89801790 copy of india bulls compartive study with other market players 2

7/29/2019 89801790 Copy of India Bulls Compartive Study With Other Market Players 2

1/56

TABLE OF CONTENTS

1. Acknowledgement

2. Preface

3. Abstract

4. Objective

5. Methodology

6. Introduction to Indiabulls Securities Ltd.7.Functional Areas of Indiabulls Securities Ltd.8.SWOT Analysis of INDIABULLS Securities Ltd9. OtherPlayers10. Comparative Analysis

11. Findings

12. Conclusion

13. Recommendation

16.Annexure


2/56

ACKNOWLEDGEMENT

The limited vocabulary will not fail me to express my loyal and vulnerable

thanks and gratitude to for her encouragement; moral support and help

during the course of study.

I HARMANJIT SINGH HERO emphatically express the regards and

gratitude towards my speculative and dignified guide for her expert

invaluable and tireless guidance; constant encouragement; Painstaking and

constructive criticism to accomplish such laborious and exhaustive work

timely and perfectly.

I avail the opportunity to thanks LECT .FAHAD BEG who helped to ease

my burden of works and extended his help without any hesitation during my

study. His blessings and inspiration were the guidance force through my

academic career.

All the words in lexicon futile and meaningless if I fail to express my sense

of regard to my parents for their scarifies, blessings and prayers; everlastinglove and pain and belief in me.

I solely claim all the responsibility for any shortcoming and limitation in this

work.


3/56

PREFACE

To maintain and cope up with the growing competition from the various

online trading providers, Indiabulls needs to find potential clients , also the

new investors and satisfy their needs .

The Broad objective of the project is to equipped the trainees with all the

quality which is essential to face any circumstances which can arise while

providing service to the clients.

This project will accomplish to understand how the people interact with

technology savvy products and if they are ready for doing all the trading

through internet. The project also helps in understanding the trend of the

scripts of the particular sector ( banking sector ) in different market

condition.

All these steps help me to understand how to cope with different types of

people and there diversified need and satisfaction level.


4/56

ABSTRACT

To maintain and cope with the growing competition from the various online

trading providers, Indiabulls needs to find potential customer and also target

the new investors.

The project is being done to train the people about the whole procedure

essential to open an online trading account couple with demat account. The

project will help in exploring the area where there is the feasibility of

acquiring more new investors. It would also help in knowing the various

competitors of the industry and exploring the areas through which

competitive advantage could be obtained.

The report is divided into various sections

1. Company Profile:

This part describes the company profile. This part recognizes the

achievements and rewards the company has achieved, it also gives little

insights into what company offers to the Corporates and the Consumers.

This section also describes the kind of technology used.


5/56

2. About Online trading account

Since the project leads to opening of online trading account, this section

gives the details of what all services Indiabulls offers to the consumer. This

section gives the detail of how different services provided by the others

online trading account and how is Indiabulls superior from them.

3. Procedures and requirement for opening Trading cum demat

account.

This section gives the detail of the different conditions that have to be met

for opening trading cum demat account. The section contains the documents

which is required to open an account.

4. Different competitors in online trading.

This section gives the detail of the different competitors and different

services provided by them. Then we have compared these services with our

services.

5. Different formalities for opening demat account

This section throws some light over different document as well as hardware

and software requirement for opening of online trading cum demat account.

6. Learning about Dematerialization


6/56

This section tells you about different concepts regarding dematerialization.

How you can get your security dematerialized? Growth rate of

dematerialization etc.

7. Future of online trading in India

This section tells you about the different things that will affect online

trading.


7/56

OBJECTIVES

The objectives of this study are:-

The Broad objective of the project is to make clients and let them know

about the different services offered by the Indiabulls. Also to convince them

about how Indiabulls services out score there rivals. And how in future they

will be benefited from the services offered by Indiabulls.

This project will accomplish to understand the problem faced by the existing

client and find ways to solve these queries at your level otherwise let the

above level know about these problems. We have to be in regular contacts

with our clients so that we come to know about the problem they are facing.

This also helps us to multiply our clients by getting the further references.

By this we are able to make a chain of the customers which expands as we

satisfy there needs.


8/56

1) Overall Objective:

Comparative Study of Indiabulls Securities Market with other competitive

players

2) Module Objective:

To understand the various types of Investors

To do a market survey

To find about Investors satisfaction level

To give recommendation either to retain or to modify the existing

target in order to maintain position


9/56

METHODOLOGY

Methodology of the project starts with:

In the first phase we came to know about different things about

market & products offered by Indiabulls.

Then I made Database of customers who can be converted into clients

through internet and survey through questionnaire.

After that I conducted a mock viva, in order to know about the various

problem that can be faced by the customers. So that I can solve their

queries if they have during convincing them.

Then calls were made to the people who have filled questionnaire and

details of products and services were given to them in order to

convince them.

Then I had to fix meeting with them and got the D-Mat A/C form

filled from them.

Maintaining dairy of clients and contacting them at regular basis.


