Pharma

A Comparative Study on Indian Equity Market from M/S MPCG STOCK BROKERS INDIA (PVT.) LTD.
with its Competitors, Korba
2013
1. INDIAN STOCK MARKET 1.1 Introduction Indian Stock Market is one of the oldest in Asia. Its history dates back to nearly 200 years ago. The earliest records of security dealings in India are meagre and obscure. The East India Company was the dominant institution in those days and business in its loan securities used to be transacted towards the close of the eighteenth century. By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers recognized by banks and merchants during 1840 and 1850. The 1850's witnessed a rapid development of commercial enterprise and brokerage business attracted many men into the field and by 1860 the number of brokers increased into 60. In 1860-61 the American Civil War broke out and cotton supply from United States to Europe was stopped; thus, the 'Share Mania' in India began. The number of brokers increased to about 200 to 250. At the end of the American Civil War, the brokers who thrived out of Civil War in 1874, found a place in a street (now appropriately called as Dalal Street) where they would conveniently assemble and transact business. In 1887, they formally established in Bombay, the "Native Share and Stock Brokers' Association, which is alternatively known as The Stock Exchange". In 1895, the Stock Exchange acquired a premise in the same street and it was inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated. The Indian stock market has been assigned an important place in financing the Indian corporate sector. The principal functions of the stock markets are: Enabling mobilizing resources for investment directly from the investors Providing liquidity for the investors and monitoring. Disciplining company management. The two major stock exchanges in India are: National Stock Exchange (NSE) Bombay Stock Exchange (BSE).
Sambhram School of Management, Bangalore
A Comparative Study on Indian Equity Market from M/S MPCG STOCK BROKERS INDIA (PVT.) LTD. with its Competitors, Korba
2013
1.1.1 National Stock Exchange With the liberalization of the Indian economy, it was found inevitable to lift the Indian stock market trading system on par with the international standards. On the basis of the recommendations of high powered Pherwani Committee. The National Stock Exchange was incorporated in 1992 by Industrial Development Bank of India, Industrial Credit and Investment Corporation of India, Industrial Finance Corporation of India, all Insurance Corporations, selected commercial banks and others. The National Stock Exchange (NSE) is India's leading stock exchange covering various cities and towns across the country. NSE was set up by leading institutions to provide a modern, fully automated screen-based trading system with national reach. The Exchange has brought about unparalleled transparency, speed & efficiency, safety and market integrity. It has set up facilities that serve as a model for the securities industry in terms of systems, practices and procedures. Trading at NSE can be classified under two broad categories: Wholesale debt market Capital market Wholesale debt market operations are similar to money market operations - institutions and corporate bodies enter into high value transactions in financial instruments such as government securities, treasury bills, public sector unit bonds, commercial paper, certificate of deposit, etc. Capital market: A market where debt or equity securities are traded. There are two kinds of players in NSE: Trading members Participants
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Recognized members of NSE are called trading members who trade on behalf of themselves and their clients. Participants include trading members and large players like banks who take direct settlement responsibility. Trading at NSE takes place through a fully automated screen-based trading mechanism which adopts the principle of an order-driven market. Trading members can stay at their offices and execute the trading, since they are linked through a communication network. The prices at which the buyer and seller are willing to transact will appear on the screen. When the prices match the transaction will be completed and a confirmation slip will be printed at the office of the trading member. NSE has several advantages over the traditional trading exchanges. They are as follows: NSE brings an integrated stock market trading network across the nation. Investors can trade at the same price from anywhere in the country since inter-market operations are streamlined coupled with the countrywide access to the securities. Delays in communication, late payments and the malpractices prevailing in the traditional trading mechanism can be done away with greater operational efficiency and informational transparency in the stock market operations, with the support of total computerized network. NSE Nifty S&P CNX Nifty is a well-diversified 50 stock index accounting for 22 sectors of the economy. It is used for a variety of purposes such as benchmarking fund portfolios, index based derivatives and index funds. NSE came to be owned and managed by India Index Services and Products Ltd. (IISL), which is a joint venture between NSE and CRISIL. IISL is India's first specialized company focused upon the index as a core product. IISL have a consulting and licensing agreement with Standard & Poor's (S&P), who are world leaders in index services. CNX stands for CRISIL NSE Indices. CNX ensures common branding of indices, to reflect the identities of both the promoters, i.e. NSE and CRISIL. Thus, 'C' Stands for CRISIL, 'N' stands for NSE
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and X stands for Exchange or Index. The S&P prefix belongs to the US-based Standard & Poor's Financial Information Services.
1.1.2 Bombay Stock Exchange The Bombay Stock Exchange is one of the oldest stock exchanges in Asia. It was established as "The Native Share & Stock Brokers Association" in 1875. It is the first stock exchange in the country to obtain permanent recognition in 1956 from the Government of India under the Securities Contracts (Regulation) Act, 1956. The Exchange's pivotal and pre-eminent role in the development of the Indian capital market is widely recognized and its index, SENSEX, is tracked worldwide. SENSEX The Stock Exchange, Mumbai (BSE) in 1986 came out with a stock index that subsequently became the barometer of the Indian stock market. SENSEX is not only scientifically designed but also based on globally accepted construction and review methodology. First compiled in 1986, SENSEX is a basket of 30 constituent stocks representing a sample of large, liquid and representative companies. The base year of SENSEX is 1978-79 and the base value is 100. The index is widely reported in both domestic and international markets through print as well as electronic media. Due to is wide acceptance amongst the Indian investors; SENSEX is regarded to be the pulse of the Indian stock market. As the oldest index in the country, it provides the time series data over a fairly long period of time. Small wonder, the SENSEX has over the years become one of the most prominent brands in the country. The SENSEX captured all these events in the most judicial manner. One can identify the booms and busts of the Indian stock market through SENSEX. The launch of SENSEX in 1986 was later followed up in January 1989 by introduction of BSE National Index (Base: 1983-84 = 100). It comprised of 100 stocks listed at five major
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stock exchanges. The values of all BSE indices are updated every 15 seconds during the market hours and displayed through the BOLT system, BSE website and news wire agencies. All BSE-indices are reviewed periodically by the index committee of the exchange.
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1.2 ABOUT THE SPECIFIC AREA OF THE TOPIC CHOSEN Overview of the Regulatory Framework of the Capital Market in India India has a financial system that is regulated by independent regulators in the sectors of banking, insurance, capital markets and various service sectors. The Indian Financial system is regulated by two governing agencies under the Ministry of Finance. They are 1. Reserve Bank of India
The RBI was set up in 1935 and is the central bank of India. It regulates the financial and banking system. It formulates monetary policies and prescribes exchange control norms. 2. The Securities Exchange Board of India
The Government of India constituted SEBI on April 12, 1988, as a non-statutory body to promote orderly and healthy development of the securities market and to provide investor protection. Department Economic Affairs The capital markets division of the Department of Economic Affairs regulates capital markets and securities transactions. The capital markets division has been entrusted with the responsibility of assisting the Government in framing suitable policies for the orderly growth and development of the securities markets with the SEBI, RBI and other agencies. It is also responsible for the functioning of the Unit Trust of India (UTI) and Securities and Exchange Board of India (SEBI). The principal aspects that are dealt with the capital market division are: Policy matters relating to the securities market Policy matters relating to the regulation and development and investor protection of the securities market and the debt market. Organizational and operational matters relating to SEBI
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The Capital Market is governed by: Securities Contract (Regulation) Act, 1956 Securities Contract (Regulation) Rules, 1957 SEBI Act, 1992 Companies Act 1956 SEBI (Stock Brokers and Sub Brokers) Rules, 1992 Exchange Bye-Laws Rules & Regulations Self-regulating Role of the Exchange The exchange functions as a Self Regulatory Organization with the parameters laid down by the SCRA, SEBI Act, SEBI Guidelines and Rules, Bye-laws and Regulations of the Exchange. The Governing Board discharges these functions. The Executive Director has all the powers of the governing board except discharging a member indefinitely or declaring him a defaulter or expelling him. The Executive Director takes decisions in the areas like surveillance, inspection, investigation, etc. in an objective manner as per the parameters laid down by the governing board or the statutory committees like the Disciplinary Action Committee. Capital Market Participants Banks Exchanges Clearing Corporations Brokers Custodians Depositories Investors Merchant Bankers Sambhram School of Management, Bangalore
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Types of Investors Institutional Investors- MFs / FI / FIIs / Banks Retail Investors Arbitrageurs / Speculators Hedgers Day traders/Jobbers Combination of Futures and Option Hedging means, minimizing the risk, i.e., minimizing the losses. Under index futures and index options investor can minimize his losses. Hedging does not remove losses but removes unwanted exposure, i.e. unnecessary risk. One should not enter into a hedging strategy hoping to make excess profits; all it can do is reduce the risk. BOND MARKET: The bond market is a financial market that acts as a platform for the buying and selling of debt securities. The bond market is a part of the capital market serving platform to collect fund for the public sector companies, governments, and corporations. There are a number of bond indices that reflect the performance of a bond market. The bond market can also called the debt market, credit market, or fixed income market. The size of the current international bond market is estimated to be $45 trillion. The major bond market participants are: governments, institutional investors, traders, and individual investors. According to the specifications given by the Bond Market Association, there are five types of bond markets. They are:

