A SUMMER TRAINING PROJECT REPORT

ON STUDY ON DEMAT ACCOUNT AND ONLINE TRADIN AT FARSIGHT SECURITIES LIMITED REPORT 2013

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD

OF

POST GRADUATE DIPLOMA IN MANAGEMENT

SUBMITTED BY Abhik SINGH 12018

DEPARTMENT OF MANAGEMANT

INSTITUTE OF MANAGEMENT E

DECLARATION

I hereby declare that the project report entitled" STUDY ON DEMAT A/C AND ONLINE TRADING submitted for the Post Graduate Diploma in Management is my original work and the Project Report has not formed the basis for the award of any degree, diploma, associateship, or other similar titles.

Date

Place

Signature

INSTITUTE OF MANAGEMENT EDUCATION

G. T. Road, Sahibabad, Ghaziabad (U.P.)

DEPARTMENT OF MANAGEMENT

CERTIFICATE

This is to certify that the Summer Training Project titled STUDY ON

DEMAT A/C AND ONLINE TRADING " submitted By KRITIKA SINGH

(12018) for the partial fulfillment of the requirements of PGDM (Batch 2012-2014), embodies the bonafide work done by him/her under my supervision.

______________________ Signature of the Guide Place: _____________________

ACKNOWLEDGMENT

I express my sincere gratitude to the management of. FARSIGHT SECURITIES

LIMITED

for providing me material to prepare my project on their esteem organization.

I would like to thanks Mr. NEERU OMARE who has been a constant source of inspiration and my special thanks to Dr Neha Tiwari (project guide) from the institute) for her extensive guidance, cooperation and support.

Finally, I wish to express my gratitude to all those who have in one way or other helped me in the successful completion of my project report. The Project was completed successfully with the valuable cooperation of companys personnel.

TABLE OF CONTENT

I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII. XIII.

COMPANY PROFILE OBJECTIVE NEED OF THE STUDY DEMAT AND ONLINE TRADING OVERVIEW RESEARCH DESIGN COMPETITIVE ANALYSIS MARKET PROBLEM AANALYSIS & INTERPRETATION FUTURE LINE & RESEARCH FINDING CONCLUSION SUGGESTION BIBLOGRAPHY

INTRODUCTION TO FARSIGHT

Farsight group welcomes , the Investors to a highly committed and dependable financial organization that strives to deliver you the best of investments related services. At Farsight, we believe and dare to do what other financial and stock broking houses feel impossible in terms of customer satisfaction. We are a leading Broking House, incorporated in 1995, having membership of National Stock Exchange of India Ltd. (NSE), Bombay Stock Exchange Ltd. (BSE), National Commodity and Derivatives Exchange Ltd. (NCDEX), Multi Commodity Exchange of India Ltd. (MCX) . Farsight

has expanded globally by acquiring the membership of Dubai Gold & Commodity Exchange (DGCX). Depository Services of National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) for commodities as well as securities are provided by us.. Clearing Services to other NSE Members in F&O Segments are also available with us being Clearing Member of NSE - F&O. Commodities trading have been our forte with focus on international arbitrage. They offer large avenues of investment solutions catering to all classes of satisfied investors. Farsight group has the following constituents:( click here ) We at Farsight believe that no company can become Multi National until it is a winner at home. We have a presence in all Metros and major Towns of India serving to a large number of clients.

QUALITY OBJECTIVES Investor service is an unending process at Farsight. Hassle free trading experience. On technology front we are second to none. All of the best trading platforms are available with Farsight. One of the most competitive brokerage structure. Our experience is one of our prized possession. We have an experience of more than 10 years wherein we have grown phenomenally. Dedicated and motivated human resources have been our strength from the very beginning. Continue to uphold the values of honesty & integrity and strive to establish unparalleled standards in business ethics. Mammoth network of offices and our nation wide presence, ensures personal touch and easy accessibility to investors across the country. Timely advice along with research support to the clients through SMS and E-MAILS on EQUITIES, DERIVATIVES, COMMODITIES, IPOs and Mutual Funds.

