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A SUMMER INTERNSHIP PROJECT REPORT

ON

“Comparative Study on Share Market & Mutual


Fund”

IN THE PARTIAL FULFILLMENT FOR THE AWARD OF POST GRADUATE PROGRAMME IN


BUSSINESS MANAGEMENT

SUBMITTED TO

GRADUATE SCHOOL OF BUSSINESS AND


ADMINISTARTION,GREATER NOIDA,
UTTAR PRADESH

UNDER THE GUIDANCE OF: SUBMITTED BY,


MR. VIJAY SINGH PRASHANT KUMAR
Assistant Manager PGDBA 2008-10
Sharekhan Ltd. D-24-08
SHAREKHAN LIMITED

ACKNOWLEDGMENT

It is my great pleasure to take this opportunity to acknowledge the contribution


of number of people who helped me in completing this project.

I would like to thank Dr. P.L. Maggu (Executive Director, Graduate


School of Business & Administration) for giving me this opportunity to
work on this project which gave me awareness of real corporate life.

I express my deep sense of respect to Mr. Vijay Singh, Asst. Manager Sales–
Sharekhan Ltd., Pitampura Branch, New Delhi, for giving me an opportunity to work
under him and allotting me this project. He gave me continuous guidance, his
mentoring and informal discussions become vital for me in the entire duration of this
project in overcoming the barriers. I also thank the other staff of SHAREKHAN who
devoted their valuable time in helping me to complete my project.

I would also like to thank Prof. V.N.RAI (Dean GSBA) and T.N
SRIVASTAVA(Head of placement cell) sir for giving me the privilege to undergo
summer training and thus learn through this process.

Finally I am sincerely thankful to others who have directly or indirectly helped me in the
completion of the project. I would also like to acknowledge the support of other
company members who has helped me to successfully complete this project.

(Prashant Kumar)

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PREFACE

Share market is gaining significant grounds with the onset of booming Indian Economy.
The project involved a “comparative study of share market and mutual fund”

I had the privilege of doing my summer training with ShareKhan Ltd. Pitampura
Branch, New Delhi wherein I was responsible for the sales and distribution of the
Demat Account. This had been a great learning experience for me in terms of
corporate culture, etiquettes and values.

The content of this project report was decided after a detailed survey and analysis of
Share market & mutual funds.

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EXECUTIVE SUMMARY

Indian Capital Market has been linked to the International Financial Market and the
Standard has been increased in terms of efficiency and transparency through
Dematerialization of the Indian Capital Market in terms of handling and dealing in
securities in paper mode , the main objective of this study is to analyze trends in
growth of dematerialization process was not keeping pace with the Indian Capital
Market due to un popularity of Demat, lack of information , and short direction after the
inception of the scheme or the earliest time taken to evaluate its popularity. My project
is base on study about dematerialization in the Indian Capital Market .The project
covers issues related to depository and Sharekhan as depository .Project start with
objective , Methodology ,and limitation of project than it highlight company profile with
product details, than it explains capital market and depository part of this capital market
. This project cover trading in equity of capital market, settlement of trade in depository,
comparative analysis of structure and services offers in the same industry , analysis of
structure and services offers in the same industry, analysis of dematerialization ,
issues related to demat e.g. opening account , nomination dematerialization
,transmission ,freezing defreezing.

SHAREKHAN
(DEPOSITORY SHARE CAPITAL
DEPOSITORY MARKET MARKET
PARTICIPANT)

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TABLE OF CONTENTS

1. Company Profile……………………………………. 7

2. Introduction…………………………………………. 16

a. Objectives and limitations………………… 18

b. Methodology………………………………… 20

c. Comparative study on mutual


Fund and share market……………… 22

d. Result and finding………………… 56

3. Conclusion………………….. 64

4. Bibliography…………………………………………... 65

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COMPANY PROFILE

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SHAREKHAN LIMITED

Sharekhan is one of the leading retail brokerage firms in the country. It is 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.

The firm’s online trading and investment site – www.Sharekhan.com was


launched on Feb. 8, 2000. The site gives access to superior content and transaction
facility to retail customers across the country. Known for its jargon-free, investor
friendly language and high quality research, the site has a registered base of over one-
lakh customers. The number of trading members currently stands at over 3 lakh. While
online trading currently accounts for just over 1 percent of the daily trading in stocks in
India, Sharekhan alone accounts for 22 percent of the volumes traded online.

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.

On April 17, 2002 Sharekhan launched speed trade, a net-based executable


application that emulated the broker terminals along with host of other information
relevant to the day traders. This was for the first time that a net-based trading station of
this caliber was offered to the traders. In the last six months Speed Trade has become
a de facto standard for the Day Trading community over the net.

Sharekhan’s ground network includes over 250 centers in 123 cities in India, of
which 20 are fully-owned branches.

Sharekhan has always believed in investing in technology to build its business.


The company has used some of the best-known names in the IT industry like Sun
Microsystem, Oracle, Microsoft, Cambridge Technologies, Nexgenix, Vignette, Verisign
Financial Technologies India Ltd., Spider Software Pvt. Ltd. to build its trading engine

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and content. The Morakhia family holds a majority stake in the company. HSBC, Intel &
Carlyle are the other investors.

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. Presently SSKI
is one of the leading players in the 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 Corporate Finance section has a list of very
prestigious clients and has many ‘firsts’ to its credit, in terms of the size of deal, sector
tapped etc. The group has placed over US$ 1 billion in private equity deals. Some of
the clients include BPL Cellular holding, Gujarat Pipavav, Essar, Hutchison, Planet
Asia and Shopper’s Stop.

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REASONS TO CHOOSE SHARE KHAN LTD.

EXPERIENCE
SSKI has more than eight decades of trust and credibility in the Indian stock market. In
the Asia Money broker’s poll held recently, SSKI won the ‘India’s best broking house
for 2004 award. Ever since it launched Sharekhan as its retail broking division in
February 2000, it has been providing institutional-level research and broking services
to individual investors.

TECHNOLOGY
With our online trading account you can buy and sell shares in an instant from any PC
with an Internet connection. You will get access to our powerful online trading tools that
will help you take complete control over your investment in shares.

ACCESSIBILITY
Sharekhan provides ADVICE, EDUCATION, TOOLS AND EXECUTION services for
investors. These services are accessible through our centers across the country (over
250 locations in 123 cities), over the internet (through the website
www.sharekhan.com) as well as over the voice tool.

KNOWLEDGE
In a business where the right information at the right time can translate into direct
profits, you get access to a wide range of information on our content-rich portal,
sharekhan.com. You will also get a useful set of knowledge-based tools that will
empower you to take informed decisions.

