stakes in India Infoline through the

preferential allotment route. Their collective stake would add up to around 15%. Parajia already

holds a 2.88% stake in India Infoline. He will subscribe to 25 lakhs equity warrants at Rs 440

each. Nemkumar will pick up another 25 lakhs, while Jagannath and Aniruddha Dange will

subscribe to 20 lakhs warrants each. The preferential allotment includes the four men buying 90



lakh equity warrants at a price of Rs 440 each, of which 10% will be paid up front as their sign-

on bonus.

The remaining will be payable at the end of eighteen months when the warrants will be

convertible into shares. That is, all these guys will have to cough up about Rs 360 crore to

convert their warrants into shares. Currently, the company's institutional equities team has 35

people, including research analysts and dealers.

INCOME COMPOSITION

RS. Mn FY 10 FY 09 Y-Y Q4FY1

0

Q4FY0

9

Y-Y Q3FY1

0

Q-Q

EQUITIES BROKERAGE

AND RELATED

6148.3 4539.2 35.4% 1474.7 978.5 50.7% 1510.2 (2.4%)

FINANCING ANDINVESTMENT

2917.9 2654.1 9.9% 968.5 345.2 180.5% 598.4 61.8%

MARKETING ANDONLINE MEDIA

658.7 706.4 (6.7%) 253.9 168.6 50.6% 203.0 25.1%

LIFE INSURANCE 536.4 481.5 11.4% 196.3 89.3 119.9% 135.8 44.6%

COMMODITIESBROKERAGE

248.3 169.2 46.8% 68.4 42.3 61.8% 67.5 1.3%

WEALTH AND MUTUALFUND ADVISORY

331.6 177.1 87.3% 76.4 54.5 40.2% 94.3 (18.9%

)

MERCHANT BANKING 387.8 23.3 1566.8

%

56.6 0.3 19298.3

%

284.8 (80.1%

)

OTHER INCOME 9.8 24.2 (59.7%

)

3.1 2.6 21.1% 3.5 (8.3%)

TOTAL INCOME 11238.

8

8775.0 28.1% 3097.9 1681.3 84.3% 2897.3 6.9%



PAN INDIA PRESENCE

CURRENT SCENARIO

India Infoline (IIFL) has transformed itself from being an equity research firm to financialservices conglomerate in the past 15 years. Apart from

equity broking, the company now has presence in

commodity broking, investment banking, wealth

management, insurance and lending businesses. Of late, thecompany has also made significant inroads into lending and

investment banking business. Investors can take exposure to

http://openslideshow%28%27/slideshow/5884846.cms')



IIFL for a long term.

BUSINESS:

The Company has aggressively improved its presence over the past few years. Currently, the

company has presence in as many as 2,300 locations through branches and sub-brokers. Awide network has helped it in rapidly improving its share of the trading volumes, which

improved to 3.8% in FY10 from 1.7% four years ago at the national stock Exchange (NSE).Compared to FY09, the company’s share in volumes was flat. But that’s because the share

of futures and options (F&O ) has gone up in NSE volumes, while IIFL

focuses more on cash segment.

This is because the margins in cash segment are more than F&O segment. So while thecompany’s share actually went up in cash segment, its share remained stagnant in total

volumes on year-on-year basis. In brokerage industry, the fight is for the volumes. This is

where IIFL stands at advantage, as it is one of the top players both in retail as well

institutional side of business. In the lending business, the company is focusing on loansagainst property, which comprised more than 40% of loan book in FY10. Since this is

secured lending, it helps the company in maintaining high asset quality. Net non-performing

assets (NPA) formed less than 1% of net advances. At such NPA levels, the company’s assetquality is comparable with that of best non-banking financial companies (NBFC) in India.

The thrust on lending business is evident from the fact that loan portfolio grew by 70% in

FY10.

Apart from it, the company is focusing on investment banking activities too. This is evidentfrom the fact that it earned revenue of Rs 39 crore from such activities in FY10 compared to just Rs 2.3 crore a year ago. It managed the initial public offerings (IPO) & qualified

institutional placement (QIP) of names, such as Gammon India, Cox & Kings India, Cipla,

Adani Power and Everest Kanto among others.Due to its presence in wide range of financial services, it has one of the most diversified

business models in its industry. It must be recalled that brokerage and other financial

services firm had a tough time in FY09, when the equity markets plummeted. Eventhen,IIFL’s profit fell by only 9% in FY09.