In Currency Futures , Farsight is having the membership of following exchange. NSE ( CN) MCX SX USE

Depository Services of National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) for commodities as well as securities are provided by us.. Clearing Services to other NSE Members in F&O Segments are also available with us being Clearing Member of NSE - F&O. Commodities trading have been our forte with focus on international arbitrage. Over the years, Farsight has expanded its operations domestically with a growing network of 100+ offices spread across 50+ cities/towns in India.

They offer large avenues of investment solutions catering to all classes of satisfied investors. Farsight group has the following constituents:/ Group companies Farsight Securities Ltd. Member NSE , Currency Derivatives, DP-NSDL,CDSL Anuriti Multy Broking Pvt. Ltd. BSE , AMFI approved mutual funds distributor Farsight Brokers Pvt. Ltd. SEBI approved Intermediary Five Square Agro Gold Pvt. Ltd. Member NCDEX ,MCX , NMCE ,NSEL and ICEX Sanchay Commodities DMCC Member Dubai Gold & Commodities Exchange.

VISION AND MISSION

Vision Their Vision is to play a vital role in the development of the Capital market by providing adequate safeguards and knowledge to the Investors, Institutions and other Participants and to become a Global catalyst in financial market.

Mission

Their Mission lies in providing an efficient and wide range of Capital, Commodity and other Financial services to our clients on National and International basis. By providing Innovative ideas and solutions we go an extra mile to enhance Return on Equity.

CORE VISION

TRANSPARENCY: They belive transparency is the only force which can make the small sapling a giant tree HONESTY : Honesty is the best policy INTEGRITY: Financial brokers job is the job of utmost confidence & trust. Even an iota of doubt can rock the boat.

MILE STONES

1995 1996 1997 1998 2000 2001 2002 2003

ESTABLISHMENT OF COMPANY COMMENCEMENT OF NSE CASH MARKET TRADING created equity research cell HOTSHOTS catalyst for wealth creation Set up 8 branches through NSE VSAT system Depository participant of NSDL for shares Future and option training Future& Option Trading cum clearing membership Created its own VPN system based on VSAT, Lease Lines DSL MLDN Started

application based on internet trading 2004 Farsight become member of NCDEX and MCX,Depository Participant of NSDL of Commodities 2005 2006 Expanded globally by acquiring membership of dgcx Become member of bombay stock exchange(BSE)

2007 Started browser based internet trading with funds and securities and securities on line transfer gateways.become clearing member of BSE for future segment 2008 2008 2009 Depository participant(DP) of central depository services india ltd(CDSL) Currency future segment of NSE activated NOW-now softwarefor online trading launched

MANAGEMENT TEAM

Miss Anusha Maheshwari, Chief operating officer (no. 9871474895, e-mail ) is head of dedicated and motivated human resources which have been our forte.

Other Key Personnel Mr. A.K.Mishra Mr. Gurmeet Singh Mr. Rakesh Kumar Mr. Shiv Kumar Mr. Pawan Joshi

PROMOTER

Dr Naresh Maheshwari Dr Naresh Maheshwari, doctorate in options trading besides FCA, FCS, FISA with a standing of 30 years in the field and presently, is Chairman of Farsight Group. He is associated with many research projects on Derivatives with professional Institutes and Universities. He is a prolific commentator on matters pertaining to Capital Market, Investors Protection and Corporate Laws in electronic and print media.

He was instrumental in setting up Commodity Participants Association of India (CPAI) and is its Immediate Past President.

Having been the Chairman of Northern Region of Association of National Exchanges Members of India (ANMI-NR) and of various standing committees of ANMI, presently he is National President of ANMI.

He has visited and represented ANMI in many international organizations like KOFIA Korea, ASC Thailand, MAS Singapore, various stock exchanges at Hong Kong, Shanghai (China), Korea, Bursa Malaysia, SMX etc. Dr Maheshwari also led Indian capital market delegation to Asian Securities Forum at Beijing (China). He was observer in ICSA (International Council of Secretary Association) AGM-2011 at London and ICMA (International Capital Market Association) AGM-2011 at Paris.