CONVENIENCE
You can call our Dial-N-Trade number to get investment advice and execute your
transactions. We have a dedicated call-centre to provide this service via a toll free
number from anywhere in India.

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CUSTOMER SERVICE
Our customer service team will assist you for any help that you need relating to
transactions, billing, Demat and other queries. Our customer service can be contracted
via a toll-free number, email or live chat on sharekhan.com.

INVESTMENT ADVICE
Sharekhan has dedicated research teams for fundamental and technical research. Our
analyst constantly track the pulse of the market and provide timely investment advice
to you in the form of daily research emails, online chat, printed reports and SMS on
your phone.

BENEFITS
• Secure Order by Voice Tool Dial-n-Trade.
• Automated Portfolio to keep track of the value of your actual purchases.
• 24x7 Voice Tool access to your trading account.
• Personalized Price and Account Alerts delivered instantly to your cell phone &
email address.
• Special Personal Inbox for order and trade confirmations.
• On-line customer service via web chat.
• Anytime Ordering.

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SHAREKHAN LIMITED

PRODUCTS OF 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.
6- Depository Services.
7- Research Report.

TYPES OF ACCOUTNS

1- CLASSIC ACCOUNT
2- TRADE TIGER ACCOUNT

1. Classic Account – This account allows the client to trade through our website
www.sharekhan.com and is suitable for the retail investor who is risk averse and
hence prefers to invest in stocks or who does not trade too frequently.

Features
• Online trading account for investing in equity and derivatives via
www.sharekhan.com
• Live terminal (NSE Online, BSE Offline)
• Integration of on-line trading, saving bank and Demat account.

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• Instant cash transfer facility against purchase & sale of shares.


• Competitive transaction charges.
• Instant order and trade confirmation be email.
• 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.

Dial-n-trade – Along with enabling access for your trade online, the CLASSIC
also gives you our Dial-n-trade services. With this service, all you have to do is
dial our dedicated phone lines 1-800-22-7500 and 1-800-22-7050.

2. Tiger Trade Account – It is an internet-based software application that


enables you to buy and sell in an instant.
It is ideal for active trades 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, MCX, NCDEX, Mutual funds
and IPOs.
Multiple Market Watch available on a single screen.
User can save his own defined screen as well as graph template, that is, can
save the layout for future use.
User-defined alert settings on an input Stock Price trigger tools available to gauge
market such as Tick Query, Ticker, Market Summary, Action Watch, Option
Premium Calculator, Span Calculator.
Shortcut key for FAST access to order placements & reports.

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FEES STRUCTURE

Charge Classic Account Tiger trade account


Account Opening Rs. 750 /- nil
Monthly maintain charges Rs.300/- Rs. 300/-
Brokerage Intra-day 0.10% Intra-day 0.05%
Delivery 0.50% Delivery 0.25%

Note

 Minimum margin cheque – Rs. 5000with the classic account that is must
deposit in account opening time.
 If margin cheque exceeds Rs. 50000, account opening free.
 Minimum brokerage cheque – Rs. 6000 (adjusted towards brokerage within
one year) that is applicable for only tiger trade account.
 Annual maintenance charges – Rs. 300 (chargeable in second year) that is
applicable for both account.
 No account closing charges.

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Comparison with leading companies in share brokrage

FIRMS NAME HDFC ICICI RELIGARE INDIABULL SHAREKHAN


FACTS
OPENING RS.750/- Rs.750/- Rs.500/- Rs.1250/500 Rs.750/-
CHARGES

AMC Rs. 750/- Rs. 750/- Rs .16 per Rs.16per Rs. 300/-
transaction transaction

RESEARCH NO NO R. M. R.M. DAILY BASIS


REPORT

DIAL N TRADE Rs.20per call Rs.20per call NO NO FREE


chargeable chargeable

BROKRAGE INT .15% INT .15% INT .10% INT .10% INT .05%
DEL.75% DEL.75% DEL.50% DEL .50% DEL .50%

LIVE NO NO YES YES YES


TERMINAL

EXPOSURE NO NO 8timeonly 8time only 5time


trading trading 2days+trading

TRADING 9:55to3:0 9:55to3:30 9:55to2:45 9:55to3:00 9:55to3:30


TIMING

Note
 In India bull provide two types of account cool and demat account and both
charge is shown on the table.
 In this table Religare and India bull provide only R.M. facility insists of
research report.
 In the case of exposure India bull and Religare provide till trading but
Sharekhan provide trading plus two another working days

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INTRODUCTION

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ON THE JOB TRAINING

On the job training means learning practical and implementing it in the day to day work
of the organization. During my SIP in the company I learnt many things. I did an analysis
of the various competitor of Share Khan. I have done practical as well as theoretical
analysis of the competitor of Share khan. My Company Guide assigned the tasks in
groups to do a survey on various competitors of Share khan. I went to Kotak Securities
and ICICI direct. Com, HDFC etc for gathering the information over there. There I
gathered the information regarding the policies, procedures, services and brokerage.
After getting all the information when I compared it with share khan I found that the
facilities and services provided by ShareKhan is much better than any other company.
The above statement is not out of any prejudice but is based on the study undertaken by
me and is testified by the research findings.

My work in the company was to open Demat account. I had to call the
prospects and the existing customers and convince them to open Demat Account
in Share khan by providing awareness to the customers about the benefits
provided by Share Khan.

I have got very good experience here. I was able to do things practically in the
organization by incorporating whatever I’ve have learnt theoretically in my course. My
training programme was very good . At last I can say that OJT gives us the real picture
of practical world.

I met near about 100 customers and I was able to convert 25 customers and it
was really a good experience for me. I went to many places in order to meet the
customers according to their convenience. During the course of making the prospect all
my problems were dealt by discussions with my company guide.

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Objective:
These are the following objectives of on the job training:
 To understand about the corporate environment.
 To know about corporate etiquettes.
 To know about my strength and weakness in the work environment.
 To apply the concepts learnt in classrooms in real life situation.
 To get the platform in on the job training and to develop a network this will be
helpful in my career growth.

