rk project

8/13/2019 Rk Project

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A SUMMER TRAINING PROJECT REPORT

ON

Comparative Analysis of Services provided byIndia Infoline Limited and other Broking Houses

SUBMITTEDINTHEPARTIALFULFILLMENTFORTHEAWARDOF

DEGREEOFMASTERINBUSINESSADMINISTRATION2012-14

UNDER THE GUIDANCE OF:

Ms. Surbhi Gupta

Associate Professor, RDIAS

SUBMITTED BY:

Ritika khurana

Enrollment No.- 09180303912

MBA, Semester 3

Batch 2012-14

RUKMINI DEVI INSTITUTE OF ADVANCED STUDIES

An I SO 9001:2008 Certif ied I nstitu te

(Approved by AICTE, HRD Ministry, Govt. of India)

Affiliated to Guru Gobind Singh Indraprastha University, Delhi

2A & 2B, Madhuban Chowk, Outer Ring Road, Phase-1, Delhi-110085


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TABLE OF CONTENTS

Student declaration..i

Certificatefrom Guide. .ii

Acknowledgement..iii

Executive Summary.iv

A summary statement designed to provide a quick overview of the full lengthreport on which it is based.

List of Tables....v

List of Graphs..vi

List of Charts.vii

List of Abbreviations, if anyviii

CHAPTER- 1: INTRODUCTION

1.1 About the Industry1.2 About Organization/ Company Profile

CHAPTER2:TOPIC INTRODUCTION& LITERATURE

REVIEW

2. 1 About The Topic2.2 Literature Review


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CHAPTER3: RESEARCH METHODOLOGY

3.1 Purpose of the study.....

3.2 Research Objectives of the study..

3.3 Research Methodology of the study.

3. 3.1 Research Design......

3.3.2 Data Collection Techniques

3.3.3 Sample design...

3.3.3.1 Population..

3.3.3.2 Sample size

3.3.3.3 Sampling method...

3.3.4 Method of data collection..

3.3.4.1 Instrument for data collection

3.3.4.2 Drafting of a questionnaire.

3.3.5 Limitations

CHAPTER4: ANALYSIS& INTERPRETATION

CHAPTER- 5: FINDINGS

CHAPTER-6: RECOMMENDATIONS AND CONCLUSION

BIBLIOGRAPHY

ANNEXURES


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STUDENT DECLARATION

This is to certify that I have completed the Project titled Comparative Analysis of

Services provided by India Infoline Limited and other Broking Houses under the

guidance of Ms Surbhi Gupta in the partial fulfillment of the requirement for the

award of the degree of Master in Business Administration from Rukmini Devi

Institute of Advanced Studies, New Delhi. This is an original work and I have not

submitted it earlier elsewhere.

Name of the student: Ritika khurana

Course: MBA- 3

Enrolment No: 09180303912

Batch: 2012-2014

(Signature)


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CERTIFICATE OF GUIDE


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ACKNOWLEDGEMENT

It gives me pleasure to present this Summer Training Report, which is an outcome of the

study Comparative Analysis of the services provided by India Infoline Limited and other

Broking houses

Completing a task is never a one-man effort. It is often the result of valuable

contribution of number of individuals in a direct or indirect manner that helps on

shaping and achieving an objective.

Firstly, I would like to acknowledge my sincere thanks to Mr. Nomit Kochar (A.V.P.)

who gave me an opportunity to carry out this project and had been a constant source of

advice, motivation and inspiration.

I offer my sincere thanks and humble regards to Rukmini Devi Institute Of Advanced

Studies, GGSIP University, New Delhi for imparting us very valuable professional

training in MBA.

I pay my gratitude and sincere regards to Surbhi Gupta, my project Guide for giving me

the cream of her knowledge. I am thankful to her for giving her suggestions andencouragement throughout the project work. I also thank ms. Geeta lomas for her

continuous guidance and suggestions in IIFL office.

It gives me immense pleasure to express my gratitude towards India Infoline-IIFL, Moti

Nagar New Delhi for providing me the opportunity to learn so much in my first summer

training project. I would like to thank each and every employee of Finance and Marketing

dept for imparting their knowledge and helping me with my project which resulted in this

project being a personally rewarding experience throughout my 2 months tenure at India

Infoline-IIFL.


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EXECUTIVE SUMMARY

This project provides an insight into the financial service industry of which insurance,

stocks and mutual funds form an integral part. The project focuses on the

dematerialization and stock trading services provided by India Infoline Limited. The

project also includes the services industry in which India Infoline Limited plays an

important role. The organization structure, history of the company, ownership patterns,

divisions and branches and different departments in the organization are also mentioned.

The project provides an overall view on the financial standing of the company, products

offered and services provided the competitors in the industry and the competitive edge of

India Infoline Limited to have a distinctive position in the industry .Lastly the project

involves an analysis and comparative study of the product of India Infoline Limited with

two of its competitors and recommendations to provide a horizon of improvement and

growth.

There is growing competition between brokerage firms in post reform India. For investor

it is always difficult to decide which brokerage firm to choose. Research was carried out

to find which brokerage house people prefer and to figure out what people prefer while

investing in stock market. This study suggests that people are reluctant while investing in

stock and commodity market due to lack of knowledge. Main purpose of investment is

returns and liquidity, commodity market is less preferred by investors due to lack of

awareness.

The major findings of this study are that people are interested to invest in stock market

but they lack knowledge. Through this report we were also able to understand, what areour companys positive and strong points, on the basis of which we come to knowwhat

can be the basis of pitching to a potential client. We also gave suggestions to the

company, what improvement can be done to our product. I hope India Infoline Ltd. will

recognize this as well as take more references from this project report.


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LIST OF TABLES

1. Preference of Investment.....Table No. 4.12. Knowledge about Demat account....Table No. 4.23. Intend to open a Demat account..Table No. 4.34. Years you trade........Table No. 4.45. Types of trading...Table No. 4.56. Occupation...Table No. 4.67. Priorities while opening a demat accountTable No. 4.78. Company you have Demat and Trading accout ......TableNo. 4.89.

Satisfaction of your present broking firm ...Table No. 4.9

10.Satisfaction of the software for online trade........Table No. 4.1011.Satisfaction with the charges charged..Table No. 4.1112.Company providing daily research e-mail.......Table No. 4.1213.Company providingprinted reports..Table No. 4.13

14. Best broking firm ...Table No. 4.14

15. Future customer of India Infoline Limited..Table No. 4.15


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LIST OF GRAPHS

1. Preference of Investment...Graph No. 4.12. Knowledge about Demat account.Graph No. 4.23. Intend to open a Demat accountGraph No. 4.34. Years you trade.....Graph No. 4.45. Types of trading.Graph No. 4.76. Occupation. Graph No. 4.87. Saving you invest yearlyGraph No. 4.98. Priorities while opening a demat account..Graph No. 4.109.

Company you have Demat and Trading accout Graph No. 4.11

10.Satisfaction of your present broking firm ....Graph No. 4.1211. Satisfaction with the charges charged. Graph No. 4.11

12. Company providing daily research e-mail.....Graph No. 4.12

13.Company providingprinted reports..Graph No. 4.13

14. Best broking firm ..Graph No. 4.14

15. Future customer of India Infoline Limited.Graph No. 4.15


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LIST OF CHARTS

1. Corporate structure.Chart No. 1.12. SWOT Analysis of IIFL Limited...Chart No. 1.23. DematerialisationChart No. 1.34. RematerialisationChart No. 1.4


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CHAPTER- 1:

INTRODUCTION


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CHAPTER- 1:

INTRODUCTION

1.1 ABOUT THE INDUSTRY

A stock market or equity market is a public entity (a loose network of economic

transactions, not a physical facility or discrete entity) for the trading of company stock

(shares) and derivatives at an agreed price; these are securities listed on a stock exchange

as well as those only traded privately. The Bombay Stock Exchange (BSE) and the

National Stock Exchange (NSE) are two primary stock exchanges in India. In addition,

there are 22 Regional Stock Exchanges. However, the BSE and NSE have established

themselves as the two leading exchanges and account for about 80% of the equity volume

traded in India. The NSE and BSE are equal in size in terms of daily traded volume.

