INTRODUCTION

A stock exchange, share market or bourse is a corporation or mutual organization

which provides facilities for stock brokers and traders, to trade company stocks and other

securities. Stock exchanges also provide facilities for the issue and redemption of

securities, as well as, other financial instruments and capital events including the payment

of income and dividends. The securities traded on a stock exchange include: shares issued

by companies, unit trusts and other pooled investment products and bonds. To be able to

trade a security on a certain stock exchange, it has to be listed there. Usually there is a

central location at least for recordkeeping, but trade is less and less and less linked to

such a physical place, as modern markets are electronic networks, which give them

advantages of speed and cost of transactions. Trade on an exchange is by members only.

The initial offering of stocks and bonds to investors is by definition done in the primary

market and subsequent trading is done in the secondary market. A stock exchange is

often the most important component of a stock market. Supply and demand in stock

markets are driven by various factors which, as in all free markets, affect the price of

stocks (see stock valuation).

Equity derivatives are and alternative to trading the underlying security. The value of a

derivative product is directly correlated to the value of the underlying asset. Derivatives

are commonly seen as risky or speculative. However, these products can also be used for

hedging. That is, they can actually reduce the amount of risk that a trading position is

exposed to.

Today the world’s fastest growing economy India is one of the most exciting markets to

be in. infect, numbers show that more people visit Dalal Street in 2019 as compared to

Taj Mahal; it’s where the next big global photo-op exists. There is rapid transformation

and growth is come. The volumes increases plus the growth in Indian economy has led to

subscription where the Indian Stock market is very vibrant place.

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COMPANY PROFILE

Evolution and Growth of Stock Exchanges in India –

Pre-Independence Period:

Emergence of the Stock Exchange

In India, business in loan securities of the East India Company was done towards the

close of 18th century. Bombay became the major centre of trading activity in securities.

This trading activity was unorganized and informal in nature. In Bombay, by 1830 some

bank shares also entered into the trading place. These shares included that of Commercial

Bank, Chartered Mercantile Bank, Agra Bank, Oriental Bank and Bank o Bombay.

Between 1840-50, there were half a dozen stock brokers in Bombay recognized by banks

and merchants.

By 1860 the number of brokers increased to 60.24 with the passing of Joint Stock

Companies Act in 1850, the number of companies involved in various types of trades

started growing.

Emergence of stock exchange in India has close links with the ‘Cotton Boom’,

That took place during 1860 to 1865 in Bombay

From 1861 to the beginning of 1865, speculation was key activity in Bombay’s securities

trading places.

Number of brokers dealing in securities, which stood about 60 by 1860 increased to 200-

250during the cotton boom period.

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Between 1863-65, 25 new Banks, 69 financial

Associations, 7 land reclamation companies and 30 miscellaneous companies were

floated.

After 1865, a number of financial failures and problems in speculative activity led

brokers to form an association in 1875. “It was only the disaster that followed the boom,

Which brought the brokers together in July, 1875 to form an association that is today

called

“The Stock Exchange, Bombay”.

The experience was later followed at these

Centers, with stock exchanges being set up at Ahmedabad in 1894, at Calcutta in 1908, at

Indore in 1930, at Madras in 1937, and at Hyderabad in 1943 and at Delhi in 1947.

Since beginning, Bombay Stock Exchange is considered as the leader among Indian stock

exchanges. Therefore, trends and developments that have taken place at the Bombay

stock exchange or that are taking place there can be treated as broad indicators of

performance of stock exchanges in the country.

In brief, this can be stated that due to general distrust by the public of private business

and closed circle character of industrial entrepreneurship, the role of new issues and stock

exchanges remained on the periphery of private corporate sector financing and with the

absence of any meaningful role in industrial financing, the functioning and structure of

the institution of stock exchange became speculative activity oriented serving little the

saving and investment activity of community.

It is also worth mentioning that functioning, organization and management of seven out

present nineteen stock exchanges, including that of our five major stock exchanges-

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Bombay, Calcutta, Delhi, Ahmedabad, and Madras, took shape during the period (pre

1948 period commented upon by the National Planning Committee) marked for absolute

Domination of speculative interests. Organization and management of major stock

exchanges formed during this period did not prove to be positive to the developments and

desirable changes later more particularly during the period of eighties.

Growth of Stock Exchanges in India

The Second World War broke out in 1939. It gave a sharp boom which was followed by a

slump. But, in 1943, the situation changed radically, when India was fully mobilized as a

supply base.

On account of the restrictive controls on cotton, bullion, seeds and other commodities,

those dealing in them found in the stock market as the only outlet for their activities.

They were anxious to join the trade and their number was swelled by numerous others.