Target/Task:
The target assigned to me in on the job training is:
 To open 10 demat accounts in a month.
 To achieve this I have to open at least 3 accounts in a week.
 As my work is to do open demat a/c so I have to fix the appointments with the
customers.
 So my target is to fix at least one appointment on daily basis

Limitations:
 I have to search for the relevant data for fulfilling my target.
 Scarcity of time as sometimes I have to deal with so many
customers and satisfy many customers simultaneously.
 As I am here for a very short span I am not having convince and this
caused me difficulties in approaching the customers.
 I am not getting the full financial credit from the company which I
spend while dealing and approaching the customer

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SYNOPSIS

In this project I had to undertake a comparative study on share market and mutual
funds. I had to undertake an analysis of the mutual funds, its benefits, and
drawbacks and make a detailed summary on its various aspects and then
compare it with the SHARE MARKET. I have to tell about the share market,
benefits of investing in share market, its drawbacks and make study on various
aspects of share market.

Objective:
 To know the work culture and methodology of the share market
 To know the rules and regulation of SEBI.
 To know the rules and regulation of AMC (Assets Management Company)
 To know the brokerage system of the share market
 To know the difference between share market and mutual funds.
 To know the various competitors in the mutual funds market.
 To know the various exchanges of share markets all over the world.
 To know the timing of the share market.
 To know how the value of shares and mutual funds is calculated.
 To know the various factors on which prices of shares and mutual funds
fluctuates.
 To know the benefits of investing in share market and mutual funds.
 To know about the services of the share market and mutual funds.

Limitations:
Though the present study aims to achieve the above-mentioned objectives in full earnest and
accuracy, it may be hampered due to certain limitations. Some the limitations of this study may
be summarized as follows:
 Getting accurate responses from the respondents.
 Locating the target customers of mutual funds is very time consuming.
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METHODOLOGY
The objective of the present study can be accomplished by conducting a systematic
market research. Market research is the systematic design, collection, analysis and
reporting of data and findings that are relevant to different marketing situations facing
the company. The marketing research process that will be adopted in the present
study consists of the following stages

a) Defining the problem and the research objective: The research objective
states what information is needed to solve the problem. The objective of the research
is to find out the facilities provided in mutual funds and share market and what will be
its benefits in the future.

b) Developing the research plan: Once the problem is identified, the next step is to
prepare a plan for getting the information needed for the research. The present study
will adopt the exploratory approach wherein there is a need to gather large amount of
information before making a conclusion. If required, the descriptive and casual
approaches may also be used.

c) Collection and Sources of data: Market research requires two kinds of data,
i.e., primary data and secondary data. Preparing questionnaires that will contain both
open-ended and close-ended questions may collect the primary data. Secondary
data will be collected from various journals, books and web sites.

d) Analyze the collected information: This involves converting raw data into useful
information. It involves tabulation of data and using statistical measures on them for
developing frequency distributions and calculating the averages and dispersions.

e) Report research findings: This phase will mark the culmination of the marketing
research effort. The report with the research findings is a formal written document.
The research findings and personal experience will be used to propose
recommendations to develop the market in online trading.

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PROJECT TITLE:

COMPARATIVE STUDY

ON

SHARE MARKET AND

MUTUAL FUNDS

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What is a Mutual Fund?

A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. The money thus collected is invested by the fund manager in
different types of securities depending upon the objective of the scheme. These
could range from shares to debentures to money market instruments. The income
earned through these investments and the capital appreciations realized by the
scheme are shared by its unit holders in proportion to the number of units owned by
them. Thus a Mutual Fund is the most suitable investment for the common man as it
offers an opportunity to invest in a diversified, professionally managed portfolio at a
relatively low cost. The small savings of all the investors are put together to increase
the buying power and hire a professional manager to invest and monitor the money.
Anybody with an investible surplus of as little as a few thousand rupees can invest in
Mutual Funds. Each Mutual Fund scheme has a defined investment objective and
strategy.

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TYPES OF MUTUAL FUND SCHEME

Mutual fund schemes may be classified on the basis of its structure and its
investment objective.

BY STRUCTURE

1. Open-end Funds
An open-end fund is one that is available for subscription all through the year. These
do not have a fixed maturity. Investors can conveniently buy and sell units at Net
Asset Value ("NAV") related prices. The key feature of open-end schemes is liquidity.

2. Closed-end Funds
A closed-end fund has a stipulated maturity period which generally ranging from 3 to
15 years. The fund is open for subscription only during a specified period. Investors
can invest in the scheme at the time of the initial public issue and thereafter they can
buy or sell the units of the scheme on the stock exchanges where they are listed. In
order to provide an exit route to the investors, some close-ended funds give an
option of selling back the units to the Mutual Fund through periodic repurchase at
NAV related prices. SEBI Regulations stipulate that at least one of the two exit routes
is provided to the investor.

3. Interval Funds
Interval funds combine the features of open-ended and close-ended schemes. They
are open for sale or redemption during pre-determined intervals at NAV related
prices.

BY INVESTMENT OBJECTIVE

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1. Growth Funds
The aim of growth funds is to provide capital appreciation over the medium to long
term. Such schemes normally invest a majority of their corpus in equities. It has been
proved that returns from stocks, have outperformed most other kind of investments
held over the long term. Growth schemes are ideal for investors having a long-term
outlook seeking growth over a period of time.

2. Income Funds
The aim of income funds is to provide regular and steady income to investors. Such
schemes generally invest in fixed income securities such as bonds, corporate
debentures and Government securities. Income Funds are ideal for capital stability
and regular income.

3. Balanced Funds
The aim of balanced funds is to provide both growth and regular income. Such
schemes periodically distribute a part of their earning and invest both in equities and
fixed income securities in the proportion indicated in their offer documents. In a rising
stock market, the NAV of these schemes may not normally keep pace, or fall equally
when the market falls. These are ideal for investors looking for a combination of
income and moderate growth.

4. Money Market Funds

The aim of money market funds is to provide easy liquidity, preservation of capital
and moderate income. These schemes generally invest in safer short-term
instruments such as treasury bills, certificates of deposit, commercial paper and inter-
bank call money. Returns on these schemes may fluctuate depending upon the
interest rates prevailing in the market. These are ideal for Corporate and individual
investors as a means to park their surplus funds for short periods.

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Three Common Investment Goals

Goal No. 1: Retirement

Most individuals buy mutual funds for long-term goals, especially retirement. It is
estimated that retirees will need 70 to 80 percent of their final, pre-tax income to
maintain a comfortable lifestyle in retirement. If you plan to retire at age 65,
retirement savings should last for at least 18.5 years, since the average life
expectancy for a 65-year-old is 83.5,and continues to rise. Ideally, individuals use a

combination of sources to fund retirement, such as Social Security benefits,


employer-sponsored retirement plans-like 401(k) plans—and personal savings,
including Individual Retirement Accounts (IRAs).