A hand book for Investing & Investor Protection authored by Dr. Maheshwari published by Institute of Chartered Accountants of India was recently released by Mr. K Mittal, secretary Ministry of Corporate Affairs Govt. of India.

This hand book has been selected to be posted at website of AFIE (Asian Federation of Investors Education) Japan.

PRODUCT AND SERVICES OFFERED BY FARSIGHT

EQUITIES & DERIVATIVES COMMODITIES CURRENCY DERIVATIVES E-BROKING MUTUAL FUND IPO DEPOSITORY CLEARING SERVICES

EQUITIES & DERIVATIVES Equities are considered more rewarding when compared to other investment class. At Farsight we provide highly efficient and sophisticated trading solutions to manage your investments effectively in an increasingly complex and dynamic market scenario.

Indian markets, though in the nascent stage offer one of the most exciting and rewarding investment opportunities among the emerging market economies. Hence, as financial awareness deepens and more sophisticated instruments enter the Indian markets, investors need to tread the path cautiously. At Farsight we empower our clients through analysis at the RITGHT TIME so that they can buy RIGHT STOCKS at RIGHT PRICE. With a presence in multiple locations across India, Farsight has successfully enhanced trading capacities through its partners. We impart an enriched trading experience through our unique paradigm of execution both( offline and online) ; state-of-the-art tools and features in intraday as well asdelivery . Trading in Equities & Derivatives with Farsight truly empowers you to REWARD YOUR INVESTMENTS . We ensure you have a superlative trading experience through our

Highly process driven and diligent approach Powerful research and analytics

One of the best-in-class dealing rooms

Farsight not only has one of the largest retail network but also niche specialized desks for HNI , QFI, NRI & NBFCs. You can now walk into any of our branches and connect to our highly skilled and dedicated relationship managers to get the best services. Our services

An enriched trading experience with best-in-class dealing rooms Access to daily, incisive, fundamental and technical research and analytics from our research teams Personalized services through a team of efficient Relationship Managers and Dealers Ability to map multiple bank accounts in back-office A dedicated IT help desk E-contract notes Portfolio valuation reports and ledgers on demand Prompt payout of funds Other value-adds such as online fund transfers, 24-hr online portfolio tracking, browser and application-based platforms Single window login for all back-office systems, regular alerts and daily trade confirmations on SMS to your mobile phone Ability to access all your accounts through a unique Customer Relationship Number Prompt news on stock results, earnings, bonus, share holding patterns, etc. Online trading account which provides exposure against the cash margin as well as shares lying idle in clients DP account

COMMODITIES Five Square Agro Gold Pvt Ltd.was initiated to spearhead exchange-based Commodity Trading. With nationwide presence, it enables the retail & corporate investors to diversify their portfolio and enjoy the benefits of commodity trading in MCX, NCDEX, NMCE , ICEX & Spot Exchange. Our highly appreciated research team guides the investors to make wise investment decisions for agri-commodity market as well as international commodities trading. A farmer may have a field of corn and in order to hedge against the possibility of corn prices dropping before the harvest he might sell corn futures. He has locked in the current price, if corn prices fall he makes a profit from the futures contracts to offset the loss on the actual corn. On the other hand, a consumer such as Kellogg may buy corn futures in order to protect against a rise in the cost of corn. Why Trade in Commodity Futures Big market - diverse opportunities Trading in commodities provides a lucrative market opportunity for investors, arbitragers, hedgers, traders, manufacturers, exporters and importers. The listed commodities include Bullion, Metals, Energy and Agri products. Exploitable fundamentals Commodity trading operates on the simple principle that Price is a function of Demand and Supply. This makes things really easy to understand and exploit.