BSE

The Bombay Stock Exchange (BSE) was established in 1875. The BSE India Stock

Exchange serves as the most important for companies to raise money. The Bombay Stock

Exchange is the oldest exchange in Asia. The BSE SENSEX, also called "BSE 30"comprises 30 stocks, is a widely used market index in India and Asia. The BSE has over

6000 stocks listed and has a market capitalization of around Rs.9,68,000 crore.

The chief function of the Stock Market of India is to help raise money as capital for the

growth and expansion of various private and public sector enterprises. Besides, the stock

market of India provides able assistance to the individual investors through daily updates

on current position of the stocks

of the respective companies that are enlisted in the Stock Index in which the movement

of prices in a section of the market are captured in price indices. The popular acronym

for Stock Index is Sensitive index or sensex. Moreover, the liquidity provided by the

exchange enables the investors to sell securities owned by them easily and quickly.

Hence a person, who is subjected to sudden dearth of funds, can immediately sell his

shares for cash in India Stock Market.


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NSEThe National Stock Exchange(NSE) stock exchange located at Mumbai, India. The

National Stock Exchange of India Ltd. (NSE) was set up in the year 1993. It is the 16th

largest stock exchange in the world by market capitalization and largest in India by daily

turnover and number of trades, for both equities and derivative trading. NSE has a market

capitalization of around US$98 billion and over 1,646 listings as of December 2011. The

NSE's key index is the S&P CNX Nifty, known as the NSE NIFTY (National Stock

Exchange Fifty), an index of fifty major stocks weighted by market capitalisation.NSE has set up a sophisticated electronic trading, clearing and settlement platform and its

infrastructure serves as a role model for the securities industry. The standards set by NSE

in terms of market practices; products and technology have become industry benchmarksand are being replicated by many other market participants.

Most key stocks are traded on both the exchanges and hence the investor could buy on

either of the exchanges. Both exchanges have a different settlement cycle, which allows

investors to shift their position on the bourses.

The markets are closed on Saturdays and Sundays. Both the exchanges have switched

over from the open outcry trading system to a fully automated computerized mode of

trading known as BOLT (BSE Online Trading) and NEAT (National Exchange

Automated Trading) system. It facilitates more efficient processing, automatic order

matching, faster execution of trades and transparency. The scrip traded on the BSE has

been classified into A, B1. B2. C, F and Z groups

The A group shares represent those, which are in the carry forwardSystem (Badla). the

F group represents the debt market (Fixed Income Securities) segment.The Z group

scrip is the blacklisted companies. The C group covers the odd lot securities in A,

B1, & B2 groups and Rights renunciations. The key regulator governing Stock

Exchanges, Brokers, Depositories, Depository Participants, Mutual Funds, FIIs and other

participants in Indian Secondary and Primary Market is the Securities and Exchange

Board of India (SEBI) of India.


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1.2ABOUT THE COMPANY

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

its subsidiaries, is one of Indias premier providers of financial services.

IIFL offers advice and execution platform for the entire range of financial services

covering products ranging from Equities and derivatives, Commodities, Wealth

management, Asset management, Insurance, Fixed deposits, Loans, Investment Banking,

Gold bonds and other small savings instruments.

Vision:

Ourvision is to be the most respected company in the financial servicesspace.

Mission:

Tobecome a full-fledged financial services company known for its quality ofadvice, personalized services and cutting edge technology

Products:

IIFL has their presence in:

Equities: IIFLs core offering, gives the company a leading market share in bothretail and institutional segments. Over a million retail customers rely on IIFLs

research, as do leading FIIs and MFs that invest billions.


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Private Wealth Management services cater to over 2500 families who havetrusted IIFL with close to Rs 25,000 crores ($ 5bn) of assets for advice.

Investment Banking services are for corporates looking to raise capital. IIFLsforte is Equity Capital Markets, where the company has executed several marquee

transactions.

Credit & Finance focuses on secured mortgages and consumer loans. IIFLshigh quality loan book of over Rs. 6,200 crores ($ 1.2bn) is backed by strong

capital adequacy of approximately 20%.

IIFL Mutual Fund made an impressive beginning in FY12, with lowest chargeNifty ETF. Other products include Fixed Maturity Plans.

Life Insurance, Pension and other Financial Products, on open architecturecomplete IIFLs product suite to help customers build a balanced portfolio.

IIFL has received membership of the Colombo Stock Exchange becoming the first

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

www.indiainfoline.com, which is one of Indias leading online destinations for personal

finance, stock markets, economy and business. IIFL has been awarded the Best Broker,

India by Finance Asia and the Most improved brokerage, India in the Asia Money

polls. India Infoline was also adjudged as Fastest Growing Equity Broking House -

Large firmsby Dun & Bradstreet. A forerunner in the field of equity research, IIFLs

research is acknowledged by none other than Forbes as Best of the Web and a must

read for investors in Asia.

IIFLs research is available not just over the Internet but also on international wire

services like Bloomberg, Thomson First Call and Internet Securities besides others where

it is amongst one of the most read Indian brokers.


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IIFL is a listed company with a consolidated group net worth of about Rs1,800 crores.

The income and net profit during FY2010-11 were Rs.14.7 billion and Rs.2.1 billion

respectively.

The Group has a consistent and uninterrupted track record of profits and dividends since

its listing in 2005. The company is listed on both Exchanges and also trades in the

derivatives segment.

IIFLs Crisil and ICRA Rating for short term is top rated as CRISIL A1+ and ICRA (A1+)

respectively. For long term, IIFL has been rated ICRA(AA-) by ICRA and CRISIL AA-

/Stable by CRISIL indicating high degree of safety for timely servicing of financial

obligations.

IIFL is present in every nook and cranny of the country, with over 3,000 business

locations across 500 cities in India. IIFL can be reached in multiple ways including

online, over the phone and through the branches. All the offices of IIFL are connected

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

group caters to a customer base of about a million customers.

IIFLs physical presence in key global markets includes subsidiaries in Colombo, Dubai,

New York, Mauritius, London, Singapore and Hong Kong.


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History & Milestones:1995

Commenced operations as an Equity Research firm

1997

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

1999

Launchedwww.indiainfoline.com

2000

Launched online trading through www.5paisa.com Started distribution of lifeinsurance and mutual fund

2003

Launched proprietary trading platform Trader Terminal for retail customers

2004

Acquired commodities broking license Launched Portfolio Management Service

2005

Maiden IPO and listed on NSE, BSE

2006

Acquired membership of DGCX Commenced the credit & finance2007

Commenced institutional equities business under IIFL Formed Singapore subsidiary, IIFL (Asia) Pte Ltd
http://www.indiainfoline.com/http://www.indiainfoline.com/http://www.indiainfoline.com/http://www.indiainfoline.com/


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2008

Launched IIFL Wealth Transitioned to insurance broking model

2009

Acquired registration for Housing Finance Obtained Venture Capital license

2010

Received membership of the Singapore Stock Exchange and Colombo StockExchange

Commenced operations in Singapore & Colombo

2011

Received SEBI final approval for IIFL Mutual Fund


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Chart No. 1.1


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COMPANY PHILOSOPHY:

The India Infoline Group is committed to placing the Investor first, by continuously

striving to increase the efficiency of the operations as well as the systems and processes

for use of corporate resources in such a way so as to maximize the value to the

stakeholders. The Group aims at achieving not only the highest possible standards of

legal and regulatory compliances, but also of effective management.