GROUP BRAND IDENTITY CHANGED TO IIFL

Brand identity of the group changed from India Infoline to IIFL

This was communicated via a well-received multi-media advertising campaign

Ogilvy & Mather retained as their advertising agency



PRODUCTS OFFERED BY INDIA INFOLINE LIMITED

Equities

Indiainfoline provided the prospect of researched investing to its clients, which was hitherto

restricted only to the institutions. Research for the retail investor did not exist prior to

Indiainfoline. Indiainfoline leveraged technology to bring the convenience of trading to the

investor’s location of preference (residence or office) through computerized access. Indiainfoline

made it possible for clients to view transaction costs and ledger updates in real time.

PMS

Our Portfolio Management Service is a product wherein an equity investment portfolio is created

to suit the investment objectives of a client. We at Indiainfoline invest your resources into stocks

from different sectors, depending on your risk-return profile. This service is particularly

advisable for investors who cannot afford to give time or don't have that expertise for day-to-day

management of their equity portfolio.

Research

Sound investment decisions depend upon reliable fundamental data and stock selection



techniques. Indiainfoline Equity Research is proud of its reputation for, and we want you to find

the facts that you need. Equity investment professionals routinely use our research and models as

integral tools in their work.

They choose Ford Equity Research when they can clear your doubts.

Commodities

Indiainfoline’s extension into commodities trading reconciles its strategic intent to emerge as a

one-stop solutions financial intermediary. Its experience in securities broking has empowered it

with requisite skills and technologies. The Company’s commodities business provides a contra-

cyclical alternative to equities broking. The Company was among the first to offer the facility of

commodities trading in India’s young commodities market (the MCX commenced operations

only in 2003). Average monthly turnover on the commodity exchanges increased from Rs 0.34

bn to Rs 20.02 bn. The commodities market has several products with different and non-

correlated cycles. On the whole, the business is fairly insulated against cyclical gyrations in the

business.

Mortgages

During the year under review, Indiainfoline acquired a 75% stake in Moneytree Consultancy

Services to mark its foray into the business of mortgages and other loan products distribution.

The business is still in the investing phase and at the time of the acquisition was present only in

the cities of Mumbai and Pune. The Company brings on board expertise in the loans business

coupled with existing relationships across a number of principals in the mortgage and personal

loans businesses. Indiainfoline now has plans to roll the business out across its pan-Indian

network to provide it with a truly national scale in operations.

Invest Online

Indiainfoline has made investing in Mutual funds and primary market so effortless. All you have

to do is register with us and that’s all. No paperwork no queues and No registration charges.



INVEST IN MF

Indiainfoline offers you a host of mutual fund choices under one roof, backed by in-depth

research and advice from research house and tools configured as investor friendly.

Insurance

An entry into this segment helped complete the client’s product basket; concurrently, it graduated

the Company into a one-stop retail financial solutions provider. To ensure maximum reach to

customers across India, we have employed a multi pronged approach and reach out to customers

via our Network, Direct and Affiliate channels. Following the opening of the sector in 1999-2000,

a number of private sector insurance service providers commenced operations aggressively and

helped grow the market.

The Company’s entry into the insurance sector derisked the Company from a predominant

dependence on broking and equity-linked revenues. The annuity based income generated from

insurance intermediation result in solid core revenues across the tenure of the policy.

Wealth Management Service

Imagine a financial firm with the heart and soul of a two-person organization. A world-leading

wealth management company that sits down with you to understand your needs and goals. We

offer you a dedicated group for giving you the most personal attention at every level.

MAJOR PLAYERS IN THE MARKET

ICICI direct

India bulls

Karvy wealth

HDFC securities

Kotak securities

COMPETITOR ANALYSIS



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

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

http://funct2%28%29/

http://marginplus%28%29/

http://funct2%28%29/

http://marginplus%28%29/



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 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

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 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 .