Portfolio diversifier Commodity Futures derive their prices from the underlying commodity and commodity prices cannot become zero. Commodity has a global presence and hence, it''s a good portfolio diversifier. Extended trading hours Indian commodity market operates for 14 hours a day covering timings of all major international commodity exchanges, thus giving traders ample time to earn profits. Option of trading in Demat form Now, one does not need to hold commodities physically in warehouses. Now-a-days depositories offer to hold your commodities in a Demat form.

Our dedicated team of experts and highly skilled professionals provide valuable assistance in exchange-based commodity trading. Whether a first-timer, an experienced trader, a hedger or a corporate client, we offer each client a customized trading experience. Our nationwide presence in Mandi (agricultural market hubs) locations brings commodity trading right to the doorstep of the actual producers (farmers) and enables them to hedge risks better. These Mandi branches also act as listening posts that feed information on arrivals, demand, weather, production and other aspects which impact the physical markets and help our research teams deliver better quality research on commodities. Our services

Personalized services through a team of efficient Relationship Managers and Dealers Ability to map multiple bank accounts in back-office Robust client support system - Online fund transfers, 24 hr online portfolio tracking, offline/online trading models, single window login for all back office systems. Commodity Newsletter and various research reports circulated daily.

CURRENCY DERIVATIVES The Currency Segment is the largest and most liquid financial market in the world. It is the arena in which a nation''s currency is exchanged for that of another at a mutually agreed rate. It was created in the 1970''s when international trade transitioned from fixed to floating exchange rates. Traditionally, the currency market has been the preserve of banks and larger financial institutions. However with advances in technology, and the global nature of the market, it is now possible for Traders , Investors , Arbitrageursetc with varying degree experience , maturity , financial need or outlook to take part in online currency trading. It offers all participants huge opportunities to benefit from fluctuations in the currency markets . NSE , USE & MCX SX are the three recognized exchanges in India who can provide Online Currency trading . Farsight is a member of all these 3 exchanges and therefore can provide all products and contracts available on these exchanges .

Product Features

Currency Segment in India allows Cash settled Futures& Options in 4 International pairs with 12 monthly contracts . Lot of 1000 is available for US Dollar ,GB Pound & Euro and for Japan Yen lot available is 100000. High Liquidity Less volatile market as compared to other trading products Low Margin and High Leverage Currency follows close correlations with Equities, Commodities Spread Trading Inter Currency and Intra Currency Spread Huge trading limits for Retail, corporate and institutional clients Exchange Traded Currency Derivatives are effective risk management tools.

High Liquidity

Liquidity is abundant due to an average trading volume of over $ 5 Billion per day in India, from exchange traded currency futures and options. Also the same is reflected in low bid/ask spread of 0.0025 per unit of currency which means trader can enter and exit at considerably low risk and low cost. Investment by Offshore Institutions in India & Indian Investments Offshore FDI & FII flows

Simple and easy to understand just 4 Currency Pairs

One can trade in currencies like: USDINR US Dollar Vs Indian Rupee EURINR Euro Vs Indian Rupee GBPINR Great Britan Pound Vs Indian Rupee JPYINR Japanese Yen Vs Indian Rupee

Less volatile market as compared to other trading products

Currency trading is less volatile as compared to other assets. It shows the opportunity to invest safely with limited risk. Volatility is a measure of short-term price fluctuations. While some traders, particularly short-term and day traders rely on volatility to profit from quick price swings in the market, other traders are more comfortable with less volatile and less risky investments. As such, many short-term traders are attracted to the currency markets.

Our services

An enriched trading experience with best-in-class dealing rooms. Access to daily, incisive, fundamental and technical research and analytics from our research teams. Personalized services through a team of efficient Relationship Managers and Dealers. Ability to map multiple bank accounts in back-office. A dedicated IT help desk. E-contract notes. Portfolio valuation reports and ledgers on demand. Prompt payout of funds. Other value-adds such as online fund transfers, 24-hr online portfolio tracking, browser and application-based platforms. Single window login for all back-office systems, regular alerts and daily trade confirmations on SMS to your mobile phone. Ability to access all your accounts through a unique Customer Relationship Number. Prompt news on stock results, earnings, bonus, share holding patterns, etc..