Corporate Bond Market Municipal Bond Market Government and Agency Bond Market Funding Bond Market Mortgage Backed and Collateralized Debt Obligation Bond Market
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Share Market Investment Shares are purchased and sold on the primary and secondary share markets. To invest in the share market, investors acquire a call option, which is the right to buy a share, or a put option, which is the right to sell a share. In general, investors buy put options if they expect prices to rise, and call options if they expect prices to fall. The value of a derivative depends on the value of the underlying asset. The various classifications of derivatives relevant to share market investment are: Swap Futures Contract Forward Contract Option Contract
A forward contract is agreements between two parties purchase or sell a product in the future, at a price determined now. This mutual agreement satisfies the profit motive of both the buyer and seller, and the uncertainties and risks of price fluctuations in the future are aborted. A future contract is different from a forward contract in the sense that the former requires the presence of a third party and the commitment for trade is simply notional. Before a share is chosen for investment, a technical analysis of the share is performed. The price and volume of a share over a period of time are tracked and then a business plan is constructed. A fundamental analysis involves a close study of the company associated with the share, and its performance over time. The fundamental analysis is important for the share market investor. The price levels of a traded share are as follows:
Opening Price: This is the price at which the market opens. In other words, it is the price of the first transaction.
Closing Price: This is the price at the time of closing of the market or the price of the last trade.
Intra-Day High: This denotes the maximum price at which the share was traded in the day.
Intra-Day Low: This is the minimum price at which the share traded in the day.
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Debt Investments: Debt securities (in the form of non-convertible debentures, bonds, secured premium notes, zero interest bonds, deep discount bonds, floating rate bond / notes, securitized debt, pass through certificates, asset backed securities, mortgage backed securities and any other domestic fixed income securities including structured obligations etc.) include, but are not limited to : Debt obligations of the Government of India, State and local Governments, Government Agencies and statutory bodies (which may or may not carry a state / central government guarantee), Securities that have been guaranteed by Government of India and State Governments, Securities issued by Corporate Entities (Public / Private sector undertakings), Securities issued by Public / Private sector banks and development financial institutions. Money Market Instruments Include Commercial Papers Commercial bills Treasury bills Government securities having an unexpired maturity up to one year Call or notice money Certificate of deposit Usance bills Permitted securities under a repo / reverse repo agreement Any other like instruments as may be permitted by RBI / SEBI from time to time Investments will be made through secondary market purchases, initial public offers, other public offers, placements and right offers (including renunciation) and negotiated deals. The securities could be listed, unlisted, privately placed, secured / unsecured, rated / unrated of any maturity. The AMC retains the flexibility to invest across all the securities / instruments in debt and money market.
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Investment in debt securities will usually be in instruments which have been assessed as "high investment grade" by at least one credit rating agency authorized to carry out such activity under the applicable regulations. In case a debt instrument is not rated, prior approval of the Board of Directors of Trustee and AMC will be obtained for such an investment. Investment in debt instruments shall generally have a low risk profile and those in money market instruments shall have an even lower risk profile. The maturity profile of debt instruments will be selected in accordance with the AMC's view regarding current market conditions, interest rate outlook. 1.3 ABOUT THE TOPIC 1.3.1 INVESTMENT The word "investment" can be defined in many ways according to different theories and principles. It is a term that can be used in a number of contexts. However, the different meanings of "investment" are more alike than dissimilar. Generally, investment is the application of money for earning more money. Investment also means savings or savings made through delayed consumption. According to economics, investment is the utilization of resources in order to increase income or production output in the future. An amount deposited into a bank or machinery that is purchased in anticipation of earning income in the long run is both examples of investments. Although there is a general broad definition to the term investment, it carries slightly different meanings to different industrial sectors. According to economists, investment refers to any physical or tangible asset, for example, a building or machinery and equipment. According to finance, the practice of investment refers to the buying of a financial product or any valued item with anticipation that positive returns will be received in the future. The most important feature of financial investments is that they carry high market liquidity. The method used for evaluating the value of a financial investment is known as valuation. According to business theories, investment is that activity in which a manufacturer buys a physical asset, for example, stock or production equipment, in expectation that this will help the business to prosper in the long run. Sambhram School of Management, Bangalore
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1.3.2 INVESTMENT PROCESS Figure no. 1.3.1 Investment Process