SWOT Analysis of IIFL Limited

Chart No.1.2

Strengths:

Wide range of financial products. Successful implementation of Insurance Broking. Online Portals successful branding as 5paisa.com. 3,000 business locations across 500 cities in India. First Indian Brokerage House to get membership of Singapore Exchange. IIFL has been awarded the Best Broker, India, Most Improved Brokerage,

India, Fastest Growing Equity Broking House.

StrengthWeakne

ss

ThreatsOpportu

nities


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Weakness:

High risk exposure as seen by conservative population. Less emphasis on Advertising causes lack of brand visibility.

Opportunities:

High income urban families. More penetration into the growing cities.

Threats:

Stringent Economic measures by Government and RBI. Entry of foreign finance firms in Indian Market.

Major Players in the Region

Angel Broking Limited Sharekhan Securities Indiabulls Securities Limited Religare Securities Limited SMC Securities ICICI Direct HDFC Securities Kotak Securities


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Angel Broking Limited

Angel Broking's tryst with excellence in customer relations began in 1987. Today, Angel

has emerged as one of the most respected Stock-Broking and Wealth Management

Companies in India. With its unique retail-focused stock trading business model, Angel is

committed to providing Real Value for Money to all its clients.

The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock

Exchange (NSE) and the two leading Commodity Exchanges in the country: NCDEX &

MCX. Angel is also registered as a Depository Participant with CDSL.

Products and Services offered by Angel Broking Limited

Equity Trading Commodities

Portfolio Management Services Mutual Funds Life Insurance IPO Depository Services Investment Advisory Personal Loans

Quality Assurance


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Sharekhan Securities

Sharekhan Securities is one of the leading retail brokerage of Citi Venture which is

running successfully since 1922 in the country. Earlier it was the retail broking arm of the

Mumbai based SSKI Group, which has over eight decades of experience in the stock

broking companies. Launched on February,8,2000 as an online trading portal, Sharekhan

has today a pan-India presence with over 1,529 outlets serving 950,000 customers across

450 cities. Sharekhan offers its customers a wide range of equity related services

including trade execution on BSE, NSE, Derivatives, depository services, online trading,

investment advice, etc.

Products and Services offered by Sharekhan Securities:

Equity Trading Platform (Online/Offline) Commodity Trading Platform (Online/Offline) Portfolio Management Services (PMS) Mutual Fund Advisory and Distribution Insurance


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Indiabulls Securities

Indiabulls Securities (ISL)is one of India's leading capital markets companies

providing securities broking and advisory services. Indiabulls Securities also provides

depository services, equity research services and IPO distribution to its clients and offers

commodities trading through a separate company. These services are provided both

through on-line and off-line distribution channels. Indiabulls Securities is a pioneer of on-

line securities trading in India. Indiabulls Securities in-house trading platform is one of

the fastest and most efficient trading platforms in the country. Indiabulls Securities has

been assigned the highest rating BQ-1 by CRISIL. Indiabulls is a corporate member of

Capital market and derivative segment of The National Stock Exchange of India Limited.

Products and Services offered by Indiabulls Securities Limited:

Equity & Debt Broking Commodity trading Depostiory Services Derivative Broking Services Equity Research Services Mutual Fund Distribution IPO Distribution Insurance


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Religare Securities Limited

Religare Securities Ltd. (RSL) is a wholly owned subsidiary of Religare Enterprises

Limited (REL), an emerging markets financial services group. RSL is one of the market

leading securities firms in India serving over a million clients across both Offline and

Online platforms. Through its extensive footprint extending to over 500 cities, the

company offers Equity, Commodity and Currency broking services as well as depository

participant services. RSL is a member of the NSE, BSE, MCXSX, USE and a depository

participant with NSDL and CDSL. RSL also offers TIN facilitation & PAN facility at

select branches - a unique service to help an individual with PAN, TAN and TDS/TCS

returns related requirements.

Products and Services offered by Religare Securities Limited:

Equity & Commodity Broking Derivatives Portfolio Management Services Online Investment Portal Depository Services Investment Banking Institutional Broking Corporate Broking Corporate Finance Insurance


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SMC Securities

SMC Group, founded in 1990, is Indias best Equity Broking House and the Largest

Distribution Network, providing a wide range of financial services and investment

solutions. A blend of extensive experience, diverse talent and client focus has made us

achieve this landmark.

Over the years, SMC has expanded its operations domestically as well as internationally.

Existing network includes regional offices at Mumbai, Kolkata, Chennai, Ahmedabad,

Jaipur, Hyderabad, Bangalore plus a growing network of 2500+ offices spread across

500+ cities/towns in India.

We are also amongst the first financial firms in India to expand operations in the lucrative

gulf market, by acquiring license for broking and clearing member with Dubai Gold and

Commodities exchange (DGCX).

Products and Services offered by SMC Securities:

Equity, Commodities & Currency Trading Derivatives Portfolio Management Wealth Advisory Online Trading Investment Banking Depository Services Institutional Broking Loan against Securities Clearing Services Mutual Funds Insurance & IPO Commodity Research


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ICICI Direct

ICICI Web Trade Limited is a company that is venture of ICICI Bank, ICICI Limited to

produce an integrated offering of e-broking services. This service is the combination of

these entire three organizations. Promotions are looked after ICICI web Trade that has

made e-invest facility, commonly known as ICICI Direct.com possible. This company is

100% subsidiary of ICICI Limited. The company enables to have the facility of having

all the facilities online. One can view his banking transactions online, view the Demat

balance with the latest market values and at the same time buy and sell shares online.

This company has pioneered the concept of e-broking in India. The company went online

with NSE on 15th April 2000.

Products and Services offered by ICICI Direct:

Investing in Mutual Funds Personal Finance Customer Service Features IPOs Margin Trading Margin PLUS Trading Call Trade Trading on NSE/BSE Trade in Derivatives


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HDFC Securities

HDFC Securities Ltd., a trusted financial services intermediary is a subsidiary of Indias

respected private sector Bank- HDFC Bank. A leading stock broking company having

completed 10 years in operation serves a diverse customer base of retail and institutional

investors. Discerning investors experience a robust platform to trade in Equities,

derivatives, currency futures and mutual funds through both NSE & BSE and other

investment options like IPO's, bonds, corporate fixed deposits, insurance etc.

Products and Services offered by HDFC Securities:

Equity Derivative Cash-n-carry on both NSE & BSE Trade on Futures & Options on the NSE IPO NRI Offerings Mutual Funds Insurance Fixed Deposits & Bonds Loans


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Kotak Securities

Originally established in 1994, Kotak Securities is a subsidiary of Kotak Mahindra

Bank, which services more than 7.4 lakh customers. The firm has a wide network of

more than 1400 branches, franchisees representative offices and satellite offices across

448 cities in India and offices in New York, London, Dubai, Mauritius and Singapore.

It process more than 400000 trades a day which is much higher than some of the

renowned international brokers. The company is a corporate member of both The

Bombay Stock Exchange (BSE) and The National Stock Exchange of India (NSE).

