Beruflich Dokumente
Kultur Dokumente
PROJECT REPORT
AT
(HSBC GROUP)
TO
BY
Reg No.A7752104
Certificate
TO
Under my supervision and guidance and that no part of this report has
been submitted for the award of any other degree / diploma /
fellowship or similar titles or prizes.
FACULTY GUIDE
Signature:
Name:
Qualifications: MBA, M. Phil, PhD Signature & seal of the Learning Center
3
STUDENT’S DECLARATION
I hereby declare that the Project Report conducted at
TO
Is my original work and the same has not been submitted for the
award of any other Degree/diploma /fellowship or other similar titles
or prizes.
Place: ---------------------
Date: Reg.No
4
ACKNOWLEDGEMENT
An endeavor over a period can be successful only with the advice and support of
well-wishers. I take this opportunity to express my gratitude and appreciation to all
those who encouraged me to complete this project.
I acknowledge with profound gratitude and reverence the help and guidance of one
and all in my endeavor for gainful project work I undertook at IL&FS
INVESTSMART,New Delhi.
CONTENTS
CHAPTER 1 INTRODUCTION
APPENDIX
Annexure like copy of questionnaires, interview schedule, leaflets, brochures,
Photographs to be enclosed.
Bibliography.
6
CHAPTER 1 INTRODUCTION
Financial sector
The US$ 28 billion Indian financial sector has grown at around 15 per cent
and has displayed stability for the last several years, even when other
markets in the Asian region were facing a crisis. This stability was ensured
through the resilience that has been built into the system over time. The
financial sector has kept pace with the growing needs of corporate and other
The Reserve Bank of India (RBI) has successfully introduced a regime where
Banks
The Indian banking system has a large geographic and functional coverage.
Presently the total asset size of the Indian banking sector is US$ 270 billion
while the total deposits amount to US$ 220 billion with a branch network
sector have grown at 6 per cent CAGR over the past few years to reach a
size of US$ 15 billion. While commercial banks cater to short and medium
friendly model with a focus on convenience. The sector is set to witness the
The recent favourable government policies for enhancing limits of foreign investments to 49 per
cent among other key initiatives have encouraged such activity. Larger banks will be able to
mobilise sufficient capital to finance asset expansion and fund investments in technology.
8
Capital Market
The Indian capital markets have witnessed a transformation over the last
decade. India is now placed among the mature markets of the world. Key
• Replacing the flexible, but often exploited, forward trading mechanism with
presence (for the benefit of investors across locations) and other initiatives
• The Securities and Exchange Board of India (SEBI) has effectively been
1990-1991 to US$ 203 billion in 1999-2000. The stock exchange has about
6,000 listed companies and an average daily volume of about a billion dollars
9
index futures, index options, derivatives and options and futures in select
stocks.
Insurance
With the opening of the market, foreign and private Indian players are keen
made products:
• The presence of a host of new players in the sector has resulted in a shift
benefits. Foreign majors have entered the country and announced joint
ventures in both life and non-life areas. Major foreign players include New
York Life, Aviva, Tokio Marine, Allianz, Standard Life, Lombard General, AIG,
• The size of the market presents immense opportunities to new players with
• The state sector Life Insurance Corporation (LIC), the largest life insurer in
2000, sold close to 20 million new policies with a turnover of US$ 5 billion.
10
• The gross premia for the insurance sector was US$ 13 billion for 2001-02.
• There are four public sector and nine private sector insurance companies
US$ 80 billion with a potential size of over 300 million people. The General
Insurance Corporation (GIC) (which covers the non-life sector) had a total
premium income of US$ 2 billion in 2001-02. This has the potential to reach
Venture Capital
Technology and knowledge have been and continue to drive the global
economy. Given the inherent strength by way of its human capital, technical
potential, there is a need for risk finance and venture capital (VC) funding to
ideas.
• The Indian venture capital sector has been active despite facing a
scenario.
11
• There were 34 VCFs and 2 Foreign VCFs registered with SEBI in March
2002.
Database, India ranked as the third most active venture capital market in
Asia Pacific (excluding Japan). It recorded 115 deals in 2001 with average
investment per deal amounting to US$ 7.9 million. 57 VCFs invested US$
• Disbursements for 2002 are expected to be US$ 2 billion and are estimated
• The amount has grown nearly twenty fold in the past five years. Most VCs
believe that 2002-03 will be driven by a relatively stable economy and new
initiatives that will boost the e-commerce sector, particularly on-line trading
The Bombay Stock Exchange (BSE) is known as the oldest exchange in Asia.