Goal No. 2: Education

Many parents and grandparents use mutual funds to invest for children’s college
educations. Your time horizon is an essential consideration when investing for
education: if you start when the child is born, you have 18 years to invest. However, if
a child or grandchild is in your future, the time horizon can be lengthened by
investing now.

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Goal No. 3: Emergency Reserves and Other Short-Term Goals

Emergency reserves are assets you may need unexpectedly on short notice. Many
investors use money market funds for their reserves. Money market funds alone, or
in combination with short-term bond funds, can also be appropriate investments for
other short-term goals.

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OTHER SCHEMES

1. Tax Saving Schemes

These schemes offer tax rebates to the investors under specific provisions of the
Indian Income Tax laws as the Government offers tax incentives for investment in
specified avenues. Investments made in Equity Linked Savings Schemes (ELSS)
and Pension Schemes are allowed as deduction u/s 88 of the Income Tax Act, 1961.
The Act also provides opportunities to investors to save capital gains u/s 54EA and
54EB by investing in Mutual Funds.

2. Special Schemes

• Index Schemes

Index Funds attempt to replicate the performance of a particular index


such as the BSE Sensex or the NSE 50

• Sectoral Schemes

Sectoral Funds are those that invest exclusively in a specified sector.


This could be an industry or a group of industries or various segments
such as 'A' Group shares or initial public offerings.

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HOW TO INVEST IN MUTUAL FUND

Step one - Identify your Investment needs


Your financial goals will vary, based on your age, lifestyle, financial
independence, family commitments, and level of income and expenses among
many other factors. Therefore, the first step is to assess your needs. You can
begin by defining your investment objectives and needs, which could be regular
income, buying a home or finance a wedding or educate your children or a
combination of all these needs, the quantum of risk you are willing to take and
your cash flow requirements.

Step Two - Choose the right Mutual Fund

The important thing is to choose the right mutual fund scheme, which suits your
requirements. The offer document of the scheme tells you its objectives and
provides supplementary details like the track record of other schemes managed
by the same Fund Manager. Some factors to evaluate before choosing a
particular Mutual Fund are the track record of the performance of the fund over
the last few years in relation to the appropriate yardstick and similar funds in the
same category. Other factors could be the portfolio allocation, the dividend yield
and the degree of transparency as reflected in the frequency and quality of their
communications.

Step Three - Select the ideal mix of Schemes

Investing in just one Mutual Fund scheme may not meet all your investment
needs. You may consider investing in a combination of schemes to achieve your
specific goals.

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Step four - Invest regularly

The best approach is to invest a fixed amount at specific intervals, say every
month. By investing a fixed sum each month, you buy fewer units when the price
is higher and more units when the price is low, thus bringing down your average
cost per unit. This is called rupee cost averaging and do investors all over the
world follow a disciplined investment strategy. You can also avail the systematic
investment plan facility offered by many open-end funds.

Step Five- Start early

It is desirable to start investing early and stick to a regular investment plan. If you
start now, you will make more than if you wait and invest later. The power of
compounding lets you earn income on income and your money multiplies at a
compounded rate of return.

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ADVANTAGES OF MUTUAL FUNDS

Mutual funds make saving and investing simple, accessible, and affordable. The
advantages of mutual funds include professional management, diversification,
variety, liquidity, affordability, convenience, and ease of recordkeeping—as well
as strict government regulation and full disclosure.

• Diversification: The best mutual funds design their portfolios so individual


investments will react differently to the same economic conditions. For
example, economic conditions like a rise in interest rates may cause
certain securities in a diversified portfolio to decrease in value. Other
securities in the portfolio will respond to the same economic conditions by
increasing in value. When a portfolio is balanced in this way, the value of
the overall portfolio should gradually increase over time, even if some
securities lose value.
• Professional Management: Most mutual funds pay topflight professionals
to manage their investments. These managers decide what securities the
fund will buy and sell.

• Regulatory oversight: Mutual funds are subject to many government


regulations that protect investors from fraud.

• Liquidity: It's easy to get your money out of a mutual fund. Write a check,
make a call, and you've got the cash.

• Convenience: You can usually buy mutual fund shares by mail, phone, or
over the Internet.

• Low cost: Mutual fund expenses are often no more than 1.5 percent of
your investment. Expenses for Index Funds are less than that, because
index funds are not actively managed. Instead, they automatically buy
stock in companies that are listed on a specific index

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• Transparency

• Flexibility

• Tax benefits

DRAWB
ACKS OF MUTUAL FUNDS

• No Guarantees: No investment is risk free. If the entire stock market


declines in value, the value of mutual fund shares will go down as well, no
matter how balanced the portfolio. Investors encounter fewer risks when
they invest in mutual funds than when they buy and sell stocks on their
own. However, anyone who invests through a mutual fund runs the risk of
losing money.

• Fees and commissions: All funds charge administrative fees to cover


their day-to-day expenses. Some funds also charge sales commissions or
"loads" to compensate brokers, financial consultants, or financial planners.
Even if you don't use a broker or other financial adviser, you will pay a
sales commission if you buy shares in a Load Fund.

• Taxes: During a typical year, most actively managed mutual funds sell
anywhere from 20 to 70 percent of the securities in their portfolios. If your
fund makes a profit on its sales, you will pay taxes on the income you
receive, even if you reinvest the money you made.

• Management risk: When you invest in a mutual fund, you depend on the
fund's manager to make the right decisions regarding the fund's portfolio. If
the manager does not perform as well as you had hoped, you might not
make as much money on your investment as you expected. Of course, if
you invest in Index Funds, you forego management risk, because these
funds do not employ managers.

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How to Read a Mutual Fund Fee Table

There are two basic types of costs associated with mutual funds. Some funds
charge shareholder fees when you purchase or redeem shares of the fund, i.e.,
sales commissions. In addition, all funds have operating expenses, which
represent the costs of running the fund. A mutual fund’s fees and expenses are
required by law to be clearly disclosed to investors in a fee table at the front of the
fund’s prospectus. Mutual funds compete vigorously to keep costs low, since the
performance figures reported by the fund ,and the total value of your mutual fund
account, are provided after all fees and expenses have been deducted. For
example, the fund returns published in newspapers, advertisements, and official
fund documents already are “net” of any fees the fund charges you. Thus, any
time you consider a fund’s past performance, your decision reflects the impact
fees have had on the fund in the past. Particularly important to your assessment
of costs is the fund’s expense ratio. The availability of this figure in all fund
prospectuses allows you to easily compare how much more or less one fund
costs versus another—an important part of making an informed investment
decision.

