A SUMMER TRAINING REPORT ON

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELOR OF BUSINESS ADMINISTRATION (BBA)

SHARE TRADING IN INDIA

TRAINING SUPERVISOR SUBMITTED BY ENROLLMENT NO. .

SESSION 2008-2011 GURU JAMBHESHWAR UNIVERSITY HISAR-125001

ACKNOWLEDGEMENT
No task can be achieved alone, particularly while attempting to finish a project of such magnitude. It took many very special people to facilitate it and support it. Hence, I would like to acknowledge all of their valuable support and convey my humble gratitude to them. First of all I thank Mr. Ravi K. Shankar Finance Manager at Sharekhan who has guided and fully supported me through out the making of this project. I also want to thank my faculty . who allowed and encouraged me to do my research project on Sharekhan. Thank you all for supporting me in making this projects a reality

TABLE OF CONTENT

CHAPTER 1 - INTRODUCTION CHAPTER 2 - RESEARCH METHODOLOGY CHAPTER 3 COMPANY PROFILE CHAPTER 4 - DATA ANALYSIS CHAPTER 5 CONCLUSION CHAPTER 6 RECOMMENDATIONS CHAPTER 7 - ANNEXURES CHAPTER 8 - BIBLIOGRAPHY

EXECUTIVE SUMMARY
Share trading in India is undergoing a transition and consolidation phase witnessed never before. The competition is likely to become so severe after the entry of many players, retaining a customer is most difficult practice for any service provider. Though India has a very big untapped market but the players will not flourish unless they change the way the customers are being served. Given the awareness level of today customers every player has to treat with care and make the customer feel that he is the king. Number of Online Share trader in India has crossed the line. More and more customers are coming under this umbrella and many of the existing one are changing pavilion. So customer retention and satisfaction is now more important as it was never before. Players keep coming with new schemes in order to attract new customers and retain the existing one. This is being supplemented with increased advertising and brand building efforts. Success of any organization depends upon its being proactive. An often quoted marketing adage is to manage a business well is to manage its future and to manage its future is to manage information. To give the student of management a feel of real world situation they are being sent to any organization where they work on a prescribed problem or a topic and come out with various conclusions and suggestions. I am very lucky as I got an opportunity to work with sharekhan., which is showing phenomenal growth and success in the Securities. . My topic of study was Client Acquisition And Competitor Analysis. This project is an effort to do a depth study and analysis of various known and unknown reasons for customer satisfaction and retention. To err is human and I am not an exception, valuable comments are always welcomed since it will motivate to work with greater zeal and efficiency in the future.

CHAPTER-1 INTRODUCTION

INTRODUCTION
Do you know that the world's foremost marketplace New York Stock Exchange (NYSE), started its trading under a tree (now known as 68 Wall Street) over 200 years ago? Similarly, India's premier stock exchange Bombay Stock Exchange (BSE) can also trace back its origin to as far as 125 years when it started as a voluntary non-profit making association. You hear about it any time it reaches a new high or a new low, and you also hear about it daily in statements like 'The BSE Sensitive Index rose 5% today'. Obviously, stocks and stock markets are important. Stocks of public limited companies are bought and sold at a stock exchange. But what really are stock exchanges? Known also as tNews on the stock market appears in different media every day. he stock market or bourse, a stock exchange is an organised marketplace for securities (like stocks, bonds, options) featured by the centralisation of supply and demand for the transaction of orders by member brokers, for institutional and individual investors. The exchange makes buying and selling easy. For example, you don't have to actually go to a stock exchange, say, BSE - you can contact a broker, who does business with the BSE, and he or she will buy or sell your stock on your behalf. All stock exchanges perform similar functions with respect to the listing, trading, and clearing of securities, differing only in their administrative machinery for handling these functions. Most stock exchanges are auction markets, in which prices are determined by competitive bidding. Trading may occur on a continuous auction basis, may involve brokers buying from and selling to dealers in certain types of stock, or it may be conducted through specialists dealing in a particular stock. But where did it all start? The need for stock exchanges developed out of early trading activities in agricultural and other commodities. During the middle Ages, traders found it easier to use credit that required supporting documentation of drafts, notes and bills of

exchange. The history of the earliest stock exchange, the French stock exchange, may be traced back to 12th century when transactions occurred in commercial bills of exchange. The first stock exchange in India, Bombay Stock Exchange was established in 1875 as 'The Native Share and Stockbrokers Association' and has evolved over the years into its present status as the premier stock exchange in the country. It may be noted that BSE is the oldest stock exchange in Asia, even older than the Tokyo Stock Exchange, which was founded in 1878. The country's second stock exchange was established in Ahmedabad in 1894, followed by the Calcutta Stock Exchange (CSE). CSE can also trace its origin back to 19th century. From a get together under a 'Neem Tree' way back in the 1830s, the CSE was formally established in May 1908. India's other major stock exchange National Stock Exchange (NSE), promoted by leading financial institutions, was established in April 1993. Over the years, several stock exchanges have been established in the major cities of India. There are now 23 recognised stock exchanges Mumbai (BSE, NSE and OTC), Calcutta, Delhi, Chennai, Ahmedabad, Bangalore, Bhubhaneswar, Coimbatore, Guwahati, Hyderabad, Jaipur, Kochi, Kanpur, Ludhiana, Mangalore, Patna, Pune, Rajkot, Vadodara, Indore and Meerut. Today, most of the global stock exchanges have become highly efficient, computerised organisations. Computerised networks also made it possible to connect to each other and have fostered the growth of an open, global securities market. Realizing there is untapped market of investors who want to be able to execute their own trades when it suits them, brokers have taken their trading rooms to the Internet. Known as online brokers, they allow you to buy and sell shares via Internet. Online Trading is a service offered on the Internet for purchase and sale of shares. In the real world, you place orders on your stockbroker either verbally (personally or telephonically) or in a written form (fax). In Online Trading, you will access a stockbroker's website through your internet-enabled PC and place orders through the broker's internet-based trading engine. These orders are routed to the Stock Exchange without manual intervention and executed thereon in a matter of a few seconds.

There are 2 types of online trading service: discount brokers and full service online broker. Discount online brokers allow you to trade via Internet at reduced rates. Some provide quality research, other dont. Full service online brokerage is linked to existing brokerages. These brokers allow their clients to place online orders with the option of talking/ chatting to brokers if advice is needed. Brokerage rates here are higher. 5Paisa.com, ICICIDirect.com, IndiaBulls.com, sharekhan.com, HDFCsec.com, Tatatdw.com, HMRstreet.com are some of the online broking sites in India.

ONLINE TRADING PROCESS

The various transactions involved in online trading can be shown from the point of view of the

Client Broker Stock Exchange

BENEFITS OF ONLINE TRADING

This mode of trading has shifted the trading power from stockbrokers to individual investors. The advantages are that it:

ENSURES THE BEST PRICE FOR INVESTORS

This technique offers the best price for the buying and selling transactions of the investors, by ensuring proper matching of their orders within the communication network itself. Also due to the high level of transparency with regard to display of information relating to the specific stocks and company profiles, the investors will be able to get the best quote for the shares. This leads to a reduction in the transaction cost for the investors. OFFERS LIQUIDITY TO THE INVESTORS Online trading offers 24-hour trading facilities or trading for longer hours when compared to the traditional stock exchanges. This provides added liquidity to the investors.

OFFERS GREATER TRANSPARENCY

Online trading gives greater transparency to the investors by providing them an audit trail. This involves a complete integrated electronic chain starting from order placement, to clearing and settlement and finally ending with a credit to the depository account of the investor. All these stages are subject to inspection, thus bringing in transparency into the system.

ENABLES HASSLE FREE TRADING

Online trading integrates the bank, the brokerage firm and the demat accounts, which leads to easy and paperless trading for the client.

ALLOWS QUICK TRADING

The investor will be able to execute the entire trading transaction, right from logging on to the brokers site, to the execution and settlement of his bank account, in a very short period of time.