10/56

The next part knows the pattern of the scripts movement. How they move

with the correspondence to the market movement and also the economy

A very semantic methodology is proposed for the project which shall cover

the aspects of primary and secondary data analysis. The research work being

done here is exploratory in nature hence more of a field work is demanded.

Also I have used Secondary sources like Stock market magazines, ICMA

journals, ICMR books, NCFM books, stock market websites, annual reportsand publications of financial institution.

Mode of analysis:-

Effort will be made to ensure the internal validity of data collected from

different sources by way of triangulation, to draw purposeful conclusion.

The analysis is proposed to be qualitative rather than quantitative

inconsideration of this specific subject of the project.


11/56

LIMITATIONS

The various Limitations are:--

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 aredoing trading from there respective brokers, they are quite

comfortable to trade via phone.

Lack of Techno Savy people and poor internet penetration: -- 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.


12/56

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.

INTRODUCTION TO INDIABULLS

Indiabulls is India's leading retail financial services company with over 300

locations in more than 110 cities. While our size and strong balance sheet

allow us to provide you with varied products and services at very attractive

prices, our over 4400 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 access to all information and products. Our

flagship Indiabulls Professional Network offers real-time prices, detailed

data and news, intelligent analytics, and electronic trading capabilities, rightat your finger-tips. This powerful technology is complemented by our

knowledgeable and customer focused Relationship Managers.


13/56

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.

In Indiabulls, Making your investment easy!

Indiabulls to you as a Technology Oriented Financial Services Company

offering Integrated Equity analysis, Stock Trading, Depositary services,

Margin Trading facilities backed by real time risk management systems and

fast trade execution. Indiabulls also provides its clients with valuable real-

time information, access to breaking news and market happenings, along

with in-depth and insightful analysis.

The organization has an established presence in 110 cities through its 300

branch offices and has a base of over 35000 clients. Ranked amongst the top

5 retail brokers in the country with average daily trading volumes of over

Rs. 600 crores in the current markets and holds over Rs. 150 crores of assets

in its own depository services.

Some of the unique features are:


14/56

Trading via branch network, telephones and Internet account. That is

Both online and offline (by telephone).

Customized products for lending against shares

Automated Extended Margin Trading Facility

Integrated Trading and Depositary Account

Technology transforming desktop into NEAT like terminal for

Internet trading

One Screen for both Cash and Derivatives Trading.

Facility to Buy Today & Sell Tomorrow itself

Equity Research Department which studies the market and provides

information.

Up-to-date news, data and analysis via Indiabulls.com

Equity Analysis Report to support your investment decisions.

FUNCTIONAL AREAS OF INDIABULLS

The product range offered by Indiabulls includes

1. Equity Analysis

2. Equities & Derivatives

3. Depository Services

4. Commodities

5. Loans


15/56

TYPES OF ACCOUNTS

Indiabulls Signature Account - Comprehensive services including

research and investing guidance for independent investors.

Power Indiabulls - Indiabulls is dedicated to empower Active

Traders through personal service and advanced trading technology.

Non-Resident Indian (NRI) Investor Services - With an extensive

range of investment products, you will discover an unwavering

commitment to helping you invest in India.

All of this comes to you backed by your Relationship Manager available to

you 24x7.

Indiabulls is India's leading retail financial services company with 41

locations spread across 37 cities.

Over 450 Client Relationship Managers are dedicated to serving your

unique needs.

Is complemented by our knowledgeable and customer focused

Relationship Managers.

Provides our clients with real-time service & 24/7 access to all

information and products.

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.

Post Registration Services:


16/56

Deliver and receive cheques and securities

Obtain market information

Place orders

Get access to IPOs via the Book Building route as well as to all the

fixed price issues.

Documents required for trading account and D-Mat A/C

2-passport size photograph.

Photocopy of Income Tax Permanent Account Number (PAN) Card -

If you do not have a PAN, then you would be required to give a

declaration to that effect and fill form 60.

Identity Proof - Photocopy of any of the following:

Passport

PAN Card

Voter ID

Driving License

Ration Card

Address Proof - Photocopy of any one of Driving License /

Passport/Ration Card/Voter Card/ Bank Statement.

FEATURES OF POWER INDIABULLS

(It is a unique offering by the company which helps an investor to trade

online).

An investor can avail this feature by paying a fee of Rs. 750; with this he

can track all the listed scripts at NSE.

The features include:


17/56

Live Streaming Quotes

Fast Order Entry

Tic by Tic Live Charts

Technical Analysis

Live News and Alerts

Extensive Reports for Real-time Accounting

Benefits of trading with Indiabulls:

Personal relationship Manager - 24/7.

Most competitive brokerage and DP charges.

Only one time account opening charges and no annual maintenance

charges.

Margin trading of 3 times the cash deposited for delivery based trade.

Margin trading of 6 times the cash deposited for intra-day based trade.

Margin trading of 2 times the approved category based shares

deposited for delivery based trade.

Margin trading of 4 times the approved category based shares

deposited for delivery based trade.

Buy today Sell tomorrow for all securities facility.

OTHER PLAYERS

Sherkhan

Religare


18/56

Kotak Mahindera

SHAREKHAN

They have dedicated teams for fundamental and technical research so that

you get all the information you need to take the right investment decisions.

