sharekhan report

Competitive analysis of Broking Firms in Mumbai

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“Competitive Analysis of Broking Firms in Mumbai”

IN PARTIAL FULFILLMNT OF THE REQUIREMENTS FOR

MASTER IN MANAGEMENT STUDIES (MMS)

2009-2011

ROLL NO. P-56

SUBMITTED TO

Dr V.N. BEDEKAR INSTITUTE OF MANAGEMENT STUDIES, THANE


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ACKNOWLEDGEMENT

I would like to sincerely thank Dr. P.M. Kelkar, Director, Dr. V N Bedekar Institute of

Management Studies for giving me an opportunity to go undertake this project.

I would also like to thank Mrs. Seema Agarwal and Mrs. Saroj Mishra for their guidance &

timely cooperation at each and every step in the project. They showed me the right path and

made me capable of undertaking and accomplishing this task.

I would like to express my deep sense of gratitude to my Industry guide, Mr. Prashant Parab,

Asst. Manager Sales– Sharekhan Ltd., Mumbai, who spent his valuable time and guided me. I

have benefited a great deal from his incisive analysis and erudite suggestions. The atmosphere of

a learning organization that he has created along with his peers in Main Branch has not only

helped me but all the other trainees.

I am also sincerely thankful to all the faculty members of Dr. V. N. Bedekar Institue of

Management Studies, Thane for providing their help and advice whenever it was needed.

Finally I wish to extend my sincere acknowledgement to my parents for their moral and financial

support.


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Certificate:


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STATEMENT BY THE CANDIDATE

I wish to state that the work embodied in this project titled “Competitive analysis of

Broking firms in Mumbai” form my own contribution to Management. Wherever references

have been made to intellectual properties of any individual / Institution / Government / Private /

Public Bodies / Universities, research paper, text books, reference books, research monographs,

achieves of newspapers, corporate, individuals, business / Government and any other sources of

intellectual properties viz., speeches, quotations, conference proceedings, extracts from the

websites, working paper, seminal work et al, they have been clearly indicated, duly

acknowledged & included in the bibliography.

.

_________________

Signature of Candidate


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Contents ACKNOWLEDGEMENT ............................................................................................................................ 2

GENESIS OF THE REPORT ....................................................................................................................... 7

INTRODUCTION OF THE COMPANY ..................................................................................................... 8

Profile of the company .............................................................................................................................. 9

Services offered by sharekhan ................................................................................................................ 10

Products of Sharekhan ............................................................................................................................ 11

NATURE AND SCOPE OF THE PROJECT ............................................................................................. 14

SWOT Analysis of sharekhan ................................................................................................................. 15

The major players in online Trading ....................................................................................................... 16

Comparative analysis of various stock broking companies .................................................................... 18

Sharekhan ............................................................................................................................................ 18

ICICIDirect ......................................................................................................................................... 21

India Infoline Securities ...................................................................................................................... 24

Angel Trade ........................................................................................................................................ 27

Religare ............................................................................................................................................... 30

OBJECTIVES OF THE STUDY ................................................................................................................ 34

RESEARCH METHODOLOGY ................................................................................................................ 35

MANAGEMENT TOOLS & TECHNIQUES ............................................................................................ 38

Chi square – ............................................................................................................................................ 38

Formulation of Hypothesis: .................................................................................................................... 38

Outcome .................................................................................................................................................. 39

INTERPRETATION ................................................................................................................................... 40

FINDINGS .................................................................................................................................................. 52

LEARNING EXPERIENCE ....................................................................................................................... 53

LIMITATION ............................................................................................................................................. 54

APPENDIX ................................................................................................................................................. 55

Appendix – I ........................................................................................................................................... 55

Appendix – II .......................................................................................................................................... 57


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REFERENCES ........................................................................................................................................... 60

Bibliography ........................................................................................................................................... 60

Webliography .......................................................................................................................................... 60


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GENESIS OF THE REPORT

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.

The Broad objective of the project is to meet clients and let them know about the different

services offered by the Share khan. Also to convince them about how Share khan services out

score their rivals. And how, in future they will be benefited from the services offered by

Sharekhan. This project accomplishes to understand the problem faced by the existing client and

find ways to solve their queries.

This research has put light on positive and strong points of Sharkhan ltd.

An attempt has been made to find out the customer preference in choosing broking firm with the

help of Questionnaire


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INTRODUCTION OF THE COMPANY

Sharekhan 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 business. 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.