PROVIDES A LEVEL PLAYING FIELD

Trading on the net, gives even the smallest retail investor access to information that earlier was available only to the big traders. This provides a level playing field for all investors in the securities market.

REDUCES THE SETTLEMENT RISK

This method of trading reduces the settlement risk for the investor, as in this case no short sale is possible i.e. the seller will not be able to sell the securities unless he has their actual possession. In the case of a demat account (required for an online transaction), when a seller wants to sell the securities, his demat account is checked by the Depository Participant before executing the sale transaction. This reduces the settlement risk for the buyer, who is assured of the delivery of the securities. Factors to keep in mind while selecting online brokers. Brokerage cost: It is important to weigh up the subscription and trading costs charged by an online broker against benefits offered by the site. All online brokers display their charges on their sites. Some make sure you find the charges easily, while with others you will have to search a bit. Safety: We should make sure site has 128-bit encryption to ensure safety of transaction online. ICICIDirect.com, 5paisa.com are few sites with 128-bit encryption. You normally get a secured Login id and password. It is always advisable to frequently change trading password. Ideally online trading site should be fully integrated. The greater the backward integration, the better it is for the customer. Ideally broking account, demat account and bank account should be linked electronically. Rate refresh: Rate refresh has to be real-time with no time lag. The speed and reliability comes with huge investment in technology. It is always advisable to check rates of online broking sites with BSE/ NSE terminal rates. Speed of execution: System has to be fast and reliable that does just one job- executes your trades. The last thing you need is a site that is heavily congested with the users who

are downloading heavy jpeg graphs or pulling the latest story why market is moving. The site should be one click wonder where squaring off all your positions or canceling all your pending orders takes one click and a confirmation of action. Trading limit: For trading, all sites provide 4 times buy and sell limit against margin money put in by customer. For delivery of shares, buying limit is equal to margin money put in by customer. Couple of sites also provides margin funding for buying of shares. Free trial period: Site should allow users free trial period to familiarize yourself with system before you decide to become trading member of the site. Intraday chart/ historical chart: The site should provide Intraday chart tick-by-tick time and price data / historical chart for technical analysis by investors of particular scrip. Lot of people trade based on charting packages. Before you can trade, you need to open an account and register as a trader as with online broking site. This involves filling up trading account form, Demat account form and for faster transfer of money- Internet enabled bank account. We should read terms and condition of each site before commencing to deal with them. As per SEBI rule, Photo id proof and current address proof is a must for opening trading account. Online share dealing on the Internet is now a way of life for thousands of investors. 80% of South Korea and 30%-40% US trade are executed online. If you want to deal in shares, there is no easier way.

FUTURE OUTLOOK
With increasing globalisation and consolidation amongst exchanges, the future of the regional stock exchanges, around 22 in India, is likely to be very uncertain and even their very survival is a question mark. Sebi has permitted the regional exchanges to form subsidiary companies, which are akin to super brokers. These companies have acquired membership of both BSE and NSE at confessional entry fees and permitted their members to trade on the BSE and NSE thus increasing trade volumes and business in both BSE and NSE. The stock markets of the future will have a redefined purpose and reinvented architecture due to the advent and widespread use of technology. Information and stock price quotations are available almost instantaneously and more importantly investors can act on this data by executing a trade from anywhere at any time. This new market will bring benefits to investors, listed companies, and the economies of countries. Trading will be cheaper, faster and settlement will be simpler and with reduced risk. Raising capital for companies will be easier, thus contributing directly to economic expansion. The leaders in this new world of investing will be the ones willing to be agents of change, to best meet the needs of investors and companies, and to do what is best for these two principal stakeholders in the capital markets. If done right, the stock markets of the future will be even better vehicles than today in helping companies grow, creating jobs, providing fair investment opportunities for people, and in improving economies. Both the exchanges, BSE and NSE, are visionary, proactive and increasingly use leadingedge technologies to effectively compete in the global environment. In the not-too-distant future, once full capital account convertibility is permitted in India one could well witness an expansion of trading volumes and its resultant economic benefits to the thriving and ever-young metropolis of Mumbai.

Problem of the Organization

Customer Satisfaction As far as customer satisfaction goes sharekhan.com has to tighten their socks. Many broking houses catering to heavy investors or small segment of the market can afford to and does provide relationship managers for their customers, who can understand the trading needs of individual customers, and advise accordingly. However, a broking house like sharekhan.com, which caters to the mass segment, is in no position to provide relationship managers for individual customers.

STRENGTH
Service Distribution network Marketing Products

WEAKNESS
Customer Satisfaction Branding Competition from Banks

OPPORTUNITIES
Ever increasing market Improving technology Unfulfilled needs of cust. Education level

THREATS
New competitors Technology based business

SWOT Analysis of Sharekhan

BRANDING
Though the company has a efficient products but large part of investment interested population does not know the company. The most basic expectation for a trader or investor when one begins trading is that one must get timely delivery of shares and proceeds from sale of shares. Also ones cash balances with the broker must be safe and secure. Though this confidence in the broker comes with time and experience, good and transparent practices also play a major role in imbibing confidence in traders.

COMPETITION FROM BANKS

Most of the banks due to good branding have the faith of the customers of their banking database. So they enjoy the liberty of huge database and customers find it more reliable to trade there rather than with a unknown broker. Also banks like HDFC Bank and ICICI Bank have the advantage of linking the trading accounts of their customers to saving accounts. This makes trading easier, and at the same time a trader withdraws exactly as much money from his account as is needed to complete the trade. Similarly sales proceeds are credited directly to saving account.

Competition Information
ICICIDIRECT.COM

Products and Services

A product for every need: ICICIdirect.com is the most comprehensive website, which allows you to invest in Shares, Mutual funds, Derivatives (Futures and Options) and other financial products. Simply put we offer you a product for every investment need of yours. ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an Affiliate of ICICI Bank Limited and the Website is owned by ICICI Bank Limited

ICICIDIRECT.COM

TRADING IN SHARES

TRADING IN DERIVATIVES

MUTUAL FUNDS

IPO AND BOND ONLINE

PERSONAL FINANCE

PRODUCT & SERVICES:

1. Trading in shares: ICICIdirect.com offers you various options while trading in shares.
Cash Trading

: This is a delivery based trading system, which is generally done with

the intention of taking delivery of shares or monies.

Margin Trading

: You can also do an intra-settlement trading upto 3 to 4 times your

available funds, wherein you take long buy/ short sell positions in stocks with the intention of squaring off the position within the same day settlement cycle. (ONLY for intraday) Margin PLUS Trading: Through Margin PLUS you can do an intra-settlement trading upto 25 times your available funds, wherein you take long buy/ short sell positions in stocks with the intention of squaring off the position within the same day settlement cycle. Margin PLUS will give a much higher leverage in your account against your limits. Spot Trading: When you are looking at an immediate liquidity option, 'Cash on Spot' may work the best for you, On selling shares through "cash on spot", money is credited to your bank a/c the same evening & not on the exchange payout date. This money can then be withdrawn from any of the ICICIBank ATMs. BTST : Buy Today Sell Tomorrow (BTST) is a facility that allows you to sell shares even on 1st and 2nd day after the buy order date, without you having to wait for the receipt of shares into your demat account. CallNTrade: CallNTrade allows you to call on a local number in your city & trade on the telephone through our Customer Service Executives. This facility is currently available in over 11 major states across India. Trading on NSE/BSE: Through ICICIdirect.com, you can trade on NSE as well as BSE.

2. TRADE IN DERIVATIVES: FUTURES Through ICICIdirect.com, you can now trade in index and stock futures on the NSE. In futures trading, you take buy/sell positions in index or stock(s) contracts having a longer contract period of up to 3 months. Presently only selected stocks, which meet the criteria on liquidity and volume, have been enabled for futures trading. Calculate Index and Know your Margin are tools to help you in calculating your margin requirements and also the index & stock price movements.. OPTIONS To take the buy/sell position on index/stock options, you have to place certain % of order value as margin. With options trading, you can leverage on your trading limit by taking buy/sell positions much more than what you could have taken in cash segment. 3. Mutual Funds: 4. IPOs and Bonds Online: You could also invest in Initial Public Offers (IPOs) and Bonds online without going through the hassles of filling ANY application form/ paperwork. Get in-depth analyses of new IPOs issues (Initial Public Offerings), which are about to hit the market and analysis on these. IPO calendar, recent IPO listings, prospectus/offer documents, and IPO analysis are few of the features, which help you, keep on top of the IPO markets.