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SHAREKHAN LIMITED

Ten Tips on Buying Mutual Funds

1. Determine your financial objectives and how much money you can afford
to invest.

Make sure the fund’s objectives coincide with your own. Do not change your
objectives or exceed the amount set aside for investment without careful
consideration.

2. Research and obtain all available information before you invest.

Request a copy of the fund’s prospectus and read it carefully. Also look over the
SAI and the latest shareholder report from each fund you are considering.

3. Determine the amount of all sales charges, management fees and

administrative expenses before you invest.

Some funds charge for reinvestment of dividends and capital gains distributions,
which can add to your costs. See the fund’s prospectus for a description of all
fees and expenses.

4. Never treat the risks of investing in mutual funds lightly.

All mutual funds involve some degree of risk. Unlike money market accounts and
certificates of deposit, mutual funds are not federally insured.

5. Exercise caution when considering investing in funds with junk bond


portfolios.

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SHAREKHAN LIMITED
While junk bonds pay a high-rate of return, junk bond companies are more volatile
and more likely to default on bond payments. These factors can seriously affect
the fund’s performance

6. Do not invest in periodic payment plans unless you are absolutely certain
that you will hold your shares for a long time.

If you sell or redeem early – or do not complete the plan – you may find that a
large portion of your investment has gone to pay sales charges.

7. Learn the consequences of redemptions.

Besides the sales charges for redeeming periodic payment plans before
completion, some funds may charge a redemption fee or a proportion of your
investment, known as a contingent deferred sales load.

8. Call Secretary of State office to find out whether your broker/financial


advisor and the mutual fund are properly registered in Indian.

Secretary office can tell you if a company or an individual has failed to properly
register or if there is a history of trouble with securities regulators. If there is a
history of problems, this should serve as a red flag to prospective investors.

9. Even after investing in a mutual fund, review the shareholder reports and
any amendments to the prospectus and the Statement of Additional
Information (SAI).

10. If you believe you have encountered investment fraud, call Secretary
office.

If something does not seem right, or if you are not satisfied with the answers you
have received, contact the Secretary of State’s office. We are here to help you!

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SHAREKHAN LIMITED

Share market is the market for securities Share Market Overview


where organized issuance and trading

of shares takes place. It plays an important role in channelizing capital from the

investors to the business houses which consequently leads to the availability of

funds for business expansion. Shares are certificates which represents

ownership rights of the holder in a company.

What is share?

Share or stock is a document issued by a company, which entitles its holder to


be one of the owners of the company. A share is issued by a company or can be
purchased from the stock market.

Shares in the Share Market are either traded through :-

(a) Stock Exchange These are organized market places where stocks, bonds
are other equivalents are traded between the buyers and sellers where
exchange acts as a counter - party to both the participants in case of
any default.

(b) Over-the -Counter (OTC) These are not centralized exchanges and the
trade takes place through a network of dealers.

Basically, Share Market can be divided into two parts :-

1. Primary Market It is the market where new issues of securities are offered
to the investors.

2. Secondary Market An investor of a secondary market buys a security


from another participant of the same and not from any issuing corporation
(as in case of Primary Market).

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SHAREKHAN LIMITED

Why shares

Historically shares have outperformed all the other investment


instruments and given the maximum returns in the long run. In the
twenty-five year period of 1980-2005 while the other instruments
have barely manage to generate returns at a rate higher than the
inflation rate(7.10%), on an average shares have given returns of about
17% in a year and that does not even take in account the dividend
income from them. Were we to factor in the dividend income as well,
the shares would have given even higher returns during the same
period.

WHY INVESTING IN SHARE MARKET

Dividend income: investments in shares are attractive as much for


the appreciation in the share prices as for the dividends their
companies pay out.

Tax advantages: shares appear as the best investment option if you


also consider the unbeatable tax benefits that they offer. First, the
dividend income is tax-free in the hands of investors. Second, you
are required to pay only a 10% short term capital gains tax on the
profits made from investments in shares, if you book your profits within
a year of making the purchase. Third, you don't need to pay any
long-term capital gains tax on the profits if you sell the shares after
holding them for a period of one year. The capital gains tax rate is
much higher for other investment instruments: a 30% short-term
capital gains tax (assuming that you fall in the 30% tax bracket) and a
10% long-term capital gains tax

Easy liquidity: shares can also be made liquid anytime from anywhere
(on sharekhan.com you can sell as here at the click of a mouse from

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SHAREKHAN LIMITED

anywhere in the world) and the investments can be realized in just


two working days .Considering the high returns, the tax
advantages and the highly liquid nature, shares are the best
investment option to create wealth.

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SHAREKHAN LIMITED

DIFFERENCE BETWEEN PRIMARY AND SECONDARY MARKETS

In the primary market securities are issued to the public and the proceeds go to
the issuing company. Secondary market is a term used for stock exchanges,
where stocks are bought and sold after they are issued to the public.

PRIMARY MARKET

Individuals
apply to get
shares of the
company
Company
IPO

Companies share ownership by issuing shares

Company Owners

Companies allocate shares to individuals and those who get


the shares become part owners of the company.

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SHAREKHAN LIMITED

PRIMARY MARKET

The first time that a company shares are issued to the public, it is by a process
called the initial public offering (IPO). In an IPO company offloads a certain
percentage of its totals shares to the public at a certain price. Most IPOs these
days do not have a fixed offer price instead they follow a method called the book
building process, where the offer price is placed in a hand or a range with the
highest and the lowest value (refer to the newspaper ad). The public can bid for
the shares at any price in the band specified. Once the bid come in the company
evaluates all the bids and decides on an offer price in that range. After the offer
price is fixed the company either allots its shares to the people who had applied
for its shares or returns them their money.

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SECONDARY MARKET

Stock Broker
Company
Exchange Individual
Investors

Companies get themselves listed on popular stock exchanges like


BSE and NSE

SECONDARY MARKET

Once the offer price is fixed and the shares are issued to the people, stock
exchanges facilitate the trading of shares for the general public. Once a stock is
listed on an exchange, people can start trading in its shares. In a stock exchange
the existing shareholders sell their shares to anyone who is willing to buy them at
a price agreeable to both the parties. Individuals cannot buy or sell shares in a
stock exchange directly they have to execute their transactions through
authorized members of the stock exchange who are also called stock brokers

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DYNAMICS OF THE SHARE MARKET

Buyer Broker Seller


Stock Broker
He pays the His broker Exchange
money to pays it to the Seller’s broker
his broker exchange The exchange finally pays the
pays it to the money to the
seller’s broker seller

Similar process happens for the transfer of shares from the seller’s end.