Earlier with a legacy of more than 80 years in the stock markets, the SSKI group ventured into

institutional broking and corporate finance 18 years ago. SSKI is one of the leading players in

institutional broking and corporate finance activities. SSKI holds a sizeable portion of the market

in each of these segments. SSKI’s institutional broking arm accounts for 7% of the market for

Foreign Institutional portfolio investment and 5% of all Domestic Institutional portfolio

investment in the country.

It has 60 institutional clients spread over India, Far East, UK and US. Foreign Institutional

Investors generate about 65% of the organization’s revenue, with a daily turnover of over US$ 2

million.

The content-rich and research oriented portal has stood out among its contemporaries because of

its steadfast dedication to offering customers best-of-breed technology and superior market

information. The objective has been to let customers make informed decisions and to simplify

the process of investing in stocks.


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Profile of the company

Name of the company: Sharekhan ltd.

Year of Establishment: 1925

Headquarter : ShareKhan SSKI

A-206 Phoenix House

Phoenix Mills Compound

Lower Parel

Mumbai - Maharashtra, INDIA- 400013

Nature of Business: Service Provider

Services: Depository Services, Online Services and

Technical Research.

Number of Employees: Over 3500

Website: www.sharekhan.com

Slogan: Your Guide to The Financial Jungle.


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Vision

To be the best retail brokering Brand in the retail business of stock market.

Mission

To educate and empower the individual investor to make better investment decisions through

quality advice and superior service.

Sharekhan is infact-

• Among the top 3 branded retail service providers

• No. 1 player in online business

• Largest network of branded broking outlets in the country serving more

than 7,00,000 clients.

Services offered by sharekhan

1- Equity Trading Platform (Online/Offline).

2- Commodities Trading Platform (Online/Offline).

3- Portfolio Management Service.

4- Mutual Fund Advisory and Distribution.

5- Insurance Distribution.


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Products of Sharekhan

CLASSIC ACCOUNT

This is a User Friendly Product which allows the client to trade through website

www.sharekhan.com and is suitable for the retail investors who is risk-averse and hence prefers

to invest in stocks or who does not trade too frequently.

Features

Online trading account for investing in Equity and Derivatives via www.sharekhan.com

Live Terminal and Single terminal for NSE Cash, NSE F&O & BSE.

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

Instant cash transfer facility against purchase & sale of shares.

Competitive transaction charges.

Instant order and trade confirmation by E-mail.

Streaming Quotes (Cash & Derivatives).

Personalized market watch

Single screen interface for Cash and derivatives and more.

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


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TRADE TIGER

TRADE TIGER is an internet-based software application that enables you to buy and sell

in an instant. It is ideal for active traders and jobbers who transact frequently during day’s

session to capitalize on intra-day price movement.

Features

A single platform for multiple exchange BSE & NSE (Cash & F&O), MCX, NCDEX,

Mutual Funds, IPOs

Multiple Market Watch available on Single Screen

Multiple Charts with Tick by Tick Intraday and End of Day Charting powered with

various Studies

Graph Studies include Average, Band- Bollinger, Know SureThing, MACD, RSI, etc

Apply studies such as Vertical, Horizontal, Trend, Retracement & Free lines

User can save his own defined screen as well as graph template, that is, saving the layout

for future use

User-defined alert settings on an input Stock Price trigger

Tools available to guage market such as Tick Query, Ticker, Market Summary, Action

Watch, Option Premium Calculator, Span Calculator

Shortcut key for FAST access to order placements & reports

Online fund transfer activated with 12 Banks


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DialnTrade:

Free with your Sharekhan Trading Account, the Dial-n-Trade service enables you to place orders

for buying and selling shares through your telephone.

All you have to do is dial any one of our dedicated numbers (1-800-22-7050 or 30307600 or

1800-270-7050 ), enter your TPIN number (which is provided at the time of opening your

account) and on authentication you'll be directed to a telebroker who will buy and sell shares for

you.

Features of Dial-n-Trade

Simple and Secure Interactive Voice Response based system for authentication

No waiting time. Enter your TPIN to be transferred to our telebrokers

You also get the trusted, professional advice of our telebrokers

After hours order placement facility between 8.30 am and 9.00 am

Reliable service, wherever you are


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NATURE AND SCOPE OF THE PROJECT

This report identifies the performance and marketing strategy of brands with which Sharekhan

competes.

Competitive environment under which Sharekhan operates including strengths, weaknesses,

opportunities and threats has been studied.