Framing of investment policy
Investment Analysis
Valuation
Portfolio construction
Portfolio evaluation
1.3.3 VARIOUS OPTIONS AVAILABLE FOR INVESTMENT One may invest in Physical assets like real estate, gold/jewellery, commodities etc. or Financial assets such as fixed deposits with banks, small saving instruments with post offices, insurance/ provident/ Pension fund etc. or securities market related instruments like shares, bonds, debentures etc. Various Short-term financial options available for Investment. Broadly speaking, savings bank account, money market/liquid funds and fixed deposits with banks may be considered as short-term financial investment options. Savings Bank Account is often the first banking product people use, which offers low interest (4%-5% p.a.), making them only marginally better than fixed deposits.
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Fixed Deposits with Banks are also referred to as term deposits and minimum investment period for bank FDs is 30 days. Fixed Deposits with banks are for investors with low risk appetite, and may be considered for 6-12 months investment period as normally interest on less than 6 months bank FDs is likely to be lower than money market fund returns. Various Long-term financial options available for investment. Post Office Savings: Post Office Monthly Income Scheme is a low risk saving instrument, which can be availed through any post office. It provides an interest rate of 8% per annum, which is paid monthly. Public Provident Fund: A long term savings instrument with a maturity of 15 years and interest payable at 8% per annum compounded annually. A PPF account can be opened through a nationalized bank at anytime during the year and is open all through the year for depositing money. Tax benefits can be availed for the amount invested and interest accrued is tax-free. Company Fixed Deposits: These are short-term (six months) to medium-term (three to five years) borrowings by companies at a fixed rate of interest which is payable monthly, quarterly, semi-annually or annually. They can also be cumulative fixed deposits where the entire principal along with the interest is paid at the end of the loan period. The rate of interest varies between 6-9% per annum for company FDs. The interest received is after deduction of taxes Bonds: It is a fixed income (debt) instrument issued for a period of more than one year with the purpose of raising capital. The central or state government, corporations and similar institutions sell bonds. A bond is generally a promise to repay the principal along with a fixed rate of interest on a specified date, called the Maturity Date. Mutual Funds These are funds operated by an investment company which raises money from the public and invests in a group of assets (shares, debentures etc.), in accordance with a stated set of objectives. It is a substitute for those who are unable to invest directly in equities or debt because of resource, time or knowledge constraints. Benefits include professional money management, buying in small amounts and diversification. Mutual fund units are issued and Sambhram School of Management, Bangalore
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redeemed by the Fund Management Company based on the fund's net asset value (NAV), which is determined at the end of each trading session. NAV is calculated as the value of all the shares held by the fund, minus expenses, divided by the number of units issued. Mutual Funds and Segregated Funds Mutual funds or other forms of pooled investment measures are equities held by private individuals but managed and governed by prominent management firms. These types of financial holdings allow individual investors to diversify their holdings and avoid potential loss. Segregated funds, on the other hand, are used by large private investors who wish to hold their shares directly rather than in a mutual fund.
Mutual funds are supposed to be the best mode of investment in the capital market since they are very cost beneficial and simple, and do not require an investor to figure out which securities to invest into. The responsibility for investing the pooled money into specific investment channels lies with the fund manager of said mutual fund. The best form of diversification is to invest in multiple securities rather than in just one security. Mutual funds are set up with the precise objective of investing in multiple securities that can run into hundreds. It could take weeks for an investor to investigate on this kind of scale, but with investment in mutual funds all this could be done in a matter of hours. Types of Mutual Funds (Mode of Investment)
Mutual Fund Types American Mutual Funds BMO Mutual Funds Canadian Mutual Funds Fidelity Mutual Funds Hartford Mutual Funds Investing in Mutual Funds
Investment Funds Top Mutual Funds Dynamic Mutual Fund Janus Mutual Funds Vanguard Mutual Funds Mutual Funds Performance
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DEBENTURES: - In financial context, Debentures are Debt Instruments issued for a long term by governments and big institutions for rising funds. The Debenture has some resemblances to bonds but the securitization terms and conditions are different for Debentures compared to a bond. In return, the Debenture issuer pays interest to the Debenture holders as it is paid in case of a loan. In practical application, the difference between a Bond and a Debenture is not always kept. In some instances, Debentures are also referred to as Bonds and vice-versa. TYPES OF DEBENTURES Convertible Debenture Non-Convertible Debenture Participative Debenture Non- Participative Debenture Redeemable Debenture Irredeemable Debenture
TRADING WITH STOCK MARKET This section will introduce us about the process and instruments used to help a customer or a client to trade with arcadia securities. This process is almost similar to any other trading firm but there will be some difference in the cost of brokerage commission. Trading: It is a process by which a customer is given facility to buy and sell share this buying and selling can only be done through some broker and this is where Arcadia helps its customer. A customer willing to trade with any brokerage house need to have a demat account, trading account and saving account with a brokerage firm. Anyone having following document can open all the above mentioned account and can start trading. Document Required 3 photographs ( signed across) Photo Identification Proof - any of the following Voter ID/Driving License/Passport. Sambhram School of Management, Bangalore
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Address Proof any of the following - Voter ID/Driving License/ Passport/ Bank statement or pass book sealed and attestation by bank official/ BSNL landline bill. A crossed Cheque in favor of the Broking Firm. Copy of PAN Card is mandatory. Registration Kit CDSL Demat Kit Bank and address proof declaration. PAN name discrepancy form. These documents may not be consumer friendly but it is to avoid illegal transaction and to prevent black money this ensures that money invested is accounted. Techniques and Instruments for Trading The various techniques that are available in the hands of a client are:1. Delivery 2. Intraday 3. Future 4. Forwards 5. Options 6. swaps Basic Requirement for doing Trading Trading requires Opening a Demat account. Demat refers to a dematerialized account. You need to open a Demat account if you want to buy or sell stocks. So it is just like a bank account where actual money is replaced by shares. We need to approach the Depository Participants (DP, they are like bank branches), to open Demat account.
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2. LITERATURE REVIEW 2.1 INTODUCTION: Various studies on Investment pattern & Investment behavior of investors had been conducted in foreign countries. However, in Indian context, the number is quite few. Depending on the various issues of investment, the review has been discussed in brief as follows: Bhardwaj (2003) has stated the literature on globalization; He found the pervasiveness of the wests perception of the world affect on Indian investors that affects the trends in investors choice. They are hugely affected by the wests views and so changes in Indian trends occur. Ranganathan (2003), has stated the investor behavior from the marketing world and financial economics has brought together to the surface an exciting area for study and research: behavioral finance. The realization that this is a serious subject is, however, barely dawning. Analysts seem to treat financial markets as an aggregate of statistical observations, technical and fundamental analysis. A rich view of research waits this sophisticated understanding of how financial markets are also affected by the financial behavior of investors. With the reforms of industrial policy, public sector, financial sector and the many developments in the Indian money market and capital market, mutual funds that has become an important portal for the small investors, is also influenced by their financial behavior. Shrotriya (2003) conducted a survey on investor preferences in which he depicted the linkage of investment with the factor so considered while making investment. He says There are various factors and their linkage also. These factors help us how to ensure safety, liquidity, capital appreciation and tax benefits along with returns. Dijk (2007) has conducted 25 years of research on the size effect in international equity returns. Since Banz's (1981) original study, numerous papers have appeared on the empirical regularity that small firms have higher risk-adjusted stock returns than large firms. A quarter of a century after its discovery, the outlook for the size effect seems bleak. Yet, empirical asset pricing models that incorporate a factor portfolio mimicking underlying economic risks proxied by firm size are increasingly used by both academics and practitioners. Applications range from event studies and mutual fund performance measurement to computing the cost of equity capital. The aim of this paper is to review the literature on the size effect and
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synthesize the extensive debate on the validity and persistence of the size effect as an empirical phenomenon as well as the theoretical explanations for the effect. 2.2 Demat Account: Demat account allows you to buy, sell and transact shares without the endless
paperwork and delays. It is also safe, secure and convenient. In India, a demat account, the abbreviation for dematerialized account, is a type of banking account which dematerializes paper-based physical stock shares. The dematerialized account is used to avoid holding physical shares: the shares are bought and sold through a stock broker. This account is popular in India. The Securities and Exchange Board of India (SEBI)
mandates a demat account for share trading above 500 shares. As of April 2006, it became mandatory that any person holding a demat account should possess a Permanent
Account Number (PAN), and the deadline for submission of PAN details to the depository lapsed on January 2007. 2.2.1 Is a demat account a must? Now a day, practically all trades have to be settled in dematerialized form. Although the market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of up to 500 shares to be settled in physical form, nobody wants physical shares any more. So a demat account is a must for trading and investing. Why Demat? The Demat account reduces brokerage charges, makes pledging/hypothecation of shares easier, enables quick ownership of securities on settlement resulting in increased
liquidity, avoids confusion in the ownership title of securities, and provides easy receipt of public issue allotments. It also helps you avoid bad deliveries caused by signature mismatch, postal delays and loss of certificates in transit. Further, it eliminates risks associated with forgery,
counterfeiting and loss due to fire, theft or mutilation. Demat account holders can also avoid stamp duty (as against 0.5 per cent payable on physical shares), avoid filling up of transfer deeds, and obtain quick receipt of such benefits as stock splits and bonuses.
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2.2.2 What is dematerialization? Dematerialization is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form and credited into the investors account with his/her DP. 2.2.3 Why DEMAT a/c likes a BANK a/c? Just as you have to open an a/c with a bank if you want to save your money, make cheque payments etc, you need to open a demat a/c if you want to buy or sell stocks. So it just like a bank a/c where actual money replaced by shares. Example: lets say your portfolio has 100 of SATYAM, 200 of IBM and 120 of TCS shares. All these will show in your a/c. so you dont have to possess any physical certificate that you own these shares. They all are held electronically in youre a/c. Steps involved in opening a demat account: First an investor has to approach a DP and fill up an account opening form. The account opening form must be supported by copies of any one of the approved documents to serve as proof of identity (POI) and proof of address (POA) as specified by SEBI. Besides, production of PAN card in original at the time of opening of account has been made mandatory effective from April 01, 2006.All applicants should carry original
documents for verification by an authorized official of the depository participant, under his signature. Further, the investor has to sign an agreement with DP in a depository prescribed standard format, which details rights and duties of investor and DP. DP should provide the investor with a copy of the agreement and schedule of charges for their future reference. The DP will open the account in the system and give an account number, which is also called BO ID (Beneficiary Owner Identification number). The DP may revise the charges by giving 30 days notice in advance. SEBI has rationalized the cost structure for dematerialization by removing account opening charges, transaction
charges for credit of securities, and custody charges vide circular dated January 28, 2005. Further, SEBI has vide circular dated November 09, 2005 advised that with effect from January 09, 2006, no charges shall be levied by a depository on DP and
consequently, by a DP on a Beneficiary Owner (BO) when a BO transfers all the securities
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lying in his account to another branch of the same DP or to another DP of
the
same
depository or another depository, provided the BO Account/s at transferee DP and at transferor DP are one and the same, i.e. Identical in all respects. In case the BO Account at transferor DP is a joint account, the BO Account at transferee DP should also be a joint account in the same sequence of ownership. Rights: 1. You can open more than one depository account in the same name with single DP/ multiple DPs. 2. No minimum balance is required to be maintained in a depository account. 3. You can give a onetime standing instruction to your DP to receive all the credits coming to your depository account automatically. 2.2.4 DMAT Benefits? A safe and convenient way to hold securities. immediate transfer of securities. No stamp duty on transfer of securities (0.5 % on physical shares). Elimination of risks associated with physical certificates such as bad
delivery, fake securities, delays, theft etc. Reduction in paper work. Reduction in transaction cost. No odd lot problem, even one share can be sold. Nomination facility. Holding investment in equity and debt instruments in a single account.etc.
2.2.5 DEMAT Conversion:1. Surrender the certificates of physical shares for dematerialization to your depository participants. 2. Depository participant intimates depository of the request through the system. 3. Depository participant submit the certificates to the registrar to the issuer company. 4. Registrar confirms the dematerialization request from depository.
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5. After dematerializing the certificates, registrar updates accounts and informs depository of the completion of dematerialization. 6. Depository updates its accounts and informs the depository participant. 7. Depository participant updates demat a/c of the investor. 2.2.6 What is a Depository? A depository is an organisation which holds securities of investors in electronic form at the request of the investors through a registered Depository Participant. It also provides services related to transactions in securities. SEBI registered depositories:NSDL: - National securities depository limited CDSL: - Central depository services limited Minimum net worth required for a depository is 100 crores Although India had a vibrant capital market, which is more than a century old, the paperbased settlement of trades caused substantial problems like bad delivery and delayed
transfer of title till recently. The enactment of Depositories Act in August 1996 paved the way for establishment of NSDL, the first depository in India. This depository promoted by institutions of national stature responsible for economic development of the country has since established a national infrastructure of international standard that handles most of the trading and settlement in dematerialized form in Indian capital market. Using innovative and flexible technology systems, NSDL works to support the investors and brokers in the capital market of the country. NSDL aims at ensuring the safety and soundness of Indian marketplaces by developing settlement solutions that increase efficiency, minimize risk and reduce costs. At NSDL, we play a quiet but central role in
developing products and services that will continue to nurture the growing needs of the financial services industry. In the depository system, securities are held in depository accounts, which is more or less similar to holding funds in bank accounts. Transfer of ownership of securities is done through simple account transfers. This method does away with all the risks and hassles normally associated with paperwork. Consequently, the cost of transacting in a depository environment is considerably lower as compared to transacting in certificates.
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DEPOSITORY PARTICIPANTS: A Depository Participant (DP) is described as an agent of the depository. They are the intermediaries between the depository and the investors. The relationship between the DPs and the depository is governed by an agreement made between the two under the Depositories Act. In a strictly legal sense, a DP is an entity that is registered as such with SEBI under the provisions of the SEBI Act. As per the provisions of this Act, a DP can offer depository-related services only after obtaining a certificate of registration from
SEBI. SEBI (D&P) Regulations, 1996 prescribe a minimum net worth of Rs.50 lakh for stockbrokers, R&T agents and non-banking finance companies (NBFC), for granting them a certificate of registration to act as DPs. If a stockbroker seeks to act as a DP in more than one depository, he should comply with the specified net worth criterion separately for each such depository. No minimum net worth criterion has been prescribed for other categories of DPs. However, depositories can fix a higher net worth criterion for their DPs. NSDL requires a minimum net worth of Rs.100 lakh to be eligible to become a DP as against Rs.50 lakh prescribed by SEBI (D&P) Regulations. The changes in the regulatory framework of the capital market and fiscal policies have also resulted in newer kinds of financial instruments (securities) being introduced in the to
market. Also, a lot of financial innovation by companies who are now permitted
undertake treasury operations has resulted in newer kinds of instruments - all of which can be traded being introduced. The variations in all these instruments depend on the tenure, the nature of security, the interest rate, the collateral security offered and the trading features Debentures Bonds Preference Share Equity Shares Government securities Capital Market Processes Initial Public Offering (IPO) Private Placement
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Preferential Offer/Rights Issue Private Placement Benefits of Depository System: In the depository system, the ownership and transfer of securities takes place by means of electronic book entries. At the outset, dangers related benefits, like: Elimination of bad deliveries In the depository environment, once holdings of an investor are dematerialized, the question of bad delivery does not arise i.e. they cannot be held "under objection". In the physical environment, buyer was required to take the risk of transfer and face uncertainty of the quality of assets purchased. In a depository environment good money certainly begets good quality of assets. Elimination of all risks associated with physical certificates Dealing in physical securities have associated security risks of theft of stocks, this system rids the capital market of the
to handling of paper. NSDL provides numerous direct and indirect
mutilation of certificates, loss of certificates during movements through and from the registrars, thus exposing the investor to the cost of obtaining duplicate