Many new associations were constituted for the purpose and Stock Exchanges in all parts

of the country were floated.

The Uttar Pradesh Stock Exchange Limited (1940), Nagpur Stock Exchange Limited

(1940) and Hyderabad Stock Exchange Limited (1944) were incorporated.

In Delhi two stock exchanges – Delhi Stock and Share Broker’s Association Limited and

the Delhi Stocks and Shares Exchange Limited – were floated and later in June

1947,amalgamated into the Delhi Stock Exchange Association Limited.

Post-independence Scenario

Most of the exchanges suffered almost a total eclipse during depression. Lahore

Exchange was closed during partition of the country and later migrated to Delhi and

merged with Delhi Stock Exchange.

Bangalore Stock Exchange Limited was registered in 1957 and recognized in 1963.

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Most of the other exchanges languished till 1957 when they applied to the Central

Government for recognition under the Securities Contracts (Regulation) Act, 1956. Only

Bombay, Calcutta, Madras, Ahmedabad, Delhi, Hyderabad and Indore, the well

established exchanges, were recognized under the Act. Some of the members of the other

Associations were required to be admitted by the recognized stock exchanges on a

confessional bases, but acting on the principle of unitary control, all these pseudo stock

exchanges were refused recognition by the Government of India and they thereupon

ceased to function.

Thus, during early sixties there were eight recognized stock exchanges in India

(mentioned above). The number virtually remained unchanged, for nearly two decades.

During eighties, however, many stock exchanges were established: Cochin Stock

Exchange (1980), Uttar Pradesh Stock Exchange Association Limited (at Kanpur, 1982),

and Pune Stock Exchange Limited (1982), Ludhiana Stock Exchange Association

Limited (1983), Gauhati Stock Exchange Limited(1984), Kanara Stock Exchange

Limited (at Mangalore, 1985), Magadh Stock Exchange Association (at Patna, 1986),

Jaipur Stock Exchange Limited (1989), Bhubaneswar Stock exchange Association

Limited (1989), Saurashtra Kutch Stock Exchange Limited ( at Rajkot 1989), Vadodara

Stock Exchange Limited ( at Baroda 1990) and recently established Exchange

Coimbatore and Meerut. Thus, at present, there are totally twenty one recognized Stock

Exhanges in India excluding the over the counter Exchange of India limited (OTCEI) and

the National Stock Exchange of India Limited (NSEIL).

PRESENT SENERIO:

At present there are functioning 19 stock exchanges, recognized by the government of

India.55 the functioning of the stock exchanges is managed and administered by the

governing body/board of the directors of the exchange. The governing body of stock

exchange is vested with wide powers. These powers include wide ranging discretionary

power also. The powers of governing body are to:

manage and control the functioning of the stock exchanges;

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regulate trading in securities;

fine, suspend or expel member and take such other disciplinary action as it dreams

fit;

govern business conduct and relationship; if any, amongst members and between

members and non-member;

make or amend any rules, buy laws, or regulations or suspend their operations

with the approval of the government;

(1) Interpret the rules, byelaws and regulations in its own discretion.

The list of the stock exchanges is as follows:

Established prior to 1980:-

Bombay stock Exchange, Bombay

Ahmedabad Share and Stock Brokers Association, Ahmedabad

Calcutta Stock Exchange Association, Calcutta

Madras Stock Exchange, Madras

Hyderabad Stock Exchange, Hyderabad

Delhi Stock Exchange, New Delhi

Share Brokers Association (M.P. Stock Exchange) Indore

Cochin Stock Exchange, Cochin

Bangalore Stock Exchange, Bangalore, Established in Post – 1980 period:-

Pune Stock Exchange, Pune

Uttar Pradesh Stock Exchange, Kanpur

Ludhiana Stock Exchange, Ludhiana

Guwahati Stock Exchange, Guwahati

Canara Stock Exchange, Manglore

Magadh Stock Exchange, Patna

Baroda Stock Exchange, Baroda

Jaipur Stock Exchange, Jaipur

Saurashtra Stock Exchange, Rajkot

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Bhubaneshwar Stock Exchange, Bhubaneshwar

Ministry of Finance has recently granted recognition to two new stock exchanges

at Meerut and Coimbatore. These stock exchanges are yet to start functioning.

Growth Pattern:

The Table given below portrays the overall growth pattern of Indian stock markets since

independence. It is quite evident from the Table that Indian stock markets have not only

frown just in number of exchanges, but also in number of listed companies and in capital

of listed companies. The remarkable growth after 1985 can be clearly seen from the

Table, and this was due to the favoring government policies towards security market

industry.