Sharekhan is the retail broking arm of SSKI, an organization with more than

80 years of trust and credibility in stock market. Sharekhan is India's leading

retail financial services company with. They have over 250 share shops

across 115 cities in India. While size and strong balance sheet allows them

to provide you with varied products and services at very attractive prices,

our over 750 Client Relationship Managers are dedicated to serving your

unique needs.

Sharekhan 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 access to all information and products. Our

flagship Sharekhan Professional Network offers real-time prices, detailed

data and news, intelligent analytics, and electronic trading capabilities, right

at your finger-tips. This powerful technology complemented by our

knowledgeable and customer focused Relationship Managers.

Sharekhan offers a full range of financial services and products ranging

from Equities to Derivatives enhance your wealth and hence, achieve your

financial goals.

Sharekhan' Client Relationship Managers are available to you to help with

your financial planning and investment needs. To provide the highest


19/56

possible quality of service, Sharekhan provides full access to all our

products and services through multi-channels .

We have a talent pool of experienced professionals specially designated

guide you when you need assistance, which is why investing with us is bond

to be hassle-free experience for you.

Sharekhan unveiled an all-new, world-class online investing facility from

the convenience at your home/office, you could invest in the equity market

with expert advice.

Accessibility

Sharekhan provides ADVICE, EDUCATION, TOOLS AND EXECUTION

services for investors. These services are accessible through our centers

across the country (Over 250 locations in 123 cities), over the internet as

well as over the Voice Tool.

We offer you the following products:-

CLASSIC ACCOUNT

This account allows you to trade through our website www.sharekhan.com

and is suitable for the retail investor who is risk-averse and hence prefers to

invest in stocks or who do not trade too frequently.

Features:-

Online trading account for investing in Equity and Derivatives via

www.sharekhan.com

Integration of On-line trading , Saving Bank and Demat Account.

Instant cash transfer facility against purchase & sale of shares.


20/56

Competitive transaction charges.

Instant order and trade confirmation by E-mail.

Streaming Quotes.(Cash & Derivatives)

Personalized market watch.

Single screen interface for Cash and derivatives and more.

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

watch.

SPEEDTRADE

SPEEDTRADE is an internet-based software application, that enables you to

buy and sell in an instant.

It is ideal for active traders and jobbers who transact frequently during days

session to capitalize on intra-day price movement.

Features:-

Instant order Execution and Confirmation.

Single screen trading terminal.(NSE)

Real-time streaming quotes, tic-by-tic charts.

Market summary (Cost traded scrip, highest calue etc.)

Hot keys similar to brokers terminal.

Alerts and reminders.

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

IPO On-line

RELIGARE


21/56

Religare is driven by ethical and dynamic process for wealth creation.

Based on this, the company started its endeavour in the financial market. A

company promoted, controlled and managed by the promoters of Ranbaxy,

Religare was founded with the vision of providing integrated financial care

driven by the relationship of trust.

Religare Enterprises Limited through Religare Securities Limited, Religare

Finvest Limited, Religare Commodities Limited and Religare Insurance

Advisory Services Limited provides integrated financial various financial

services which include Investment Banking, Corporate solutions to its

corporate, retail and wealth management clients. Today, we provide Finance,

Portfolio Management Services, Equity & Commodity Broking, Insurance

and Mutual Funds. Plus, theres a lot more to come your way.

Religare is proud of being a truly professional financial service provider

managed by a highly skilled team, who have proven track record in their

respective domains. Religare operations are managed by more than 2000

highly skilled professionals who subscribe to Religare philosophy and are

spread across its country wide branches.

Today, we have a growing network of more than 150 branches and more

than 300 business partners spread across more than 180 cities in India and a

fully operational international office at London. However, our target is to

have 350 branches and 1000 business partners in 300 cities of India and

more than 7 International offices by the end of 2006.

Unlike a traditional broking firm, Religare group works on the philosophy of

partnering for wealth creation. We not only execute trades for our clients but

also provide them critical and timely investment advice. The growing list of


22/56

financial institutions with which Religare is empanelled as an approved

broker is a reflection of the high level service standard maintained by the

company.

Religare is one of the heavyweight equity players in India with membership

of National Stock Exchange of India and Bombay Stock Exchange both

major exchanges of India. We believe in innovative services that could cater

a range of customers according to their requirements. Religare equity and

derivative trading is offered in two unique ways:

Religare - ALLY

Religare - Advance Client Engine

R-ACE & R-ALLY accounts are designed for different classes of

customers keeping in mind their needs and requirements. This helps to bring

about a change in :

Conventional investments with a world class touch.

Expertise to investors while trading on Indian Exchanges.

To realize its vision, the company provides both, fund-based and non-fund

based financial services to its clients. These services include Broking

(Stocks), Depository Participant Service and Portfolio Management

Services. The company is also entering into the advisory services on

Offshore Investment as allowed by Reserve Bank of India through it's

International Equity desk.