HDFC SECURITIES

HDFC securities is the subsidiary of HDFC (Housing Development Financial Corporation).

www.hdfcsec.com would have an exclusive discretion to decide the customers who would be

entitled to its online investing services. www.hdfcsec.com also reserves the right to decide on the

criteria based on which customers would be chosen to participate in these services .The present

web site (www.hdfcsec.com) contains features of services that they offer/propose to offer in due



course. The launch of new services is subject to the clearance of the regulators. i.e. SEBI, NSE

and BSE.

PRODUCT OFFERED BY HDFC SECURITY

• Online trading for Resident & Non Resident Indians.

• Cash-n-Carry on both NSE and BSE.

• Day trading on both NSE and BSE.

• Trade on Futures & Options on the NSE.

• Online IPO's.

• Telephone-based Broking (Equity & Derivatives)

RESEARCH METHODOLOGY

Our comparison is based on the following factors :-

1. Brokerage charges

2. Account opening charges

3. Marketing strategies

http://www.sebi.com/

http://www.nseindia.com/

http://www.bseindia.com/






Objective Of Research

PRIMARY OBJECTIVE: How india infoline is the best service provider as a stock broker in

our country as compared to other stock broking houses.

SECONDARY OBJECTIVE:

To understand the areas where the company can improve itself in order to increase its

potential.

To know the current standing of india infoline ltd.

To study the effectiveness & efficiency of india infoline ltd in relation to its competitors.

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

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

it in our research for collection of all the numerical data.

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

phenomena under study from all or selected number of respondents.Our survey is based upon the

questionnaire.

SAMPLE :-

A sample refers to subgroups of the population selected for participation in the study.

SIZE OF SAMPLE

Sample size refers to number of elements included in a study.

In our research sample size is 100.

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

ICICI direct, HDFC securities, Karvy consultant ltd., Kotak securities and India bulls for the

appropriate collection of the information.

SAMPLE DESIGN



DETAILS OF THE SURVEY CONDUCTED

Sampe size 100

Target population

20-30 years30-40 years

40-50 years

above 50 years

Location Preet Vihar, Laxmi Nagar,

Paharganj, Connaught place and

pitampura

Type of questionnaire Structured

No of questions involved 10

DATA COLLECTION

The information required for my project was collect mainly from the primary sources and even

from secondary sources. The primary source consists of the data analyzed from questionnaire

and interaction with the user at that time only and internet is used as secondary source.

DATA COLLECTION METHOD

Data is collected through questionnaire schedule method. It means the investigators are trained

to collect the information required for an enquiry through schedule. The trained investigators

meet the people concerned and fill up the schedules with the information supplied by them.

Limitations:· Time limitation

· Research has been done only in Delhi.· Companies did not disclose their secrets data and strategies.

· Possibility of Error in data collection.

· Possibility of Error in analysis of data due to small sample size.



ANALYSIS AND INTERPRETATION

COMPARATIVE ANALYSIS

Comparative analysis on the basis of brokerage charges

stock BrokerBrokerage

for Delivery

Brokerage for

Intraday

trading

ICICI direct 0.75% 0.15%

India bulls0.20% 0.01% - 0.05%

HDFC Securities0.50% 0.15%

India infoline0.30% 0.05% - 0.10%

Kotak Securities 0.59% 0.06%

Kavry 0.25% 0.05

Brokerage is usually negotiable:

In some cases we find that only a range of brokerage charges is given . The reason behind this

range is that brokerage charged by brokers varies and in several cases it is negotiable.

For example- if you go to a brokerage house and tell that you are going to deposit 2 lakh Rs and

try to convince them that you are going to trade heavily, they might consider reducing your

brokerage. That is why in the above table you will find only a range for the brokerage charges in

some cases. But that should be enough to get an idea.

http://www.icicidirect.com/

http://indiabulls.com/

http://www.hdfcsec.com/


http://www.icicidirect.com/

http://indiabulls.com/

http://www.hdfcsec.com/




On the basis of Account opening charges

HDFC SECURITIES LTD.