E-BROKING With the introduction of Online Trading in the Indian market, buying and selling of financial instruments is now just a click away. Farsight Online offers you a complete Financial Hub that allows you to trade in a diverse range of products and services addressing all your financial needs. Our customers get the opportunity to trade in Equities, Commodities, Currency Futures, apply for IPOs and invest in Mutual Funds. At Farsight, we believe in connecting with our clients to deliver highly professional, real-time and streamlined services that are tailored to their needs. Our Online platform caters to the requirements of both amateur and seasoned traders. As Beginners the clients get to learn the basics of trading at our Knowledge Centre, while as a Seasoned trader they can use the leeway given many times intra-day exposure to your advantage. We at Farsight believe that time is money, and therefore the features of our online trading platform have been designed to make investing in financial instruments more time efficient. Investors, no longer have to read through numerous books and websites to garner information before making an investment. We provide in-depth reports across economies, industries, sectors and financial instruments, to help clients make well informed decisions. Multiple Payment Gateways with Online Exposure management ensuresSTP( Straight Through Processing) experience to the investors . We are committed to offer our clients the best-in-class services, latest online products and state-of-the art technology. So get empowered and enrich your experience by opening yourself to a whole new world of possibilities with Farsight . Our services - Complete Financial Hub for Equities, Derivatives, Currency Futures, IPOs and Mutual Funds Convenience of integrating your Bank, Trading and Demat accounts with attractive and flexible brokerage options. Unique offering available to our online customers across India by any of our Farsight branches. The offerings include:

Cheque receipt and deposit Funds payout request and cheque disbursement Stock payout request Profile change request for demographic changes in the Trading account and Depository account Closure of Trading or Depository accounts

Exposure upto 10 times* on your margin Allowing you the freedom to trade without hassles throughout the day without having to worry about your cash margin. You can get exposure (on cash segment) as high as 10 times for intraday trades. * conditions apply. Online access to Back-office reports, through login with your USERID. The investors get to

track their financials, trades and investments, any time with convenience. They can also get online reports of Financials, Net Position, Contract Notes, Settlement Bills, Delivery Reports and Profit & Loss statements. Research mailer and SMS, offered by our research team covering equity analysis , IPO Research, Mutual Fund research and Buy/Sell recommendations of Stocks and Derivatives, estimates and enhanced analytics. Features of Trading Software

Account activation charges Rs. 1000 Traders terminal on your desktop NSE , BSE , Currency , MCX & NCDEX on single platform Real-time streaming quotes Technical charting (Intraday and EOD) Multiple watch list Advanced hot-key functions for faster trading Access your ledger balances and account information over internet and phone Online transfer of funds through internet payment gateway Trade online and over phone

DEPOSITORY Depository Participants (DP) offers a safe & convenient way to hold securities in electronic form as compared to paper form. It offers freedom from delays, forgeries, settlement risk and paper work. Farsight Group provides an integrated single platform for our clients ensuring a quick, risk free and efficient process. We are participants of Central Depository Services Limited (CDSL) and National Securities Depository Limited (NSDL). We believe in efficient, cost-effective and integrated fixed deposit services support to our brokerage business India. Farsight , as a Depository Participant, offers depository accounts to individual investors as well as corporate houses, which enables them to trade in the dematerialized environment. We are one of the few Depository Participants offering depository facilities for commodities. We are empanelled with NCDEX, MCX and spot exchanges. Our services Dematerialisation service where physical shares certificates, debentures, and bonds are converted into electronic form. Rematerialisation service where dematerialized shares, debentures, bonds are converted into physical form. Conversion of Mutual Fund Units where mutual fund units represented by Statement of Account is converted into electronic balances . Delivery Instruction Slip processing where shares are transferred to Pool account in case of Market sell through brokers or Off-Market/Inter DP transfer. Pledge/Hypothecation Instruction processing where loans can be availed of by pledging electronic shares and commodities. Additional services:

SPEED-e facility for electronic submission of Delivery Instructions. SMS alert facility for debits, credit, IPO credits, sub-division and bonus of shares and overdue status. Corporate benefits such as bonus/dividend gets credited directly into demat account.