23/56

Besides servicing Institutional clients, Religare also pioneered the concept of

partnership to reach multiple locations in order to effectively service it's

large base of Individual Clients. The clients of the company greatly benefit

by its strong research capability, which encompasses fundamentals as well

as technicals.

The exciting features that Religare provide are :

Features:

FREE TRADING AND DEMAT ACCOUNTS.

Lowest brokerage in the industry starting with 0.2% in delivery and

0.02% in intraday.

Exposure: 10 times (Intra-Day) & 2 Times (Delivery & F&O).

Margin Funding available.

Online trading.

Exact carry forward on span margin as on NSE.

16% rate of simple interest per annum on margin funding.

KOTAK SECURITIES

Kotak Mahindra is one of India's leading financial institutions, offering

complete financial solutions that encompass every sphere of life. From

commercial banking, to stock broking, to mutual funds, to life insurance, toinvestment banking, the group cater to the financial needs of individuals and

corporates.

The group a net worth of over Rs.1,550 crore and employs over 3,000

employees in its various businesses. With a presence in 59 cities in India and


24/56

offices in New York, London, Dubai and Mauritius, it services a customer

base of over 5,00,000. Kotak Securities Limited, a subsidiary of Kotak

Mahindra Bank, is the stock broking and distribution arm of the Kotak

Mahindra Group. The company was set up in 1994. Kotak Securities is a

corporate member of both The Bombay Stock Exchange and The National

Stock Exchange of India

Limited. Its operations include stock broking and distribution of various

financial products - including private and secondary placement of debt and

equity and mutual funds. Currently, Kotak Securities is one of the largest

broking houses in India with wide geographical reach. The company hasfour main areas of business: (1) Institutional Equities, (2) Retail (equities

and other financial products), (3) Portfolio Management and (4) Depository

Services.

Institutional Business

This division primarily covers secondary market broking. It caters to the

needs of foreign and Indian institutional investors in Indian equities (both

local shares and GDRs). The division also incorporates a comprehensive

research cell with sectoral analysts who cover all the major areas of the

Indian economy.

Client money Management

This division provides professional portfolio management services to

high net-worth individuals and corporates. Its expertise in research and

stock broking gives the company the right perspective from which to

provide its clients with investment advisory services.


25/56

Retail distribution of financial products

Kotak Securities has a comprehensive retail distribution network,

comprising approximately 7000 agents, 13 branches and over 20franchisees across India. This network is used for the distribution and

placement of a range of financial products that includes company fixed

deposits, mutual funds, Initial Public Offerings, secondary debt and

equity and small savings schemes.

Depository Servicies

Kotak Securities is a depository participant with the National Securities

Depository Limited and Central Depository Services (India) Limited for

trading and settlement of dematerialised shares. Since it is also in the

broking business, investors who use its depository services get a dual

benefit. They are able to use its brokerage services to execute

transactions and its depository services to settle these.

Kotak Securities' width, volume and quality of offerings regularly earn it

accolades from industry monitors. In recent times, these have included:

Euromoney Award (2005): Best Equities House In India

Finance Asia Award (2005): Best Broker In India Asia Money (2004): Best Equity House in India

Finance Asia Award (2004): India's Best Equity House

Euromoney (2004): Best Equity House in India

Prime Ranking Award (2003-04): Largest Distributor of IPOs


26/56

Kotak Institutional Equities

Kotak Institutional Equities, among the top institutional brokers in India. It

mainly covers secondary market broking and the marketing of equityofferings, including IPOs, to domestic and foreign institutional investors. Its

full-fledged research division comprises 18 analysts engaged in macro-

economic studies, industry- and company-specific equity research.

Kotak Institutional Equities has full financial service capability, which

includes derivatives, facilitating market access through affiliates and the

distinctive offering of corporate access to investors. The division services

over 250 clients including FIIs, pension and mutual funds. The division has

sales desks in Mumbai, London and New York, with the India desk also

servicing clients in Hong Kong, Singapore, Japan and Australia.

COMPETITIVE STRENGTHS TO BE THE

MARKET LEADER

What keeps Indiabulls ahead of the competition is the competitive edge that

it has over other players in the market.

Diverse Branch Network

Bouquet of financial products and services

Advanced technology team that delivers market leading product

innovation

Strong sales and marketing teams with continuous reinvestment and

training

Strong cross selling opportunities


27/56

Strong and experienced promoters

Leading product innovation and marketing strategies

Well capitalized player, with strong banking relationships and credit

ratings

Ability to combine people and technology in unique ways

Strong market presence and increased market share leading to a virtuous

cycle of growth and profitability.

ETHICAL VALUES

Indiabulls has a performance driven culture where the core value, which

drives the organization, is its profitability-oriented culture. Every employee

is an entrepreneur in his own right, trying to make profits for himself as well

as the Company.

CORE COMPETENCY

The companys core competency is its unique business model the model of

relationship managers by which those who trade through the internet also

gets the human touch. The aggressive profit sharing model (with the

employees) that it pursues is another major high of the core competency.