It traces its history to the 1850s, when stockbrokers would gather under
banyan trees in front of Mumbai’s Town Hall. The location of these meetings
Regulation Act.
The Bombay Stock Exchange developed the BSE Sensex in 1986, giving the
BSE used this index to open its derivatives market, trading Sensex futures
Capital market reforms in India and the launch of the Securities and
Indian stock exchange called the National Stock Exchange (NSE) in 1992.
After a few years of operations, the NSE has become the largest stock
exchange in India.
Three segments of the NSE trading platform were established one after
1994 and the Capital Market (CM) segment was opened at the end of 1994.
Finally, the Futures and Options segment began operating in 2000. Today the
NSE takes the 14th position in the top 40 futures exchanges in the world.
In 1996, the National Stock Exchange of India launched S&P CNX Nifty and
CNX Junior Indices that make up 100 most liquid stocks in India. CNX Nifty
Indices are owned and managed by India Index Services and Products Ltd
(IISL) that has a consulting and licensing agreement with Standard & Poor’s.
In 1998, the National Stock Exchange of India launched its web-site and was
the first exchange in India that started trading stock on the Internet in 2000.
The NSE has also proved its leadership in the Indian financial market by
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India (in 1996 and 1997) and CHIP Web Award by CHIP magazine (1999).
in June 1994. The Capital Market (Equities) segment of the NSE commenced
Since the early 1950s till the early 1990s, Indian policy makers had been
nourishing the goal of Socialist pattern of society. They had been following
invest in stocks through income tax benefits and abolition of capital gains
development of LDCs.
There are many studies supporting the positive link between stock market
development and growth. Let us mention some of the recent studies. One
important study was undertaken by Levine and Zervos (1998). Their cross-
country study found that the Development of banks and stock markets has a
liquidity and economic growth, the cross-country data for 49 countries over
the period 1976-93 suggest a strong and positive relationship (see also
Levine, 2001). Henry (2000) studied a sample of 11 LDCs and observed that
There are some economists who are sceptical. Long time back Keynes
(1936) compared the stock market with casino and commented: ‘when the
Referring to the study of World Bank (1993) Singh (1997) pointed out that
Japan, Korea and Taiwan. He argued that the recent move towards stock
analytical, young and English speaking work force the 'pull' for opportunities
are luring. The bandwidth of 'India Market' is enviably wide and very deep.
road ahead for 'Markets of India' is very rosy. 'Market India' has witnessed
exponential growth over past one and half decade. Liberal and transparent
pro- actively listing on the stock market indexes. Government agencies once
much hated for red tape and bribes has shed its image. Professionalism is
their new mantra. Public Enterprises like IOC, ONGC, BHEL, NTPC, SAIL,
MTNL, BPCL, HPCL and GAIL, SBI, LIC, Hindustan Antibiotics Limited, Air
India etc. to name a few, are giving Private Indian companies a good run for
their money. Private giants like Reliance Industries Limited, Infosys, Tata,
Birla Corporation, Jet Airways, Ranbaxy, Biocon, Bajaj Auto, ICICI are
Urban Indian class which, in turn has increased consumerism. Today, each
etc. has tremendous growth potential. Retail Industry along with Agriculture
& Food industry are yet to contribute their share to the growth story of
'Market India'.
Indian Equity Market at present is a lucrative field for the investors and
investing in Indian stocks are profitable for not only the long and medium-
term investors, but also the position traders, short-term swing traders and
there are over 2500 companies in the BSE chart list with the Reliance
Industries Limited at the top. The SENSEX today has rose from 1000 levels
to 8000 levels providing a profitable business to all those who had been
investing in the Indian Equity Market. There are about 22 stock exchanges in
India which regulates the market trends of different stocks. Generally the
bigger companies are listed with the NSE and the BSE, but there is the
OTCEI or the Over the Counter Exchange of India, which lists the medium
and small sized companies. There is the SEBI or the Securities and Exchange
20
India.
with each day. If all the economic parameters are unchanged Indian Equity
Market will be conducive for the growth of private equities and this will lead
Indian Stock Market including both NSE-National Stock Exchange and the
the past few weeks. We are sure most of us here knew that the correction in
the trading curve was round the corner which would be healthy, and the
markets would bounce back from 18k levels with the help of mutual fund
investments & buying of Indian stocks again. However the anticipation went
wrong, and the US recession story along with global and Indian commodity
prices have added fuel to the global equity market turmoil on a whole.