Products and Services offered by Kotak Securities:

Equity Trading Derivatives: Futures & Options, Foreign Indices Mutual Funds Currency Derivatives Fixed Deposits and Bonds Debentures


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CHAPTER 2:

LITERATURE REVIEW


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CHAPTER 2:

TOPIC INTRODUCTION

& LITERATURE REVIEW

2.1. TOPIC INTRODUCTION

2.1.1 STOCK BROKERAGE FIRM

A brokerage firm is a financial institution that facilitates the buying and selling

of financial securities between a buyer and a seller. Brokerage firms serve a clientele of

investors who trade public stocks and other securities, usually through the firm's

agent stockbrokers.

Stock brokerage firms are registered members of the stock exchange. Only members of astock market are authorized to trade in the stock market. The members or stock brokers

can trade for themselves or on behalf of other investors who are not members. The

members are further grouped into stock broking services firms who offer a wide variety

of stock market services. The stock broking firm or stock brokers charge a commission

from the general investor for trading on their behalf.

How is Trading Done by Stock Brokerage Firms or Stock Brokers?

With the advance in communication technology, in stock exchanges such as the

NASDAQ, stock brokers and stock broking firms use sophisticated computer networks to

facilitate online trading. This has enabled the creation of an online or virtual stock

market.


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The Bombay Stock Exchange (BSE) too has a private computer network connecting 417

cities to enable online share trading.

Stock broking firms extend online trading services to their clients - the investors.

Share trading by stock brokers has come a long way from the vocal -based system of

yesteryears to the virtual stock market of today.

What are the Services Offered by a Stock Broking Firm?

The standard services of buying and selling shares on behalf of the investor is offered by

the stock broking firm.

Some other market-related services offered by Stock broking firms may be:

1. Online Share Trading or the Virtual Stock Market - The facility allowsinvestors to open an online account with the stock broking firm to utilise their

services. All investor transactions can be via the internet, therefore functioning as

virtual stock market.

2. Stock Portfolio Management- While some investors may like to choose stocksto invest in on their own and wish to make own trading decisions, inexperienced

investors can avail the services of stock portfolio managers of the stock broking

firm. The portfolio managers may advise the investor as to which stocks to invest

in, and when to buy or sell stocks.

3. Initial Public Offerings (IPO) issue purchase - The stock brokerage can informthe investor regarding upcoming IPOs and bid for IPO shares on behalf of the

investor.

4. Mutual Fund investment - Investors can choose and invest in a variety of mutualfunds through the stock brokerage. The stock broking firm may advise the

investor on the type of mutual fund to invest in.

5. Market Advisory Services- The stock broking firm may offer its own analysisfrom its market experts. It may issue reports and advise on areas such as choosing


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stocks, stock market trends, analysis regarding specific companies and general

economic analysis.

6. Margin Funding Services or Margin Trading - When an investor starts anaccount with a stock broking firm and starts trading, he or she has to deposit a

certain amount called margin in the account. For purchase of shares, some stock

broking firms provide margin funding where the investor pays only 50%

(percentage varies) of the share value, and the rest is funded by the stock broking

firm as a loan. Interest rates are charged on margin funding. This procedure is

referred to as margin trading. Some experts advise inexperienced investors to be

cautious of margin trading, as it is a risky strategy.

2.1.2 INTRODUCTION TO DEMAT ACCOUNT

Definition:

Demat account is a safe and convenient means of holding securities just like a bank

account is for funds. Today, practically 99.9% settlement (of shares) takes place on demat

mode only. Thus, it is advisable to have a Beneficiary Owner (BO) account to trade at the

exchanges.

Benefits Of Demat Account

1. A safe and convenient way of holding securities (equity and debt instrumentsboth).

2. Transactions involving physical securities are costlier than those involvingdematerialised securities (just like the transactions through a bank teller are

costlier than ATM transactions). Therefore, charges applicable to an investor

are lesser for each transaction.

3. Securities can be transferred at an instruction immediately.


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4. Increased liquidity, as securities can be sold at any time during the tradinghours (between 9:55 AM to 3:30 PM on all working days), and payment can

be received in a very short period of time.

5. No stamp duty charges.6. Risks like forgery, thefts, bad delivery, delays in transfer etc, associated with

physical certificates, are eliminated.

7. Pledging of securities in a short period of time.8. Reduced paper work and transaction cost.9. Odd-lot shares can also be traded (can be even 1 share).10. Nomination facility available.11. Any change in address or bank account details can be electronically intimated

to all companies in which investor holds any securities, without having to

inform each of them separately.

12. Securities are transferred by the DP itself, so no need to correspond with thecompanies.

2.1.3 HOW TO INVEST IN STOCK MARKET?

Opening a Demat account

To start dealing in securities in electronic form, one needs to open a demat account with

a DP of his choice. An investor already having shares in physical form should ensure that

he gets the account opened in the same set of names appearing on the share certificate;

otherwise a new certificate can be opened in any desired pattern by the investor.

Getting started:

1 . Choose a DP.2. Fi ll up an ac co un t o p en in g fo rm provided by DP, and sign an

agreement with DP in a standard format prescribed by the depository.


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3. DP provides the investor with a copy of the agreement and schedule ofcharges for his future reference.

4. DP opens the account and provides the investor with a unique accountnumber, also known as Beneficiary Owner Identification Number (BOID).

Documents to be attached:

Passport size photographs.

Proof of residence (POR) - Anyone of Photo Ration Card with DOB / Photo Driving

License with DOB / Passport copy /Electricity bill / Telephone bill.

Proof of identity (POI) - Anyone of Passport copy / Photo Driving License with DOB

/Voters ID Card / PAN Card /Photo Ration Card with DOB.

PAN card

Note:

The agreement required to be signed by the investor details the rights and duties of the

investor and DP.

DP may revise the charges by giving a 30 days prior notice.

Maximum Number of holders in a Demat Account

A maximum of three persons are allowed to open a joint demat account in their names.

DEMATERIALISATION


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Dematerialisation is the process of converting physical shares (share certificates) into an

electronic form. Shares once converted into dematerialised form are held in a Demat

account.

Dematerialisation ProcessAn investor having securities in physical form must get them dematerialised, if he intends

to sell them. This requires the investor to fill a Demat Request Form (DRF) which is

available with every DP and submit the same along with the physical certificates. Every

security has an ISIN (International Securities Identification Number). If there is more

than one security than the equal number of DRFs has to be filled in. The whole process

goes on in the following manner:


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Flow Chart No.2

Demater ial isation Process

1. Investors surrenders the physical certificates

to the DP for dematerialisation

2. DP informs the Depository about the request

3. DP submits the certificate to the registrar of the issuer company

4. Registrar communicates with the Depository to confirm the request

5. Dematerialisation of the certificates is done by the Registrar

6. Accounts are updated by the Registrar and the depository is informed aboutthe completion of dematerialisation

7. Accounts are updated by the Depository and DP is informed about the same

8. Demat account of the investor is updated by DP


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REMATERIALISATIONThe process of getting the securities in an electronic form, converted back into the

physical form is known as Rematerialisation. An investor can rematerialise his shares by

filling in a Remat Request Form (RRF). The whole process goes on as follows:

Flow Chart No.3

Remateriali sation Process

1. Investor makes a request for rematerialisation to the DP

2. DP informs the Depository about the request

3. Depository confirms the request to the registrar of the issuer company

4. Registrar updates accounts and prints certificates for the investor.

5. Accounts are updated by the depository and details are provided to the DP.

6. Investor receives the certificates from the registrar.


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Note:

Depository -

An organization that facilitates holding of securities in the electronic form and enables

DPs to provide services to investors relating to transaction insecurities. There are two

depositories in India, namely NSDL and CDSL. As per SEBI guidelines, the minimum

net worth stipulated for a depository is Rs.100 crore.

NSDL/CDSL -

The securities are held in depository accounts, like the funds are held in bank accounts.