KEY BUSINESS STRATEGIES

Their focus on the client has allowed the company to offer a range of

services that have changed the investing landscape and created a new model

of financial services that melds people and technology to provide an


28/56

integrated human assisted technology interface service for investors who

range from self-directed full-time active investor to those who prefer to deal

with through a marketing associate in smaller towns and cities.

Their key strategies include:

Defend and maintain our differentiation as the firm that delivers

ethical and useful services

Build and expand our investing insight through our product

offerings such as Equity Analysis which is objective, uncomplicated

and not driven by commission

Give clients new levels of choice tailored to their desire for

help, tools for investing their assets, their willingness to pay for

additional services and the level of business they can do with us

Provide clients with tools, relationship managers and choices

that support their desired investment outcomes

They have developed a client specific approach as a core element of their

business strategy and are constantly focusing on acquiring new clients and

expanding their customer base. They believe that the strong secular growth

of the Indian financial markets, due to increased household penetration of

financial assets; increasing liquidity and market capitalization of Indian

markets, led by the listing of many public sector entities; and the increasing

affluence of Indian households and savers provides an impetus to our growth

perspective.


29/56

The company believes that this diversification and growth strategy will

continue to produce results and allow the Company and its subsidiaries to

grow the business at a rapid pace irrespective of market conditions. In

addition, management believes that the growth of the Indian financial

markets, due to increased household penetration of financial assets;

increasing liquidity and market capitalization of Indian markets, led by the

listing of many public sector entities; and the increasing affluence of Indian

households and savers, favors their long-term growth outlook.

SOCIAL INITIATIVES

Does the business house think of the society and the nation or are they

basically concerned about profit generation only.

The company as such has not undertaken any major social initiative - they

did contribute to the Tsunami Relief Fund (2 days salary of every

employee). The company as such does not believe in doing somethingdifferent from their business; they believe that they could contribute to the

society by doing what they are best at making profits for the stakeholders

and also employing more people.

SWOT ANALSIS FRAMEWORK


30/56

STRENGTHS:

A firms strengths are its resources and capabilities that can be used as a

basis for developing a competitive advantage. Examples of such strengths

include:

Patents.

Strong brand names.

Good reputation among customers as Indiabulls provide a relationship

manager to every client.

Cost advantages from proprietary know how.

Exclusive access to high-grade natural resources.

Favorable access to distribution networks.

ENVIRONMENTAL

INTERNAL EXTERNAL

WEAKNESSTRENGTH OPPURTUNITI THREA

SWOT MATRIX


31/56

WEAKNESS:

The absence of certain strengths may be viewed as a weakness. For example,

each of the following maybe considered as a weakness:

Lack of patent protection.

A weak brand name.

Poor reputation among customers as each client is not been attended

well.

High cost structure..

Lack of access to key distribution channels.

In some cases, a weakness maybe the flip side of a strength. Take the case

in which a firm has a large amount of manufacturing capacity. While this

capacity may be considered as strength that competitors do not share, it also

may be considered a weakness if the large investment in manufacturing

capacity prevents the firm from reacting quickly to changes in the strategic

environment.

OPPURTUNITIES:

The external environmental analysis may reveal certain new opportunities

for profit and growth some examples of such opportunities include:

An unfulfilled customer need.


32/56

Arrival of new technologies.

Loosening of regulations.

Removal of international trade barriers.

THREATS:

Changes in the external environmental also may present threats to the firm.

Some of the examples include:

Shifts in consumer tastes away from firms products.

Emergence of substitute product.

New regulation.

Increased trade barriers.

THE SWOT MATRIX

A firm should not necessarily pursue the most lucrative opportunities.

Rather, it may have a better chance at developing a competitive advantage

by identifying a fit between the firms strengths and upcoming opportunities.

In some cases, the firms can overcome a weakness in order to prepare it to

pursue a compelling opportunity.

To develop strategies that take into account the SWOT profile, a matrix of

these factors can be constructed. The SWOT matrix (also known as a TOWS

MATRIX) is shown below:


33/56

SWOT/ROWS MATRIX

WEAKNESSES STRENGTHS

OPPURTUNITIE

S

S-O STRATEGIES W-O

STRATEGIES

THREATS S-T STRATEGIES W-T

STRATEGIES

S-O STRATEGIES pursue opportunities that are a good fit to the

companys strengths

W-O STRATEGIES overcome weaknesses to pursueopportunities.

S-T STRATEGIES identify ways that the firm can use its strengths

to reduce its vulnerability to external threats.

W-T STRATEGIES establish a defensive plan to prevent the firms

weaknesses from making it highly susceptible to external threats.

Strengths of Indiabulls What makes Indiabulls better than its

competitors?

Online trading platform


34/56

Diverse Branch Network provides ample opportunities to penetrate

deep into the existing & untapped market. Since its inception in FY

2000 the company and its subsidiaries have grown from a single

location to a nationwide network spread over 135 offices in 95 cities.