An indepth analysis of competitor's products, prices, services, promotional activities and brand

image has been done with due emphasis on customers attitude towards it.

Finally, customer behavior and expectation has been captured through a structured questionnaire

covering various parameters. Thus, this report gives an insight into competitive advantage and

disadvantage of different leading broking firms in the area of Mumbai.


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SWOT Analysis of sharekhan

Strengths

High R&D Online growth Loyal customers Market share leadership Strong management team Strong financial position Pricing Real estate Reputation management Unique products diverse products and offers for the

customers strong brand recall strong reach to the masses among the top 5 brokerage houses in

the country

Weaknesses

Diseconomies to scale Not innovative Not diversified omnipresent products, services high employee turnover less small investors employees not properly skilled infrastructure not up to the mark

Opportunities

Financial markets (raise money through debt, etc)

Innovation Online Product and services expansion penetration in developing cities increase in awareness of people about

stock market increase in wealth positive market sentiments growth of technology and awareness increased internet usage

Threats

Competition Cheaper technology Economic slowdown External changes (government,

politics, taxes, etc) Exchange rate fluctuations Lower cost competitors or imports Price wars Product substitution


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The major players in online Trading


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Different Players in Share Industry

In the share market there are many DP’s amongst which SHAREKHAN is one of them. There

are many competitors in the market which are giving direct competition to the company, but

because of the research based services and wealth management services Offered by Sharekhan

(Services Truly Personalized), it is unique in the market.

In the competitor’s list there are big names such as:

5 paisa

Religare

Angel Broking

HDFC Sec.

Kotak Street

ICICI DIRECT etc.


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Comparative analysis of various stock broking companies

Sharekhan:

Sharekhan's equity related services include trade execution on BSE, NSE, Derivatives,

commodities, depository services, online trading and investment advice. Trading is available in

BSE and NSE. Along with Sharekhan.com website, ShareKhan has around 510 offices (share

shops) in 170 cities around the country.

Share khan has one of the best state of art web portal providing fundamental and statistical

information across equity, mutual funds and IPOs.

You can surf across 5,500 companies for in-depth information, details about more than 1,500

mutual fund schemes and IPO data. You can also access other market related details such as

board meetings, result announcements, FII transactions, buying/selling by mutual funds and

much more.

Brokerage details for various plans of Sharekhan :

1. CLASSIC NORMAL:-

A/c. opening charge 750/- (total adj. in brok.within six month)

min. margin req. 5000/- (total investable, refundable)

brok. (intraday) 0.10% (buy only)

brok. (delivery) 0.50% (both side)


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2. TRADE TIGER:-

A/c. opening charge 1000/- (total adj. in brok.within six month)

min. margin req. 5000/- (total investable, refunable)



3. PREPAID 2000/-

A/c. opening charge 0/-

adv. brok. req. 2000/- (valid 1 year)



4. PREPAID 6000/-

A/c. opening charge 0/-

adv. brok. req. 6000/- (valid 1 year)




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Advantages of Sharekhan:

Online trading is very user friendly and one doesn't need any software to access.

They provide good quality of services like daily SMS alerts, mail alerts, stock

recommendations etc.

Sharekhan has ability to transfer funds from most banks. Unlike ICICI Direct, HDFC

Sec, etc., so investor not really needs to open an account with a particular bank as it can

establish link with most modern banks.

Disadvantages of Sharekhan:

They charge minimum brokerage of 10 paisa per stock would not let you trade stocks

below 20 rs. (If you trade, you will lose majority of your money in brokerage).

Lots of hidden rules and charges.

Classic account holders cannot trade commodities.


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ICICIDirect

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

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

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

Type of Account

ICICIDirect offers 3 different online trading platforms to its customers:

1. Share Trading Account

Share Trading Account by ICICIDirect is primarily for buying and selling of stocks in BSE and

NSE.

This account allows Cash Trading, Margin Trading, MarginPLUS Trading, Spot Trading, Buy

Today Sell Tomorrow and Call and Trade on phone.

ICICIDirect.com website is the primary trading platform for this trading account. They also

provide installable application terminal based application for high volume trader.

2. Wise Investment Account

Along with stock trading and IPO investing in BSE and NSE, Wise Investment account also

provide options to invest in Mutual Funds and Bonds online.

Online Mutual funds investment allows investor to invest on-line in around 19 Mutual Fund

companies. ICICI Direct offers various options while investing in Mutual Funds like Purchase

Mutual Fund, Redemption and switch between different schemes, Systematic Investment plans,

Systematic withdrawal plan and transferring existing Mutual Funds in to electronic mode. This

account also provides facility to invest in Government of India Bonds and ICICI Bank Tax


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Saving Bonds.