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SHAREKHAN LIMITED

MULTI CHANNEL ACCESS TO THE STOCK MARKET

Relationship Manager
Live chat

Call centre
SMS

Website Email
CUSTOMER SUPPORT

Multi Channel
Investment Option

Share Shops Dial n Trade

Online Trading

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TRANSACTION CYCLE IN SHARE MARKET

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HOW TO A READ SHARE MARKET TABLE

Columns 1 & 2: column 1&2 shows 52- Week High and Low price rate of
shares.

Column 3:column shows Company Name & Type of Stock.

Column 4: column 4 shown Ticker Symbol of company name which


companies share has shown.

Column 5: column 5 shown Dividend Per Share.

Column 6: Column 6 shown Dividend Yield per share.

Column 7: column 7 shown Price/Earnings Ratio of per share.

Column 8: column 8 shown Trading Volume in hunred volume.

Column 9 & 10: column 8 shown Day High and Low rate of share.

Column 12: column 8 shown Net Change of shares which share goes up
or down that thing is shown with the help of this table.

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SHAREKHAN LIMITED

TERMINOLOGY USED IN SHARE MARKET

1. Stock Broker / Sub – Broker: - People like you and me cannot just go to a stock
exchange and buy and sell shares. Only the members of the stock exchange can.
These members are called stockbrokers and they buy and sell shares on our behalf.
So, if you want to start investing in shares, you can do it only through a broker. Every
stockbroker has to be registered with the Securities and Exchange Board of India,
which is the stock market regulator. You can either choose a broker (who is directly
registered with SEBI) or a sub-broker (people licensed by brokers to work under
them).
2. Demat account: - Gone are the days when shares were held as physical certificates.
Today, they are held in an electronic form in demat accounts. Demat refers to a
dematerialized account. Let's say your portfolio of shares looks like this: 40 shares of
Infosys, 25 of Wipro, 45 of HLL and 100 of ACC. They will show in your demat
account. You don't have to possess any physical certificates showing you own these
shares. They are all held electronically in your account. Periodically, you will get a
demat statement telling you what shares you have in your demat account.

How to get a demat account

To get a demat account, you will have to approach a Depository Participant. A


depository is a place where an investor's stocks are held in electronic form. There
are only two depositories in India -- the National Securities Depository Ltd and
the Central Depository Services Ltd.

The depository has agents who are called Depository Participants. In India, there are
over a hundred DPs. Think of it like a bank. The head office, where all the technology
rests and the details of all the accounts are held, is like the depository. The DPs are
like the branches of banks that cater to individuals.

A broker, however, is not similar to a DP. A broker is a member of the stock


exchange and he buys and sells shares for his clients and for himself. A DP, on the
other hand, gives you an account where you can hold those shares.
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SHAREKHAN LIMITED

To get a list of the registered DPs, visit the NSDL and CDSL Web sites.

3. Get a PAN: - The taxman demands that you get yourself a Permanent Account
Number. This is a unique 10-digit alphanumeric number (AABPS1205E, for example)
that identifies and tracks an individual in the taxman's database. Almost every money
transaction demands the use of a PAN.

4. Trading / Square off Transaction:-

Whenever a trader / investor buys or sells a security and on the same day before the
market closes, he sells or buys that particular security (in the same quantity), the
transaction is called as square off transaction or a trading transaction. Shares lying in
the T, TS and T are not square off the same day.

5. Delivery Transaction:-

Delivery transactions are those transactions which are not squared off at the day
end, and the investor/trader is ready to take / give the delivery of the security.

Charges such as brokerage, service tax on brokerage, STT, stamping charges etc.
are very high on the delivery transactions.

6. Settlement Period :-

Currently the settlement period is T+2. Settlement period i.e. T+2 means one has to
give the delivery of the shares sold within 2 days of the date of the transaction. In
case of purchase transaction, one will get the delivery within 2 days of the date of
transaction.

7. Shares Category:-

The stock exchange has divided the shares into the categories according to the
performance of the company.

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SHAREKHAN LIMITED

The different categories are A, B1, B2, S (BSE Indonext), T, TS, Z

8. Auction:-

In case of failure of delivery of shares for sale transaction within the stipulated time
period, the BSE auction those shares as per the rules and regulations.

9. Close Out:-

In case of failure of delivery of shares for purchase transaction within the stipulated
time period, the person buying the shares gets the benefit in the form of Close Out as
per the BSE’s rules and regulations.

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ROLE OF STOCK EXCHANGE

1. Raising capital for business.


2. Mobilizing saving for investment.
3. Facilitate Company growth.
4. Redistribution of wealth.
5. Corporate governance.
6. Create investment opportunities for small investors.
7. Government raises capital for development projects.

LISTING OF SECURITIES

Listing means admission of the securities to dealings on a recognised stock


exchange. The securities may be of any public limited company, Central or State
Government, quasi-governmental and other financial institutions/corporations,
municipalities, etc.

The objectives of listing are mainly to:

• Provide liquidity to securities;


• Mobilize savings for economic development;
• Protect interest of investors by ensuring full disclosures.

The Exchange has a separate Listing Department to grant approval for listing of
securities of companies in accordance with the provisions of the Securities Contracts
(Regulation) Act, 1956, Securities Contracts (Regulation) Rules, 1957, Companies
Act, 1956, Guidelines issued by SEBI and Rules, Bye-laws and Regulations of the
Exchange.
A company intending to have its securities listed on the Exchange has to comply with
the listing requirements prescribed by the Exchange.

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[I] MINIMUM LISTING REQUIREMENTS FOR NEW COMPANIES

(A) Minimum Capital:

1. New companies can be listed on the Exchange, if their issued & subscribed
equity capital after the public issue is Rs.10 Crores. In addition to this the
issuer company should have a post issue net worth (equity capital + free
reserves excluding revaluation reserve) of Rs.20 Crores.

2. For new companies in high technology (i.e. information technology, internet, e-


commerce, telecommunication, media including advertisement, entertainment
etc.) the following criteria will be applicable regarding threshold limit:

i. The total income/sales from the main activity, which should be in the
field of information technology, internet, e-commerce,
telecommunication, media including advertisement, entertainment etc.
should not be less than 75% of the total income during the two
immediately preceding years as certified by the Auditors of the
company.

ii. The minimum post-issue paid-up equity capital should be Rs.5 Crores.

iii. The minimum market capitalization should be Rs.50 Crores. (The


capitalization will be calculated by multiplying the post issue subscribed
number of equity shares with the Issue price).

iv. Post issue net worth (equity capital + free reserves excluding
revaluation reserve) of Rs.20 Crores.