Personal relationship manager who will help assist the clients in share

trading

Indiabulls offers its clients a pool of financial services and products:

Equities & Derivatives

Depository Services

Commodities

Insurance

Mutual Funds

Indiabulls Equity Analysis

IPOs

Loans

No annual maintenance charges

No custodial charge

It does not keep any condition as to collect minimum amount of

brokerage from its clients

Most competitive BROKERAGE and DP charges (on delivery 0.5%

and on intraday 0.1%)

Equity analysis report to support the investment decision of its clients

Trading via branch network, telephones and internet account i.e. both

online and offline


35/56

Strong market presence and increased market share leading to a

virtuous cycle of growth and profitability.

The incentive model is created such that it leads to generation of

higher revenue for the organization. This acts as a motivating factor

for the employees to perform well.

Induction of new employees through an extensive computer based

training module that equips them to service their clients efficiently.

An added advantage of Indiabulls is its strong brand name, which

helps its sales force to sell the products.

Technology transforming desktop into NEAT like terminal for

internet trading

Real time online transfer fund and exposure updating facility with

HDFC, CITIBANK, ICICI

Weakness of Indiabulls:

It should have its own mutual funds i.e. Indiabulls as of now does not

have its own mutual funds, instead of providing advises in mutual

funds it should have its own mutual funds.

It should provide tips via SMS.

Too many people try to eat the same piece of pie i.e. people employed

in Indiabulls hit the same area to target their customers. There should be a separate set of staff working in fields and trading on

behalf of their clients: India bulls has same set of staff who are

making clients and also trading on behalf of clients this hinders the

relationship manager to provide adequate and necessary tips to the


36/56

clients and at times the managers are not in the position to answer the

questions of their clients relating to the current market position as they

are on fields.

It does not display the scripts in BSE on its terminal i.e. POWER

INDIABULLS. To trade in scripts in BSE the customer has to open

the website www.bseindia.com.

Commodities are not traded online (MCX-multi commodity exchange,

NCDEX-national commodity derivative exchange of India ltd.)

It does not provide with the indices of major world markets, ADR

prices of Indian scripts.

Unlike some of its competitors like ICICI and Kodak, Indiabulls does

not provide a complete catalogue of financial services (e.g. Banking

facility).

Due to the continuous need to meet the targets, some of the

Relationship managers crack under pressure and thus leave the

organization. There is no limit to the maximum number of clients that a

Relationship manager can handle. This affects the level of service

provided to the clients who are not volume traders.

OPPURTUNITIES TO INDIABULLS:

Financial services like banking

Market expansion i.e. opening branches at untapped areas

ADR & GDR have issued to trade in foreign markets.


37/56

Indiabulls is registered with Luxembourg stock exchange and so can

target other stock exchanges.

ATM facility should be provided for easy withdrawals.

The Capital market in the last few years has turned out to be one of

the favorable avenues for the retail investors. This is due to the

performance of the Indian Industry in various sectors and the

Economy in general. Even the future outlook looks promising.

Scope of online trading on BSE.

Indiabulls has tied up with other third party companies to sell their

products. Due to the high client base of Indiabulls, there exists an

opportunity to cross sell these products in the market.

Market seems favorable for commodities trading. Should Indiabulls

choose to enter this segment it may prove to be a profitable venture.

THREATS TO INDIABULLS:

Companies like Sharekhan, ICICI Direct, Kotak, and Private Brokers

are major threats to Indiabulls.

Banks with demat facility jockeying for position

Local brokers capable of charging lower brokerage

Industry competitors vying for the same target segment.

Changes in SEBI guidelines & other tax implications.

Government Regulations

DATA COLLECTION


38/56

Primary data: A comprehensive questionnaire has been designed for the

purpose of the study and the respondents were interviewed to collect

feedback on the subject. This is the main source for the primary data. Also,

discussions among peers and colleagues were carried out on the subject to

understand the perceptions that people hold about the equities market.

Secondary data: The secondary data was collected from books and

journals relevant to the subject and also from the Internet. This was mainly

to get an understanding of the operational side of the market.

Sample Size

The method of Random Sampling was followed for the purpose of data

collection and a sample of 100 was interviewed.

The questionnaire was randomly circulated and the respondents were

interviewed for their thoughts on the subject matter.

COMPARATIVE ANALYSIS BETWEEN

INDIABULLS AND OTHERS

The Indiabulls is the fastest growing securities company in India .With in

span of 5years time it is the number 1 company having a brandname . We

have already studied the various services provided by other brokerage


39/56

houses ,so now have look at the areas where Indiabulls is having merit over

the others.

Indiabulls is providing many multi facility to its clients so that they may not

face any problem like,

They provide Relationship Manager who can guide their client

about the right investment in secondary market which

comparatively not provided in other securities ltd.

They do not charge any annual maintenance charge as all the

companies charge other than brokerage.

They provide exposure to both intraday as well as delivery based

trading which is not provided to others.