Account opening charges (AOC) with effect from June2010 are as follows-Rs 799 and account

maintenance charges (AMC) : Free for 1st year and Rs 500 2nd year onwards.



ICICI DIRECT

Account opening charges (AOC) are Rs 975 and (AMC) : Free for 1st year and Rs 500 2nd year

onwards incase of paper statement and Rs 450 incase of email statement

INDIABULLS

Account opening charges AOC – Rs 750 whereas AMC – NIL

KOTAK SECURITIES

Account opening charges- Rs 750 and annual maintenance charge is Rs 33 per month.

INDIA INFOLINE LTD

Account opening charges (AOC) – NIL. Advance brokerage for 3 months Rs 750 ie. Brokerage

will not be charged from your account if the brokerage amount reaches Rs 750 within 3 months.

AMC – 25 Rs per month.

KARVY

Account opening charges - NIL. AMC Rs 250 per month

Comment : In case of AOC

Icici direct charge maximum account opening charges followed by hdfc securities whereas there

are no such charges with india infoline ltd.



Incase of AMC:

Karvy has got maximum account maintenance charges whereas india bulls has no account

maintenance charge.

AOC AMC

ICICI DIRECT 975 500

KARVY 0 3000

KOTAK SECURITIES

750 396

INDIA INFOLINELTD

0 300

HDFC SECURITIES 799 500

INDIABULLS 750 0



Comparison on the basis of marketing strategies

ICICI DIRECT -

ICICIDirect (or ICICIDirect.com) is stock trading company of ICICI Bank. Along with stock

trading and trading in derivatives in BSE and NSE, it also provides facility to invest in IPOs,

Mutual Funds and Bonds. Trading is available in BSE and NSE.

Trade In: BSE and NSE

MARKETING STRATEGIES ADAPTED

Being in an industry where there is hardly any product differentiation, it becomes very essential

for a company to adopt proper marketing strategies to stay ahead of its competitors.

MARKETING STRATEGIES

Advertisement across all major social networking sites

Focusing mainly on its existing customer base

Customer Relationship management is extensively followed

***COMPARISON WITH INDIA INFOLINE

Rate of brokerage is very high and it is hardly negotiable which gives an edge to its

competitors like IIFL in acquiring clients



Software for trading is provided to only large scale traders which incase of IIFL is

provided to all and is easy to use

They have an edge over IIFL in the sense that it provides a 3 in 1 account which includes

a bank account, so existing customers of ICICI need not go else where for opening a

demat a/c

Account opening charges are not adjustable towards brokerage which is done incase of

IIFL.

No margin is provided in case of most of the securities

Kotak securities

Kotak Securities Ltd., a strategic joint venture between Kotak Mahindra Bank and Goldman

Sachs (holding 25% - one of the world's leading investment banks and brokerage firms) is India's

leading stock broking house with a market share of 5 - 6 %. Kotak Securities Ltd. has been the

largest in IPO distribution - It was ranked number One in 2003-04 as Book Running Lead

Managers in public equity offerings by PRIME Database. It has also won the Best Equity House

Award from Finance Asia - April 2004.

MARKETING STRATEGIES:

Kotak has a strong network of employees, thus relationship marketing helps them in

acquiring new customers.

Attractive advertisements in all major websites and newspapers which is easily

understandable and comprehendible.

Corporate presentations and tie ups with leading corporate like Kribhco, JSW.

Special offer of account opening by Re1 are offered to lure the corporate



Display of canopies and standings in areas of public attention

Focus laid on targeting existing clients having savings and current account with them

Telecalling

***COMPARISON WITH IIFL

Provides a 3 in 1 account which includes a bank account.

Research team is best known for the effectiveness of its tips

Targets mainly hi end large scale investors

Brokerage negotiable to the same extent in both the companies

KEAT software is more user friendly.

HDFC SECURITIES - 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.

MARKETING STRATEGIES:










They believe in personal marketing i.e marketing through word of mouth

Focusing mainly on its existing customer base

***COMPARISON WITH INDIA INFOLINE

Software for trading is provided to only large scale traders which incase of IIFL is

provided to all and is easy to use


IIFL.