CLEARING SERVICES Farsight Group is Clearing Member of NSE (F&O), NCDEX,NMCE&ICEX. Our edge

Trusted name in Broking Industry. One of the leading clearing members of NSE Incredible track record of timely delivery of Commitments Concern about timely need of Trading Members being, in the same fraternity Attitude to follow the best practices in the Industry Committed approach to business Technologically sound to cope with the growing needs of Trading Members Senior Professional personnel for every service need Flexibility and adaptability to the dynamic needs of the market

OBJECTIVE

1. To study the online trading & demats a/c procedure followed in FARSIGHT. 2. To study present online share trading. 3. To find the awareness of Demat account among employed investors. 4. To find out the point of view of investors regarding the services provided by the DP. 5. To discover the investment portfolio that the investors are looking forward to devote into.

Need for the Study

The need of the study arises because of the reason that a trainee must understand the company, its achievements and tasks, products and services and also to collect information about its competitors, its products and services offered. So that, after understanding and collecting information about the organization and its competitors, a trainee will be able to work well for the organization. From the study we have learned very much, about the company as well as the strategy of the customers, which helps us a lot at our working days.

TRANSACTION CYCLE
Decision to trade funds or securities Placing Order

settlement of trades clearing of trade

Trade Execution

A person holding assets (Securities/Funds), either to meet his liquidity needs or to reshuffle his holdings in response to changes in his perception about risk and return of the assets, decides to buy or sell the securities. He selects a broker and instructs him to place buy/sell order on an exchange. The order is converted to a trade as soon as it finds a matching sell/buy order. At the end of the trade cycle, the trades are netted to determine the

obligations of the trading members securities/funds as per settlement cycle. Buyer/seller delivers funds/ securities and receives securities/funds and acquires ownership of the securities. A securities transaction cycle is presented above. Just because of this Transaction cycle, the whole business of Securities and Stock Broking has emerged. And as an Transaction Cycle extension of stock broking, the business of Online Stock broking/ Online Trading/E-Broking has emerged. 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.

DEMATS AND ONLINE TRADING

( AN OVERVIEW)

THE STOCK EXCHANGE IN INDIA

A stock exchange is a form of exchange which provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment

of income and dividends. Securities traded on a stock exchange include shares issued by companies, unit trusts, derivatives, pooled investment products and bonds.

The investor wants liquidity for their investments. The securities, which they hold should easily be sold when they need cash. Similarly, there are others who want to invest in new securities. There should be a place where the securities need to be sold and purchased. Stock Exchanges provide a place where securities of different companies can be purchased and sold.

Stock Exchange is a body of persons, whether incorporated or not formed, with a view to help, regulate and control the business of buying and selling securities . Stock Exchanges are organized and regulated markets for various securities issued by corporate sector and other institutions. The stock Exchanges enable flexible purchase and sale of securities as commodity exchanges allow trading in commodities.

Stock Exchanges are an integral part of nation's economic life. They operate by holding the responsibility of mobilizing savings of small and big investors and allocating them to the business firms and for the entrepreneurs, towards productive investment. The following definitions explain the meaning and scope of Stock exchanges.

Definition:

According to the securities contract act, 1956 Stock Exchange means any, body of individuals, whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying and selling in securities"

SECURITIES EXCHANGE BOARD OF INDIA(SEBI)

ESTABLISHMENT OF SEBI The Securities and Exchange Board of India was established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992. PREAMBLE The Preamble of the Securities and Exchange Board of India describes the basic functions of the Securities and Exchange Board of India as

"...to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto"
Recommendations of Narasimham committee as well as of other committees and groups pointed out a number of shortcomings in the functioning of stock markets in India, such as long delays, lack of transparency in procedures, vulnerability to price rigging and inside trading. To counter these shortcomings, Securities and Exchange Board of India (SEBI) was initially established as a non-statutory body in April 1988 for

1. Dealing with all matters relating to the development and regulation. 2. Providing investor protection. 3. Advising the government on all these matters.