There are two depositories in India namely NSDL and CDSL. NSDL(National Securities

Depository limited) was established in August 1996 and is the first depository in India.

CDSL (Central Depository Securities Limited) is the other depository and was

established in 1999.

DP (Depository Participant) -

A Depository Participant can be a financial organization like banks, brokers, financial

institutions, custodians, etc., acting as an agent of the Depository to make its services

available to the investors. There are a total of 538 DPs registered with SEBI, as on March

31, 2006 and each DP is assigned a unique identification number known as DP-ID.


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2.2 LITERATURE REVIEW

Chatrath, Ramchander and Song (1996)They examined the relationship between the Indian stock market and the stock markets of

the U.S. and other developed countries using daily data for the period 1984 to 1992. They

used the Bombay Stock Exchange National Index (BSENI) and the Dow Jones Industrial

Average (DJIA) as representative indexes for the Indian and U.S. markets, respectively.

The authors identify two major concerns in portfolio diversification studies. First, return

comparisons between countries are exposed to currency risk. Second, correlations

between stock returns for various countries must be stable over time in order to be able to

employ past correlations as a proxy in creating optimal portfolios. They find that theIndian stock market had low correlations with the markets of the developed countries.

Therefore, the Indian market offered diversification benefits for investors in the

developed countries for the period 1984 to 1992.

Nabhi Kumar Jain (1992)He specified certain tips for buying shares for holding and also for selling shares.

He advised the investors to buy shares of a growing company of a growing industry.

Buy shares by diversifying in a number of growth companies operating in a different but

equally fast growing sector of the economy. He suggested selling the shares the moment

company has or almost reached the peak of its growth. Also, sell the shares the

moment you realise you have made a mistake in the initial selection of the shares. The

only option to decide when to buy and sell high priced shares is to identify the individual

merit or demerit of each of the shares in the portfolio and arrive at a decision.


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David.L.Scott and William Edward4 (1990)They reviewed the important risks of owning common stocks and the ways to minimize

these risks. They commented that the severity of financial risk depends on how heavily a

business relies on debt. Financial risk is relatively easy to minimize if an investor sticks

to the common stocks of companies that employ small amounts of debt. They suggested

that a relatively easy way to ensure some degree of liquidity is to restrict investment in

stocks having a history of adequate trading volume. Investors concerned about business

risk can reduce it by selecting common stocks of firms that are diversified in several

unrelated industries.

Yasaswy J.N. (1993)He disclosed how 'turnaround stocks' offer big profits to bold investors and also the risks

involved in investing in such stocks. Turnaround stocks are stocks with extraordinary

potential and are relatively under priced at a given point of time. He also revealed that

when the economy is in recession and the fundamentals are weak, the stock market, being

a barometer of the economy, also tends to be depressed. A depressed stock market is an

ideal hunting ground for bargain hunters', who are aggressive investors. Sooner or

later recovery takes place which may take a very long time. He concluded that the

investors' watch work is 'caution' as he may lose if the turnaround strategy does not workout as anticipated.

Yasaswy J.N. (1993)He evaluated the quantum of risks involved in different types of stocks. Defensive

stocks are low risk stocks and hence the returns are relatively low but steady.

Cyclical stocks involve higher risks and hence the rewards are higher when compared

to the growth stocks. Growth stocks belong to the medium risk category and they offer

medium returns which are much better than defensive stocks, but less than the cyclical

stocks. The market price of growth stocks does fluctuate, sometimes even violently

during short periods of boom and bust. He emphasised the financial and organisational

strength of growth stocks, which recover soon, though they may hit bad patches once in a

way.


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The Economic Times Investors Year Book 5 (2000-01)The Economic Times Investors Year Book5 commented on the "Paperless World and

described what makes dematerialisation the preferred choice and how it reduces risk.

The dematerialised trading was introduced in India in 1996 to reduce pains and risks in

settlement through the loss of share certificates in transit, bad deliveries, delays in

transfer and forged/fake/stolen certificates. It helps in doing away with the risk of loss in

transit by directly crediting the account with bonus shares and rights. There is no risk of

bad delivery because the ownership status is clearly captured in the Depository's

computers.

L.C. Gupta (1992)He revealed the findings of his study that there is existence of wild speculation in the

Indian stock market. The over speculative character of the Indian stock market is

reflected in extremely high concentration of the market activity in a handful of shares

to the neglect of the remaining shares and absolutely high trading velocities of the

speculative counters. He opined that, short- term speculation, if excessive, could lead

to "artificial price". An artificial price is one which is not justified by prospective

earnings, dividends, financial strength and assets or which is brought about by

speculators through rumours, manipulations, etc. He concluded that such artificial pricesare bound to crash sometime or other as history has repeated and proved.


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Securities and Exchange Board of India (SEBI)According to SEBI, Professional Rating of market intermediaries, as a concept, is a matter

of debate and discussions. The need for rating is felt not only from the point of view

measuring the adequacy of systems and controls to meet internal as well as external

compliance requirements. So that need for Intermediaries Rating services (Brokers),In

view of the developments that are taking place in the capital markets, the need to

constantly upgrade and improve systems and procedures in operation as well as skill sets

has gained considerable importance. Besides compliance with regulatory requirements

both in letter and spirit has assumed significance so as to mitigate risk and ensure

adequate protection of investors interest. And Rating objectives / benefits are rated entity

would be in a position to brand its image and capitalize the same for generating more

business. In a nutshell, the product may accrue significant benefits to all stake holders

including the investors, stock brokers themselves, the regulator and others who will

benefit from the transparency and the consequential focus on efficiency.


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CHAPTER3:

RESEARCH METHODOLOGY


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CHAPTER3:

RESEARCH METHODOLOGY

3.1 Purpose of the Study

The purpose of the study is

To know the basics of Indian Stock Market. To make clients and let them know about the different services offered by India

Infoline Limited.

3.2 Research Objectives of the study

Each research study has its own specific purpose. It is like to discover to question through

the application of scientific procedure. But the main aim of our research is to find out the

truth that is hidden and which has not been discovered as yet. Our research study has two

objectives:

a) Primary Objectives- How India Infoline Ltd. is the best service provider asa Stock Broker in the NCR region.

b) Secondary Objectives- To know about the awareness of the consumers towards Stock Brokers

and Share Market.

To study about the effectiveness and efficiency of India Infoline Ltd. inrelation to its competitors.

To aware people about product & services of India Infoline Limited andsale its products.

To study and analysis of Services provided by India Infoline Limited To study and analysis of Services provided by other broking firms.


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3.3 Research Methodology:

Research methodologyis a collective term for the structured process of conducting

research. A research is carried out by different methodologies which have their own prosand cons. R es e a r ch methodology is a way to solve research in studying and solving

research problem along with logic behind them are defined through research

methodology. The research was carried out through survey method, fieldwork in order to

collect data. Data collected through questionnaire and verbal discussion.

3.3.1 Research Design:

Exploratory and Quali tative Research

Research Design is usually conducted during the initial stage of the research process. The

preliminary activities undertaken to refine the problem into a researchable one need to be

formal or precise.

Exploratory Research

The purpose of the Exploratory Research is to progressively narrow the scope of the

research topic and to transform the discovered problems into defined ones, incorporating

specific research objectives. This type of research can provide significant insight into a

given situation. Exploratory research can be informal such as informal discussions with

consumers, employee, management or competitors or formal such as formal approaches

through in-depth interviews, focus groups, projective methods, case studies or pilot

studies.


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Qual i tative Research

The purpose of Qualitative Research is to explore issues, understand phenomenon and

answer questions. In our research we need comparison between different stock brokers,

so this is based on all quantitative data. Focus groups, in-depth interviews, content

analysis, ethnography, evaluation and semiotics are among the many approaches that are

used, but qualitative research in its most basic form involves the analysis of any

unstructured data, including open-ended survey responses, literature reviews, audio

recordings, pictures and web pages.