6. Personal Finance: Use our Personal Finance section and get hold of tools that can help you plan your investments, retirement, tax etc. Analyse your risk profile through the Risk Analyzer and get a suitable investment portfolio plan using Asset Allocator. 1. Customer Service Features: With 'ICICIdirect Customer Tools & Updates' you can trouble shoot all your problems online.

SWOT ANALYSIS

A SWOT analysis focuses on the internal and external environments, examining strengths and weaknesses in the internal environment and opportunities and threats in the external environment.

STRENGTHS
Service As a product a extremely innovative product with very less cost. Services like online trading facility, institutional and domestic broking, customized research reports with almost 80% efficiency etc give sharekhan.com an edge over its competitors. Sharekhan.com provides other support services that make retail investors more confident and assured with their trading. SMS alerts (allowing traders and investors to make the most of the available opportunities), Softer, intangible features like imagery, equity driving preference. Through efficient trading processes Investors can place their orders directly on the Internet, do all the information seeking and basically own the investing process.

DISTRIBUTION NETWORK
Sharekhan.com with almost 250 branches spread across 123 cities beefed up by comprehensive online research, advice and transaction services. In near future expect to make 200000+ retail customers being serviced through centralized call center / web solution, 60 branches/semi branches servicing affluent/aggressive traders through highly skilled financial advisors, 250 independent investment managers/franchisees servicing 50000 highly valued clients, strong advisory role through Fundamental & technical research and new initiatives are being made in Portfolio Management Services & Commodities trading.

MARKETING
Sharekhan.com is a veteran equities solutions company with over decades of experience in the Indian stock markets. sharekhan.com does not claim expertise in too many things. sharekhans expertise lies in stocks and that's what it talks about with authority. So when he says that investing in stocks should not be confused with trading in stocks or a portfolio-based strategy is better than betting on a single horse, it is something that is spoken with years of focused learning and experience in the stock markets.

PRODUCTS
Companys product line is quite flexible in the sense that there is a product for every kind of investors. Also all the products cover all the loop holes of all the products offered by the other competitors like low cost, user friendly online trading services etc.

OPPORTUNITIES EVER-INCREASING MARKET

After the NSE brought the screen based trading system stock markets are now more secured which has attracted lot of retail investors and the demand is increasing day by day. This has resulted in improved liquidity and heavy volumes on transactions. Sharekhan.com is one of the early entrants here. As to how much it will roar and how swift it can swoop on the market, the future alone can answer such queries. Sharekhan.com has been a mega player and is known for being a mover of stocks. It is also known for putting big deals through and enjoys good networking with the FIIs. It has been dynamic enough to move with the times and capture the opportunities that the market throws up from time to time.

IMPROVING TECHNOLOGY
In country like India technology is always improving which gives the company a chance to keep on improving their product with time whereas for the small players like local brokers it will be difficult to keep the same pace as the changing technology. Also with SEBI lying down some strict guidelines small brokers are finding it harder to retain the customers with no research department and small capital. The traditional business model is highly dependent on a large network of sub-brokers, and many established players may not have systems (technology, customer service, etc.) capable of directly servicing so many retail customers.

UNFULFILLED NEEDS OF THE CUSTOMERS

With so many competitors offering their products in the market but no one is able to completely satisfy the customers. Some have the problem of lack of information or some were scared of volatility of the stock markets. Sharekhan.com has the opportunity to tap this unsatisfied set of customers and to make hold in the market. The Internet serves to break all barriers to information, as it offers an extremely hassle-free investing platform. And, sharekhan.com hopes to fully utilize and capitalize on this platform. This original

idea by sharekhan.com

itself was born out of the consumer's need for a more

transparent, easy to understand and convenient option of investing in stocks.

EDUCATION LEVEL
The education level in the country is improving year after year as far as technology goes. With that the understanding of the stock market is also increasing and a lot of retail investors are steeping in the markets which are being shown by increasing volumes, transactions and indices.

THREATS NEW COMPETITORS

A lot of new competitors are trying to enter the market in this bullish run to taste the flavor of this cherry. This is creating a lot of competition for large players like sharekhan.com and it is creating little confusion in the minds of the customers about the services provided by the broker. Also many banking firms are entering into the market with huge investment.

TECHNOLOGY BASED BUSINESS

Online trading is totally based on the technology which is quite complex. Typically, the

technology solution has to start from the Internet front-end (or the screen that you see when you begin trading). Then it needs to get into the 'middle tier' of risk management systems that assess data from banks and depository participants (DP), calculate client risk at that point in time, and give the 'Go/No go' advice to the trade. So technology is a kind of threat because unless until it is working properly it is good but internet is not that safe. Though a lot of cyber laws are being made but not yet executed.

PROCEDURE OF CLIENT ACQUISITION

In the first phase we are trained and they teach us different things about market. They teach us about sharekhan.com introduction, products and services offered by sharekhan.com in the market. We have been trained properly about sharekhan.com After that they conduct a mock viva, in this they ask about the real life problem faced by the customers. They provide us leads and we make calls. Three types of leads are provided to us: #People who registers themselves on sharekhan.com website willing to be client of sharekhan.com and want to know about its product. # People who have Demat account already with any another broker. # People who are totally unknown to this market. Then after that we have to provide details of product and convince them. People who have already Demat account, we have to convince them by giving information about sharekhan.com services benefits. And people who are unknown to share market, we tell them about sharekhan.com first step program for fresher. Then we have to visit them and get the formed filled from them. We collect all-important documents from client.

DOCUMENTS PHOTOCOPIES REQUIRED :(A) TWO COLOURED PHOTOGRAPHS (self signed). (B) For Identification Proof - VOTER ID CARD / DRIVING LICENCE / PASSPORT/ PAN CARD (ANY ONE)

(C) For Residence Proof

- BANK STATEMENT / VOTER ID CARD / RATION CARD / DRIVING LICENCE / PASSPORT / TELEPHONE BILL STATEMENT /ELECTRICITY BILL STATEMENT

(ANY ONE) (D) One cancelled cheque leafe(For MICR No.record)(E)Latest bank statement/Front page of passbook(showing Name,Address,A/C No.) (F) One account opening cheque of Rs.750/1000 (G) You can also deposit the initial margin money at the time of opening the account

Maintaing dairy of clients and contacting them at regular basis. To get feedback from them about sharekhan.com services.

CHAPTER-2 RESEARCH METHDOLOGY

SIGNIFICANCE OF THE STUDY

Every research is conducted to fulfill certain objective and these objectives in turn fulfill some purpose. MBA curricular is designed to give more practical exposes to the student so that he can make use of theoretical knowledge in the real life situation, with this thrust dissertation study has been included which provides opportunity to research to gain practical insight of the market. This hand on experience helps him in identifying the critical factor of consumer buying behavior. This rich experience will be great help in researchers future endeavors and it also solves the purpose for the partial fulfillment of MBA curriculum. I sincerely believe that road to improvement is never- ending and one always learns from a new experience. This project is a step towards gaining knowledge about real world and putting the theory of practice. I shall look forward to and gratefully acknowledge all suggestion on this small step I have taken. The report consists of a stepwise efforts towards meeting the objectives of the study. It covers the step-wise collection of data collection and the representation of the data together with the analysis. It also includes some suggestions put forward hoping it would help the company achieve its vision.