certificates and advertisements, etc. This problem does not arise in the depository environment. No stamp duty For transfer of any kind of securities in the depository. This waiver extends to equity shares, debt instruments and units of mutual funds. Immediate transfer and registration of Securities In the depository environment, once the securities are credited to the investors account on pay out, he becomes the legal owner of the securities. There is no further need to send it to the company's registrar for registration. Having purchased securities in the physical environment, the investor has to send it to the company's registrar so that the change of ownership can be registered. This process usually takes around three to four months and is rarely completed within the statutory framework of two
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months thus exposing the investor to opportunity cost of delay in transfer and to risk of loss in transit. To overcome this, the normally accepted practice is to hold the securities in street names i.e. not to register the change of ownership. However, if the investors miss a book closure the securities are not good for delivery and the investor would also stand to lose his corporate entitlements. Faster settlement cycle The exclusive demat segments follow rolling settlement cycle of T+2 i.e. The settlement of trades will be on the 2nd working day from the trade day. This will enable faster turnover of stock and more liquidity with the investor. Faster disbursement of non-cash corporate benefits like rights, bonus, etc. NSDL provides for direct credit of non-cash corporate entitlements to an investors account, thereby ensuring faster disbursement and avoiding risk of loss of certificates in transit. Reduction in brokerage by many brokers for trading in dematerialized securities Brokers provide this benefit to investors as dealing in dematerialized securities
reduces their back office cost of handling paper and also eliminates the risk of being the introducing broker. Reduction in handling of huge volumes of paper Periodic status reports to investors on their holdings and transactions, leading to better controls. Elimination of problems related to change of address of investor, transmission, etc In case of change of address or transmission of demat shares, investors are saved from undergoing the entire change procedure with each company or registrar. Investors have
to only inform their DP with all relevant documents and the required changes are effected in the database of all the companies, where the investor is a registered holder of securities. Elimination of problems related to selling securities on behalf of a minor A natural guardian is not required to take court approval for selling demats
securities on behalf of a minor. Ease in portfolio monitoring Since statement of account gives a consolidated position of investments in all instruments.
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2.3 PROBLEM OF STATEMENT All the stock exchanges in India were mechanized in the year 1994 November. That was the year when the stock exchanges introduced screen based trading across the country. While on line trading gives you speed and price advantage, there is some risk and disadvantage to entering orders on-line. The page alerts you to any pitfalls you should watch out for if you want to use the internet to trade stocks. If you do commit to trading online, you must be careful when you enter stock orders. It is easy to make mistakes, but the market and your brokers may not be sympathetic. Once an order is submitted, there may be nothing you can do to take it back if you made a mistake. The various types of orders you enter can be confusing. Individuals are restricted to first hand financial guidance. This simply means that the individual is himself/herself alone to make the decisions. Tax (sales tax and value added tax) evaluation becomes an issue, especially when you are trading internationally. Changes are that one has no idea who is dealing with on the other end, so it is advisable to gather all the possible information about the party one is dealing with. In short are full knowledge is to be known. Online trading as left individual open to too much information. This is harmful since it leaves brokerages wide open to sensitive data. When network crashes there will be problems and delays due to a large influx of traffic and rapid online trading criteria. For instance on 27th Oct 1997 there was a one day crash, which caused online trading on the New York Stock Exchange to stop and brokers were unable to conduct business. If you are going to trade online, you were obviously the one making all the trading choices. To make your trading decisions, you need to research your stocks and constantly pay attention to market news. This will require some time, as you pursue your sources of market information and use online tools.
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2.4 SCOPE OF STUDY: The scope of the project is to study and know about Online Trading and Clearing & Settlements dealt in Inter-Connected Stock Exchange. By studying the Online Trading and Clearing & Settlements, a clear option of dealing in stock exchange has been understood. Unlike olden days the concept of trading manually is been replaced for fast interaction of shares of shareholder. By this we can access anywhere and know the present dealings in shares. The scope of the study analyses us to know how the On-line Trading activities are carried out in MPCGSB. The scope of the study is confined to the process of dematerialization of securities and its advantages. The scope of the project is limited to the depository participant services through depositors.
2.5 RESEARCH OBJECTIVES To collect information about preference level of customers using Demat account. To expand the market penetration of MPCG. Checking the satisfaction level of the customers To take an overview of the Indian Stock Market and encapsulate the various investment avenues available. To know various options available in the Capital Market to invest. To know investors perception regarding investment in stock market To study the investment behavior of investors and the factors that affects their investment decision. To study the problems of investors and the reasons for not investing in financial instruments. To know the satisfaction level of investors regarding return of different investment avenues.
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2.6 OPERATIONAL DEFINITIONS OF CONCEPT A depository is a place where the stocks of investors are held in electronic form. The depository has agents who are called depository participants (DPs). The word Investment can be defined as the application of money for earning more money. Investment also means savings or savings made through delayed consumption. Bond Market is a financial market that acts as a platform for the buying and selling of debt securities. The bond market is a part of the capital market serving platform to collect fund for the public sector companies, governments, and corporations. Dematerialization is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form and credited into the investors account with his/her DP. A Depository is an organisation which holds securities of investors in electronic form at the request of the investors through a registered Depository Participant. It also provides services related to transactions in securities Capital market: A market where debt or equity securities are traded. Trading: It is a process by which a customer is given facility to buy and sell share this buying and selling can only be done through some broker and this is where Arcadia helps its customer. A customer willing to trade with any brokerage house need to have a demat account, trading account and saving account with a brokerage firm. DEBENTURES: - In financial context, Debentures are Debt Instruments issued for a long term by governments and big institutions for rising funds. The Debenture has some resemblances to bonds but the securitization terms and conditions are different for Debentures compared to a bond.
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2.7 RESEARCH METHODOLOGY Need of the Study The need of the study was to fill the gap that was identified in the previous researches. The researchers conducted earlier lay emphasis on the working of Indian Stock Market. Considering the ample importance of this aspect, the present study was conducted to know the Indian Stock Market & various options available in the Stock Market to invest & study the behavior of investors and determine their awareness level regarding various investment avenues available in stock market. Research Plan Research Design Research Method Used Research Technique Used Data Collection Sampling Plan No. Of Samples collected Research Methodology Research Methodology is a way to systematically solve the research problem. The Research Methodology includes the various methods and techniques for conducting a research. Research is an art of scientific investigation. In other word research is a scientific and systematic search for pertinent information on a specific topic. The logic behind taking research methodology into consideration is that one can have knowledge about the method and procedure adopted for achievement of objective of the project. Research design: Research design is the conceptual structure within which research is conducted. It constitutes the blueprint for collection, measurement and analysis of data was a descriptive research. Descriptive research involves collecting numerical through self-reports collected, through questionnaires or interviews (person or phone), or through observation. For present study, the research was descriptive and conclusion oriented. Sambhram School of Management, Bangalore Descriptive/Exploratory Survey Questionnaire Korba Convenience 100
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Sampling Design: Universe: The Universe is most commonly defined as everything that physically exists: the entirety of space and time, all forms of matter, energy and momentum, and the physical laws and constants that govern them. All those persons who make investment. Theoretical Universe: It included investors make investment in all over world. Accessible Universe: It included investors make investment in Indian Stock Market.
Sampling unit The target population must be defined that has to be sampled. The sampling unit of research included students and professionals residing in Korba city. Sample size This refers to number of respondents to be selected from the universe to constitute a sample. The sample size of 100 Investors was taken. Sampling Technique Convenience Sampling was used to select the sample. Convenient sampling is a non probability sampling technique that attempts to obtain a sample of convenient elements .In case of convenience sampling, the selection of sample depends upon the discretion of the interviewer. In this project, Questionnaire Method was used for the collecting the data. With the help of this method of collecting data, a sample survey was conducted.
2.6.1 Data Collection and Analysis: Data Collection Information has been collected from both Primary and Secondary Data. Secondary sources- Secondary data are those which have already been collected by someone else and which already had been passed through the statistical process. The secondary data was collected through web sites, books and magazines. Primary sources- Primary data are those which are fresh and are collected for the first time, and thus happen to be original in character. The primary data was collected through direct personal interviews (open ended and close ended questionnaires)
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Tools of Presentation & Analysis: To analyze the data obtained with the help of questionnaire, following tools were used. 1.Percentage and Pie Charts: These tools were used for analysis of data
2.8 LIMITATIONS OF STUDY It is said, What is worth doing is worth doing best. In other words a person should aim at perfection. However in real life this is not always possible. Human have to work within the limitation set by the nature and society. That is to say even though every possible effort has been made to make this project report authentic and comprehensive however many constraints were also at play. The major limitations of the study are: Due to paucity of time and resources a countrywide survey was not possible. Hence only korba city has been taken for the study. Since a smaller sample was chosen so it may not be a true representative of the population under study. The possibility of the respondents responses being biased cannot be ruled out. The information given by the respondents might be biased because some of them might not be interested to give correct information. Some of the respondents could not answer the questions due to lack of knowledge. Some of the respondents of the survey were unwilling to share information.
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2.9 CHAPTER SCHEME The study is structured into five chapters. Chapter one sketches the development of Indian Stock Market over the centuries. The major reforms, role of SEBI, history and types of Insurance and the role of various sectors on insurance are also highlighted. Chapter two reviews the literatures relevant to this study besides highlighting the research design. Chapter three presents an overview of the Indian Stock Market and various products. Chapter four is devoted to results, analysis and discussions. Chapter five provides the major findings of the study, suggestion & conclusion.
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COMPANY PROFILE 3.1 INTRODUCTION M/S MPCG Stock Brokers India Pvt. Ltd. is amongst the leading financial services and brokerage house working diligently science 1996. The company can be described in a single word as a FINANCIAL POWERHOUSE. With acknowledged industry leadership in execution and clearing services on exchange traded derivatives and cash market products M/S MPCG Stock Brokers India Pvt. Ltd. has spread its trust worthy tentacles globally. 3.2 Market and Network M/S MPCG Stock Brokers India Pvt. Ltd. holds membership of all principal Indian stock and commodity exchanges. The firm is a member of NSE, BSE, OTEIL, NCDEX, MCX, NMCE, MCX-SX and also a depository participant with NSDL and CDSL. It is also registered with DGCX. 3.3 Management Profile MPCGSB is led by individuals who are professional leaders and are committed to reface the financial services industry in India. Each of the individual works constantly towards MPCGSBs objective of Indias first truly MNC in financial services. MPCGSB team is led by a very eminent Board of Directors who provide policy guidance and work under the active leadership of its CEO & Managing Director and support of its Central Guidance Team. 3.4 Board of Directors:DIRECTOR DIRECTOR DIRECTOR DIRECTOR CEO Mr. S P Goel Mr. Shiv Kumar Goel Mr. Surendra K Goel Mr. A P Goel Mr. Saurabh Shukala
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3.5 Company and Its Product Line: 1. Prime brokerage services 2. Asset management 3. Custody services 4. Distribution 1. Prime brokerage services Equity and Equity Derivatives: MPCGSBs Trading Platform offers online equity and equity derivative trading facilities for investors having access to resources like research charts, advice, live quotes, and online assistance to take well versed decisions. MPCGSB has been felicitated as the leading volume driver by BSE, during FY 04-05, 06-07, 07-08. Commodity and currency derivatives: The Company offers access to future trading via multiple exchanges in wide-ranging commodities like agricultural commodities, base metals, energy and precious metals 2. Asset management Portfolio Management services (PMS): MPCGSB has a dedicated and experienced team of manager to design portfolio managers to design portfolio which suits every customers needs. Constantly scrutinizing the developments in market and moving stocks aiming for maximum capitalization. Advisory: MPCGSB guides and supports its clients to re-structure and stream line their portfolios based on changing market condition and client objectives. 3. Custody services Depository services: MPCGSB is depository participant with NSDL and CDSL. It provides an array of depository services including operations. 4. Distribution Mutual Funds: MPCGSB is one of the largest distributors of mutual funds in India. It has an in-depth research across covering 20 parameters guiding our clients to take Appropriate investment decisions. Keeping in mind customers budget, needs and securities the AMFI certified investment advisor. Insurance: MPCGSB offers its insurance products in life and general insurance. Our IRDA certified advisor offer prudent advice on policy selection and assist through the claim redressal process.
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Initial public offer (IPO): MPCGSB offers online investment access for public offerings. We also offer in-depth research advice for the forthcoming IPOs. 3.6 Achievements1. Top equity broking house in terms branch expansion. 2. Third in terms of number of trading accounts. 3. Sixth in terms of trading terminals for 2 consecutive years 2007 & 2008. 4. Ninth in terms of sub brokers for 2007. 5. Awarded by BSE as BEST FINANCIAL ADVISOR AWARD. 3.7 Services Provided By MPCGSB BROKERAGE SERVICES Equity a. Commodity b. Currency c. Derivatives Custody Services a. Depository Distribution a. IPO b. Fixed deposit c. Mutual Funds d. Insurance Life Insurance General Insurance Asset Management a. PMS b. Advisory Institutional Broking
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CHAPTER-4 RESULTS, ANALYSIS AND DISCUSSION Table 4.1: Demographic Characteristics of Sample Respondents Characteristics Gender Category Male Female Total 21-30 31-45 Above 45 Total Single Married Total Under Graduate Post Graduate Above Graduate Total Businessmen Self employed/ Professionals Clerical/Supervisory Employees Officers/Executives Total Up to 25000 25000-50000 50000-75000 Above 75000 Total No. of Respondents 72 28 100 69 21 10 100 64 36 100 32 54 14 100 20 36 21 23 100 60 33 7 0 100 Percentage 72% 28% 100% 69% 21% 10% 100% 64% 36% 100% 32% 54% 14% 100% 20% 36% 21% 23% 100% 60% 33% 7% 0% 100%
Age
Marital Status
Education Level
Occupation
Monthly Earnings
Source: Excel Output
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Table 4.1 displays the demographic characteristics of sample respondents. Of 100 respondents 72% of the respondents are Male while the remaining 28% were the female respondents. Based on the age factor, the sample respondents of about 69% falls under the age group of 21-30 years, 21% falls under the age group of 31-45 and while only 10% are above 45. The respondents were further classified on the basis of marital status. Majority of the respondents are married represents 36% and remaining 64% are single. Based on educational qualification around 54% of the respondents is post graduated. Majority of the respondents were professionals followed by clerical, officers and businessmen in the order. On the basis of gross monthly income, 60 respondents were having earning of up to 25,000 and 33 respondents were falling under the group of 25000-50000, only 7 and 0 respondents were falling under the income group of 50000-75000 and above 75000 respectively.
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1. Do you know about investment options available? Table 4.2: Investment Options Particulars Yes No Total No. of Respondents 43 57 100 Percentage 43% 57% 100%
Table 4.2 Displays the total 43% of the Respondents are aware of Investment options availability and other 57% respondents are unaware. Chart 4.1: Investment Options
Investment Options
yes No
43% 57%
INTERPRETATIONToday scenario is changed so that most of the area covered by the securities and commodity market. It is 24% of the total population has knowledge about the investments and their options available in stock markets. Now a days many technologies have been introduced in Indian stock market, which leading it to huge growth.
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2. Most preferable Investment Scenario? Table 4.3: Preferable Investment Options Investment Option Shares Mutual funds Bonds Banks Real Estate Insurance Commodity Market Others Total 24 20 18 14 10 6 4 4 100 24% 20% 18% 14% 10% 6% 4% 4% 100% No. of Respondents Percentage
Table 4.3 displays the Investment options available in todays Indian stock market like Shares, Mutual funds, Bonds, Banks, Real Estate, Insurance, Commodity Market etc. In which 24% respondent prefers Shares and 20, 18, 14, 10, 6, 4, 4 prefer funds, Bonds, Banks, Real Estate, Insurance, Commodity Market & others respectively.
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Chart 4.2: Preferable Investment Options
Investment Option
scenario Bonds Insurance 6% 10% 14% 18% 4% Shares Banks Commodity Market 0% 4% 24% Mutual funds Real Estate Others
20%
InterpretationOnly 80% people know the exact meaning of investment. Because of remaining 20% take his/her residential property as an investment. According to law purpose this is not an investment because of it is not create any profit for the owner.
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3. Are you aware of Online Share Trading? Table 4.4: Level of awareness of Online Share Trading No. of Respondents Particulars Yes No Total 72 28 100 72% 28% 100% Percentage
Table 4.4 Displays the 72% respondents are aware of Online Share Trading and 28% of Respondents has very less knowledge about the Online Share Trading. Chart 4.3: Level of awareness Of Online Share Trading.
Online share trading