3.3.2 Data Collection Techniques

The following techniques are used for collecting the data in this research:

Survey Face-to-Face Interview Telephonic Interview

3.3.3 Sample Design

A sample design is a definite plan for obtaining a sample from a given population.

Sample Design is the technique or the procedure, the researcher would adopt in selecting

items to be included in the sample research should select design which would be reliable

and appropriate for the study.

Generally, sample design are of two types:

Probability Sampling Design- Probability sampling is a sampling techniquewhere the samples are gathered in a process that gives all the individuals in the

population equal chances of being selected.

Non- Probability Sampling Design- Non-probability sampling is a samplingtechnique where the samples are gathered in a process that does not give all the

individuals in the population equal chances of being selected.


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We used the Non-Probability Sampling Design. Under Non-Probability Sampling

Design, we used Convenience sampling it is a non-probability sampling technique

where subjects are selected because of their convenient accessibility and proximity to the

researcher

Many researchers prefer this sampling technique because it is fast, inexpensive, easy and

the subjects are readily available

3.3.3.1 Population

The population of the research was National Capital Region (NCR).

3.3.3.2 Sample size

This refers to the number of items to be selected from the universe to constitute a

sample.

The sample size in this project is 50.

But we also study the six broker companies related to securities and commodities market

like Angel Broking, SMC Securities, Sharekhan Ltd., HDFC Securities, ICICI Direct and

for the appropriate collection of the data.

3.3.3.3 Sampling Method

Sampling methods are used to select a sample from within a general population. Proper

sampling methods are important for eliminating bias in the selection process.

Convenience samplingmethod is used in this project.


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3.3.4 Method of Data Collection

Data collection is a process of preparing and collectingdata.While deciding about the

method of data collection to be used for the study the researcher should keep two types of

data:

Primary Data Secondary Data

Primary Data

The primary data are fresh data collected directly from the field and therefore consist of

original information gathered for the specific purpose. It is expensive, laborious, and time

consuming. But it assures a greater degree of accuracy and reliability. The data have been

collected by Survey using questionnaires, face-to-face interview and telephonic

interview. Though the primary source was not enough for the study but it did give some

accurate conclusions.

Sources of Primary Data:

Telephonic Interview Face-to-face interview

Company Prospectus and Literature Questionnaire

Secondary Data

The secondary data are the data, which the investigator borrows from other who have

collected it for various other purposes. Therefore it may not entirely be reliable. It is less

expensive and involves less expensive and involves less time and labor than the

collection of primary data.

Sources of Secondary data:

Newspapers, Internet, Magazines and Trade Journals. Company Database Employees of the company.
http://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Data


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Publication of books, company records, brochures, catalogues and otherdocuments.

Reports and publications of Government department and international bodies.

The secondary data was the most important source because it gave us information about

company profile, its services, competitors, market scenario, market share, etc. The data

collected from the websites and books was good enough to be included in the study

analyzed and concluded but data from the employees of the companies was most accurate

and reliable. Various newspapers, magazines, websites, trade journals, etc were checked

out for information regarding the comparative analysis of various players in stock market.

The secondary source didnt provide any personal views of the customers services but

were a great help in completing the report and getting the details.

3.3.4.1 Instrument for Data Collection

Questionnaires Telephone Internet

3.3.5 Limitations of the Study

RESTRICTED SCOPEAs only National Capital Region (NCR) dealt in survey so it does not represent the

view of the total Indian Market. Therefore, the scope of the study is restricted

TIMETime duration of project work was short, and this was biggest limitation of my

project. There was also a lack of time on the part of the respondents.

SAMPLE SIZE : Size of the research may not be substantial. My sample size was 50among which 7 respondent were not investing anywhere and some respondent gave

multiple answers. Hence, the level of significance may vary.


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OPINIONInformation is presented from customersopinion only which may vary. The survey

was carried through Questionnaires and the questions were based on perception.

There may be biasness in information by market participant. The project survey for comparison was carried only on the basis of demat

account.

Sampling was judgement based and simple random so chance of occurrence oferror is more.

Complete data was not available due to company privacy and secrecy.


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CHAPTER- 4:ANALYSIS

&

INTERPRETATION


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CHAPTER- 4:

ANALYSIS

&

INTERPRETATION

1. What is your preference of Investment?

Percent

Valid

Percent

Cumulative

Percent

Equity

Shares 28% 28% 28%

Mutual

Funds 20% 20% 48%

Fixed

Deposits 13% 13% 61%

Insurance 31% 31% 92%

Others 8% 8% 100%

Total 100% 100%

Table No. 4.1


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GraphNo.4.1

Interpretation:

This pie-chart shows that although the Mutual Funds market is on the rise yet, the most

favored investment continues to be in the Share Market. So, with a more transparent

system, investment in the Stock Market can definitely be increased.

28%

20%13%

31%

8%Equity Shares

Mutual Funds

Fixed Deposits

Insurance

Others


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2. Do you know about Demat account?

Frequency Percent

Valid

Percent

Cumulative

Percent

Yes 43 86% 86% 86%

No 7 14% 14% 100%

Total 50 100% 100%

Table No. 4.2


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Chart No. 4.2

Interpretation:

Demat account has made trading convenient. As shown in the above pie-chart, as high as

86% people are aware of Demat account as these people are into share trading and have

done Rematerialization of Share Certificates, easy accessibility for online trading, etc.

Only 14% people are not aware of it because these people are not interested in share

trading or they have lack of knowledge about the trading done through Demat account.

86%

14%

Yes

No


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3. Do you intend to open a Demat account?

Frequency Percent

Valid

Percent

Cumulative

Percent

Yes 15 30% 30% 30%Already

have 35 70% 70% 100%

Total 50 100% 100%

Table No. 4.3

Chart No. 4.3

Interpretation:

As seen in the above pie-chart, out of 50 people surveyed, 35% people are already having

an account and others (30%) were not having a Demat account but showed their interest

in opening up a Demat account.

The reason for putting up this question was to find out those people who were interested

in Share Trading but did not know the online facility of trading done through Demat

account and were looking forward to investment avenues in Stock Market which could

give them good returns.

30%

70%

Yes

Already Have


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4. Since how many years you trade?

Frequency Percent

Valid

Percent

Cumulative

Percent

1 Year 7 20% 20% 20%2 to 3 year 10 29% 29% 49%

4 to 7 year 5 14% 14% 63%

More than 7

year 13 37% 37% 100%

Total 35 100% 100%

Table No. 4.4

Chart No. 4.5

Interpretation:

According to above pie-chart, there are 20% people that are trading from last 1 year and

29% people that are trading from 2 to 3 years. Maximum people are trading for more than

7 year and minimum people are trading from 4 to 7 years.

20%

29%14%

37% 1 Year

2 to 3 year

4 to 7 year

More than 7 year


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5. How frequently do you trade?

Frequency Percent

Valid

Percent

Cumulative

Percent

Daily 11 22% 22% 22%Weekly 10 20% 20% 42%

Fortnightly 10 20% 20% 62%

Monthly 12 24% 24% 86%

None 7 14% 14% 100%

Total 50 100% 100%

Table No. 4.5

Chart No. 4.5

Interpretation:

As per the above graph, there is a slight difference in the percentage of people who

preferred Daily, Weekly, Fortnightly and Monthly.

Daily Trading which is referred to as Intraday Trading where shares are bought and sold

at the same day. Such people covered about 22% of the survey. Most of the people

purchased shares and waited to a better opportunity to sell them off. This time duration is

Weekly, Fortnightly and Monthly.