S.No. As on 31st December 1961 1971 1975 1980 1985 1991 1995

1. No. Of Stock

Exchange

7 8 8 9 14 20 22

2. No. Of Listed Cos. 1203 1599 1552 2265 4344 6229 8593

3. No. Of Stock issue of

Listed Cos.

2111 2838 3230 3697 6164 8967 11784

4. Capital of Listed Co.

(Cr. Rs.)

753 1812 2614 3673 9723 32041 59583

5. Market Value of

Capital of Listed Cos.

(Cr. Rs.)

1292 2675 3273 6750 25302 110279 478121

6. Capital per Listed

Cos. (4/2) (Lakh Rs.)

63 113 168 175 224 514 693

7. Market Value of

Capital per Listed cos.

(Lakh Rs.)(5/2)

107 167 211 298 582 1770 5564

8. Appreciated Value of 170 148 126 170 260 344 803

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Capital per Listed

Cos. (Lakh Rs.)

Trading Pattern of the Indian Stock Market

Trading in Indian stock exchanges is limited to listed securities of public limited

companies. They are broadly divided into two categories, namely, specified securities

(forward list) and non- specified securities (cash list). Equity shares of dividend paying,

growth-oriented companies with a paid-up capital of at least Rs.50 million and a market

capitalization of at least Rs.100 million and having more than 20,000 shareholders are,

normally, put in the specified group and the balance in non-specified group.

Two types of transactions can be carried out on the Indian stock exchanges: (a) spot

delivery transactions “for delivery and payment within the time or on the date stipulated

when entering into the contract which shall not be more than 14 days following the date

of the contract”. The latter is permitted only in the case of specified shares. The brokers

who carry over the outstanding pay carry over charges (can tango or backwardation),

which are usually determined by the rates of interest prevailing.

A member broker in an Indian stock exchange can act as an agent, buy and sell securities

for his clients on a commission basis and also can act as a trader or dealer as a principal,

buy and sell securities on his own account and risk, in contrast with the practice

prevailing on New York and London Stock Exchanges, where a member can act as a

jobber or a broker only.

The nature of trading on Indian Stock Exchanges are that of age old conventional style of

face-to-face trading with bids and offers being made by open outcry. However, there is a

great amount of effort to modernize the Indian Stock exchanges in the very recent times.

National Stock Exchange (NSE)

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With the liberalization of the Indian economy, it was found inevitable to lift the Indian

stock market trading system on par with the international standards. On the basis of the

recommendations of high-powered Pherwani Committee, the National Stock Exchange

was incorporated in 1992 by Industrial Development Bank of India, Industrial Credit and

Investment Corporation of India, Industrial finance Corporation of India, all Insurance

Corporations, selected commercial banks and others.

Trading at NSE can be classified under two broad categories:

a) Wholesale debt market and

b) Capital market.

Wholesale debt market operations are similar to money market operations –

institutions and corporate bodies enter into high value transactions in financial

instruments such as government securities, treasury bills, public sector unit bonds,

commercial paper, certificate of deposit, etc.

There are two kinds of players in NSE:

a) Trading members and

b) Participants.

Recognized members of NSE are called trading members who trade on behalf of

themselves and their clients. Participants include trading members and large players like

banks who take direct settlement responsibility.

Trading at NSE takes place through a fully automated screen-based trading mechanism,

which adopts the principle of an order-driven market. Trading members can stay at their

offices and execute the trading, since they are linked through a communication network.

The prices at which the buyer and seller are willing to transact will appear on the screen.

When the prices match the transaction will be completed and a confirmation slip will be

printed at the office of the trading member.

NSE has several advantages over the traditional trading exchanges. They are as follows:

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NSE brings an integrated stock market trading network across the nation.

Investors can trade at the same price from anywhere in the country since inter

market operations are streamlined coupled with the country wide access to the

securities.

Delays in communication, late payments and the malpractice’s prevailing in the

traditional trading mechanism can be done away with greater operational

efficiency and informational transparency in the stock market operations, with the

support of total computerized network.

Unless stock markets provide professional zed service, small investors and foreign

investors will not be interested in capital market operations. And capital market being one

of the major sources of long-term finance for industrial projects, India cannot afford to

damage the capital market path. In this regard NSE gains vital importance in the Indian

capital market system.

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COMPANY / ORGANIZATION STRUCTURE

Indiabulls is India’s leading Financial Services and Real Estate Company having over

640 branches all over India. Indiabulls serves the financial needs of more than 4,50,000

customers with its wide range of financial services and products from securities,

derivatives trading, depositary services research & housing finance. With around 4000

Relationship Managers, Indiabulls helps its clients to satisfy their customized financial

goals.