3. Active Trader Account

Active Trader account gives more personalized investment options to the investors. It allows

investor to use online and offline stock trading. It also provides with independent market

expertise and support through a dedicated Relationship Manager from ICICI.

Active Trader also provides commodity trading.

Brokerage and fees

Account opening fees : Rs 750/- (One time non-refundable)

Brokerage : ICICIDirect.com brokerage varies on volume of trade and inclusive of

demat transaction charges, service taxes and courier charges for contract notes. It ranges

from 0.1% to 0.15% for margin trades, 0.2% to 0.425% for squared off trades and 0.4%

to 0.85% on delivery based trades.

Advantages of ICICIDirect

1. 3-in-1 account integrates your banking, broking and demat accounts. All accounts are

from ICICI and very well integrated. This feature makes ICICI the most interesting

player in online trading facility. There is absolutely no manual interfere require. This is

truly online trading environment.

2. Unlike most of the online trading companies in India which require transferring money to

the broker's pool or towards deposits, at ICICIDirect you can manage your own demat

and bank accounts through ICICIdirect.com. Money from selling stock is available in

ICICI bank account as soon as the ICICIDirect receive it.

3. Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal Savings Schemes all

from one website. General Insurance is also available from ICICI Lombard.


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Disadvantages of ICICIDirect

1. Getting access to ICICIDirect.com website during market session can be frustrating.

2. ICICIDirect brokerage is high and not negotiable.

3. Not all stocks are available under Margin Plus


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India Infoline Securities

5paisa is Online Stock Trading Company of India Infoline Securities Private Ltd., Owner of

popular business portal Indiainfoline.com. Besides high quality investment advice from an

experienced research team, the site offers real time stock quotes, market news and multiple tools

for technical analysis

Trading Terminals:

5Paisa offers 2 different online trading terminals to its customers:

1. Investor Terminal (IT)

Investor Terminal is 5Paisa's equity trading terminal for low volume trader. This is web based

terminal and could access from anywhere. This product provides limited features in comparison

of Trader Terminal, which is another product provided by 5Paisa.

2. Trader Terminal (TT)

Trader Terminal is design for high volume equity traders or day traders. Trader Terminal

provides high volume trading with powerful interface and fast order execution.


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Few popular features of trader terminal are:

Fast trade execution with instant trade confirmation.

Live streaming quotes and price watch on any number of stocks.

Intra day charts, updated live, tick-by-tick.

Top Gainers, Top Losers, Most Active, updated live.

Index information; index chart, index stock information live.

Market depth, i.e. Best 5 bids and offers, updated live for all stocks.

Online access to both accounts and DP to check live updated Order and Trade Book.

Facility to place after market orders.

Online fund transfer facility from leading Banks including ICICI, HDFC, CITI and UTI

banks.

Online intra-day technical calls.

Brokerage and Account opening fees:

Account opening fees: Rs 500/- one time non refundable.

5 paisa offer competitive rates. They charge only 5 paisa for Rs 100 of trade done, which

is 0.05% brokerage. In case of trade that result in delivery, they charge an additional

0.20% for back office and securities handling.


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Advantages of 5paisa

1. Very fast execution speed.

2. Rates are very competitive then other providers.

3. Easy online fund transfer facility from leading Banks including ICICI, HDFC, CITI and

UTI banks.

4. Free facility of subscribing to mutual funds, equity IPOs and other investment products.

Disadvantages of 5paisa

1. No intra-day tick by tick charts in Investor Terminal (IT).

2. Investing in IPO and Mutual Funds is not so easy like in ICICIDirect.

3. Learning 5paisa Trading Terminal is little hard.


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Angel Trade

Angel Group has emerged as one of the top 3 retail broking houses in India. Incorporated in

1987, it has memberships on BSE, NSE and the two leading commodity exchanges in India i.e.

NCDEX & MCX. Angel is also registered as a depository participant with CDSL.

Angel's retail stock broking house offering a gamut of retail centric services.

Ebroking

Investment Advisory

Portfolio Management Services

Wealth Management Services

Commodities Trading

Trading Platforms:

Angel Trade provides 4 trading platforms, 2 are browser based & 2 are application based.

1. Angel investor

It is a browser based trading platform. The rates are updated on clicking the refresh button. This

facility ensures it is not blocked by firewall. Thus it is useful for investor who needs to access

information from places where firewall blocks such data.