MANAGERIAL USEFULNESS OF THE STUDY

The marketing department can use this study to enhance their marketing strategies for better sales. This report helps marketing department in taking decision to what change in distribution channels and what should be done so that marketing problem could be shorted out and how to sell their range of product in the competitive market. The very essence of every project related to marketing is providing a view to management for chalk out the organization. So that they can maintain a viable fit between the organization objective, skill and resources and its changing market opportunities. Also give proper shape to the company business target profit and growth. It provides a feedback to the organization about their sales, sales schemes and what impact dose it has on the retailers and consumer. Every market research proves useful suggestion to the organization. Marketing research helps the firm in every component of the total marketing task. It helps the firm in every component of the total marketing task. It helps the firm acquire a better understating of the buyer, the competition and marketing environment. It also aids the formulation of the marketing mix, product, distribution and pricing needs marketing research support. It also in taking the information of competitors strategies and their impact on the buyer. The study revels may fact that have come up during the project and these facts can either be used as opportunities in exploring and expending the business as well as can be used as safeguard against threats by the competitors to prepare an effective marketing strategy. Every market research proves usefulness to the organization. Marketing research helps the firm in every component of the total marketing task. Its helps the firm acquire a better understanding of the consumer, the competition and the marketing environment. It also aids he formulation of marketing mix, decision on each element of marketing mix, product, distribution and promotion and pricing etc need the support of marketing research

Objectives
The objective of my summer training is to gain knowledge about how an organization works and in particular setup of a stock broking house. Under this summer training a small project was undertaken, the primary objective of which was to obtain a feedback from the clients of Sharekhan. Particularly about their experience while opening the online trading account with Sharekhan. The secondary objective of this project was to help out the clients with their problems in Sharekhan to the extent possible. Primary objectives of the project are: 1. To study the sharekhans competitors strengths 2. To study the sharekhan.com competitors weaknesses in relation to sharekhan.com 3. To analyze the product & services of competitors in relation to sharekhan.com 4. To learn the marketing techniques that are used to acquire a client, was the secondary objective of the summer training. 5. To learn about company routine working.

SCOPE OF THE STUDY

These are some of the following scope of the study:1. The present study can be extended to assess the present marketing condition of stock market. 2. The study can be used to design a proper product, price, place & promotional strategy for stock market. 3. From the present study we can know the market share of different by-products and accordingly formulated strategy to enhance it. 4. The result of marketing success of different by-product can be interpreted to assess the rate of employees satisfaction in that department (marketing). This study can be applied to find out an effective distribution channel to enhance the sale of by-product of sharekhan.com

RESEARCH METHODOLOGY
Data Sources Data sources: Secondary Data Under Secondary sources, we tapped information from internal & external sources. We made use of Internet (such as search engine www.google.com), www.icicidirect.com, www.sharekhan.com www.5paisa.com, www.HDFCsec.com, www.5paisa.com) and miscellaneous sources (such as brochures, pamphlets, library) under external sources. - Primary Data, Secondary Data

Primary Data
Primary data is a data that is collected for the first time in the processing of the analysis. The researchers have adopted the contact through telephone for the purpose of collecting Primary data. The researchers discuss with Team Manager and employees of the company to get information about competitors of sharekhan.com

CHAPTER - 3 COMPANY PROFILE

Sharekhan is an equities focused organization tracing its lineage to SSKI, a veteran equities solutions company with over 8 decades of experience in the Indian stock markets. If you experience our language, presentation style, content or for that matter the online trading facility, you'll find a common thread; one that helps you make informed decisions and simplifies investing in stocks. The common thread of empowerment is what Sharekhan's all about!

Sharekhan is also about focus. Sharekhan does not claim expertise in too many things. Sharekhan's expertise lies in stocks and that's what he talks about with authority. So when he says that investing in stocks should not be confused with trading in stocks or a portfolio-based strategy is better than betting on a single horse, it is something that is spoken with years of focused learning and experience in the stock markets. And these beliefs are reflected in everything Sharekhan does for you! To sum up, Sharekhan brings to us a user- friendly online trading facility, coupled with a wealth of content that will help you stalk the right shares. Apart from this, Sharekhan also offers the facility to visit (or talk to) any of the share shops across the country in order to cater to people who are not computer - savvy. In fact Sharekhan runs India's largest chain of share shops with around 250 outlets in 113 cities. Below an online polling is being conducted among 41 strong members from
www.traderji.com

which clearly shows the expert opinion with respect to Customer

satisfaction, quality products etc.

Poll Results: which online broker u prefer and why - choose one 5paise Sharekhan Motilal Oswal ICICI Direct HDFC India Bulls Kotak Securities any other Voters: 41. You may not vote on this poll

10 12 0 8 2 7 1 1

24.39% 29.27% 0% 19.51% 4.88% 17.07% 2.44% 2.44%

Courtesy: Traderji.com

SERVICES OFFERED BY AN OUTLET

1. Online BSE and NSE executions (through BOLT and NEAT terminals) 2. Free access to investment advice from Sharekhan's research team Sharekhan Value Line (a fortnightly publication with reviews of recommendations, stocks to watch out for etc Daily research reports and market review (High Noon, Eagle Eye) Pre-market Report (Morning Cuppa) Daily trading calls based on technical analysis Cool trading products (Daring Derivatives, Trading Ring and Market Strategy) Personalized advice Live market information

3. Depository services: Demat and Remat transactions 4. Derivatives trading (Futures and Options) 5. Internet-based online trading: Classic Account, SpeedTrade, SpeedTradePlus About SSKI group SSKI group also comprises institutional broking and corporate Finance. While the institutional broking division caters to the largest domestic and foreign institutional investors, telecom and media. SSKI holds a sizeable portion of the market in each of these segments. As the forerunner of investment research in the Indian market, we provide the best research coverage amongst broking houses in India. Our research team is rated as one of

the best in the country. Voted four times as the Top Domestic Brokerage House by Asiamoney Survey. SSKI is consistently ranked amongst the top domestic brokerage houses in India. Broking.personalized If you prefer the assurance and reliability of trading through a broker, you can use our network of 250 branches and 157 business partner outlets in over 123 cities to trade in equities as well as derivatives. We will help you with the investment process, give you advice based on extensive research and provide you with relevant and updated information to help you make informed investment decisions. Our trading services are designed to offer an easy, hassle free trading experience, whether you trade daily or occasionally. You will be entitled to a host of value-added services, intended to assist you in your investment process depending of your investing style and frequency. Freedom @ however, if you prefer the convenience of trading from

www.sharekhan.com

wherever you are, you can get yourself a Classic trading account and enjoy the freedom that comes with it. You can now place orders even after the trading hours, and the orders are queued up to be executed as soon as the market opens. Sharekhan.com the winner of several prestigious awards has been the most preferred destination for online trading ever since its launch.

MANAGEMENT TEAM

SHAREKHAN SERVICES

BRANCHES ALL OVER INDIA

INVESTING ONLINE IS SO MUCH EASIER!

This account enables you to buy and sell shares through our website. You get features like a) Streaming quotes (using the applet based system) b) Mutltiple watchlists c) Integrated Banking, demat and digital contracts d) Instant credit and transfer e) Real-time portfolio tracking with price alerts and, of course, the assurance of secure transactions. Features of Classic Account that enable you to invest effortlessly

Online trading account for investing in Equities and Derivatives via sharekhan.com Integration of: Online trading + Bank + Demat account Instant cash transfer facility against purchase & sale of shares Make IPO bookings

You get Instant order and trade confirmations by e-mail Streaming Quotes Personalised Market Scan with your own customized stock ticker! Single screen interface for cash and derivatives Your very own Portfolio Tracker

SYSTEM REQUIREMENTS
You'll need access to a computer which has at least the following configuration:

Pentium 3 PC, Minimum 128 MB RAM Windows 2000/XP Internet Connection Internet Explorer 6.0 Java enabled in IE

The

Power

and

Speed

of

Broker's

Terminal

on

your

Desktop!