Indiabulls Financial Services Limited was established in the year2000 by three promoters

all of whom are engineers from Indian Institute of Technology, New Delhi, and has

attracted over Rs. 700 million of investments from venture capital firms, private equity

funds and institutional investors. The investors include the proprietary fund of Mr. L.N.

Mittal-LNM India Internet Venture Limited, Transatlantic Corporation Ltd., Farallon

Capital Partners LP and Infinity Technologies Trustee Private Limited.

Indiabulls headquarter are co-located in Mumbai and Delhi, allowing us to access the two

most important regions for Indian financial Markets, the Western region including

Mumbai, rest of Maharashtra Gujarat and the Northern region, including the National

Capital Territory of Delhi, nearby cities, parts of Haryana, Uttar Pradesh and Punjab; and

access the highly skilled and educated workforce in Delhi; and back office, risk

management and internal finance are headquartered out of one central location in New

Delhi, allowing us to scale these process efficiently for the nationwide network. All the

back office work, transaction processing work and issuance of cheques takes place from

the New Delhi office enabling us to have better control and efficiency in the support

functions.

Promoters and Their Background

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The company was established by three engineers from IIT Delhi, and has attracted

significant amount of investment from venture, private equity and institutional investors.

The details are as follows:-

Sameer Gehlaut, Chairman, CEO & Whole Time Director

Sameer, aged 30 years graduated with a Mechanical Engineering degree from the Indian

Institute of technology, Delhi. He has gained extensive experience in the Financial

Services sector and developed in-depth knowledge and strong understanding of all

aspects of the Securities Industry and Financial Services Business. Under his Leadership,

Indiabulls group has grown from one office, 310 clients, and 8 employees in FY 2000 to

32,359 clients, 70 office and 606 employees as on April 30, 2004.

Rajiv Rattan, President CFO & Whole Time Director:

Rajiv, aged 30 years, an NTSE Scholar, graduated with and Electrical Engineering

Degree from the Indian Institute of Technology, Delhi. He gained extensive experience in

international best practices, process management and risk management, which he brought

to Indiabulls Group as one of the founders of the company.

Saurabh Mittal, Director:

Saurabh, aged 30 years, graduated with and Electrical Engineering Degree from the

Indian Institute of Technology, Delhi. He worked a citigroup Asset Management as an

investment analyst, and is currently a senior portfolio manager at Farallon Capital. He has

developed and understanding of International financial markets and extensive experience

in the securities industry Saurabh is responsible for strategic decision-making and is the

director of the company.

Business-model:

Indiabulls has a low risk model largely based on fee/ commission income generated

through providing brokerage & related financial service to individual investor and

independent advisors. It focuses on a core client base of individual investors and the

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marketing Associates who serve them. Indiabulls offers the following product and

services in the financial markets.

Stock, Options and Futures

Depository Services

Commodities

Insurance Products

Mutual Funds

Bonds and Debt Products

Indiabulls aims to develop other financial offerings such as accepting deposits services in

the FY 2004.

BUSINESSOVERVIEW

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Indiabulls Financial Services Limited

Indiabulls Insurance Advisors Pvt. Limited

Indiabulls Commodities Pvt. Limited

Insurance Product Distribution Commodities Trading

Indiabulls Securities Limited

1. Equity & Deb Stock Broking

2. Depository Services 3. Derivative Broking

Services4. Equity Research

Services5. Mutual Fund

Risk-management:

Managing market risk on client position is critical for Indiabulls. The internet trading

application has a risk management logic built into that continuously marks to market the

client’s position and doesn’t allow the client to take a fresh position beyond the stipulated

limits. This risk management logic takes into account all the assets of the client (cash and

shares) updated real time, lying with us to get to an allowable exposure value. Margin

call alert are automatically generated and relayed to the cline and the administrators from

the system.

For the non-Internet part of the business, the back-office system provides the centralized

controls and risk management team with all information for generating margin calls and

managing the risk of the clients. CTCL software has been installed at branches to manage

risk at the time of order entry.

Risk Management Module:

The core of the application is the application server and risk management module, which

validates all orders placed by customers against the limits available to them as per our

risk management logic. This module accept and forwards to the exchange all orders that

pass the risk management criteria while rejecting any that do not meet them. This

component of the application is written in C and runs on the Tru-64 Unix platform with

interfaces to the Database.

Financial Services Limited and its group companies

On behalf of Mr. L N Mittal , LNMIIVL paid Rs 89.16 crores to buy 8.2% stake

of Indiabulls

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Credit Services Limited valuing the business at over Rs 1,100 crores.

Consolidated Net worth of Indiabulls Financial Services Limited is Rs. 1,703

Crores, and total

Equity capital across various subsidiaries and associates is Rs2,107 crores.

Financial Services Limited, mobilized over Rs540 crores in share holder applications for

Reliance Petroleum Limited IPO in April 2006.