2. Angel Trade

It is a browser based trading platform. The rates are updated automatically. This platform is

useful for investors & traders to access market from different terminals.


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3. Angel Diet

It is an application based trading platform where rates are updated automatically. All segments

are available on a single screen. This is ideal platform for the daily traders.

4. Angel Anywhere

It is an application based trading platform where rates are updated automatically. This is ideal for

investors & traders who are inclined towards trading based on charts & technical tools.

Brokerage and fees:

1. Account opening fees:

Stock trading account - Rs 575/-

Demat account - Rs 200/-

Commodity trading - Rs 625/-

2. Brokerage:

For trade up to the range of Rs 1 - 3 Crore:

Cash Based: 0.50%

Day trading: 0.05%

Derivatives: 0.05%

For trade more than Rs 3 Crore, brokerage is about 0.03%


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Advantages of Angel Trade

1. User friendly browser-based / application based online trading platform.

2. The auto square off time is at 3:15 and an investor can buy up to 4 times the value in his

account.

3. Trading account can be linked with popular private banks like HDFC Bank, ICICI Bank,

UTI bank etc.

Disadvantages of Angel Trade

Online money transfer from trading account to bank account is not available:

Trading account can be linked with popular private banks like HDFC Bank, ICICI Bank,

UTI bank etc. A trader can transfer money from his bank to the trading account online.

But the reverse transactions are not yet available online.

This means money, a trader gets after selling shares doesn’t get credited in his bank

account directly. The trader has to call Angel Trade and request for the deposit. This

takes couple of working days


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Religare

Religare Enterprises Limited is Ranbaxy Laboratories Limited promoted financial product and

service Provider Company.

Religare provide its service in three different segments including Retail, Wealth management

and the Institutional spectrum. Company offers wide range of services including equities,

commodities, insurance broking, wealth advisory, portfolio management services, personal

finance services, Investment banking and institutional broking services. Religare retail network

has more than 900 locations in 300 cities and towns in India.

Religare Securities Limited (RSL) is a subsidiary company of Religare Enterprises Ltd and

involve in equity related services include online trading at BSE and NSE, Derivatives,

commodities, IPO, Mutual fund, Investment banking and institutional broking services.

Type of Account

Religare offers its wide range of financial services though a sophisticated and customized trading

platform - R-ACE (Religare Advanced Client Engine). Below are 3 flavors of R-ACE accounts

available to the investors.

1. R-ACE (Basic)

R-ACE (Religare Advanced Client Engine) the basic online trading account provided by

Religare. Investor can trade and access their account information online and over the phone as

well. This account comes with a browser based online trading platform and no additional

software installation needed.


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2. R-ACE Lite (Advanced)

R-ACE Lite is the advanced trading platform for the investor of Religare. This trading account

provides the entire feature of R-ACE (Basic) account. In addition it also provides real-time

streaming stock quotes and alerts. This trading platform is also browser based and no software

installation is needed.

3. R-ACE Pro (Professional)

As the name indicates this account is for high volume traders. Along with the features from

above 2 accounts, this account also comes with Trading Terminal software which needs to install

on your computer. This terminal directly connects the investor to stock market and having all

industry standard Treading terminal features including technical charting (intra-day and EOD),

multiple watch list, advanced hot-key functions for faster trading, derivative chains, futures &

options calculator etc.

As in basic and advance account, trading is available online through internet and offline though

phone.

Brokerage and Account opening fees:

Religare offers three kinds of accounts as above. Below are detail about fees and activation

charges for each account:

1. R-ACE

Account activation charges Rs.299/-.

Minimum margin of Rs.5000/- required.


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2. R-ACE Lite


Minimum margin of Rs.5000/- required.

3. R-ACE Pro


Minimum margin of Rs.10,000/- required.

4. Brokerage at Religare

On the basis of volume and frequency of trading, Religare provide different options for

brokerages. On the broader way they divided into three categories:

Classic Account

Intraday brokerage varies from 0.03% to 0.05%.

Delivery brokerage varies from 0.30% to 0.50%.

Derivatives brokerage varies from 0.3% to 0.5%.

Classic Plus

Fees: Rs 600

Validity Period 6 Months

Intraday brokerage varies from 0.03% to 0.05%.

Delivery brokerage varies from 0.30% to 0.50%.