The ideal tool for active traders and jobbers who transact frequently during the day's trading session, Speedtrade enables you to capitalize on intra-day price movements. Speedtrade is an Internet-based executable application that provides everything a trader needs on ONE screen: 1: Real-time streaming quotes 2: Live Tic-by-Tic Intra-day charting 3: Trading in Cash and Derivatives on a single

screen

Features of Speed Trade that enable you to trade effortlessly

Instant order Execution & Confirmation Single screen trading terminal Real-time streaming quotes, tic-by-tic charts Market summary (most traded scrip, highest value and lots of other relevant

statistics)

Hot keys similar to a brokers terminal Alerts and reminders Back-up facility to place trades on Direct Phone lines Single screen interface for cash and derivatives

System Requirements
You'll need access to a computer, which has at least the following configuration:

Pentium 3 PC Minimum 128 MB RAM Windows 2000/XP Dial-up Modem / Cable modem Internet Connection Account Internet Explorer 6.0 Java enabled in IE

Trade in Equity by using your phone!

Free with your sharekhan.com Classic Account, the Dial-n-Trade service enables you to place orders for buying and selling shares through your telephone. All you have to do is dial any one of our dedicated numbers 9899824828 enter your

TPIN number (which is provided at the time of opening your account) and on authentication you'll be directed to a telebroker who will buy and sell shares for you. Features of Dial-n-Trade that enable you to trade effortlessly Dedicated numbers for placing your orders with your cellphone or landline. Toll free number:9899824828. For people with difficulty in accessing the toll-free number, sharekhan.com also have a Reliance number which is charged at Rs. 1.50 per minute for STD calls. Automatic funds transfer with phone banking (for Citibank and HDFC bank customers) Simple and Secure Interactive Voice Response based system for authentication No waiting time. Enter your TPIN to be transferred to telebrokers

 You also get the trusted, professional advice of telebrokers After hours order placement facility between 8.00 am and 9.30 am (timings to be extended soon) BUY shares TODAY and SELL them tomorrow under the BTST segment. Buy Today Sell Tomorrow (BTST ) is a facility that allows you to sell shares even one day after the buy order date, without you having to wait for the receipt of shares into your demat account. BTST relevant is relevant for you: 1. If you have you ever missed making a huge profit because you had bought the shares just one day back and you could not sell them as they were not credited to your demat account? 2. If you have ever found that squaring off your cash based transactions within a day is not profitable as one days time does not allow to realize maximum profit? 3. If you have ever thought of an intermediate option between cash and Margin trades where in you could make profits on volatile shares within one or 2 days of your buying them without a compulsory square off? If you have ever faced any of the above situations, BTST is for you. Let us take an example. Assume that you buy shares of ABC Limited at 11.00 a.m. today. Suppose, at 2.00 p.m. today, the price of this scrip has risen by Rs 10. But you want to sell these shares tomorrow because you feel that the scrip price will rise further. But the shares would not have come into your demat account tomorrow. What can you do?

BTST is the solution to your query. If you use a Margin Trade, you would gain only to the extent of the price rise that happens today I.e. Rs 10. However, if you wish to take advantage of the price rise over a longer time period, then you would use BTST. (Note that if you had instead bought shares in Cash and tried selling the same, you would have to wait for payout day before you can sell the share.) So, you would purchase the share today at 11.00 a.m. and sell it say tomorrow using BTST at 2.00 p.m. In short, BTST helps non-intra day square-off trading. If you are a Cash Trader and found intra-day trading too unprofitable, BTST gives 2 more trading days, thereby increasing the probability of better returns. So, even a Cash Trader may like to use BTST. If you are a Margin Trader and in case for some scrips you find intra-day speculative trading too unprofitable, BTST gives 2 more trading days, thereby increasing the probability of better returns. So, you can benefit from the virtually elongated settlement cycle that BTST brings to you.

SHAREKHAN.COM RESEARCH
Sharekhan.com tigers dig meaty Stock Ideas out of the heart of the market and bring them to you. Their skill at identifying their prey--Stock Ideas--while keeping your taste for investment in mind is reflected in the depth of their research and the performance of the ideas. The Market Strategy reports, on the other hand, identify the hunting-ground for Stock Ideas, i.e. sectors and stock groups that are ripe for performance, discuss the state of the economy and its impact on the stock market as well as advise you on dealing with the impact of socio-political issues on the market. Building and maintaining your ideal portfolio demands objective, dependable information. Sharekhan.com Equity Analysis helps satisfy that need by rating stocks based on carefully selected, fact-based measures. And because Sharekhan.com is not focused on investment banking, it doesn't have the same conflicts of interest as traditional brokerage firms. This objectivity is only one important difference in our ratings

Type of categories 2. 3. 4. 5. 6. 7.
Evergreen Apple Green Emerging Star Ugly Duckling Vulture's Pick Cannonball

SHAREKHAN ONLINE TRADING FACILITIES:

(a) CLASSIC ACCOUNT: A/C Opening charges: Rs. 750(life time charges) DEMAT A/C free for first year and Rs.300 from 2nd year onwards.(Maintenance charges) Trading through our website.(www. sharekhan.com) No volume & minimum margin money commitment required. NSE online and BSE offline. Live applet for watching prices & trading purposes.

(b) SPEED TRADE: Account Opening Fee: Rs. 1000/-(life time charges) DEMAT A/C free for first year and Rs.300 from 2nd year onwards.(Maintenance charges) Trading through Software/Live Terminal provided by sharekhan.com.NSE & BSE online (through software as well as through website & phone).

Monthly Access Fee(for SPEEDTRADE only) : Rs 500/- a month. The access charges will be applicable to all the new customers signed up from 2nd month of activation. To explain if an account is signed up in January 2005, and the same is activated in January 2005, the access charges will be applicable for Feb 2005 month and the first debit of access charges for the account will happen by the 7th of March 2005.

Non applicability of Monthly Access Fee : At the end of a Month if the client has contributed more than Rs. 1000/- as Gross brokerage, the access charges of Rs. 500/- will not be Debited to client's account. If the brokerage is less than 1,000/- the access charges of Rs. 500 will be debited in the subsequent month by 7th. Exceptions applicable for Access Charges : The access charges of Rs. 500 if charged to a client can be refunded in full if the total brokerage by the client is above 3,000 in a Calendar Quarter. BROKERAGE: CASH BROKERAGE:- DELIVERY : 0.50%, INTRADAY : 0.10%* EXPOSURE :- 4 TO 6.6 TIMES* (ON MARGIN MONEY) (* subject to change or as decided by Asstt Manager) F&O BROKERAGE : - ON FIRST LEG{Buy} 0.10% , SAME DAY SQUARE {Sell} OFF: 0.02% SECOND LEG : 0.10%

Settlements of trades follow T+2 transaction cycle. No Demat Transaction Charges in case of buying and selling through For the fund transfer and withdrawl, we have tie-up with four banks- HDFC Bank,CITI Bank, IDBI Bank & UTIBank. If you are having bank a/c in one of them, you can transfer the funds and withdraw the funds online from Your trading a/c at anytime. BTST (Buy today Sell Tomorrow) Facility in all scrips DIAL-N-TRADE:Call and Trade through Toll free no. From anywhere in India (CUSTOMER CARE: 1600 22 7500, TRADING: 1600 22 7050,30307600)

OTHER FEATURES

Online IPO filling facility.

Freedom from paperwork,trading facilities are completely online. SMS alerts on your mobile phones. Daily sharekhan.com research reports in your mailbox (5 online research papers/magzines).