SEBI was given statutory status by an Act of Parliament on April 4, 1992. SEBI was authorized

1. To regulate all merchant banks on issue activity. 2. To lay guidelines, and supervise and regulate the working of mutual funds and 3. To oversee the working of Stock Exchanges in India.

Functions of SEBI:

Under the SEBI Act, SEBI has been assigned the following main functions;

1. Regulating the business in Stock Exchanges and other securities markets. 2. Registering and regulating the working of stock-brokers, sub-brokers, share transfer agents, banker to an issue, trustees of trust deals, registrars to an issue, merchant bankers, underwriters ,portfolio managers, and other intermediaries associated with the securities markets. 3. Registering and regulating of collective investment schemes including mutual funds. 4. Promoting and regulating the working of self-regulatory organizations. 5. Prohibiting fraudulent and unfair trade practices relating to securities market. 6. Promoting investors education and training of intermediaries of Securities market

7. Prohibiting insiders trading in securities 8. Regulating substantial acquisition of shares and takeover of companies.

NATIONAL STOCK EXCHANGE

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. NSE has played a catalytic role in reforming the Indian securities market in terms of microstructure, market practices and trading volumes. The market today uses state-of-art information technology to provide an efficient and transparent trading, clearing and settlement mechanism, and has witnessed several innovations in products & services viz. demutualisation of stock exchange governance, screen based trading, compression of settlement cycles, dematerialisation and electronic transfer of securities, securities lending and borrowing, professionalisation of trading members, fine-tuned risk management systems, emergence of clearing corporations to assume counterparty risks, market of debt and derivative instruments and intensive use of information technology.

Purpose Committed to improve the financial well-being of people. Vision To continue to be a leader, establish global presence, facilitate the financial well being of people.

Values NSE is committed to the following core values :

Integrity Customer focussed culture Trust, respect and care for the individual Passion for excellence Teamwork

NSE Logo

The logo of the NSE symbolises a single nationwide securities trading facility ensuring equal and fair access to investors, trading members and issuers all over the country. The initials of the Exchange viz., N, S and E have been etched on the logo and are distinctly visible. The logo symbolises use of state of the art information technology and satellite connectivity to bring about the change within the securities industry. The logo symbolises vibrancy and unleashing of creative energy to constantly bring about change through innovation.

NSE Products
Equities

Equities Indices Mutual Funds Exchange Traded Funds Initial Public Offerings Security Lending and Borrowing Scheme

Derivatives

Equity Derivatives Currency Derivatives Interest Rate Futures

Debt

Retail Debt Market Wholesale Debt Market

Corporate Bonds

The National Stock Exchange was set up by IDBI and other financial institutions in Bombay in 1993. It was recognized by the Government in the same year and the exchange started wholesale debt market in June 1994 and equity trading in November 1994. The wholesale debt market or the money market segments would cater to banks, FII's etc. to encourage high value transactions in PSU bonds, Units, treasury bills, Govt. securities and call money. There is no trading floor of the exchange.Trading is done on computer with the help of PC terminals in broker's offices. The capital market segment is also similarly on computer based trading. The settlement was earlier on T+5 bases but is changed to T+3 bases from 1st April.

Benefits accrue to both issuers and investors. As this is screen based trading with national network, transparency and cost effectiveness is ensured. Besides, the investment counters can be spread wide in the country under the NSE electronic network.

More than 3000 companies are already listed on NSE. Trading in them is continuing simultaneously with those in the principal and regional stock exchanges. NSE became the first exchange to grant approval to its members for providing internet based trading services. Internet trading is possible on both the Equities as well as the Derivatives segments of NSE.