Freedom Account

In this payment plan, investor has to pay a fix amount in advance for Monthly (Rs 500),

Quarterly (Rs.1400), Half-yearly (Rs 2500) or Annual Subscription (Rs 4000). This onetime


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payment enable account holder to trade for Rs. 3,00,000 intraday & derivative trading and Rs.

40,000 of delivery based trading for zero brokerage.

Advantages of Religare

1. Religare gives interest on unutilized cash when investor is waiting to make next trade or

online investment.

2. They provide intraday reports and historical charting.

3. Varity of fee structure to fulfill need of different type of investors


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OBJECTIVES OF THE STUDY

The study has been undertaken to analyze the services and brokerage of different broking firms in Mumbai.

To study the competitive position of Sharekhan Ltd in Competitive Market

To study about the effectiveness & efficiency of Sharekhan Ltd in relation to its

competitors

To study level of satisfaction towards Sharekhan’s Services & products

To study about the difficulties faced by customers while Trading with Sharekhan.

To study about the need of improvement in existing Trading system.


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RESEARCH METHODOLOGY

Research Method:

The study uses Conclusive Research method wherein hypothesis of the research problem are

tested so as to draw definite conclusions for implementation.

Research Design:

A research design is a statement or specification of the methods and procedures used for

acquiring the information needed for the solution of some specific problems. It provides a

scientific frame work for conducting a research. On the basis, research design can be classified

into three classes – Exploratory, Descriptive and Casual. When a research is conducted for some

specific purpose using structural questionnaire to gather information the research is said to be

descriptive in nature.

Research Boundary: Data collection from the respondent has been limited to the area of south Mumbai.

Sampling Process:

Taking into account the practical considerations the study selects a sample survey as the means

of gathering primary information. A sample survey allows an individual to devote his attention

upon a relatively small number of people and hence, to devote more time and energy to ensure

that the information collected from them is more accurate.


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Defining the Population:

The first thing that a sample plan must include is the definition of the population to be

investigated. The population should be defined as clearly as possible. The population chosen for

the study, taking into consideration the objective of the study is defined as, all the customers of

stock broking firm.

Types of Sample:

The study uses Non-Probability type sampling method .Among the various non probability types

of sampling, the study uses Purposive Sampling. In purposive sampling the sampling units of the

sample are identified from the population selectively which prevents inclusion of other sample

units in the sample.

SIZE OF SAMPLE

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

In our research sample size is 80.

But we also study the 5 stock broker companies like Angel Broking, ICICI

direct, HDFC securities, Indiainfoline, Religare for the appropriate collection of the information.


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SOURES OF DATA COLLECTION

While deciding about the method of data collection to be used for the study the researcher should

keep to types of data.

1. Primary Data

The primary source used for gathering data required for this survey is – Survey method. A

planned effort is made using structured questionnaire to interview the respondents.

2. Secondary Data.

Secondary means which are already available like annual report, magazines, Websites etc.


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MANAGEMENT TOOLS & TECHNIQUES

Chi square –

The best-known situations in which the chi-square distribution is used are the common chi-

square tests for goodness of fit of an observed distribution to a theoretical one, and of the

independence of two criteria of classification of qualitative data. Many other statistical tests also

lead to a use of this distribution.

A statistical analysis has been carried out in this report to find out the overall effect of varied

parameters on different brokerage firms by making use of test for independence.

Formulation of Hypothesis:

Null Hypothesis: There is no significant difference in preference for the broking firm brands

under study.

That is Religare, Angel broking, ICICI Direct, IndiaInfoline & Sharkhan are at par in terms of

product and services being offered.

Alternate Hypothesis: There is significant difference in preference for the broking firm

brands under study.


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Outcome

Chi square test for Independence:

Calculated value of chi square = 14.466

Table value of chi square at 2.5% level of significance = 34.2

(Since it is two tailed analysis level of significance will be 5/2 = 2.5 %)

Thus, calculated value > tabular value.

Null Hypothesis has been rejected and alternative hypothesis has been accepted i.e

There is no significant difference in preference for the broking firm brands under study.


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INTERPRETATION

1. Awareness of share markets.

Options Number of

Respondents

% of

Respondents

Partial 56 70%

Complete 16 20%

Nil 8 10%

Chart 1

Interpretation:-

70% of respondents have partial knowledge about share market where as 20% of respondent

have complete knowledge about share market.

70%

20%

10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Partial Complete Nil


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2. Sector preferred for investing in share market?