22%20% 20%

24%

14%

0%

5%

10%

15%

20%

25%

30%

Daily Weekly Fortnightly Monthly None

Frequency of Trading


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6. What type of trading you prefer?

Frequency Percent

Valid

Percent

Cumulative

Percent

Intraday 17 49% 49% 49%Delivery 11 31% 31% 80%

Both 7 20% 20% 100%

Total 35 100% 100%

Table No. 4.6

Chart No. 4.6

Interpretation:

From the above graph, we can conclude that maximum people do intraday trading to earn

the short-term income. In Intraday, shares are bought and sold at the same day while

those who wish for the safe investment, they prefer Delivery trade. It is a very secure

trading. 20% people prefer both intraday and delivery trading.

49%

31%

20%

0%

10%

20%

30%

40%

50%

60%

Intraday Delivery Both

Trading Type


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7. What type of trading you prefer? Offline or Online.

Frequency Percent

Valid

Percent

Cumulative

Percent

Online 18 51% 51% 51%Offline 8 23% 23% 74%

Both 9 26% 26% 100%

Total 35 100% 100%

Table No. 4.7

Chart No. 4.7

Interpretation:

As per the above graph, we found that 51% people preferred online trading, 23% of

people liked offline trading and 26% of people were using both type of trading. Online

trading consumes less time as compared to offline trading but online trading is expensive

as compared to offline trading.

51%

23%26%

0%

10%

20%

30%

40%

50%

60%

Online Offline Both Total

Types of Trading

Percent


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8. What is your Occupation?

Parameters Frequency Percent

Valid

Percent

Cumulative

Percent

Business 14 40% 40% 40%

Service 12 34% 34% 74%

Professionals 9 26% 26% 100%

Total 35 100% 100%

Table No. 4.8

Chart No. 4.8

Interpretation:

As per the above graph, we found that 40% people were in Business who trade, these

people mostly did a high volume of trading as for having more of finance at their

disposal. 34% people doing services did trade, although they invested a less portion

in Share Market as compared to business people. and only 26% of the people were

professionals who trade as it is a side income-generating business for them.

40%

34%

26%

0%

5%

10%

15%

20%

25%

30%

35%

40%45%

Business Service Professionals

Occupation


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9. What amount of money savings you invest yearly?


Valid

Percent

Cumulative

Percent

1000-50000 17 48% 48% 48%50000-

100000 12 34% 34% 82%

100000-

150000 3 9% 9% 91%

Above

150000 3 9% 9% 100%

Total 35 100% 100%

Table No. 4.9

Chart No. 4.9

Interpretation:

As per the above graph, 48% of people were investing between Rs.1000-50000, 34% of

people spread fund between we found that 51% people preferred online trading, 23% of

people liked offline trading and 26% of people were using both type of trading. Online

trading consumes less time as compared to offline trading but online trading is expensive

as compared to offline trading.

0%

10%

20%

30%

40%

50%48%

34%

9%9%


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10. What is your first priority while opening a demat account?


Valid

Percent

Cumulative

Percent

AccountOpening

Charges 1 3% 3% 3%

Brokerage 18 51% 51% 54%

Customer

Service 7 20% 20% 74%

Security in

Transaction 5 14% 14% 88%

Convenience 4 12% 12% 100%

Total 35 100% 100%

Table No. 4.10

Chart No. 4.10

Interpretation:

According to graph, 51% voted for brokerage charge as their first priority. About 20%

witnessed the feature of customer service like SMS alerts, telephonic help,etc. as a

second important factor. Security in transaction and convenience was tied up at 14%

and 12%. Account opening charges were of least consideration at 3%

0%

10%

20%

30%

40%

50%

60%

3%

51%

20%14% 12%


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11. In which company you have Demat and Trading account?


Cumulative

Percent

India Infoline 9 25% 25%Angel Broking 4 11% 36%

Religare 4 11% 47%

India Bulls 5 13% 60%

Sharekhan 10 29% 89%

Others 4 11% 100%

Total 35 100%

Table No. 4.11

Chart No. 4.11

Interpretation:

As per the above graph, 29% have demat and trading account in Sharekhan because of

better services and no annual maintenance for the first year and other charges, 25% are

with India Infoline because of their web portal 5paisa.com and 13% are with India Bulls

because as they provide one of the fastest and most efficient trading facility in India.

0%

5%

10%

15%

20%

25%

30% 25%

11% 11%13%

29%

11%


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12. Are you satisfied with the services of your present broking firm?


Valid

Percent

Cumulative

Percent

CompletelySatisfied 19 54% 54% 54%

Somewhat

Satisfied 11 31% 31% 85%

Totally

Dissatisfied 3 9% 9% 94%

None 2 6% 6% 100%

Total 35 100% 100%

Table No. 4.12

Chart No. 4.12

Interpretation:

As per the above graph, the maximum people were satisfied with their broking firms

as the customer start trading which become directly fruitful to broking firms and they

provide good service to broking firms. 31% people were partially satisfied. About 6% of

the people were neither satisfied nor dissatisfied with their firms and 9% people were not

satisfied with their broking firms.

0%

10%

20%

30%

40%

50%

60%

Completely

Satisfied

Somewhat

Satisfied

Totally

Dissatisfied

None

54%

31%

9%6%


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13. Are you satisfied with the software provided by the broking firm for onlinetrade?


Valid

Percent

Cumulative

Percent

Yes 30 86% 86% 86%

No 5 14% 14% 100%

Total 35 100% 100%

Table No. 4.13

Chart No. 4.13

Interpretation:

As per the above graph, only 86% respondents are satisfied with the software facility

provided by the broking firms as a single firm has many up gradation with the software

which is only provided to the premium customer. 14% respondents were not satisfied

with their broking firms software facility.

0%

10%

20%

30%

40%

50%

60%

70%

80%90%

Yes No

86%

14%


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14. Do you operate demat account by yourself or through an agent of your brokingfirm?


Valid

Percent

Cumulative

Percent

Yourself 25 71% 71% 71%

Agent 10 29% 29% 100%

Total 35 100% 100%

Table No. 4.14

Chart No. 4.14

Interpretation:

As per the above graph, most of the customers about 71% did trading by themselves. But

still 29% of the people still used the help of agents due to lack of their knowledge about

the online trading of shares in the indirect form such as through phone, SMS, mail and

Online Chat.

0%

10%

20%

30%

40%

50%

60%

70%80%

Yourself Agent

71%

29%


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15. Which is the Best Broking Firm, according to you?


Valid

Percent

Cumulative

Percent

India Infoline 13 37% 37% 37%Angel

Broking 5 14% 14% 51%

Religare 3 9% 9% 60%

India Bulls 4 11% 11% 71%

Sharekhan 6 18% 18% 89%

Others 4 11% 11% 100%

Total 35 100% 100%

Table No. 4.15

Chart No. 4.15

Interpretation:As per the above graph, we found that the best preferred broking house among the people

of NCR is India Infoline Limited with 37% followed by Sharekhan (18%), Angel

Broking (14%), India Bulls (11%), Religare (9%), ICICI Direct, HDFC Securities, SMC

Securities, Kotak Securities, etc

0%

5%

10%

15%

20%

25%

30%

35%

40%

1 2 3 4 5 6

37%

14%

9%11%

18%

11%


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16.Will you be the future customer of India Infoline Limited?


Valid

Percent

Cumulative

Percent

Yes 9 26% 26% 26%

No 12 34% 34% 60%

Can't Say 14 40% 40% 100%

Total 35 100% 100%

Table No. 4.16

Chart No. 4.16

Interpretation:

As per the above graph, we found that after explaining about the various offers of

Infoline 26% of the people were ready to get the new demat account with India Infoline

Limited while 34% of the people strongly neglected as they are satisfied with theircurrent broking firm.