Indiabulls Financial Services Limited completed buy back of 18, 13,696 lac shares at an

average price of Rs 209.37 per share during the quarter.

Competitors:

Karvy Computer share Private Ltd.

G S Raheja Finance

ICICI Securities Limited

India Infoline Ltd.

Religare

Indbank Merchant Banking Services Ltd.

ShareKhan Securities

Zuari Investments Kotak Mahindra SHCL

Others……….

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PRODUCT AND SEVICES PROVIDED BY INDIABULLS

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. Under flagship of Indiabulls Professional

Network it offers real-time prices, detailed data and news, intelligent analytics, and

electronic trading capabilities, right at your fingertips.

Indiabulls offers a full range of financial services and products ranging from Equities to

Insurance to enhance its customer wealth and hence achieve their financial goals.

Indiabulls Professional Network offers real-time prices, detailed data and news,

intelligent analytics, and electronic trading capabilities, right on customer’s fingertips.

This powerful technology is complemented by its knowledgeable and customer focused

Relationship Managers.

Putting Your Needs First That’s Investing at Indiabulls

Indiabulls’Relationship Managers are available to customers to help with your financial

planning and investment needs. To provide the highest possible quality of service,

Indiabulls provides full access to all products and services through multi-channels.

Equities and Derivatives: Comprehensive services for independent investors,

active traders & Non-Resident Indians

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OBJECTIVE & SCOPE

Title: Study of “Comparative analysis of sale and services of indiabulls with its

competitors.”

Objectives:

To find priority level of customers

To find out scope of equities and derivatives in Udaipur city

To find the market potential for sales of equities and derivatives

To find out the factors influencing Trading Behavior

To check the awareness of customers about the services provided by India Bulls

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LITERATURE SURVEY

MARKET POTENTIAL

Market potential is an estimate of maximum demand in a time period based on the

number of potential users and the purchase rate. Actual industry sales are usually less

than market potential For instance, the U.S. market potential for digital video disc players

could be defined as the total number of households with television sets based on typical

purchases of one unit per family, actual sales are less than potential because it takes time

to convince people to buy expensive items such as digital video disc players, and because

some can’t afford them. The industry purchase rates are a function of price levels,

promotional expenditures, and the number stores stocking machines.

Company sale potential is a portion under total industry demand. It is the maximum

amount a firm can sell in a time period under optimum conditions. Company sales will

generally be lower than industry sales. The ratio of company sales to industry sales is

measure of market share of the organization.

ESTIMATING POTENTIALS

All estimates of potential are based on two components-namely, the number of possible

users of the product / services and the maximum expected purchase rate. Sometimes we

can get estimates of these numbers from trade associations or commercial research

association, but we have to come up with our own potential figures broken down by

geographical area, industry, and customer type.

The easiest way to estimate the number of buyers is to use secondary sources. A wide

variety of commercial data are available that provide the potential number of buyers, size

of firms, age of consumers, income levels and locations,

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Dun’s Marketing Services and SALES & MARKETING MANAGEMENT magazine sell

these data on diskettes for use with personal computers. We can also access potential

databanks through computer networks on a fee basis. Large firms often have their own

data banks that can be mined for potential information.

Purchase rates are usually derived from trade organization or government publications.

For existing products/ services we can use the ratio of current sales to the number of

households and sales per person. These ratios can be obtained from trade publications

such as those from the conference board, or calculated from published data. For example,

average demand per household could be derived by total industry sales for an area by the

number of households. In the case of new product/services, managers may estimate

conversion rates from experience with other items. If a similar product was sold to 4

percent of U.S. households during the first yea, this rate could be applied to obtain

demand estimates for new merchandise.

SERVICES

Services are deeds, processes and performances. The services offered by IBM are not

tangible things that can be touched, seen and felt but rather are intangible deeds and

performances. While we will rely on the simple, broad definition of services, we should

be aware that over time services and service sector of the economy have been defined in

subtly different ways.

“Services includes all economic activities whose output is not physical product or

construction, is generally consumed at the time it is produce, and provides added value in

forms (such as convenience, amusement, timeliness, comfort, or health) that are

essentially intangible concern of its first purchaser.”

Customer service:

It is provided be all types of companies – including manufacturers, IT companies and

service companies. Customer service is the service provided in support of company’s

core products.

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Services marketing are different:

People who moved from marketing in packaged goods industries to marketing in health

care, banking, and other services industries found their skills and experiences were not

directly transferable. They faced issues and dilemmas in marketing services that their

experiences in packaged goods and manufacturing had not prepared them for. These

people realized the need for new concepts and approaches for marketing and service

businesses.