(B) Minimum Public offer:

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As per Rule 19(2) (b) of the Securities Contracts (Regulation) Rules, 1957, securities
of a company can be listed on a Stock Exchange only when at least 25% of each
class or kind of securities is offered to the public for subscription.
In case of IPOs by unlisted companies in the IT& entertainment sector, at least 10%
of the securities issued by the company may be offered to the public subject to the
following:

• Minimum 20 lac securities are offered to the public (excluding reservation, firm
allotment and promoters contribution)
• The size of the offer to the public is minimum 50 cores.

For this purpose, the term "offered to the public" means only the portion offered to
the public and does not include reservations of securities on firm or competitive
basis.
SEBI may, however, relax this condition on the basis of recommendations of stock
exchange(s), only in respect of a Government company defined under Section 617 of
the Companies Act, 1956.

[II] MINIMUM LISTING REQUIREMENTS FOR COMPANIES LISTED ON OTHER STOCK


EXCHANGES

The Governing Board of the Exchange at its meeting held on 6th August, 2002
amended the direct listing norms for companies listed on other Stock Exchange(s)
and seeking listing at BSE. These norms are applicable with immediate effect.

1. The company should have minimum issued and paid up equity capital of Rs. 3
cores.
2. The Company should have profit making track record for last three years. The
revenues/profits arising out of extra ordinary items or income from any source
of non-recurring nature should be excluded while calculating distributable
profits.

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3. Minimum net worth of Rs. 20 cores (net worth includes Equity capital and free
reserves excluding revaluation reserves).
4. Minimum market capitalization of the listed capital should be at least two times
of the paid up capital.
5. The company should have a dividend paying track record for the last 3
consecutive years and the minimum dividend should be at least 10%.
6. Minimum 25% of the company's issued capital should be with Non-Promoters
shareholders as per Clause 35 of the Listing Agreement. Out of above Non
Promoter holding no single shareholder should hold more than 0.5% of the
paid-up capital of the company individually or jointly with others except in case
of Banks/Financial Institutions/Foreign Institutional Investors/Overseas
Corporate Bodies and Non-Resident Indians.
7. The company should have at least two years listing record with any of the
Regional Stock Exchange.
8. The company should sign an agreement with CDSL & NSDL for Demat
trading.

[III] MINIMUM REQUIREMENTS FOR COMPANIES DELISTED BY THIS EXCHANGE


SEEKING RELISTING OF THIS EXCHANGE

The companies delisted by this Exchange and seeking relisting are required to make
a fresh public offer and comply with the prevailing SEBI's and BSE's guidelines
regarding initial public offerings.

[IV] PERMISSION TO USE THE NAME OF THE EXCHANGE IN AN ISSUER COMPANY'S PROSPECTUS

The Exchange follows a procedure in terms of which companies desiring to list their
securities offered through public issues are required to obtain its prior permission to
use the name of the Exchange in their prospectus or offer for sale documents before
filing the same with the concerned office of the Registrar of Companies. The
Exchange has since last three years formed a "Listing Committee" to analyze draft
prospectus/offer documents of the companies in respect of their forthcoming public
issues of securities and decide upon the matter of granting them permission to use

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SHAREKHAN LIMITED

the name of "Bombay Stock Exchange Limited" in their prospectus/offer documents.


The committee evaluates the promoters, company, project and several other factors
before taking decision in this regard.

[V] SUBMISSION OF LETTER OF APPLICATION

As per Section 73 of the Companies Act, 1956, a company seeking listing of its
securities on the Exchange is required to submit a Letter of Application to all the
Stock Exchanges where it proposes to have its securities listed before filing the
prospectus with the Registrar of Companies.

[VI] ALLOTMENT OF SECURITIES

As per Listing Agreement, a company is required to complete allotment of securities


offered to the public within 30 days of the date of closure of the subscription list and
approach the Regional Stock Exchange, i.e. Stock Exchange nearest to its
Registered Office for approval of the basis of allotment.

[VII] TRADING PERMISSION

As per Securities and Exchange Board of India Guidelines, the issuer company
should complete the formalities for trading at all the Stock Exchanges where the
securities are to be listed within 7 working days of finalization of Basis of Allotment.
A company should scrupulously adhere to the time limit for allotment of all securities
and dispatch of Allotment Letters/Share Certificates and Refund Orders and for
obtaining the listing permissions of all the Exchanges whose names are stated in its
prospectus or offer documents. In the event of listing permission to a company being
denied by any Stock Exchange where it had applied for listing of its securities, it
cannot proceed with the allotment of shares. However, the company may file an
appeal before the Securities and Exchange Board of India under Section 22 of the
Securities Contracts (Regulation) Act, 1956.

[VIII] REQUIREMENT OF 1% SECURITY

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The companies making public/rights issues are required to deposit 1% of issue


amount with the Regional Stock Exchange before the issue opens. This amount is
liable to be forfeited in the event of the company not resolving the complaints of
investors regarding delay in sending refund orders/share certificates, non-payment of
commission to underwriters, brokers, etc.

[IX] PAYMENT OF LISTING FEES

All companies listed on the Exchange have to pay Annual Listing Fees by the 30th
April of every financial year to the Exchange as per the Schedule of Listing Fees
prescribed from time to time.
The schedule of listing fees for the year 2004-2005, prescribed by the Governing
Board of the Exchange and approved by the Securities and Exchange Board of India
is given here under:

SCHEDULE OF LISTING FEES FOR THE YEAR 2006-2007

1. Initial Listing Fees - 20,000

2. Annual Listing Fees


(i) Companies with paid-up capital* up to Rs. 5 cores - 10,000

(ii) above 5 cores and up to Rs. 10 cores - 15,000

(iii) Above Rs. 10 cores and up to Rs. 20 cores - 30,000

3. Companies which have a paid-up capital* of more than Rs. 20 cores will pay
additional fee of Rs. 750/- for every increase of Rs. 1 cores or part thereof.

4. In case of debenture capital (not convertible into equity shares) of companies, the
fees will be charged @ 25% of the fees payable as per the above mentioned scales.