0%

5%

10%

15%

20%

25%

30%

35%

40%

Yes No Can't Say

26%

34%

40%


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CHAPTER- 5:

FINDINGS


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CHAPTER- 5:

FINDINGS

FINDINGS

According to the survey, we found that in todays market people still prefer insurancefor the purpose of security and tax-savings. Equity shares are second most preferred

as shares are liquid and it gives more profit in less time. Then mutual funds are

preferred because it has less risk than equity shares. Fixed Deposits are least

considered as an investment option because it is a low-income earning type of

investment.

Most of the people know about the Demat account which holds shares in electronicform. Few people are not aware of it because either they are not interested in trading

or they still find shares in paper form much more convenient.

Most of the people are already having a demat account. Some people not having ademat account but they showed their interest in opening a demat account as they put

forward the benefits of share trading though they mentioned the risk factor of being in

the volatile market.

Maximum people are trading for more than 7 years as these people have most of theknowledge about company and products offered by the company. 29% people are

trading from 2 to 3 years, these people are of younger generation and they want to

invest in market and earn some money. Minimum people are trading from 4 to 7

years.

Maximum people are investing monthly because it is easy for them to pay monthlyinstallments. 22% of the respondents are trading daily, they are squaring off the

shares while the market is bullish. Weekly and Fortnightly share traders covered 20%

each of the survey, these people consider it safe to wait for the present moment and

observing the market.


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CHAPTER- 6:

RECOMMENDATIONS

&

CONCLUSIONS


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CHAPTER- 6:

RECOMMENDATIONS

& CONCLUSIONS

6.1 RECOMMENDATIONS:

To increase awareness about the Share Market and the name India Infoline Limiteditself, the company should organize campaign. The campaign can be weekly,

monthly, yearly, it will give a good result to the company to capture market in the

competitive position.

The company should reduce the margin money. It can help to acquire morecustomers, if the firms bring plans for no boundation of margin money.

The company should increase their focus on the less margin money customers also. Itcan help to make more customers of low margin money which can increase the

revenue of the firm. The Relationship Managers focus only to the high margin money

customer because from them they will get high brokerage.

Transaction error should be avoided. Transaction should be done properly, taken inconsideration that is one of the most required quality of a firm. Wrong transaction or

Default transaction may lead the prestige of the company down.

Brokerage rate should be reduced. Sharekhan Securities, Religare Securities Limitedand Indiabulls are charging 0.5%, 0.3% and 0.25% for delivery and 0.1%, 0.03%,

0.05% for intraday whereas India Infoline is charging 0.5% for delivery and 0.05%

for intraday. Though it is negotiable but for high margin money customer not for less

margin money customer.


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The company should increase exposure. It is the good tool to capture the market. There should be more public awareness programs and advertisement related to

companys product and services so that people should be more about India Infolin eLimited.

The company should organize customer happiness survey for active and inactiveclients both.

The company should be more aggressive toward its existing clients feedback and fortheir services after giving them products because it can increase the companys

loyalty as well its brand name.

The company should offer demonstration for online share trading and other seminarsfor the cultivation of knowledge to the customers.


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6.2 CONCLUSION:

Through this study we get through all the differences between different broking firms and

their benefits of investing individually, it was found that India Infoline Limited is better

services provider than the other stockbrokers because of their timely research and

personalized advice on what stocks to buy and sell. India Infoline Ltd. provides the

facility of Onestop shopas well as relationship manager facility for encouragement and

protects the interest of the investors. It also provides the information through the internet

and mobile alerts that what IPOsare coming in the market.

From the above survey and observation it was found that most of the people who are

trading in share market belongs to the business group, next comes the employees and

other class of income people. As the share market value goes on increasing day by day

the investor who wants to invest in shares also increasing. But investing in shares is as

risky as earning yield.

Trading in online trading firm is easy as it all delivered with internet and within a few

minutes the customer can buy and sell shares which save time as well as reduction of

paper work. Hence trading in share market is increasing day by day and investors areready to invest their investment in share market only. They expect all the information

such as less rates, less brokerages, highly returns and better service level without delay.

The needs of the customer differs from person to person, area, locality and occupation.

Customer always want more service by paying less.

The young people should start investing earlier so that they can reap the benefits of

investing in future. People should keep their eye open and keep updating themselves

about various investment avenues so that they can get safe returns.

From this study we have also understand the point of view of the investors to invest their

money with the right company at the right time.


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Bibliography

For Books:

1. Kothari C.R., Research Methodology, 2nd Revised Edition, 2004, New AgeInternational (P) Limited Publishers, New Delhi

For Magazines, Periodicals, Journals, Newspapers:

1. Business World2. Business Economy3. Business Standard4. The Economic Times5. Daily Research Report of India Infoline- Market Mantra

Webliography:

1. www.indiainfoline.com2. www.sharekhan.com3.

www.nse.india.com

4. www.indiabulls.com5. www.religareonline.com6. www.angelbroking.com7. www.icicidirect.com8. www.kotaksecurities.com9. www.smcindiaonline.com10.www.hfdcsec.com
http://www.indiainfoline.com/http://www.indiainfoline.com/http://www.sharekhan.com/http://www.sharekhan.com/http://www.nse.india.com/http://www.nse.india.com/http://www.indiabulls.com/http://www.indiabulls.com/http://www.religareonline.com/http://www.religareonline.com/http://www.angelbroking.com/http://www.angelbroking.com/http://www.icicidirect.com/http://www.icicidirect.com/http://www.kotaksecurities.com/http://www.kotaksecurities.com/http://www.smcindiaonline.com/http://www.smcindiaonline.com/http://www.hfdcsec.com/http://www.hfdcsec.com/http://www.hfdcsec.com/http://www.hfdcsec.com/http://www.smcindiaonline.com/http://www.kotaksecurities.com/http://www.icicidirect.com/http://www.angelbroking.com/http://www.religareonline.com/http://www.indiabulls.com/http://www.nse.india.com/http://www.sharekhan.com/http://www.indiainfoline.com/


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ANNEXURE

QUESTIONNAIRE

Name:_____________________________________

Phone Number:________________________

Date:________________

1. What is your preference of investment? Equity Shares Mutual Funds Fixed Deposits Insurance Others

2. Do you know about Demat account? Yes No

3. Do you intend to open a Demat account? Yes Already Have

4. Since how many years you trade? 1 year 2 to 3 years 4 to 7 years More than 7 years


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5. How frequently do you trade? Daily Weekly Fortnightly Monthly None

6. What type of trading you prefer? Intraday Delivery Both

7. What type of trading you prefer? Online Offline

8. What is your occupation? Business Service Professionals

9. What amount of savings you invest yearly? 1000-50000 50000-100000 100000-150000 Above 150000


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10.What is your first priority while opening a Demat account? Account Opening Charges Brokerage Customer Service Security in Transaction Convenience

11.In which company you have Demat and Trading account? India Infoline Angel Broking Religare India Bulls Sharekhan Others

12.Are you satisfied with the services of your present broking firm? Completely Satisfied Somewhat satisfied Totally Dissatisfied None

13.Are you satisfied with the software provided by the broking firm foronline trade?

Yes No

14.Do you operate Demat account by yourself or through an agent of yourbroking firm?

Yourself Agent


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15.Which is the best broking firm, according to you? India Infoline Angel Broking Religare India Bulls Sharekhan Others

16.Will you be the future customer of India Infoline Limited? Yes No Cant Say


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