Services Marketing Mix:

Services marketing have seven P’s which includes all the four P’s PRODUCT, PRICE,

PLACE (distribution), and PROMOTION of traditional marketing mix.

The remaining three P’s are:

People

Physical evidence

Process

I. PEOPLE: It includes all human actors who play a part in service delivery

and thus influence the buyer’s perception: namely the firm’s personnel, the

customer, and other customer in service environment.

II. PHYSICAL EVIDENCE: It includes the environment in which the service

is delivered and where the firm and customer interact, and any tangible

components that facilitate performance or communication of the service.

III. PROCESS: it includes the actual procedures, mechanisms, and flow of

activities by which the service is delivered – the service delivery and

operating system.

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7 P’s Of Service Marketing Mix

PRODUCT

Physical good features

Quality level

Accessories

Packaging

Warranties

Product Lines

Branding

PLACE

Channel type

Exposure

Intermediaries

Outlet Locations

Transportation

Storage

Managing Channels

PROMOTION

Promotion blend

Sales people

Advertising

o Targets

o Media types

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o Types of ads

Sales promotion

Publicity

PRICE

Flexibility

Price level

Terms

Differentiation

Discounts

Allowances

PEOPLE

Employees

o Recruiting

o Training

o Motivation

o Rewards

o Teamwork

Customers

o Education

o Training

PHYSICAL EVI8DENCE

Facility design

Equipment

Signage

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Employee dress

Other tangibles

o Reports

o Business cards

o Statements

o Guarantees

PROCESS

Flow of activities

o Standardized

o Customized

Number of steps

o Simple

o Complex

o Customer involvement

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RESEARCH METHODOLOGY

“A Research is careful investigation or inquiry, especially through search for new facts

in any branch of knowledge. It is a systemized effort to gain more knowledge.”

Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. We study the

various steps that are generally adopted by a researcher in studying his research problem

along with the logic behind them. It is necessary for the researcher to know not only the

research methods or techniques but also the methodology. Researcher always needs to

understand the assumptions underline various technique and they need to know the

criteria by which they can decide that certain technique and procedures will be applicable

to certain problems and other will not.

The predefined objective can be achieved by following ways:

o Studying the buying behavior of customer.

o Comparing sales of different players.

TYPE OF RESEARCH:

Personal interview approach was adopted for the project. In this type of research, the

researcher has to contact the person directly to know the available information and

analyze the data was available in interviewer’s statements. This was one of the main

sources for the project.

The other approach was PERSONNEL RESEARCH. It is based on the personal

knowledge. It is applicable to phenomenon that can be expressed in terms of words.

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RESEARCH PROCESS:

Research Process consists of a series of action or steps necessary to effectively carry out

the research and the desired sequencing of these steps. The various steps, which provided

guidelines to the research process pertaining to the project, are as follows:

1) Formulating the research problem

Formulation of research problem involves understanding the problem thoroughly

and rephrasing the same into meaningful terms from an analytical point of view.

2) Extensive literature survey

It is necessary for the researcher to conduct an extensive survey connected with

the problem. For the purpose manual, company records, journals, published data

can be used.

3) Development of working hypotheses

Working hypotheses is a tentative assumption made in order to draw out and rest

its logical or empirical consequences.

4) Preparing the research design

The researcher will be required to prepare a research i.e. he will have to state the

conceptual structure within which research would be conducted. The function of

research design is to provide the collection of relevant evidence with minimum

expenditure of efforts, time and money.

5) Determining the sample design

The researcher must decide a way of selecting a sample or what is popularly

known as sample design. The types of sample design are:

o Simple Sampling

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o Random Sampling

o Systematic Random Sampling

o Stratified Sampling

o Quota Sampling

o Cluster and Area Sampling

o Multistage Sampling

o Sequential Sampling

o Census

For this project, Random Sampling was used among the above-mentioned types.

Since the time period was limited to 2 months, the sampling size was limited to 75.

2) Collection of data

While deciding the methods of data collection to be used for study the researcher

should keep in mind two types of data viz.

Primary Data

The Primary Data are those, which are collected a fresh and for the first time and thus

happen to be original in character.

Secondary Data

Secondary data means data that are already available i.e. they refer to the data which

have already been collected and segregated by someone else. The researcher has to

determine the various sources of obtaining secondary data. Secondary data may be

published or unpublished in nature.

Published data are available in:

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Publications of central, state and local newspapers

Publication of foreign government or of international bodies

Technical or trade journals

Books, magazines and newspaper and Internet

Public record and statistics, historical documents and sources of public

information.

Data Collection

Data used for the project was the secondary and primary data.

Methods of Data Collection

Personal Interview

Questionnaire &

Telephonic Interview.