Yes No
28%
72%
INTERPRETATIONWith the increase in cyber education, the awareness towards online share trading has increased by leaps and bounds. This awareness is expected to increase further with the increase in Internet education.
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4. Heard about M/S MPCG Stock Brokers India (Pvt.) Ltd.? Table 4.5: Level of awareness about the company Particulars Yes No Total No. of Respondents 70 30 100 Percentage 70% 30% 100%
Table 4.5 displays the 70% of the respondents are aware of MPCG Brokerage Company and others have not heard about. Chart 4.4: Level of awareness about the company
MPCG Stock brokers

Yes No
30%
70%
INTERPRETATION70% people aware of M/S MPCG Stock Brokers India (Pvt.) Ltd. This pie chart shows that, this brand image should be further leveraged by company to increase its market share over its competitors.
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5. Do you know about the facility provided by the M/S MPCG Stock Brokers India (Pvt.) Ltd.? Table 4.6: Facilities provided by the company Particulars Yes No Total No. of Respondents 36 64 100 Percentage 36% 64% 100%
Table 4.6 Displays the level of awareness regarding the facilities provided by M/S MPCG Stock Brokers India (Pvt.) Ltd. About 36% of the Respondents are aware of overall facilities provided and other 64% respondents have no knowledge about the facilities provided by the company. Chart 4.5: Facilities provided by the company
Facility provided
Yes 0% 36% No
64%
INTERPRETATION36% respondent that they know the facility provided by M/S MPCG Stock Brokers India (Pvt.) Ltd. and 64% doesnt know. Although there is sufficiently high brand equity among the target audience yet, it is to be noted facilities provided by that the customers are not aware of thereby, the
the company meaning
that, the company should
concentrate more towards promotional tools and increase its focus on product awareness rather than brand awareness.
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6. Which company provides a less BROKRAGE rate? Table 4.7: Comparison of Brokerage rate Option MPCG Religare Sharekhan Motilal oswal Total No. of Respondents 44 16 19 16 100 Percentage 44 16 19 16 100
Table 4.7 Displays the comparative data of Brokerage rate offered by the different stock broker company, 44% of respondents says MPCG offers less brokerage as compare to others and 16% respondents says Religare, and 19%,16% says Sharekhan, Motilal Respectively. Chart 4.6: Comparison of Brokerage rate
Less brokrage rate

MPCG Religare Sharekhan Motilal oswal
16% 44% 19%
21%
INTERPRETATION44% have respondent of M/S MPCG Stock Brokers India (Pvt.) Ltd., 21% have respondent of Religare, 19% have respondent of Sharekhan ltd, and 16% respondents Motilal oswal. This chart represents that clients of MPCG are highly satisfied with Services provided by the company. 43 Sambhram School of Management, Bangalore
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7. Which company provides you a large number of product and services? Table 4.8: Level of product and Services offered Option MPCG Religare Share Khan Motilal Oswal Total No. of respondents 22 20 44 14 100 Percentage 22% 20% 44% 14% 100%
Table 4.8: displays the Demographic Characteristics of which company offers more product and services and 44% respondents says that Sharekhan offers more product and services as compare to other Stock Brokerage company. Chart 4.7: Level of product and Services offered
Large no. of products