Rate of brokerage is very high and it is hardly negotiable which gives an edge to its

competitors like IIFL in acquiring clients

INDIA BULLS SECURITIES - 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.

MARKETING STRATEGIES

Tie ups with major corporate houses for organizing seminars and giving their employees

special packages

Tele marketing is extensively done




Focus laid on targeting existing clients having savings and current account with them

COMPARISON WITH INDIA INFOLINE

India bulls gives strong competition to IIFL in case of brokerage

India bulls does not have any account maintenance charges.


IIFL

Targets mainly hi end large scale investors

Q1. Do you know about investment options available?

KNOWLEDGE %AGE

Yes 60

No 40

TOTAL 100



ANALYSIS:

It can be seen that among the whole population only 60% people are aware about the investment

option available. It means that only 60% people know the exact meaning of investment. So these

people can actually become IIFL target but IIFL has to provide them with better services and

brokerage plans and also providing them initial platform of online trading.

2) Most preferable investment scenario.

INVESTMENT

SCENARIO

%AGE

Banks 24%

Derivatives &

securities market

28%

Insurance 4%

Bonds 20%

Real estate 20%



Others 4%

TOTAL 100

ANALYSIS:

The above observation speaks about the financial instruments in which the people invest; most of

the people invest in the securities through share market and then invest in the banks. Thus more

focus should be made on securities so that company has the maximum investment. This wouldultimately increase the profits.

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

FACTOR %AGE

Risk 8%

Returns 17%

Both 75%

TOTAL 100



ANALYSIS:

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

risk or returns factor.

4) Awareness related to security markets

KNOWLEDGE PERCENTAGE

Complete 8%

Partial 75%

Nil 17%

TOTAL 100



ANALYSIS:

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.

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

ACCOUNTS PERCENTAGE

Yes 60%

No 40%

TOTAL 100%



ANALYSIS:

Only 60% respondents have de-mat and trading account and remaining 40% says no because

they don’t know why shares move up and down.

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

COMPANY PERCENTAGE

KOTAK 24%

INDIAINFOLINE 32%

HDFC SECURITIES 10%



INDIA BULLS

SECURITIES

18%

KARVY 12%

ICICI DIRECT 4%

TOTAL 100

ANALYSIS:

Most of the people have their d-mat account with IIFL but kotak securities and India bulls givestuff competition to IIFL. These brands have good name in the market.

32% of the total sample size have their d-mat account with IIFL because of their better services

and no account opening charges.

7). Do you pay AOC – Account opening charges

AOC %AGE

Yes 72%



No 28%

ANALYSIS:

A good percentage of people give the account opening charge to the company.

IIFL can have the advantage of attracting their customers as they don’t charge the AOC whichwill further work to generate sales.

8). How much AOC did you pay

a) NIL b) 700 & abovec) 900 & above

AOC %AGE



NIL 28%

700 &

above

62%

900 & above 10%

ANALYSIS:

About 28% of the total population says that they do not pay any account opening chargewhich means account opening charge of their respective companies are NIL.

IIFL is the one example of such companies

Only 10% of the population says that the account opening charge of their company is 900

and above. ICICI direct is one of the company whose account opening charges are

Rs.975.

9). How much Brokerage do you pay on Intraday?

BROKERAGE %AGE



(0.05 – 0.08) % 45%

(0.09 – 0.12) % 30%

ABOVE 0.12 % 25%

ANALYSIS:

It can be seen that the companies are charging brokerage according to their own means. So, the

companies are creating biasness between the customers. Even if the customers portfolio is the

same then also the brokerage may vary from the person to person. So, IIFL has the best feature

of providing less brokerage and according to the customers wants.

10). How much Brokerage do you pay on Delivery?



BROKERAGE %AGE

(0.20 - 0.30) % 62%

(0.31 – 0.50) % 26%

ABOVE 0.50 % 12%

ANALYSIS:

Here also you can see that the long term investors have to give brokerage according to what the

company wants. So, here also the biasness is created in the mind of the customers. So, IIFL got agreat opportunity to attract the customers by giving the brokerage plans according to what the

customer want.