3) Analysis of data

Analyses of data can of two types:

Quantitative analysis

Qualitative analysis

Thus analysis of data require a number of closely related operations such as

establishment of categories, the application of these categories into raw data through

tabulation, chart and then draw inferences. Analysis work is generally based on the

computation of various percentage, co-efficient etc. by applying various statistical

formulae.

4) Preparation of Reports

After analysis, the next step is in the preparation of the report. The report has been

prepared according to the report writing principles.

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The Objective, clarity in presentation of ideas and the uses of charts have been

maintained throughout the report.

Once the data has been collected, the researcher has to process, analyze and interpret

the same. It was emphasized that the researcher should exercise good care to ensure

that reliable data are not properly processed and analyzed. Sufficient attention is often

not given to these aspects, with the result that the quality of the report suffers.

Editing – The first task in data is editing. It is the process by which data are prepared for

subsequent coding. As it is very subjective process, editing is the process of examining

errors and omission in the collected data and making necessary in the same this is

desirable when there is more inconsistency in the responses.

Coding – Coding is the procedure of classifying the answers to a question in meaningful

categories the symbol used to indicate the categories are called codes. Coding is

necessary to carry out the subsequent operation of tabulation and analyzing data.

Coding involves two steps:

Tabulation: Tabulation comprises of sorting of data into different categories and

counting the number of cases that belongs to each categories.

One is unvaried tabulation. This includes the numbers of responses to one question or to

count. It’s very simplest way to tabulate where two or more variables are involved in

tabulation. It is called vicariate or multivariate tabulation. In marketing research project,

generally both type of tabulation is used.

Analysis and interpretation: Analysis and Interpretation are the central steps in the

research process. The goal of analysis is to summaries the collected data in such a way

that they provide answer to questions that triggered while research. Interpretation is the

research for border, meaning of research finding.

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DATA COLLECTION & ANALYSIS

Table 1. EXISTING TRADERS OR BROKERS

Response ISL ICICI OTHER

No. of respondent 38 42 20

EXISTING TRADER OR BROKER

05

1015202530354045

ISL ICICI OTHERS

RESPONSE

NO

. O

F R

ES

PO

ND

EN

TS

INTERPRETATION:

The above graph shows that 42% customer’s shows interest in dealing with ICICI and

38% customers shows interest in dealing with Indiabulls. The rest were attached with

other service providing institutes.

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Table 2. INVESTMENT CRITERIA OF CUSTOMERS

FIELDS EQUITIES DERIVATIVES OTHERS

NO.

RESPONDENTS

40 52 8

INTERPRETATION:

From the above graph we can analyze the priority level of the customers in

investing different markets. 52% customers gave priority to do investment in derivatives

marker, 40% liked to invest in equities, but a very low % showed their interest to invest

in others like: funding etc.

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INVESTMENT CRITERIA OF CUSTOMERS

40

52

8

EQUITIESDERIVATIVES OTHERS

Table 3. TYPE OF TRADING

ResponseIntradayCashMarginNo. of respondents334918

TYPES OF TRADING

0

10

20

30

40

50

60

Intra day Cash Margin

RESPONSE

NO

. O

F R

ES

PO

ND

EN

TS

INTERPRETATION:The above graph shows the comparison between different types of trading. The mass % of customers shows their interest to trade in cash as it is 49%. The 33% of customers liked to trade in intra day but very less % was seen to do trading on margin.

Table 4: AGE FACTOER INFLUENCING INVESTMENT IN EQUITIES AND DERIVATIVESAGE GROUP18-2525-4040-55ABOVE 55

NO.OF RESPODENTS105525

31

10

AGE FACTOR INFLUENCING INVESTMENT IN EQUITIES AND

DERIVATIVES

0102030405060

18-25 25-40 40-55 ABOVE 55

AGE GROUP

NO

. O

F

RE

SP

OD

EN

TS

INTERPRETATION:The above analysis shows that 55% of people invest between the age group of 25-40, which indicates that the age is big factor which influence the customer’s trading behavior.

Table 5: PURPOSE OF TRADINGResponse Investment Earring Financial supportProfessional others

No. of Respondents38172799

32

PURPOSE OF TRADING

05

10152025303540

Investment Earring FinancialSupport

Professional Others

RESPONSE

NO

. OF

RE

SP

ON

DE

NTS

INTERPRETATION:From the above graph it is seen that ‘purpose’ of trading is an another major factor which influence the customer’s trading behavior.We can see that38% of people do trade for the purpose of investment.27% people like to trade for the purpose of earnings.17% want financial support $Rests 9% do trade for professionalism.Table 6: FREQUENCY OF TRADINGResponse DailyAlternative day Twice a weekWeekly monthly