MPCG Religare Share khan Motilal Oswal
14%
22%
44%
20%
INTERPRETATION22% have respondent of M/S MPCG Stock Brokers India (Pvt.) Ltd., 20% have respondent of Religare, 44% have respondent of Sharekhan, 14% respondent Motilal Oswal. This Chart clearly Defines that Sharekhan offers more products and services to trade.
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8. How many of you do trading frequently? Table 4.9: Frequency of Trading Frequency Daily Weekly Monthly Yearly Total No. of Respondents 19 25 46 10 100 Percentage 19% 25% 46% 10% 100%
Table 4.9 Displays that demographic characters of trading Frequency, 19% of respondents do trading daily and 25%, 46%, 10% do trading weekly, monthly, yearly respectively. Chart 4.8: Frequency of Trading
Trading
DAILY WEEKLY MONTHLY YEARLY
10%
19%
46%
25%
INTERPRETATION19% have respondent of Daily, 25% have respondent of Weekly, 46% have respondent of Monthly, 10% respondent yearly.
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9. What is the basic purpose of your investment? Table 4.10: Purpose of Investment Investment Purpose Liquidity Returns Capital Appreciation Tax benefits Risk Covering Others Total No. of Respondents 30 25 20 10 5 10 100 Percentage 30% 25% 20% 10% 5% 10% 100%
Table 4.10 Shows the percentage Analysis of the purpose of investment, 30% respondents have the purpose of investment for Liquidity, 25% respondents have the intention of returns and 20%, 10%, 5%, 10% have the motive of Capital Appreciation Tax benefits Risk Covering Others respectively. Chart 4.9: purpose of Investment
Purpose of Investment
Liquidity Returns 5% 10% Capital Appreciation 10% 30% Tax benefits Risk Covering Others
20% 25%
Interpretation- 30% people are interested in liquidity, 25% in returns and 10% tax benefits. And remaining 20% are interested in capital appreciations, 15% in risk covering and others.
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10. From which option you will get the best returns? Table 4.11: Option for best returns Investment Scenario Shares Mutual Funds Bonds Banks Real Estate Insurance Commodity Market others Total No. of Respondents 26 27 18 14 22 4 5 4 100 Percentage 26% 27% 18% 14% 22% 4% 5% 4% 100%
Table 4.11 shows the percentage analysis of which option gets the good returns, 27% respondents feels mutual fund gets good return, 26% respondents says Shares gets good returns and 18%, 14%, 22%, 4%, 5%, 4% respondents goes for Bonds, Banks, Real Estate, Insurance, Commodity Market and others respectively.
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Chart 4.10: Option for best returns
Investment Scenario
Shares Real Estate Mutual Funds Insurance 3% 4% 18% Bonds Commodity Market Banks others
3%
22%
12% 15%
23%
InterpretationMost of the people say that Mutual fund gives satisfactory result, Following it are bonds, shares and banks.
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11. Most important things you take into your mind while making investments? Table 4.12: Factors while making investment Factor Risk Returns Both Total No. of Respondents 8 17 75 100 Percentage 8% 17% 75% 100%
Table 4.12 Shows the percentage analysis of factors while making investment. Chart 4.11: Factors while making investment
Investment factor
Risk Returns Both
8% 17%
75%
Interpretation75% people are considered the both factors risk as well as returns but, only 25% considered the risk or returns factor.
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12. Do you have any knowledge of share markets? Table 4.13: Level of Knowledge of Share Market Knowledge Complete Nil Partial Total No. of Respondents 10 27 63 100 Percentage 10% 27% 63% 100%
Table 4.13 shows the Demographic character of level of knowledge regarding the Share Markets and the products and services offered by them. Chart 4.12: Level of Knowledge of Share Market
No. of Respondents
Complete Nil Partial
10%
27% 63%
InterpretationOn that basis, we conclude that 27% people know nothing about the securities investments and 63% people have partial knowledge about it, so, some promotional activities are required for increasing the awareness about security market.
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13. If you invested in Share Market, what has been your experience? Table 4.14: Experience level of Investment in Share Market Options Satisfactory Returns received Burned figures Unsatisfactory Results No Results Total No. of Respondents 20 6 8 66 100 Percentage 20% 6% 8% 66% 100%
Table 4.14 Shows the percentage analysis of level of experience of Investment in Share markets, 20% are satisfied and 66% got no results. Chart 4.13: Experience level of Investment in Share Market
Experience
Satisfactory Returns received Burned figures Unsatisfactory Results No Results
20% 6% 8% 66%
InterpretationMajority of people are in losses and hence they are getting no results. 66% got no results in investment, and only 20% have got the satisfactory result of overall respondents.
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14. Do you have any Demat & trading account? Table 4.14: Demat & Trading Account Accounts yes No Total No. of Respondents 75 25 100 Percentage 75% 25% 100%
Table 4.15 shows the percentage analysis of respondents has Demat & Trading Account, 75% of respondents has the Demat & Trading account. Chart 4.14: Demat & Trading Account
Trading A/C
yes No
25%
75%
InterpretationOnly 75% respondents have Demat and trading account and remaining 25% says no because they dont know why shares move up and down.
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15. In which company you have Demat and Trading Account? Table 4.16: Demat & Trading Account in following company Company ICICI DIRECT INDIAINFOLINE INDIA BULLS MPCG KARVY HDFC Securities No. of Respondents 30 25 22 12 7 4 Percentage 30% 25% 22% 12% 7% 4%
Table 4.16 shows the percentage analysis of having Demat & Trading Account in following company, 12% respondents have account with MPCG. Chart 4.15: Demat & Trading Account in following company
No. of Respondents
ICICI DIRECT INDIAINFOLINE INDIA BULLS MPCG KARVY HDFC Securities
7% 12%
4% 30%
22% 25%
InterpretationIn MPCG 12% respondents have Demat & Trading Account because of better services and min. annual maintenance and other charges.
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16. What differentiates your Share trading company from others? Table 4.17: Factors that differentiate share Trading Company Option Brokerage Operating Expenses Services Products Software Total No. of Respondents 23 25 20 17 15 100 Percentage 23% 25% 20% 17% 15% 100%
Table 4.17 shows that 23% respondents feels that brokerage rate differentiate the Share trading Company and 25%, 20%, 17%, 15% says that Operating Expenses, Services, Products, Software respectively. Chart 4.16: Factors that differentiate share Trading Company
No. of Respondents
Brokerage Operating Expenses Services Products Software
15% 17%
23%
25% 20%
InterpretationThree main factors are brokerage, operating expenses, services, then is products and software.
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17. Which Share trading company provides good exposure? Table 4.18: Share Trading Company Exposure Range MPCG Karvy ICICI Direct Very high High Medium Low Very low 15 25 60 10 0 60 25 10 0 0 15 60 30 0 0 India infoline 10 70 15 0 0 HDFC Securities 20 65 0 0 10 India Bulls 80 0 15 0 0
Table 4.18 shows the percentage analysis of following company have good exposure, 80% Respondents have very high exposure with India Bulls and only 15% with MPCG. Chart 4.17: Share Trading Company Exposure
Exposure
Very high 0 10 60 25 15 MPCG Karvy 60 60 15 70 0 10 25 High 0 30 Medium 0 15 Low Very low 0 15 0
10 0 65
80 20 HDFC Securities India Bulls
10
ICICI Direct Indiainfoline
InterpretationMajority of clients of indiabulls feels that the exposure provided by them is neither high nor low, while some believe it is enough. But in ICICI it is contrary. MPCG gets positive response from majority of clients. Sambhram School of Management, Bangalore
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18. Which Share trading company provides its Software to customers? Table 4.19: Software of Share Trading Company Range MPCG Karvy ICICI Direct INDIA INFOLINE HDFC Securities India Bulls
Very high High Medium Low Very low
57 0 18 20 0
0 42 0 2 51
53 0 42 0 0
81 0 14 0 0
80 0 15 0 0
66 19 10 0 0
Table 4.19 show percentage analysis of following company have good software to handle online trading as well as offline Trading, 81% respondents are highly satisfied with software offered by India Infoline and 57% respondents are highly satisfied with software offered by MPCG.
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Chart 4.18: Software of Share Trading Company
Software
0 20 18 0 51
0 42 0 2 0
0 14 0
0 15 0
0 10 19
81 53
80
57 42 0
66
InterpretationAs far as software is concerned, MPCG dominates, followed by Indiainfoline. 57% of the Respondents are highly satisfied with software provided by the MPCG, whereas, 81% of the Respondent are more highly satisfied with the software provided by India Infoline. 80% of respondents are also satisfied with the software, as it provide better interaction, user friendly and easy to trade online as well offline.
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19. Which Share trading company charges fair Brokerage? Table 4.20: Brokerage charged by following Company Range MPCG Karvy ICICI Direct Indiainfoline HDFC Securities India Bulls
Very high
0 25 60
0 25 40
16 9 70
0 10 85
65 30 0
0 0 45
High Medium
Low
10
18
30
Very low
12
10
20
Table 4.20 shows the percentage analysis of fair brokerage offered by company, 65% respondents are highly satisfied with the brokerage charged as compare to MPCG.
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Chart 4.19: Brokerage offer by following Company
Fair Brokerage
0 10
0 12 18 70
10 0 30
20
60 40
30 85
65 9 25 0 MPCG 25 0 Karvy ICICI Direct 16 10 0 Indiainfoline HDFC Securities 45
0 India Bulls
InterpretationAlthough majority of customers of all the firms feel that brokerage charged is neither high nor low, customers of MPCG are highly satisfied. On the other hand, customers of ICICI are most dissatisfied. And about 40% of customers of indiabulls consider it to be NHNL, and another 40% rate it as good, while 20% feel that it is not quite low.
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20. Are you satisfied with your present Share trading company? Table 4.21: Level of satisfaction with the different Share Trading Company Company name MPCG Karvy Indiainfoline ICICIC Direct India Bulls HDFC Securities Satisfied 23 31 53 37 46 32 Neutral 45 35 44 45 42 23 Unsatisfied 32 34 3 18 12 45
Table 4.21 shows the Demographic Character of level of satisfaction with the different share Trading Company, 53% Respondents are satisfied with India Infoline and 23 % respondents are satisfied with MPCG, 3% are not satisfied with Indi Infoline and 32% are not satisfied with MPCG. Chart 4.20: Level of satisfaction with the different Share Trading Company
Satisfaction
Satified 3 32 45 23 MPCG 34 35 31 Karvy 53 44 45 Neutral 18 Unsatisfied 12 42 45 23 37 46 32 HDFC Securities
Indiainfoline ICICIC Direct
India Bulls
InterpretationThis shows that customers of MPCG are not satisfied while Indiainfoline is stood first in this parameter. Sambhram School of Management, Bangalore
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DEMAT ACCOUNT OF MPCG STOCK BROKERS LTDFigure 4.1
MPCG OFFLINE ONLINE

PRODUCTS Figure 4.2
MPCG
BROWSER BASED
SOFTWARE BASED
MPCG NETLITE
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MPCG NET LITEFeatures
Web-based interface with the benefit of real-time data streaming with the flexibility
of trading from any part of the world.