THE ICICI DIRECT ADVANTAGES

A Unique 3-in-1 account that gives you: Convenience: the 3-in-1 accounts integrate your banking, broking and demat accounts. This enables you to trade in shares without going through the hassles of tracking settlement cycles, writing cheques and Transfer Instructions, chasing your broker for cheques or Transfer Instructions etc. Speed: You can now get the latest quotes of scrips on ICICIdirect.com and place an order almost instantly. Control: You can be assured that you have in fact placed an order at the price you always wanted to, but may not have been able to do so till now. Thereby giving you control over your own trades. Independence: Instead of transferring monies to a broker's pool or towards deposits, you can manage your own demat and bank accounts when you trade through ICICIdirect.com. Trust: ICICIdirect.com comes to you from ICICI, the organisation trusted by millions of Indians * We can trade into NSE, BSE, Derivatives, Mutual funds, Personal Finance, IPOs online. * Margin plus trading is provided in which customer can buy share up to 25 times of its margin

Icicidirect.com Demat charges : Annual Fee Rs. 300 Brokerage: Delivery : .75% Intraday : .10% (Exclusive of service tax for 10.2% & Service Transaction Tax)

Deal Clinchers Vs ICICIDIRECT.com

1. Brokerage is .75%(Delivery) and .10%(Intraday) exclusive of taxes. With taxes, it becomes .85% (delivery) and .15% (Intraday). 2. Margin of RS 5000/- is necessary to maintain in ICICIBank A/C. 3. BTST facility is provided only on 127 scrips. 4. While watching applet, only one-company rates can be seen and we have to refresh it again and again to update the rates. 5. Limited toll free number are provided, on 21st call RS 20/- are charged. 6. Compulsion to have bank a/c with ICICIBANK and your saving A/C is attached with ICICI trading A/C. ICICIDIRECT has authority to debit your saving A/C directly without customer informing about this. 7. Demat transaction charges are included in brokerage. 8. Research reports are provided at RS 450/-p.a.

9. Poor online Interface Slow website interface with no real-time quotes creates a dissatisfaction among high frequency traders 10. Margin trading restriction The margin trading system is available up to 2:45 p.m, with outstanding net positions under margin segment automatically squared off at any time between 2:45 3:30 p.m. Thus no control of square off price.

11. Morning Trades Issue Being one of the websites with largest no of after hour orders which are pushed 1st thing in the morning, creates a choking of orders to the exchange, causes delay of confirmations for new order placed during the early morning trades 12.Only Intraday Margin exposure : The margin exposure of 3 or 4 times is only provided for intraday.

STOCK MESSAGING SERVICES:

Plan 3 Months 6 Months 12 Months 12 Months + 50% disc.on Wkly Newsletter Amt Rs. 1550 Rs. 2800 Rs. 5500 Rs. 6000

Brokerage Structure:
5Paisa - Pure online trading
Turnover Maximum rate Special rate 1 Special rate 2 per settlement Any volume Rs15 lacs Rs20 lacs Brokerage Rate 0.05% 0.04% 0.03%

5Paisa Plus - With offline and research support

Turnover Maximum Rate Special rate 1 Special rate 2 Special rate 3 Special rate 4 Special rate 5 Notes: 1. For trades that result in delivery, a nominal charge of 0.20% will be levied for securities handling, only on the value of delivery. 2. Minimum brokerage per contract will be Rs25, regardless of number of trades per contract. 3. "Turnover Per Settlement" refers to the turnover done in the Rolling One day Settlement Cycle only. 1. ; it starts from .25%(Delivery) and .05% (intraday). 2. Trading on NSE, BSE, Derivatives, mutual funds, Arbitrage on delivery, commodities is provided. per settlement Any Volume Rs 10 lacs Rs 15 lacs Rs 20 lacs Rs 25 lacs Rs 35 lacs Brokerage Rate 0.25% 0.20% 0.15% 0.10% 0.05% 0.03%

3. Account opening charges are RS 420/- in case of fresher and RS 250/- in case of trader. 4. 10 times exposure is provided to offline customers. Deal clinchers Vs 5Paisa.com 1. RS 1000/- brokerage commitment to be fulfilled by customer. 2. .05% or RS 15/- whichever is higher, are charged on selling as demat transaction cost. 3. Stock messaging servicing is paid from RS 1550/- to RS 6000/-. 4. Company Background Not having a very positive image, relatively new in the broking arena, limited network 5. Downtime Recent past 5 paisa Trader Terminal (T.T) is experiencing high frequency downtime between 3 3:30 p.m due to server load (as their T.T is feature heavy compared to Speetrade charting)

INDIABULLS.COM
Indiabulls is India's leading retail financial services company with 135 locations spread across 95 cities. While size and strong balance sheet allow it to provide you with varied products and services at very attractive prices, its over 750 Client Relationship Managers are dedicated to serving your unique needs. Indiabulls is lead by a highly regarded management team that has invested crores of rupees into a world class Infrastructure that provides our clients with real-time service & 24/7 accesses to all information and products. Indiabulls Professional NetworkTM offers real-time prices, detailed data and news, intelligent analytics, and electronic trading capabilities, right at your fingertips. This powerful technology is complemented by

knowledgeable and customer focused Relationship Managers. It is creating a world of Smart Investor. Indiabulls offers a full range of financial services and products ranging from Equities to Insurance to enhance your wealth and hence, achieve your financial goals. Indiabulls' Client Relationship Managers are available to you to help with your financial planning and investment needs. To provide the highest possible quality of service, Indiabulls provides full access to all our products and services through multi-channels.

SCHEDULE OF CHARGES (NSDL-DPID : IN302236) [ w.e.f. 01 Feburary, 2005 ] Charge Head Stamp Paper Charges AMC Custody Charges Transaction Charges Buy (Market / OffMarket) Transfers Transaction Charges Sell (Market / OffMarket) Transfers Failed Inst. Pledge Creation / Confirmation / Closure/Invocation D'MAT Rs.1 per certificate (max Rs.250 /-)+ Rs.25 courier charges D'MAT Rejections Re'mat Charges Rs.20 per rejection + Rs.25 courier Rs.15 request or 0.02% whichever is higher. Rs.2 per certificate (max Rs.250 /-)+ Rs.25 courier charges Rs.20 per rejection + Rs.25 courier Rs.15 request or 0.02 % whichever is higher. Nil Rs.25/- per Transaction Rs.20/- per instruction. Rs.25/- per Transaction Rs. 17/- per Transaction Rs. 17/- per Transaction Charges Account with POA Account without POA Rs.100/Rs.250/Nil Nil

Rs.200/Nil Nil Nil

Delivery Instruction Book

Nil

Rs.10/No charges for first book.

Fax Indemnity (Optional) RESEARCH REPORTS: Scheme 1. WebBased-1Month-Rs.100: 2. WebBased-3Month-Rs.270: 3. WebBased-1Year-Rs.1000: 4. PrintReport-1Month-Rs.350: 5. PrintReport-3Month-Rs.950: 6. PrintReport-1Year-Rs.3500:

N.A.

Actual

Facilities This allows you to view and print reports for ONE MONTH through our website. This allows you to view and print reports for a full QUARTER through our website. This allows you to view and print reports for ONE YEAR through our website. This allows you to view and print reports for ONE MONTH through our website plus you can get 10 REPORTS PRINTED AND DELIVERED to your doorstep on request. This allows you to view and print reports for a full QUARTER through our website plus you can get 10 REPORTS PRINTED AND DELIVERED to your doorstep on request EACH MONTH. This allows you to view and print reports for ONE YEAR through our website plus you can get 10 REPORTS PRINTED AND DELIVERED to your doorstep on request EACH MONTH.

ADVANTAGES OF INDIABULLS:
1. 2. 3. No annual maintenance charges for Demat account. Listed company and aggressive in brand promotion. Control Stay on top of your investments with convenient access to

your account online or by phone. 4. Confidence Support your investing decisions with premium in-depth

research - Indiabulls Equity Analysis.TM 5. Value Enjoy competetive commissions and get the service and support

you need at a fair price. 6. Priority Service Enjoy priority telephone access that gives you direct

access to your Relationship Manager. 7. Premium Research Benefit from full access to Indiabulls Equity

AnalysisTM, our objective, fact-based approach to rating stocks. 8. Online Accounting Stay on the top of your investments with a

snapshot of your Account Statements. Get access to Portfolio statement and access to digital contract notes

DEAL CLINCHERS VS INDIABULLS

1. Research reports are paid at RS 100 p.m. 2. SMS alert service is not provided. 3. IPO online is not there. It is offline. 4. RS 500/- is blocked by system as margin. 5. POA for Clients DMAT All shares held by client trading with IB are moved to IB Pool Account and the same is shown as a reflection in client DP account. Charges are levied to move shares from IB pool Account to client DP account 6. Annual maintenance charges are charged, if power of attorney is signed. 7.Margin Funding hoax The interest on funding starts on leveraged delivery trades from T+1 day itself @21% p.a, on a daily basis 8.The role of Relationship Manager Each RM is looked upon as a revenue

generator and he gets a % on business generated from client. This can lead to over leveraged (Interest) & high frequency (Brokerage) trading, which may not be in the best interest of the client.