No. of Respondents2025131527

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Freuency of trading

0

5

10

15

20

25

30

Daily Alternativeday

Twice a week Weekly Monthly

Response

No

. o

f re

sp

on

den

ts

INTERPRETATION:Habit of trading is also a big factor which influence the customer’s trading behavior. The above graph shows that:25% people like to trade alternative day, 20% daily,13% twice a week,15% weekly,But major %( i.e. 27) shows their interest to trade monthly.Table7: SATISFACTION LEVEL OF CUSTOMERSResponseYes No

No. of Respondents6931

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satisfaction level of customers

69%

31%

Yes

No

INTERPRETATION:This diagram shows the satisfaction level of customers about the services provided by the Indiabulls,69% people were satisfied with the services provided by the Indiabulls & a very least % of customers i.e. 31% were unsatisfied.

Table 8: PLANNING TO ATTACH WITH INDIA BULLSResponseYes NoCannot say

No. of respondents482527

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planning to attach with indiabulls

48%

25%

27%

Yes

No

Cannot say

INTERPRETATION:The above graph shows the planning of the customers about the joining Indiabulls.48% people respond positively,25% people said No,27% people said ‘can’t say’.

OBSERVATIONS AND FINDINGS

Findings:Investment in equities and derivatives is mainly done by the age group of 25-40It is found that main goal of trading is earning rather than investment.49% of customers like to trade in F & O, 33% in intra day & rest in DeliveryAlmost 69% of customers are satisfied with the services provided to them.Major group of customers will have to invest in ICICI than in INDIABULLS.52% of customers prefer to invest in derivatives, 40% in equities & rest in others.48% of people shows positive attitude in joining INDIABULLS.

Observations:There are problems in availability of services regarding to the tips, which is given to the customers. In some areas like: small customers, Relatives of the brokers etc. the demand of the service provided by Indiabulls is very low.

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Services (Tipping/ Funding/ A/c information) for Customer is more important as compared to make them Customer.After giving the good departments in one office there is always a conflict between both the departments. (Because the work of both departments is same in Online and Offline.)There is also no proper database for the employee about the customers so it derives conflict between the employees about their prospective customers.

SUGGESTION & RECOMMENDATION

Exiting customers should be provided better response & services so that by there good Word Of Mouth Company will get more customers.Advertisements should be given in the magazines related to Business, Management service, Electronics media, and business world or by installing stalls in different-different areas etc.Awareness should be created among the prospective clients. Office space requirement:Min.1000 sq feet (for each Department)Different office for both online and offline department.

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LIMITATIONS

Certain limitations have been encountered while doing this project due to which the information collected and conclusion that was arrived on may have some variance.Following constraints were encountered while doing the project:Respondents were not ready to give appointments.Data had to be collected according to the convenience of the respondents and therefore time management became a major hurdle.People because of lack of time did not answer some of the questions properly.We were asked to target only a few area of DELHI, so our sample size was small.Some of them thought by filling questionnaire they would get some calls from company, which is very difficult to tackle.It was seen that sometimes the respondent’s post-pond a meeting by extending the date even after fixing an appointment, it made things difficult.

CONCLUSION

After research it was found that there is good potential market available for Indiabulls in Udaipur to venture into.The reason for this is:Few competitors Untapped / Growing marketIndia’s biggest Marble market.Most of existing companies are charging high rates on the service provided by them.It is first branch office of any share trading company.

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Indiabulls has a good chance to capture the market as the company is having USPs and technology, which other companies are not providing.

BIBLIOGRAPHY

1. “Marketing Management”- Philip Kotler (11th edition)2. “Marketing Research”- M.V. Kulkarni3. “Financial Management”- I.M. Pandey

Help taken from the following Websites:www.google.comwww.indiabulls.com

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QUESTIONAIREDemographic DataContact Person: ________________________________________Address:_____________________________________________Designation: ________________________________City:____________________Phone No.:_________________ Fax:_______________ E-mail:__________________Website: ______________________1. Existing broker: ISL ICICI Other (Local Broker) 2. From how many years you are dealing with your Existing Broker? _______________________________________________________________ _______________________________________________________3. In which you prefer to do investment? Equities Derivatives Other 4. What type of trading you prefer to do? Intraday Delivery Based F&O 5. What age group is best for the investment according to you? 18-25 25-40 40-55 Above 556. What is your purpose of trading? Investment Financial Support Earning Profession Other7. What is the frequency of your trading?Daily Alternative Day Twice a Week Weekly Monthly8. Are you satisfied with the service provided by the Indiabulls?Yes No9. Are you planning to attach with Indiabulls?Yes No Can’t SayIf Yes, Why? ___________________________________________If No, Why? ____________________________________________

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