Very user-friendly integrated trading front-end for multiple exchanges. Supports streaming as well as lite streaming (requires low band-width) login option
for smooth and economical trading.
The market movement displays historical data with latest price updates and the option
for viewing the top gainers and losers.
Guarantee of secure transactions.
ODIN DIET Features
This unique software has to be loaded on your computer to allow you instant updates,
information, control and independence to transact as the market session proceeds.

Exe. Based interface with highly secured transactions. Single screen trading terminal. Intraday, BTST, STBT as well as fundamental Research call for guiding you towards
better investments analyzed by our expert Research team.

ODIN Diet is featured with advanced charting tools and indicators. ODIN Diet user can place any number of scripts in the single market watch. ODIN Diet supports handy backup facility for executed trades. ODIN Diet tracks your absence at the workstation and locks the workstation
immediately.
Option to create multiple market watches
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CHARGESTable 4.22: Brokerage charges of MPCG Account opening charges (demat account) Trading account Annual maintenance charges Nil 415/- per annum For life time- 999/Brokerage chargesIntraday- .03% (negotiable), Delivery- .3% (negotiable) 650/-
EXPOSURE: MPCG also helps their customers by providing them a 10-15 times Exposure for intraday. Example: - If a customer invests Rs. 20000, then he will get an exposure of 15 times of Rs. 20000 that means Rs. 20000 * 15 = Rs. 300000. And for carry MPCG provides 6 times exposure. But only for 15 days, within 15 days the customer have to pay back the amount otherwise they will sell your shares. But yes, they will sell the loss making shares first. If you make any fraud, then also you may face the same problem. But Exposure always helps the customer to invest more and more in profit making scripts. It is like an Overdraft which you have to return within 15 days.
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For opening a demat account requires Photocopy of the clients PAN Card which should be duly attached Photo copy of any of the following documents duly attached which will
serve as correspondence address proof: Passport (valid) Voters ID Card Ration Card Driving License (valid) Electricity Bill (should be latest and should be in the name of the client) Telephone
Bill (should be latest and should be in the name of the client) Flat Maintenance Bill (should be latest and should be in the name of the client) Insurance Policy (should be latest and should be in the name of the client) Lease or Rent Agreement. Saving Bank Statement** (should be latest) Two cheques drawn in favor of Sharekhan Limited, one for the Account
Opening Fees and the other for the Margin Money (the minimum margin money is Rs. 5000). ** A cancelled cheque should be given by the client if he provides Saving Bank Statement as a proof for correspondence address. NOTE: Only Saving Bank Account cheques are accepted for the purpose of Opening an account.
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Comparison of features & facilities with its Competitors-
1. Trading is available in BSE and NSE. ICICI Direct offers 3 different online trading platforms to its customers. Type of Account: 1. Share Trading Account: Share Trading Account by ICICI Direct is primarily for buying and selling of stocks in BSE and NSE. This account allows Cash Trading, Margin Trading, Margin PLUS 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: 1. 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, transferring existing
Systematic Investment plans, Systematic withdrawal plan and Mutual Funds in
to electronic mode. This account also provides facility to invest in
Government of India Bonds and ICICI Bank Tax Saving Bonds. 2. 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 nonrefundable) Brokerage: ICICIDirect.com brokerage varies on volume of trade and inclusive of demats transaction charges, service taxes and courier charges for contract notes. .05% for intraday and 5% for delivery.
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Disadvantages of ICICI Direct: Getting access to ICICIDirect.com website during market session can be frustrating.
2. Motilal Oswal Securities Ltd. (MOSt): One of the top-3 stock-broking houses in India, with a dominant position in both institutional and retail broking, MOst is amongst the best-capitalized firms in the broking industry in terms of net worth. MOSt was founded in 1987 as a small sub-broking unit, with just two people
running the show. Focus on customer-first-attitude, ethical and transparent business practices, respect for professionalism, research-based value investing and implementation of cutting-edge The technology have enabled it to blossom into a thousand-member several leading team. foreign
institutional business unit has
relationships with
institutional investors (FIIs) in the US, UK, Hong Kong and Singapore. In a recent media report MOSt was rated as one of the top-10 brokers in terms of business transacted FIIs. The retail business unit provides equity investment solutions to more than 50,000 investors through 270 outlets spanning 150 cities and 22 states. Broking, Portfolio Management Services MOSt provides Advice-Based for
(PMS), E-Broking Services, Depository
Services, Commodities Trading, and IPO and Mutual Fund Investment Advisory Services. Its Value PMS Scheme gave a 160% post-tax return for the year ended March 2004. With value investing at the core of its investment philosophy, a strong research team consistently provides high-performance ideas.In Asia Money Brokers Poll 2003 Most has been rated as the Best Domestic Research House - Mega Funds ,while in 2000 and 2002 it has been rated as the Best Domestic Equity Research House and Second best amongst Indian Brokerage firms respectively. Brokerage and fees Account opening fees: Rs 400/- (One time nonrefundable). For intraday .05% and for delivery .50%. Exposure 4times
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3. Sharekhan is one of the largest brokerage houses in India. At ShareKhan.com, you can buy and sell shares on the field with Sharekhan demat account online and also allows you via your online trading account Demat. For this you must open a Demat account with Sharekhan.com. The shares are registered in your Demat account just as money is saved in your bank account. We have provided here the connection process for online commerce Sharekhan. Sharekhan is online stock broker SS Kantilal Ishwarlal Securities Limited (SSKI) Group, a provider of investment banking based in India, and the corporate finance department. Sharekhan helps you find when, where and how to invest in simplifying financial jargon such as equities, commodities, mutual funds, derivatives, or IPOs. Login Sharekhan online tradingInvestor must open a trading account with Sharekhan online. Visit the official site of Sharekhan and give login ID and password to log in online commerce. You can find funding for BSE during the session closing and opening position and closing times of the trading account. You can also find relevant information on the page with the words and the political situation of the password, etc. By Sharekhan account, you can browse through 5,500 companies with details of over 1,500 minutes schemes of mutual funds and data introduction. You can also find other related business information such as board meetings, result announcements, transactions FII buying and selling by mutual funds and much more. Brokerage and fees Account opening fees: Rs 415 /- (One time nonrefundable). For intraday .05% and for delivery .50%. Exposure 4times.
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4. Religare Securities Limited (RSL) Religare Securities Limited (RSL), a 100% subsidiary of Religare enterprises Limited is a leading equity and securities firm in India. The company currently handles sizeable volumes traded on NSE and in the realm of online trading and investments; it currently holds a reasonable share of the market. The major activities and offerings of the company today are Equity Broking, Depository Participant Services, Portfolio Management Services, International Advisory Fund Management Services, Institutional Broking and Research Services. To broaden the gamut of services offered to its investors, the company offers an online investment portal armed with a host of revolutionary Features. RSL is a member of the National Stock Exchange of India, Bombay Stock Exchange of India, Depository Participant with National Securities Depository Limited and Central Depository Services (I) Limited, and is a SEBI approved Portfolio Manager. Religare has been constantly innovating in terms of product and services and to offer such incisive services to specific user segments it has also started the NRI, FII, HNI and Corporate Servicing groups. These groups take all the portfolio investment decisions depending upon a clients risk / return parameter. Religare has a very credible Research and Analysis division, which not only caters to the need of our Institutional clientele, but also gives their valuable inputs to investment dealers. Brokerage and fees Account opening fees: Rs 550 /- (One time nonrefundable). For intraday .03% and for delivery.30%. Exposure 4time.
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5. KARVY Karvy is a premier integrated financial services provider, and ranked among the top five in the country in all its business segments, services over 16 million individual investors in various capacities, and provides investor services to over 300 corporate, comprising the who is who of Corporate India. Karvy has a professional management team and ranks among the best in technology, operations and research of various industrial segments. History of Karvy: - The birth of Karvy was on a modest scale in 1981. It began with the vision and enterprise of a small group of practicing Chartered Accountants who founded the flagship company, Karvy Consultants Limited. They started with consulting and financial accounting automation and carved inroads into the field of registry and share accounting by 1985. Since then, Karvy utilized its experience and superlative expertise to go from strength to strength, to better their services, to innovate, diversify and in the process, evolved as one of Indias premier integrated financial service enterprise. 6. HDFC security is the subsidiary of HDFC (Housing Development Financial Corporation). www.hdfcsec.com would have an exclusive discretion to decide the customers who would be entitled to its online investing services. www.hdfcsec.com also reserves the right to decide on the criteria based on which customers would be chosen to participate in these services .The present web site (www.hdfcsec.com) contains features of services that they offer/propose to offer in due course. The launch of new services is subject to the clearance of the regulators. i.e. SEBI, NSE and BSE. PRODUCT OFFERED BY HDFC SECURITY 1. 2. 3. 4. 5. 6. Online trading for Resident & Non Resident Indians. Cash-n-Carry on both NSE and BSE. Day trading on both NSE and BSE. Trade on Futures & Options on the NSE. Online IPO's. Telephone-based Broking (Equity & Derivatives).
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7. INDIAINFOLINE India Infoline.com Securities Pvt. Ltd. is a wholly owned subsidiary of India Infoline.com Ltd and is the stock broking arm of India Infoline.com. The subsidiary was formed to comply with regulatory guidelines. www.5paisa.com is a focused website for online stock market trading. 5paisa.com is a trade name owned by the India Infoline.com group. IILSPL has applied for trading membership of the BSE under Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Rules 1992. IILSPL is in the business of providing broking services online via the Internet ("E-broking Services") and has been permitted by the NSE by way of registration permission no: NSEIL/CMO/INET/1103/2000 dated 03/July/2000, and will be applying for permission to the BSE, to provide E-broking Services to its clients. IILSPL is a TRADING MEMBER of the National Stock Exchange of India. PRODUCT OFFERED BY IILSPL 1. Stock market:- IILSPL deals in stock market by trading in equity and derivatives. 2. Personal finance:- It Deals In Mutual Fund And Insurance. 3. Online Trading :- It provides services in stock and commodity trading (through Internet).
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8. Indiabulls Securities Limited was incorporated as GPF Securities Private Limited on June 9, 1995. The name of the company was changed to Orbis Securities Private Limited on December 15, 1995 to change the profile of the company and subsequently due to the conversion of the company into a public limited company; the name was further changed to Orbis Securities Limited on January 5, 2004. The name of the company was again changed to Indiabulls Securities Limited on February 16, 2004 so as to capitalize on the brand image of the term Indiabulls in the company name. At present, ISL accounts for approximately 3% of the total daily turnover of the Exchange with 32,359 client relationships and 70 branches spread across the country as of April 30, 2004. INDIABULLS CREDIT SERVICES LIMITED:- Indiabulls Credit Services has been valued at Rs. 263 crores with the Rs. 87.6-crore infusion. Indiabulls Credit Services Ltd, the recently formed subsidiary of broking firm, Indiabulls Financial Services Ltd. Faralon Capital, a San Francisco-based private equity fund, and its affiliates have acquired 33.3 per cent stake for Rs 87.6 crores. INDIABULLS REAL ESTATE: - Indiabulls through its group companies has entered Indian Real Estate business in 2005. It is currently evaluating several large-scale projects worth several hundred million dollars. Indiabulls became the first company to bring FDI in Indian Real Estate through a JV with Farallon Capital Management, a respected US based investment firm. PRODUCT OFFERED BY INDIA BULLS 1. Equity & Debt Stock Broking 2. Insurance 3. Commodity trading 4. Depository Services 5. Derivatives Broking Services 6. Equity Research Services 7. Mutual Fund Distribution 8. IPO Distribution
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Brokerage and fees Table 4.23: Comparative tabulation of Brokerage & Fees Account opening fees: Rs 650 /- (One time nonrefundable). For intraday .05% and for delivery .50%. Exposure 4times.
MPCG ICICI DIRECT MOTILAL OSWAL SHAREKHAN RELIGARE KARVY
Account Opening Charges (Demat A/C) 450/750/400/415/550/650/-
Trading A/C
NIL
NIL
NIL
NIL
NIL
NIL
Trading Through
SOFTWARE WEBSITE SOFTWARE SOFTWARE SOFTWARE SOFT-WARE
Website Or Software
Software
ODIN DIET
-------
MyBroker.EX E
TRADE TIGER
ODIN DIET
GOTEX
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.03% (INTRADAY)
.05% (INTRADAY)
.05% (INTRADAY)
.05% (INTRADAY)
.03% (INTRADAY )
.05% (INTRADAY)
Brokerage
.30% (DELIVERY) .50% (DELIVERY) .50% (DELIVERY) .50% (DELIVERY) .30% (DELIVERY) .50% (DELIVERY)
Exposure
10-15 TIMES
4 TIMES
4 TIMES
4 TIMES
4 TIMES
4 TIMES
Buy Today Sell Tomorrow