Options Number of

Respondents

% of

Respondents

Equity & Cash 25 31%

Derivative 18 22%

Mutual Fund 14 18%

IPO 12 15%

PMS 3 4%

Commodities 8 10%

Chart 2

Interpretation:-

Most of the customer prefers investing in Equity & Cash i.e 31% and 22% would like to invest in

derivatives followed by mutual fund (18%).

31%

22%

18%15%

4%

10%

0%

5%

10%

15%

20%

25%

30%

35%


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3. In which company you have D-mat & Trading account?

Options Number of

Respondents

% of

Respondents

Sharekhan 15 19%

Angel Broking 18 22%

India Infoline 12 15%

ICICI Direct 7 9%

Religare 13 16%

HDFC Sec. 9 11%

Others 6 8%

Chart 3

Interpretation:-

19% of respondents are the customers of share khan, whereas 22% of respondents are trading

with Angel broking firm.

19%

22%

15%

9%

16%

11%

8%

0%

5%

10%

15%

20%

25%

Sharekhan Angel Broking

India Infoline

ICICI Direct

Religare HDFC Sec. Others


43

4. Which is the primary reason behind trading with the present company?

Options Number of

Respondents

% of

Respondents

Low brokerage

structure

31 19%

Better

appreciation in

PMS

4

22%

Quality of

research report

8 15%

Comfort level

with software

19 9%

Customer

Service

18 16%

Chart 4

Interpretation:-

39 % respondents are happy with the low brokerage structure where as 24% & 23% respondents

are satisfied with the software and customer service respectively.

39%

5%

10%

24% 23%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Low brokerage structure

Better appreciation in

PMS

Quality of research report

Comfort level with software

Customer Service


44

5. Which company would you prefer the most based on the following parameters?

Brokerage

Structure

Quality

research

report

Brand

Name

Software AMC

Plan

Customer

Service

Sharekhan 12 23 26 25 15 21

Angel Broking 28 19 18 19 24 18

Religare 18 13 14 16 17 15

India Infoline 14 15 15 12 15 16

ICICI Direct 8 10 7 8 9 10

Total 80 80 80 80 80 80

A. Brokerage Structure

Chart 5

Interpretation:-

Brokerage structure wise 35% respondents prefer Angel broking where as15% respondents

prefer Sharekhan.

15%

35%

23%

18%

10%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Brokerage Structure

Brokerage Structure


45

B. Quality Research report

Chart 6

Interpretation:-

29% respondents think that ShareKhan provides quality research report where as 24%

respondents prefer Angel broking’s research report over other broking firms.

29%

24%

16%19%

13%

0%

5%

10%

15%

20%

25%

30%

35%

Quality research report



46

C. Brand Name

Chart 7

Interpretation:-

33% respondents prefer sharekhan as far as brand name is concern where as 23% prefer angel

broking.

33%

23%

18% 19%

9%

0%

5%

10%

15%

20%

25%

30%

35%


Religare India Infoline

ICICI Direct

Brand Name

Brand Name


47

D. Software

Chart 8

Interpretation:-

31% respondent find software offered by Sharkhan is more user friendly and very easy to use &

24% respondents prefer the angel broking software.

31%

24%

20%

15%

10%

0%

5%

10%

15%

20%

25%

30%

35%



ICICI Direct

Software

Software


48

E. AMC plan

Chart 9

Interpretation:-

Maximum number of respondents i.e.30% prefer AMC plan of Angel broking because it is less

expensive than other firm

19%

30%

21%19%

11%

0%

5%

10%

15%

20%

25%

30%

35%



ICICI Direct

AMC Plan

AMC Plan


49

F. Customer Service

Chart 10

Interpretation:-

26% respondents are happy with the sharkhan’s customer service where as 23% respondents like

the customer service of angel broking.

.

26%

23%

19% 20%

13%

0%

5%

10%

15%

20%

25%

30%

Customer Service

Customer Service


50

6. As a first time investor which broking firm you would have preferred the most?

Options Number of

Respondents

% of

Respondents

Sharekhan 29 36%

Angel Broking 21 26%

India Infoline 14 18%

ICICI Direct 3 4%

Religare 9 11%

HDFC Sec. 4 5%

Chart 11

Interpretation:-

36% respondents said that they will prefer Sharekhan broking firm as a first time investor

because of their name and service provided and the quality of software they provide which is free

of cost.

36%

26%

18%

4%

11%

5%

0%

5%

10%

15%

20%

25%

30%

35%

40%


India Infoline

ICICI Direct Religare HDFC Sec.


51

7. If offered with better brokerage structure and Services would you like to switch

over to sharekhan?