40/56

CAMPARISON CHART

QUESTIONNAIRE

Sharekhan Kotak Indiabulls Religare

Account Opening

ChargesRs. 375/ Rs 750 Rs. 500 Rs 500 Free

Brokerage (%)Delivery Intraday Delivery Intraday Delivery Intraday Intraday Delive

0.20 0.05 0.50 0.15 0.50 0.05 0.02 0.20

Exposure on Cash NIL 4 times 4 times 4 times 4times 10 times 10 times 2 time

Exposure on

SecuritiesNIL NIL

2 times of the

market valueNIL

Annual

Maintenance

Charges

Rs 300 Rs. 260 NIL NIL

Trading with other

Demat AccountN.A. N.A. Possible Possible

Banking facility

IDBI Bank/City

Bank/ OBC/UTI/

HDFC bank

Kotak/HDFC/CITI All private Banks

Net Banking

facility

IDBIBank/City

Bank/OBC/UTI/H

DFC

Kotak/HDFC/CITIHDFC/ICICI/Citiba

nk

Off-line Trading N.A. N.A.

Through Phone &

SMS& messengerN.A

Relationship

ManagerN.A. N.A.

Assigned to every

client

Assigned to ev

client


41/56

1) Would you like to invest in the stock market?

(a) Yes

(b) No

2) If not why?

(a) Lack of Knowledge

(b) Feel Its Risky(c) No time

(d) Dont have money

3) Does you have Dmat & Trading A/C?

(a) Yes

(b) No

4) In which Brokerage house you have your Dmat a/c?

(a)Kotak

(b)Indiabulls

(c) Religare

(d)ShareKhan

5) What are the a/c opening charges you expect from your Broker?

(a) 500


42/56

(b)700

(c) 750

(d)800

6) What the brokerage should be charged by your broker on Delivery

trading?

(a) 0.2-0.5

(b)0.5-0.7

(c) 0.7-1.0

7) What the brokerage should be charged by your broker on Intraday

trading?

(a) .02-.05

(b).05-.07

(c) .07-0.1

8) Would you like to have the facility of exposure on Cash?

(a) Yes

(b) No

9) Would you like to have the facility of exposure on Security?

(a) Yes

(b) No


43/56

10) What are the Annual maintenance charges you expect from

your Broker?

(a) NIL

(b) 100-200

(C) 200-300

11) Would you like to have a facility to trade with other Dmat a/c?

(a) Yes

(b) No

12) Would you like to have a facility of net Banking?

(a) Yes

(b) No

13) Would you like to have a facility of Relationship Manager?

(a) Yes

(b) No

14) Are you satisfy with your Broker?

(a) Yes

(b) No


44/56

FINDINGS

People interested in stock market investment


45/56

People having D-Mat & Trading A/C

People interested in stock

market investment

Percent

age

Yes

40%No

60%

% Of People having D-Mat & Trading a/c

Percentage

Yes

80%

No

20%

% Of people interested in stock market

40%

60%

yes

no


46/56

PERCENTAGE OF ACCOUNT OPENED IN

VARIOUS HOUSES

Investors having their D-Mat A/C

in various brokerage house

Percentage

Indiabulls 40

Kotak 15

Religare 15

Sharekhan 20

% Of People having Dmat & Trading a/c

Yes

80%

No

20%

Yes

No


47/56

% of opening of D-Mat A/C

40

15 1520

0

10

20

30

40

50

IndiaBulls Kotak Religare Sharekhan

Brokerage House

Percentage

Expected Brokerage on

Delivery

Percentage

0.2-0.5 90%

0.05-0.7 10%

0.7-1.0 0%


48/56

BROKERAGE ON DELIVERY

0%

20%

40%

60%80%

100%

0.2-0.5 0.05-0.7 0.7-1.0

Percentage of Brokerage

Percentage

ACCOUNT OPENING CHARGES


49/56

Expected a/c opening charges

500

700

750

800

80%

10%

10%

0%

0 500 1000

1

2

3

4

Expected a/c

opening charges

Percentage

BROKERAGE ON INTRADAY

Expected Brokerage on

Intraday

Percentage

.01-.05 % 75%

.05-.07 % 20%

.07-.10 % 5%

Expected a/c opening

charges

Percentage

500 80 %

700 10%

750 10%800 0%


50/56

75%

20%

5%

0%

20%

40%

60%

80%

.01-.05

%

.05-.07

%

.07-.10

%

Expected brokerage on intraday

Percentage

EXPOSURE ON CASH

Investors expect exposure

on Cash

Percentage

Yes 70%

No 30%


51/56

Percentage

Yes

70%

No

30%

RECOMMENDATION

Analysis of Client Interaction (Already existing clients)

Client interaction and after sales services are the most crucial aspects for any

business. We carried out a study to gauge the level of satisfaction of the

clients with the services of Indiabulls. This helped us in understanding why


52/56

Indiabulls has become one of the most trusted brands within a span of five

years.

1. The Relationship Managers(RM) should be made responsible to ensure

that the clients are well catered, thus, reducing switching over of routing,

thereby reducing loss of business to the firm.

2. A lot of time lag is there between the follow up and the change of RM, as

a result, the calls could not leave a positive impact on the clients, so

contacted. Therefore, follow up should be done fast without any time lag.

3. Many clients did not know about the change of RM. This leaves a bad

impression on the concerned client, damaging the reputation of the firm.So, heed is taken in this regard.