21
The stock market is booming in spite of the low agriculture output. The
monsoon is good in an overall sense but still the question remains who takes
the credit? The answer is the karma of the people. I appreciate the Indian
politicians and the industrialists who being pawns of destiny are doing things
and the position of planets in the transit are giving wonderful results.
Less than one percent of population own stocks and less than 1000
individuals control the market, the majority being the FIIS, the promoters of
the company. The credit should go to media for making stock market
headlines.
First of all, mark my words Indian bourses in the future will be one of the
best investments in the world. There will be a time when it can even reach
3000 points in the nifty. India will begin one of the best dasas of the Sun,
which will work in its favour. So before 2009 Indian bourses should see an all
time high.
• There can be some correction in the BSE sensex in the 7500 points
level.
22
• The market will hover between the 6000- 7000 till mid august.
Investors and new entrants to the market to cool down a bit and come well
below 7000.
In any case if you are long terms players then step-in and buy now and
forget for another 10 years. You will make a killing in the Indian markets.
Most of the tech companies and the main index will do well but slightly in the
brokerage related, investing and financial services. They also provide loan
and credit activities, insurance products and security dealing services. IL&FS
Services Ltd. The company commenced equity broking on NSE and BSE in
February 1998 and August 1999 respectively. In June 2000, the company
Services Ltd and DebtonNet India Ltd were merged with the company. The
Insurance Distribution Pvt Ltd. In March 2003, the name of the company was
changed from Investsmart India Ltd to IL&FS Investsmart Ltd. During the
Investsmart Commodity Brokers Ltd and also acquired IL&FS Academy for
Insurance and Finance Ltd during the year. During the year 2004-05, the
a large private equity fund with funds under management exceeding USD 6
billion and E*Trade is one of the largest retail broking and banking equity
based in US with the presence in all major world markets. During the year,
Investsmart Commodity Brokers Ltd. During the year 2005-06, the company
on a going concern basis. During the year 2007-08, the company transferred
Securities Ltd. The company received the 'Best Performing National Financial
IL&FS has set up a financial centre in Bandra Kurla Complex in Mumbai with
a view to house all its subsidiaries, ventures etc. at the sameplace for
on June 14, 2000 the registered office of the Company was changed from
Mahindra Towers, 4th Floor, 'B1 Wing, Dr. G. M. Bhosale Marg, Worli, Mumbai
400 018 to The IL&FS Financial Centre, Plot C-22, G Block, Bandra-Kurla
offices in Japan, with 234 locations throughout the United States, Asia,
26
Limited (OIL) with IL&FS In vests mart Ltd (erstwhile In vests mart India
also registered with SEBI as a Category merchant banker since the inception
IL&FS also had a 50% stake in another company called DebtonNet India
Limited (OIL), which was set up along with. National Stock Exchange Of
platform, using the Internet, for book built debt issuances. Over a period of
time DIL had enhanced the scope of the platform to provide a wide range of
information, news and analytics relevant to the debt market. With a view to
consolidate IL&FS's interests in the capital markets IMBSL and DIL were
merged into the Investsmart India Limited. Prior to this, IL&FS had taken
over the 50% stake of National Stock Exchange of India Limited in DIL. The
1002.55 crore (around $241.6 million), paving its entry into the retail
brokerage arena. This would also give the group an entry into the non-
banking finance market, which it has been looking at entering for the past
company open.
stake from E*TRADE Mauritius and an additional 29.36% from IL&FS for
Rs 200 per share. HSBC will also pay IL&FS Rs 82 crore as part of a
E*Trade had made an open offer for Rs 210 per share. On Friday, the
(India) Private Ltd, the Group's securities arm in India, will pick up IL&FS
stake while HSBC Mauritius will pick up the stake of E*TRADE Mauritius.