Options Number of

Respondents

% of

Respondents

Yes 58 73%

No 12 28%

Chart 12

Interpretation:-

73% respondents said that they will prefer Sharekhan broking firm if better brokerage and

services offered.

73%

28%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Yes No


52

FINDINGS

According to the data that has been collected, all the people who were contacted have got

partial knowledge of share market

People like to invest more in equity sector rather than any other sector. This is because of

the stability and easy liquidity. Also, investor are exempt from tax in case of long term

capital gain and short term capital gain fall under 10% tax slab

Majority of the first time investor prefers sharekhan over other brand. This is because of

the intensive sales promotion which they carry out and the kind of software and services

being offered to customers.

Sharekhan organizes seminars across the country from time to time in order to educate

investors in various subjects related to the stock, derivatives and commodities markets

In terms of promotional activities sharekhan is much ahead of its competitors. It spends a

huge amount on advertisement on social networking sites like Orkut, Rediff , gmail etc.

Regular trader prefers Angel and IndiaInfoline due to the low brokerage being charged by

them. Also the account maintenance cost is low as compare to others.

This study reveals probability of customers switching over to sharekhan might increase

provided they charge low brokerage and better AMC plan.

On the basis of Chi square test for independence, we can observe that there is no

significant difference in the preference of brand. As each firm has been preferred in

certain specific domain (brokerage structure, Software, AMC plan, Customer Service

etc).


53

LEARNING EXPERIENCE

While acquiring clients for new demat accounts, I learned to converse and convince them by

offering investment solutions that best suits their requirement and objective.

Sharekhan gave me an opportunity to get into intricacies of sharemarket.

In the course of research i gained knowledge about competitve edge of diferent leading

broking firms in Mumbai

It’s a great experience to here from clients their trading experience over the years and their

perception about different firms.

In order to make clients familiar with the process of on-line trading, i got acquainted with

the entire procedure of demonstration of software.


54

LIMITATION

As only Mumbai dealt in survey so it does not represent the view of the total Indian

market.

Size of the research may not be substantial.

There was lack of time on the part of respondents.

The survey was carried through questionnaire and the questions were based on

perception.

There may be biased view of market participant.

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


55

APPENDIX

Appendix – I: Questionnaire

1. Do you have any knowledge of share markets?

Partial Complete Nil

2. In which sector would you prefer investing?

Equity or Cash Market

Derivative Market

Mutual funds

Initial Public Offer (IPO)

Portfolio Management System (PMS)

Commodities

3. In which company you have D-mat & Trading account?

Sharekhan Ltd Angel Broking

Indiainfoline ICICI direct

Religare HDFC securities

Others____________________

4. According to you which is the primary reason behind trading with the present company?

Low brokerage structure

Better appreciation in PMS

Quality of research report

Comfort level with software

Customer Service


56

5. Which company would you prefer the most based on the following parameters?

Brokerage Structure


Brand Name

Software AMC Plan Customer Service

Sharekhan

Angel Broking

Religare

India Infoline

ICICI Direct

6. Had you been a first time investor, which broking firm you would have preferred the most?

Sharekhan Ltd Angel Broking

Indiainfoline ICICI direct

Religare HDFC securities

7. If offered with better brokerage structure and Services would you like to switch over to sharekhan ?

Yes No

8. Recommendations if any, for sharekhan?

_____________________________________________________________________________________

_____________________________________________________________________________________

_____________________________________________________________________________________


57

Appendix – II

Data view:


58

Variable view:

Output of Chi-square test:

Cross-tabs:


59

Chi square distribution table:

Calculated value compared with table value at 2.5% level of significance and degree of freedom

20.


60

REFERENCES

Bibliography

Kotler, Philip., “Marketing Management” , Dorling Kindersley (India) Pvt. Ltd, 2009

Kothari, CR., “Research Methodology”, New Age International Ltd, 2004

Paneerselvam, R., “Research Methodology”, Prentice Hall of India Pvt. Ltd, 2008

Ramaswamy, “Marketing Management”, Mac Millan India Ltd, 2004

Webliography

www.angeltrade.com

www.icicibank .com

www.icicidirect .com

www.nseindia.com

www.bseindia.com

www.hdfcsec.com

www.sharekhan.com

www.indianmba.com

www.chittorgarh.com/

www.5paisa.com/

www.religare.in/

www.moneycontrol.com

www.sharekhanlearning.com

www.mouthshut.com/product.../Sharekhan.com

sharekhan report

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