[X] COMPLIANCE WITH LISTING AGREEMENT

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The companies desirous of getting their securities listed are required to enter into an
agreement with the Exchange called the Listing Agreement and they are required to
make certain disclosures and perform certain acts. As such, the agreement is of
great importance and is executed under the common seal of a company. Under the
Listing Agreement, a company undertakes, amongst other things, to provide facilities
for prompt transfer, registration, sub-division and consolidation of securities; to give
proper notice of closure of transfer books and record dates, to forward copies of
unabridged Annual Reports and Balance Sheets to the shareholders, to file
Distribution Schedule with the Exchange annually; to furnish financial results on a
quarterly basis; intimate promptly to the Exchange the happenings which are likely to
materially affect the financial performance of the Company and its stock prices, to
comply with the conditions of Corporate Governance, etc.
The Listing Department of the Exchange monitors the compliance of the companies
with the provisions of the Listing Agreement, especially with regard to timely payment
of annual listing fees, submission of quarterly results, requirement of minimum
number of shareholders, etc. and takes penal action against the defaulting
companies.

[XI] "Z" Group

The Exchange has introduced a new category called "Z Group" from July 1999 for
companies who have not complied with and are in breach of provisions of the Listing
Agreement. The number of companies placed under this group as at the end of May,
2001 was 1,475.
The number of companies listed at the Exchange as at the end of May 2001 was
5,874. This is the highest number among the Stock Exchanges in the country and in
the world.

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SHAREKHAN LIMITED

QUESTIONNAIRE

We are first year students of Graduate School of Business and Administration,


Greater Noida, conducting a survey on investor’s behavior and psychology. We
assure you that individual response will be kept confidential. Please circle or tick
the appropriate option.

Q1. Where do you invest your savings?


i. Mutual funds
ii. Equity
iii. Insurance
iv. Fixed Deposits

Q2. Which sectors give more return?


i. Share market
ii. Mutual Funds

Q3. Are you satisfied with your current investment?


i. Yes
ii. No

Q4. Your investment decisions are influenced by


i. Oneself
ii. Broker
iii. Eco.Policies
iv. Market Research
v. Friends/Relatives
vi. An other

Q5. Are you satisfied with company services?


i. Yes ii. No

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Q6. What are the factors which you considered before investing in a particular
company?
i. Financial Position
ii. Current Market Position
iii. Goodwill
iv. Future Prospects
v. Any others.

PERSONAL DETAILS:

Name Mr./Mrs./Miss__________________________

Address____________________________________

___________________________________________

Phone No. __________________________________

Email ______________________________________

Occupation

a) Government Employee b) Private Employee


c) Self Employed d) Student E) Housewife

Your monthly household income


a) Less than 15000 b) 15001-25000 c)25001 and above

Please give some references of people who you know are trading/investing
in stocks:

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1. _________________________________

2. _________________________________

RESULTS AND FINDINGS

The feedback of 300 customers has been taken and the findings along with
its analysis are as follows: -

• I asked from the customers about the securities in which they invest their
savings.

70
59 EQUITY
60

50
MUTUAL FUND
Percentage

40

30 25 FIXED DEPOSITS

20
9 7
10 INSURANCE

0
Sector

COMMENT

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SHAREKHAN LIMITED

This figure says that most people go for at 1st EQUITY investment
then for MUTUAL FUND, FIXED DEPOSITS AND INSURANCE.
Because equity gives good return in short time as well as long term as
compared to mutual fund

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SWhich Sector Gives More Return.

23%

77%

Sharemarket Mutual funds

COMMENT
This pie chart shows that share market give return 77% as compared
to mutual fund at 23% return. It signifies mostly more people go for
share market as compared to mutual funds.

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SHAREKHAN LIMITED

• Investment decisions of the customers are influenced on the basis of


following grounds.

40
36 Oneself
35

30 Brokers
24
Percentage

25
20 Eco. Policies
20
15 Market Ramous
8
10
Friends/Relatives
5

0
Investment Decisions

COMMENT
How do investors take their investment decisions is presented in this
bar graph. In this graph it is evident that mostly investment decision are
taken on the insistence of the brokers firms and companies and that
percentage is 36%.
In this area Sharekhan has its own research report and that strike rate
has 80%. This is an advantage to the customers of Sharekhan.

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SHAREKHAN LIMITED

• Are you satisfied with your current investment?


.

42%
58%

Yes No

COMMENT
That chat is show the satisfaction level of current investment( in share)
and long term investment(mutual fund) than here shows that the
satisfaction level in current investment (shares) is 58% and satisfaction
in long term investment (mutual fund) is 42%.

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SHAREKHAN LIMITED

• What are the factors which you considered before investing in particular
company?

40
36
Financial Positions
35

30
Current market Positions
e 24
g 25
a
t
n 20
e
c
r 20 Goodwill
e
P
15 12
Future Prospects
10 8

5
Any other
0
factors

COMMENT
What factors are necessary before the investment in
company or in firm is show in this bar graph. It is evident that
in the current market position accounts for 36% , most
investors go for investment after seeing the current market
positions and after that the financial position of company
which is at 24%, then goodwill of company at 20%,future
prospects at 12%,and any other factors at 8%.

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SHAREKHAN LIMITED

• What is the market of share khan in the earning


share brokerage?

Comparison between different broker company according to earn brokerage


5paise 40 13.23%

sharekhan 70 23.34%

motilaloswal 11 3.53%

icicidirect 61 20.05%

hdfc 15 5.01%

indiabulls 38 13.06%

kotak 19 6.33%

any other 46 15.45%

Voters: 300.
300.

COMMENT
Share khan earn more brokerage in share trading as compared
to all the leading firms and companies and share khan get 284
vote and 23.34% regarding to other firms and companies
earning that is shown that satisfied level, share khan strike rate
all things are shown share khan ‘s profit and market share.

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CONCLUSION

The strategy adopted by me in completion of this project help me a lot till now
in making comparison between share market and mutual funds. From the analysis
we can say that if there is more risk there is more return and we can say that share
market is totally dependent on the risk taken by the investors in investing in shares.
And in mutual funds there is less risk as the money of investors invested in different
sectors so it can divide the risk in different portfolio adopted by mutual funds
companies.

At last I can say that money invested in this rise and fall market it is better to
invest in mutual funds for those investors who are risk adverse and for those who are
risk taker it is better for them to invest in share market.

We can also say that in share market customers is decision maker while in
mutual funds investors is totally dependent on assets management company,
investors do not have active control on money invested by him/her.

In OJT the strategy adopted by me in achieving my target helped me a lot.


This strategy helped me in knowing the customer reaction towards share market,
customer’s attitude towards share broking firms and in this I helped how to interact
with the customers which is beneficial for me in future.

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BIBLIOGRAPHY
.

 www.sharekhan.com

 www.mutualfunds.com

 www.amfi.com

 www.google.com

 Training kit provided by Sharekhan

 www.altavista.com

 www.dogpil.com

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