HDFCSEC.COM
HDFCsec is a brand brought to you by HDFC Securities Ltd, which has been promoted by the HDFC Bank & HDFC with the objective of providing the diverse customer base of the HDFC Group and other investors a capability to transact in the Stock Exchanges & other financial market transactions.

HDFCsec, will equip you with the necessary tools to allocate, select and manage your investments wisely, and also support it with the highest standards of service, convenience and hassle-free trading tools.

HDFCsec mission is to provide our customers with the most useful investment guidance and investment-related services available in the country. We want to become a one-stop solution for all your investment needs, one that will help you get the most out of your money.

HDFCsec services comprise online buying and selling of equity shares on the National Stock Exchange (NSE). Buying and selling of select corporate debt and government securities on the NSE would be introduced in a subsequent phase.

WHY TO CHOOSE HDFCSEC.COM

A heritage that speaks for us Our venture is supported by our parent companies, which have years of experience in financial markets. And theres our dedicated, motivated and experienced team that is well versed in the field of trading and investment.

We use State-of-the-art technology To extend and strengthen our reach to investors we have the technological resources to make sure you have the best possible access to swift, easy and secure transactions. We ensure seamless trading With us, you can have the convenience of having trades executed, cleared and settled without the need for interacting with multiple agencies in the process. HDFCsec.com provides high quality investment services, in a simple, direct and cost-effective way to help you achieve your financial goals.

Deal Clinchers Vs HDFCsec.com

1. Brokerage is .5% or RS 15/- whichever is higher (delivery) and .15% or RS 15/whichever is higher exclusive of taxes. 2. Only NSE is online and derivatives, BSE are offline. 3. A/C opening charges are RS 799/-. 4. Demat A/C annual maintenance charges are RS 500 p.m. 5. Compulsion to have bank a/c with HDFCBANK.

6. Minimum margin of RS 5000/- is necessary to have in your A/C. 7. SMS alerts service is not provided. 8. IPO is not online. 10. Poor online Interface

Apart from having no product to cater to Day-Traders, the hdfcsec.com website is plagued with downtime. The same is currently 11. Lack of focus on Broking The core business of HDFC is Housing Finance and that of HDFC Bank commitment to resources is limited. 12. No Leverage No leverage is available to clients even for Intra-Day trades, effectively all clients are on cash and carry system. is banking. Broking as a business is a small part of the portfolio of financial services and hence the being revamped.

CHAPTER - 4 DATA ANALYSIS

To make our research project most effective in a given time period of two months surveyed the information of the competitors. We undertook both Explorative as well as Conclusive Research Design. The data has been collected from both Primary as well as Secondary sources and we also did the fieldwork for which utmost care has been taken to keep project unbiased from personal opinion.

ANALYSIS

SHAREKHA N.COM

ICICIDIREC T . COM

HMRSTREE T . COM

HDFCSE C

5PAISA . COM

INDIABUL LS

. COM 750/(EXISTIN G And RELATIO 250/NSHIP) (Traders OR 799/500 p.a. ) 250/P.A. NO AMC 420/(fresher) 700/-

A/C OPENIN G CHARG ES

750/- FOR CLASSIC AND 1000/- FOR SPEEDTRAD

750/-(waive off 20550/-(20,000 if trading is as margin) more than Rs. 1 lakh)

DEMAT A/C CHARG ES

E FREE YEAR)

(1ST FREE FOR 1ST 30 p.m. YEAR 300/FROM

AND 300/- AND P.A. FROM P.A.

2ND YEAR ONWARDS 2

ND

YEAR

TYPE OF ACCO UNT

ONWARDS 2(CLASSIC & Web based SPEEDTRAD E)

5 type(1. HMR GATEWAY A/C, HMR

Web based

2(TRAD ER TERMI NAL, INVEST OR TERMI NAL)

Web based

VALUE A/C, HMR PRIVILEGE

A/C, R A/C, HMR

HMR

HIGHTRADE

FREEWAY A/C) TRADIN G THROU GH WEBSIT E OR SOFTWARE SHAREKHA N.COM ICICIDIREC T .COM NSE/BSE/ MUTUAL FUNDS/ MUTUAL ARBITRAGE/ MUTUA L FUNDS Derivatives FUNDS HMRSTREE T .COM NSE/ DERIVATIVE S/ HDFCSE C .COM NSE/BSE / DERIVATIVE DERIVA- S TIVES/ DERIV ATIVES / ARBITR AGE ON DELIVE RY/MU TUAL DERIVATI VES NSE/BSE/ .COM NSE NSE/ NSE/ 5PAISA INDIABUL LS BOTH WEBSITE Both Software 1. Desktop 2. Premium Keat Keat are WEBSITE BOTH WEBSITE

SOFTWARE

500/-P.M. (NEGOTIABL

N.A.

500/- or 300 N.A. /-p.m.

FUNDS 1000/commit ment of brokerag e

N.A.

CHARG ES

E ON BROKERAGE ) UNLIMITED

(NEGOTIABL E VOLUME) ON

DAIL-NTRADE

On 21st call Rs 20/per call(P.M.)

15/- TO 25/- RM FROM CALL

Local

RM NUMBER PROVIDE D FOR TRADING

21ST NUMBER call PROVIDE charges D FOR TRADIN G .04% Rs.

DEMAT TRANSA C-TION CHARG ES

NIL (THROUGH

INCLUDING IN

.04% OR RS. 25/- ON SELLING whichever is higher

or 0.05 25 OR

% RS. 17/PER TRANSAC TION (ON SELLING)

whichever is higher

minimu m of Rs. 20/- per instructi on (ON SELLIN G) HDFC Bank,

SHRAKHAN)

BROKERAGE

TIE UP WITH BANKS

HDFCBANK, IDBIBANK,

ICICIBANK ONLY (COMPULSO RY)

HMR MAHINDRA BANK

HDFCBA NK ONLY

HDFC BANK,

ICICI ICICIBAN (COMPU

CITI BANK, UTIBANK, OBC

CITI BANK UTIBANK HDFCBANK (COMPULSIO N)

LSORY)

Bank,

K,

UTI ABNAMR Bank, Citibank , Global Trust Bank or Centurio n Bank STANCHA RT BANK, CITIBANK O BANK,

SHAREKHA N.COM

ICICIDIREC T

HMR STREET.