4. The customers, who were satisfied with the services, appreciated this

kind of follow up. Therefore, such follow-ups are done from time to time,

to gain customer confidence.

After getting Leads attention should be made on following points:

1. The calls made should be more informative and assertive.

2. The RM should provide an in depth demonstration of the software and

client should be assisted regularly.

3. Provision of a manual for online clients for ease of operation.

4. Time lag between the complaints put and follow up should be reduced.


53/56

5. Database should be verified properly, so that repeated entries do not

occur. This will reduce inconvenience to the clients, who complained

about multiple calls received.

Working of Back Office

There should be a person solely responsible for checking the

Registration Kit to ensure that it is complete in all respects and there

are no rejections.

The policies related to Trading and DP should be consistent and in

congruence with each other.

The time lag between giving in the kits for registration and opening

the account should be reduced to ensure speedy and efficient service.

BIBLIOGRAPHY

LITERATURE

The Efficient Market Hypothesis and Its Critics by Burton G.

Malkiel, Princeton University April 2003


54/56

A brief history of market efficiency Elroy Dimson and Massoud

Mussavian, London Business School, Published in European

Financial Management, Volume 4, Number 1, March 1998, pp 91-193

S.F. Nicholson Price-Earnings Ratios , Financial Analysts Journal,

July- Aug 1960.

J.D. MCwilliams Price, Earnings, and P/E Ratios. Financial

Analysts Journal May-June 1966.

P.F.Miller & E.R. Wildmann, Price Performance Outlook for High

and Low P/E Stocks, Commercial & Financial Chronicle, September

1966.

S.F. Nicholson, Price-Ratios in Relation to Investment Results,

Financial Analysts Journal, January-Feburary 1968.

W.Breen, Low Price-Earnings Ratio & Industry Relatives, Financial

Analysts Journal, July-Feburary 1968.

W.Breen & Savage J. Portfolio Distribution & Security Selection

Models, Journal of Finance, December 1968.

S.Basu, Investment Performance of Common Stocks in Relation to

Their Price-Earning Ratios: A Test of the Efficient Market

Hypothesis, Journal of Finance, June 1977.

Basu, Sanjoy, "The Relationship between Earnings Yield, Market

Value and Return for NYSE Common Stocks: Further Evidence,"

Journal of Financial Economics 12 (1983): 129-156.

M.Obaidullah, The Price Earning Ratio Anomaly in Indian Stock

Markets, Decision, July 1991.

Farna., "Efficient capital markets: II", Journal of Finance 46, 1575-

1617, 1991


55/56

Farna, "Efficient capital markets: A review of theory and empirical

work," Journal of Finance 25, 383-417, 1970.

Seyhun, "Insiders profits, costs of trading, and market efficiency,"

Journal of Financial Economics 16, 189-212 , 1986.

Seyhun, Investment intelligence from insider trading, MIT Press.

Patell,J and M.Wolfson, "The intraday speed of adjustment of stock

prices to earnings and dividend announcements," Journal of Financial

Economics 13, 223-252.,1984.

Gosnell, T.F., A.J. Keown and J.M. Pinkerton, The intraday speed of

stock price adjustment to major dividend changes: Bid-ask bounce

and order flow imbalances," Journal of Banking and Finance 20, 247-

266, 1996.

Jaffe, Jeffrey, Donald B. Keim, and Randolph Westerfield, "Earnings

Yields, Market Values, and Stock Returns," Journal of Finance 44

(1989): 135-148.

DATA SOURCES

www.Indiabullsstreet.com

www.indiainfoline.com www.bseindia.com

www.nseindia.com

www.5paisa.com

www.sbi.com
http://www.kotakstreet.com/http://www.kotakstreet.com/http://www.indiainfolin.com/http://www.bseindia.com/http://www.nseindia.com/http://www.5paisa.com/http://www.sbi.com/http://www.kotakstreet.com/http://www.indiainfolin.com/http://www.bseindia.com/http://www.nseindia.com/http://www.5paisa.com/http://www.sbi.com/


56/56

www.sebi.com

www.Indiabulls.com

www.nseindia.com

www.icicidirect.com

www.rbi.org

Center for Monitoring Indian Economys Prowess Client Database.

www.westga.edu/~bquest/2002/market.htm - The Efficient Market

Hypothesis on Trial:

A Survey by Philip S. Russel and Violet M. Torbey

http://library.dfaus.com/articles/explaining_stock_returns -

Explaining Stock Returns: A Literature Survey By James L. Davis,

Vice President Dimensional Fund Advisors Inc. December 2001.

Indian Stock Market Theories and Evidence, M Obaidullah, ICFAI

Publications 1994.
http://www.sebi.com/http://www.indiabulls.com/http://www.indiabulls.com/http://www.icicidirect.com/http://www.rbi.org/http://www.westga.edu/~bquest/2002/market.htmhttp://library.dfaus.com/articles/explaining_stock_returnshttp://www.sebi.com/http://www.indiabulls.com/http://www.icicidirect.com/http://www.rbi.org/http://www.westga.edu/~bquest/2002/market.htmhttp://library.dfaus.com/articles/explaining_stock_returns