However, the RBI is not in favour of allowing foreign entities to get into
the commodity broking space. HSBC may have to offload the commodity
broking piece. "We have not taken a decision on the commodity broking,"
says Ms Kidwai. HSBC will also use the investment banking capabilities of
Investmart has a strong management team and they are very much part
of our future growth plans. This acquisition will allow us to scale our
do mid cap research and mid size ECM transactions. The group could look
from the BSE and NSE. IL&FS Investmart was started in 1999 as a
broking arm of IL&FS. The company had issued a GDR and E*Trade and
holding bought about 73% from E*Trade, SAIF Partners, and IL&FS for Rs
1,311 crore. It later acquired another 20% stake, increasing its stake to
93.8%. However, HSBC has now offered to delist the company from the
BSE as well as the NSE. HSBC currently holds 93.8% stake in IL&FS
Investmart. As far as HSBC stake goes, in 2008 they bought 73.2% stake
from E*trade, SAIF Partners and IL&FS and then made an open offer for
20%. The open offer was for Rs 200 per share and currently it’s sitting on
Rs 144-145.
final approval and they are looking at delisting by offering to buyback the
remaining 6.2% shares and delist the company from the Indian stock
exchanges.
because the market share in the Indian retail market is just constituted
by several large players which constitute 60% of the market share and
30
the rest of the market share is split across the board, across small
interesting is that it has a good branch network and this is what HSBC
wanted. Even when they bought that 70% stake, the whole idea was to
• Retail offering
• Institutional Offering
• Advisory report
• Online Trading
• Advisory Services
• EQUITY
• DERIVATIVES
• IPO
• PMS
• ONLINE TRADING
• COMMODITIES
• INSURANCE
31
CHART
• HOME
• RETAIL OFFERING
• INSTITUTIONAL OFFERING
• MARKETS
• ADVISORY REPORT
• ONLINE REPORT
• ADVISORY SERVICE
competitors
1. SMARTSTART
features
2. SMARTINVEST
Features
Instant Loading
3. SmartTRADE
33
Features
• EOD Charts
• Derivative chain
ADVISORY SERVICES
1. Why invest?
Saving v/s Investing is not a new debate. While savings pertains to money
put away for short time periods, Investing on the other hand is a decision
• Savings is normally the money that is put away for short term periods
• The after tax returns generated from savings rarely outpace inflation.
• Monies are invested for a longer duration of time, over 3-5 years.
As of 26 Jun 2009
198.75INR
Price Change
+9.45
Percent Change
+4.99%
Analyst Recommendations
OVERVIEW
clients.
BRIEF: For the fiscal year ended 31 March 2009, IL & FS Investmart Ltd.'s
revenues decreased 44% to RS2.19B. Net loss totaled RS1.09B, vs. a profit
COMPANY ADDRESS
P: +9122.26533333
F: +9122.26533075
36
TOTAL EMPLOYEES
1997
- Home Page
- News Releases
- Investor Relations
- Corporate History/Profile
- Executives
- Products/Services
- Employment Opportunities
37
I worked there with IL&FS INVESTSMART with a profile of sales trainee. This
profile offers me to understand the need of customer and provide them the
best deal possible with maximization of the profit, both for the company as
The most important aspect for the role of trainee is trust. So far
• Capitalize on the old and loyal clientage which can be building slowly
Generation of leads
Since I was new in the field so I had to start from scratch and
Cold calling is one of the trusted ways of getting to the customers without
meeting them. Although the rate of conversion remained very less.for cold
calling the quality and accent remains a very important criterion . this
38
activity give me mixed result. I often got success and generated many leads
were in different mood and made us hear words for which a marketer
The corporate were the most difficult and most temping to get the
At IL&FS INVESTSMART after getting the product knowledge in the first week
at the branch I was also allotted distributor to work with. In the initial phase
After the third week my performance also improved and I was able to get
get awareness of the every product I attended diversified calls. This helped
LIMITATIONS:
1. Cold Calling
• Time consuming
2. Corporate
• Time consuming
I was supposed to use the database provided by the company to make cold
for investment purpose or insurance or both. Suggest them the plan that
best suits them. If they agree to it then either we send across the agents to
• People fear that Reliance Money Being a Private company and a new
• Misguidance by agents.
• People risk appetite is very low, so they are afraid of mutual fund as
well.