HDFCSE C

5PAISA .COM

INDIABUL LS

.COM BUY TODAY ONLY ON SELL TOMORROW IPO ONLINE SMS ALERTS RESEARCH REPORT S MINIMU M MARGIN 4 TO 6.7 4 TIMES 4 TO 6 TIMES YES 100 P.M. FREE 127 SCRIPS OF NSE YES YES 450 P.A. SHARES VALUE YES 100/- P.M. FREE UPTO 75% YES YES BUT COM YES,

.COM NO YES YES

NO NO FREE

YES NO FREE

NO NO PAID 100/P.M

4 times

4 to 6 4 times(on S

TIMES

TIMES

ONWARD

EXPOSURE

line) 10 times(Of fline) 5000/-

MINIMU M MARGIN

Nil

5000/-

5000/-,1,00,00 0/-or 5,00,000/(according to

5000/-

500 BLOCKED BY THE SYSTEM

Volume requirement

Nil

Nil

account) Yes, according Nil to product

Rs 1000/Commit ment as brokerag e .05% (INTRA -DAY) .25%

NIL

BROKERAGE

.1% (INTRADAY) .5% (DELIVERY)

.1%

to.15% .06%

.15% (INTRA-

.1% (INTRADA Y) .5%

(INTRA-DAY) (INTRADAY) .4% to .85% .59% (DELIVERY) (DELIVERY) .5% (DELIVERY) (excluding taxes) DAY)

(DELIV- (DELIVER ERY) Y)

CHAPTER 5 CONCLUSION

Conclusion:
In online trading, sharekhan.com.com have mainly competition with icicidirect.com, HDFCsec.com, 5Paisa.com India bulls. HMR comes at no. 2 retail broker. It has an advantage of being in this industry for more than 8 decades. It has launched its website in 2000 and were among the first player in the online share trading. The sharekhan.com has decided to spend its advertisement budget through four medias i.e. Television, Print, Web and Outlets. Mr. Boman Irani is the brand ambassador for Sharekhan on television media. From the above analysis we can point out some points: 1. Sharekhan.com account opening charges are little higher than other competitors. Sharekhan.com is less flexible to cut down its account opening charges on the other side; some of the brokers are offering free account opening to High Net Worth customers. 2. The charges of demat account are reasonable at 300 p.a. but Indiabulls is offering pool account with no Annual Maintenance charges. 3. Sharekhan provides trading in NSE, BSE and Derivatives. It is also about to launch online Mutual Funds. Arbitrage facility is not available to customers. 4. Sharekhan is the only one that does not have any Demat transaction charges either on buying or selling. 5. Unlimited toll free calls service is provided to customer in Sharekhan.com. 6. Sharekhan accept offline payment from other banks also but icicidirect.com, HDFCsec.com clients have compulsion to open an online account. 7. BTST facility is available on almost all scrips of NSE in Sharekhan, Indiabulls. But this facilty is not providing by HDFCsec.com, HMRstreet offers it only for 75% of share value and icicidirect.com gives it only on 127 scrips. 8. SMS alerts facility is not available at HDFCsec.com, 5Paisa.com and Indiabulls. 9. IPO Online service is better provided in Sharekhan in comparative to others. Indiabulls and HDFCsec.com dont have this facility. 5paisa.com have recently started it. 10. Sharekhan is only broker in which no margin needs to keep.

11. Sharekhan research reports come in client e-mail at free of cost around 5-6 times in a day. But some brokers charged for it and some provide it only at once in a day, while it is paid in Indiabulls, icicidirect.com and 5paisa.com. 12. In brokerage, 5paisa.com have an edge on others with lowest brokerage .25% on delivery and .05% on intraday. To sum up, we can say that computerization and automation are not to be avoided. Technology has been able to make the stock markets accessible to every individual. It has also led to positive developments in terms of reduced costs and fewer errors. But, as some experiences have indicated, IT cannot be applied as a panacea for all problems. Regulation and knowledge dissemination are still important. The use of technology should be preceded by a detailed study and assessment of all other alternatives. The key to successful use to technology is the appreciation of its constraints.

CHAPTER 6 RECOMMENDATION

FINDINGS AND RECOMMENDATIONS

On surveying various people who are involved in share trading both as trader as well as investor, we found that brokerage is the most important factor on which people select / opt a broking house, followed by image , convenience in trading , customer service, features, tips & suggestion & AMC.
MOST IMPORTANT FACTOR WHILE SELECTING A BROKING HOUSE
BROKERAGE IMAGE

FACTORS

CONVINIENCE(IN TRADE) CUSTOMER SERVICE FEATURES TIPS & SUGGESTION AMC

What is interesting to note is the weighted contribution of these factors towards decision making. Although brokerage leads the pack it has only 19% contribution, and is closely followed by broking houses image with 18% and convenience in trade with 16%. AMC & tips & suggestions having only 10% contribution each towards decision making end up the pack.
PIE CHA DEPECTING MOST IMPORTA FA RT NT CTOR IN SELECTING ABROKING HOUSE
18% 10% 10%

19% 12% 16%

15%

AMC CUSTOM ER SERVICE CONVINIENCE(IN TRADE) IM AGE

TIPS & SUGGESTION FEATURES BROKERAGE

On surveying sharekhan.com Customer why they opted for same, we got to know it was because of image sharekhan.com carries in the market, followed by its competitive brokerage, convenience in trade, features, customer service, tips and suggestions, and AMC.

REA SON FOR SELECTING SHAREKHA N

IMA E G B OK RA E R E G

FACTOR

C N IE C (IN TR D ) O VIN N E A E FA E TUR S E CU STO R SE VICE ME R TIPS & SU G STIO GE N A MC

RECOMMENDATION
We suggest following measures, which Sharekhan could take so as to take on heavy competition from India bulls and 5 Paisa 1. To identify regions where promotions are required. Sharekhan lacks visibility in northern region where as it is a well known name in western region. Even then, its promotional campaign focuses on western region where as northern region is still waiting for promotional campaigns. 2. Try to reduce cost, so that benefits can be passed on to customers. Senior managers at Sharekhan keep on telling that it is difficult to reduce cost, because of services we provide. But the fact is, India being a price sensitive market, people at times go for monetary benefits rather than for long term non- monetary benefits. 3. If charges cant be reduced because of costs involved, make the services customized, so that services are provided to only those customers who are willing to pay the price for services they are getting and let the other customers enjoy costs benefits without getting services. Concept of margin funding should be introduced, as more and more people are asking for

LIMITATIONS OF THE PROJECT:

Services of competitors: We cannot give proper comment on competitors services till we use it. But I try to collect as accurate information as possible. As we all know services are intangible and we cannot predict its quality, it is a thing to feel not to see. No proper assurance of right information: The main data sources are websites, telephonic information and offices visit. # The data on websites might be possible, not get updated. # The marketing person might be possible, is not through with all concepts to whom I contacted. # Sometimes, they try to hide information. Lack of awareness of Stock market: -- Since the area is not known before it takes lot of time in convincing people to start investing in shares primarily in IPOs. Mostly people comfortable with traditional brokers: -- As people are doing trading from there respective brokers, they are quite comfortable to trade via phone. Lack of Techno Savvy people and poor Internet penetration: o Since most of the people are quite experienced and also they are not techno savy. Also Internet penetration is poor in India. Some respondents are unwilling to talk: -- Some respondents either do not have time or willing does not respond, as they are quite annoyed with the phone call. Inaccurate Leads: -- Sometimes leads are provided which had error in it which varies from only 5 digit phone number to wrong phone number Misleading concepts: -- Some people think that Shares are too risky and just another name of gamble but they dont know its not at all that risky for long investors.

CHAPTER 7 ANNEXURES

ANNEXURE QUESTIONNAIRE
Questionnaire
Name: Phone: Email_Id: Account Type: Speed Trade Classic

Q1.How was your first interaction with our sales executive? Excellent Bad Good Very Bad Average

Q2.Did he make you familiar with all the services offered by Sharekhan Yes No Comments: _________________________________________ Q3.How did you find our sales executive when he gave you the demo of our product? Courteous Confident Polite Informative Punctual Up To Date

Communication Skills

Comment____________________________________________ Q4. Did he explain you everything about the account and the services offered when he came for the demo, like. Research Reports Terminal IPO Online Exposure

Online Money Transfer

Q5.How did you find our processes from Client Acquisition to Client Servicing? Efficient Tedious Unnecessary

Comment: ___________________________________________ Q6.Did you face any problem while opening the account? Yes No

Comments: __________________________________________ Q7.Do you consider our terminal user friendly? Yes No

Comments: __________________________________________ Q8.How frequently do you use it for trading? Comments, Please Specify ______________________________ Q9. What extra do you expect from Sharekhan . Comments: __________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________

CHAPTER 8 BIBLIOGRAPHY

BIBLIOGRAPHY
BOOKS: 1. Kotler Philips, Marketing Management: 11th Edition, 2004,Prentice Hall of India Ltd., New Delhi. MAGAZINE: Business World News Papers