YES
YES BUT ONLY ON127 SCRIPS OF NSE
YES,UPTO 75% SHARES VALUE YES YES YES
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CHAPTER 5
5.1 Summary of Findings Majority of clients of Indiabulls feels that the exposure provided by them is neither high nor low, while some believe it is enough. But in ICICI it is contrary. MPCG gets positive response from majority of clients. Although majority of customers of all the firms feel that brokerage charged is neither high nor low, customers of MPCG are highly satisfied. On the other hand, customers of ICICI are most dissatisfied. And about 40% of customers of Indiabulls consider it to be NHNL, and another 40% rate it as good, while 20% feel that it is not quite low. As far as software is concerned, MPCG dominates, followed by indiabulls. As per charges, comparison among the firms clearly points out that there is not much difference among the firms. First is MPCG, followed by Indiabulls. On the basis of call and trade facility, there is again not much differences. Comparison among MPCG and Indiabulls shows that ICICI has less no. of Customers who rated it low as compared to Indiabulls and also higher number of customers rates it good, but indiabulls has the edge over the rest when it comes to customers who rate it very high. Customers feedback regarding the Research Tips parameter shows that the competition is primarily between three firms- Indiabulls, ICICIC and Indiainfoline. MPCG is gaining its share which is currently at 3.9% market share by providing better offerings, less brokerage and other services, Indiabulls is the market leader. Approx. 16% respondents have Demat & trading account because minimum annual maintenance and other charges. MPCG brought many innovations in products which are liked by customers. MPCGs offerings are very competitive. Though MPCG is working very hard in order to meet the competition but there is a gap between the expectations and the experiences of the customers which is widening regularly.
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In order to increase the sales figures, the company has somewhere ignored the service delivery and left the customer on his own. This gap has emerged because of the sales oriented focus of MPCG. People want to invest their money in the security market but they havent the
proper knowledge. Investors do not invest in a single avenue. They prefer different avenues and maximum investors prefer to invest in shares, mutual funds & debentures. Different factors considered by investors while investing are return, risk, tax benefits, capital appreciation and the most prominent factor is the return on any investment avenue. 36% respondent that they know the facility provided by M/S MPCG Stock Brokers India (Pvt.) Ltd. and 64% doesnt know. 30% people are interested in liquidity, 25% in returns and 10% tax benefits. And remaining 20% are interested in capital appreciations, 15% in risk covering and others. Most of the people say that Mutual fund gives satisfactory result; following it are bonds, shares and banks. The customers of MPCG are not very satisfied while Indiainfoline is stood first in this parameter.
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5.2 CONCLUSIONOn the basis of the study it is found that M/S MPCG Stock Brokers Co. (Pvt.) Ltd. is better services provider than the other stock brokers because of their timely research and
personalized advice on what stocks to buy and sell. The facility of Odin diet as well as relationship manager facility for encouragement and protect the interest of the investors. It also provides the information through the internet and mobile alerts that what IPOs are coming in the market and it also provides its research on the future prospect of the IPO. Study also concludes that people are not much aware of commodity market and while its going to be biggest market in India. The company should also organize seminars and similar activities to enhance the knowledge of prospective and existing customers, so that they feel more
comfortable while investing in the stock market. The expectations of the customers are regularly increasing because of the increasing competition and emergence of global market. In such conditions it becomes very necessary for a company to fulfill all the expectations of the customers and give them a delightful experience. MPCG aims to provide better services by consistently improvement. The study concluded: MPCG keeps its process more transparent. MPCG is giving more returns to its investors. Reliance Money charges are less than other stock brokers. MPCG is providing daily updates about the stocks information. Investors are looking for those investment options where they get maximum returns with less costs. Market is becoming complex & it means that the individual investor will not have the time to play stock game on his own. People are less aware about the Services provided by MPCG.
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5.3 RECOMMENDATIONS The preferred time span of investment by the investors depends upon the need of the investor that whether they wants to have early and high returns or wants to have stable returns, most probably the long time span is suitable because the returns are high and safety is also there. Build relationship with the customers to keep them retained. Company should start a system of filling up of feedbacks and complaints online so that rectification of errors can be done easily. Company should start a kind of soft skill training program for all of its distributors so that the customers feel the same level of satisfaction as they feel while transacting with the company. Though the service quality is good but it should become better consistently as good service and better relationships are the key success factors of current market situations. The process of documentation is a hassle for customers as it is not at all user friendly. Company should take care of user friendliness of the system. In order to fill the gap between actual and expected, company needs to customize its services as it is dealing into financial instruments. These financial instruments are risky and it is very essential to make the customer feel that you are taking care of his money. This can be done only if all the services are customized and the system is made transparent for the customer as well as for the employees. Need to open more branches to be a topper in market because it has a low distribution network. They should try to make some arrangements to reduce account opening time by verifying documents at branch it selves Linked as many accounts as client wants to its online account. The company should focus on the customer satisfaction not on just taking money from their pocket. There should be a limited number of clients under the relationship manger. So that he can handle new as well as old customer properly.
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The various investment tools which were mostly preferred by the investors were shares, mutual funds etc. So there should be various other means to create awareness regarding the potential of other instruments and the tools which can be more beneficial to the investors. The satisfaction levels of various investors are different due to different investment alternatives they opt for. If they will be aware of each type of alternatives and the worth of the alternatives then investing as per that there satisfaction level will also be high.
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A Comparative Study on Indian Equity Market from M/S MPCG STOCK BROKERS INDIA (PVT.) LTD.

with its Competitors, Korba

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1.3.2 INVESTMENT PROCESS Figure no. 1.3.1 Investment Process

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Sambhram School of Management, Bangalore

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consequently, by a DP on a Beneficiary Owner (BO) when a BO transfers all the securities

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lying in his account to another branch of the same DP or to another DP of

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to handling of paper. NSDL provides numerous direct and indirect

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Source: Excel Output

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Chart 4.2: Preferable Investment Options

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Online share trading

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MPCG Stock brokers

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the company meaning

that, the company should

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Less brokrage rate

16% 44% 19%

Large no. of products

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Chart 4.10: Option for best returns

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