RECOMMENDATIONS



Some strategies which I felt could be useful are

Brokerage rate should be reduced. Kotak securities, Indiabulls, are charging as .05% for

Intraday and 0 .30% for Delivery where as India Infoline is charging 0.05% for Intradayand 0 .50% for Delivery. Though it is negotiable but for high margin money customer not

for less margin money customer.

IIFL has hidden charges. Absolute transparency should be maintained

Reducing the advance brokerage of Rs.750 adjustable in 3months or increase the

adjustment period as most of the traders who plan for long term investment are unwilling

to pay it.

Make new schemes for the AMC or annual maintenance charge as it is higher as

compared to its competitors.

Withdraw the exit charge that is to be paid by account holders at the time of closing of

account.

Organize seminars in various MBA colleges as students of finance are mostly interested

and trade in capital market. In that way new customers can be created at the same time

the brand name can be spread further.

Give lucrative introductory offers of free account opening or no annual maintenance

charge for the 1st year as is done by most of the trading houses.

Advertising on various social networking sites like twitter or face book.

Make tie ups with more banks of nationalized levels.

Making use of trainees to know the current satisfaction level of customers or

dissatisfaction faced by them, if any. Customer retention in today’s market is more

important than new customer creation. So all grievances should be dealt with.

More than one internet connection should be arranged so that in case of disfunctioning of

one, no interruption should be caused in trading.

Need to open more branches as the company has a low distribution network.



CONCLUSION

On the basis of our observation it can be surely said that in stock broking industry,

differentiation can become the key to higher revenues. Better service, immediate execution,

portfolio services, investment advisors and telephone call centers or branch investment offices

are needed to retain customers and to increase the revenue base. As more number of people will

get comfortable with internet/technology, broking (especially online broking) will have a

completely new meaning with more fringes coming into the picture and more firms will offer

umbrella services to their clients. Thus more of strategies should be undertaken.



REFERENCES

http://www.icicidirect.com

http://www.indiabulls.com

http://www.indiainfoline.com

http://www.moneycontrol.com

http://www.myiris.com

http://niftyprediction.blogspot.com/2008/08/comparison-table-of-brokerage-charges.html

http://www.karvy.com/market/docs/mktnews.pdf

http://www.mphasis.com/pdfs/HDFC-Nov-Q4.pdf

www.financialtimes.net

http://www.chittorgarh.com/newportal/online-stock-brokers-list.asp

Newspaper

The Economic Times

http://www.indiabulls.com/


http://www.moneycontrol.com/

http://www.myiris.com/




http://www.financialtimes.net/

http://www.indiabulls.com/


http://www.moneycontrol.com/

http://www.myiris.com/




http://www.financialtimes.net/



ANNEXURE

Personal Information:

Name: _________________________________________ Age: ___________

Occupation: (i) Professional (ii) Salaried (iii) Business (iv) Retired (v) Homemaker

Contact details: _________________________________________________________

Annual Income: (i) below 150000 (ii) 150000-300000 (iii) 300000-500000 iv) 500000 & above

Age group: 20-30

30-40

40-50

50& above

Q1. Do you know about investment options available

YES

NO

Q2. Most preferable investment scenario.

a)Banks

b)Insurance

c)Bonds

d)Securities

e)Real estate

f)others



Q3. Most important things you take into your mind while making

investments?

a) Risk

b) Return

c) both

Q4.Awareness related to security markets

a)Complete

b)Partial

c)Nil

Q5.Do you have any de-mat & trading account?

a)Yes

b)no

Q6.In which company you have d-mat and trading account?

a)Kotak

b)india infoline

c)india bulls

d)karvy

e)icici direct

f)hdfc securities



Q7.Do you pay AOC – Account opening charges

a)Yes

b)No

Q8. How much AOC did you pay?

a)Nil

b)700 & above

c)900 & above

Q9. How much Brokerage do you pay on Intraday?

a)0.05- 0.08 %

b)0.09 – 0.12 %

c)Above 0.12 %

Q10How much Brokerage do you pay on Delivery?

0.20 - 0.30%

0.31 - 0.50 %

Above 0.50 %

Documents

Rahi Report Final[1].Doc2003