SWOT ANALYSIS
Weakness Strength
• Inexperienced Staff • Co-operative and
• Low awareness due to Experienced Branch
lack of advertisement. Managers
• Lack of loyal clientage • Good Database
• Developing product. • Reliance Brand
• Low pricing
Opportunity Threat
• Untapped Market • Reach
• Increased spending power • Stiff competition from
• Changing Mindset of existing players in the
Customers market
• Unpredictable Sensex • Better products
42
PROBLEM
competitive advantage.
43
Methodology Adopted
Data collection
source.
PRIMARY DATA :
question and a survey was conducted. The tabular and graphical data
SECONDARY DATA :
SAMPLING:
44
office.
1. Preference of Investment
Interpretation: This shows that although the mutual funds market is on the
rise yet, the most favored investment continues to be in the Share Market.
So, with a more transparent system, investment in the Stock Market can
definitely be increased.
towards online share trading has increased by leaps and bounds. This
education.
target audience yet, it is to be noted that the customers are not aware of the
should concentrate more towards promotional tools and increase its focus on
Fig4.5.5
6. Frequency of Trading
promises, we see that there is still a dearth of active traders and investors.
market and the skepticism of the target audience that is generated by the
48
Interpretation: This shows that people invest only upto 10% of their
earnings in the stock market, again reiterating the volatile and non-
transparent structure of the Indian stock market. Hence, effective and
efficient steps should be undertaken to woo the customers to invest more in
the lucrative stock market.
49
• To get initial success in this field is very difficult. Although the business
generation becomes easier with time as we serve more people who then get
added up in the loyal clientage. Thus time and service are two most factors
business in bulk but retail cannot be ignored which makes your business
ticking.
Based on the findings of our project we would like to suggest the following:-
• After sales services and follow up calls are important for getting new
account to General Insurance and not all the salespeople are familiar with
each and every product so the work force should be segregated each group
dealing in a specific product and the sales target should be given likewise.
• While interacting with the investors I found that most of the customers
are unaware about the Mutual fund. Some of the people look upon mutual
program can help to increase the penetration of mutual funds in the market.
• INVESTSMART should declare in black ink that they will charge just 1
paisa per transaction. People tend to think that there must be some hidden
charges.
Based on the above SWOT analysis and study of the available data I have
HUGE POTENTIAL:
51
slowly but surely gaining a strong hold because it is finally able to grasp the
can be encouraged and motivated to do good work because they have a long
• Right now Reliance is at its nascent stage and will surely grab the
major market under its belt very soon like in other fields.
• The Stock Market has been very buoyant until now especially in the
their money in the market. Although in the past 3 months the market has
shown very unpredictable trend and has already lost over 1000 points.
• So in order to make the best the only thing required is to recruit more
field staff who should be trained in a proper way to get better results.
associate it with emergencies and unpleasant situations like death and they
52
don’t want to think about such situation let alone prepare for them, which
• People have just opened up to the idea of ULIPs because till now they
knew only two kinds of insurance plans, endowment and term plans so the
concept of high returns with protection is very new to them and slowly and
tapped.
• In the past few years there has been a tremendous inflow of funds in
the Indian market which has lead to the sky rocketing SENSEX. In fact there
has been a tremendous response from the investors not only in shares but
mutual funds as well. The Rs5700Cr infused in the market through the HSBC
investors who earlier shied from such investments due to stock market
fiascos like the Harshad Mehta scam or the US64 disaster in which investors
• With the FDI limits being relaxed, a lot of avenues will open up in the
APPENDIX
QUESTIONNAIRE
Q1. In which of these Financial Instruments do you invest into?
Yes No
Yes No
Yes No
Yes No
Q6. What differentiates your Share trading company from others? (in regards of
brokerage, satisfaction, services, products )
Q7. Are you currently satisfied with your Share trading company?
Yes No
Q13. How do you rate these share trading companies? a. Reliance money
b. ICICI Direct
1. 2. 3. c. India Bulls
4. 5. d. IL&FS INVESTSMART
e. Others (Please
specify)
Q14. What more facilities do you think you require with your DEMAT account?
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Personal Information
Name :
Age :
Phone No :
Occupation:
Articles
Books
Websites
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• www.shcil.com
• www.icicidirect.com
• www.investsmart.com
• www.nseindia.com
• www.economicstimes.com