Characteristics:

The characteristics of national market system are as follows:

1) Completely automated system in terms of both trading and settlement procedures to be provided through the Securities Facilities Support Corporation. 2) Compulsory market makers to provide liquidity and ready market. 3) The members would be as large as 1000 and corporate and institutional members would also be there, drawn from various parts of the country and to represent the professionals on all India basis. 4) Only medium sized companies and PSUs are expected to be listed on this exchange and it will complement the existing exchanges. 5) The NSE would have a separate trading facility and time allotted for debt instruments in order to have beneficial effect of creating on active secondary market in debt instruments. 6) National clearing and settlement system for making settlement on national basis.

7) The central depository trusts to keep physical custody of shares and to usher in scrip less trading system. 8) The securities facilities support corporation for providing supporting infrastructure facilities

Objectives: The objectives of the NMS are as follows: 1. To help the privatization of public sector units through listing of their shares on this exchanges. 2. To spread the investment habit and cult the savers in the rural and semi-urban areas as well. 3. To professionalize the members with a view to improve the investor services. 4. To create more employment opportunities in the service sector within the orbit of capital market.

Formation of the National Stock Exchange (NSE): 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. Trading at NSE can be classified under two broad categories : (a) Wholesale debt market and (b) 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. There are two kinds of players in NSE: (a) Trading members and

(b) Participants.

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 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. Unless stock markets provide professionalized service, small investors and foreign investors will not be interested in capital market operations. And capital market being one of the major sources of long-term finance for industrial projects, India cannot afford to damage the capital market path. In this regard NSE gains vital importance in the Indian capital market system.

Why people trust NSE? Unbiased: The National Stock Exchange of India (NSEIL) has been trusted by the securities markets for its unbiased independence and professionalism. The function of forecasting has become more meaningful as the information comes from a source, which is not only reliable but has no vested interest of its own in the market movements. Market Representation: NSE-MIBID/MIBOR is based on rates polled by NSE from a representative panel of 31 banks/institutions/primary dealers. Transparent: The reference rate is released to all the market participants simultaneously through various media, making it transparent with the aspiration of the market. Ensuing transparency helps the market participants to judge the market mood and the probable rate one is likely to encounter in the market. This information is useful not only to the banks but also to the issuers and investors. Reliable: The high level of co-relation between actual deals and the reference rate gives an indication of its reliability. The bootstrapping technique guards against the possibility of cartelization and of extreme observations influencing the mean Scientifically Computed: The methodology of "Polling" with "Bootstrapping" is scientific and the values are generated through a system that has been extensively tested. The technique involves generating multiple data sets based on the rates polled with a dynamically determined number of iterations, identification of outliers, trimming the data set of its extreme values and computation of the mean and its standard deviation. Elimination of Noise: The trimming procedure is vulnerable to market manipulation of the rates due to the amount of sampling noise. Excessive trimming may lead to loss of information whereas no trimming

may lead to excessive influence of the extreme values. To derive a true representative benchmark for the market NSE ensures that trimming at any point does not exclude more than 20% of the observation for the bid and for the ask rates.

Consistency: The Exchange ensures that everyday the NSE-MIBID/MIBOR along with the respective standard deviations are disseminated to the market at 0955 (IST) for overnight rate and at 1215 (IST) for 14 day, 1 month and 3 month rates. Usage: The NSE-MIBID/MIBOR rate is used as a bench mark rate for majority of deals struck for Interest Rate Swaps, Forward Rate Agreements, Floating Rate Debentures and Term Deposits.

History of Stock Market

Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago. The earliest records of security dealings in India are meager 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 of Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokers increased to about 200 to 250. However, at the end of the American Civil War, in

1865, a disastrous slump began (for example, Bank of Bombay Share which had touched Rs 2850 could only be sold at Rs. 87). In 1887, they formally established in Bombay, the "Native Share and Stock Brokers' Association" (which is alternatively known as "The Stock Exchange"). In1895, the Stock Exchange acquired a premise in the same street and it was inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated. Thus in the same way, gradually with the passage of time number of exchanges were increased and at currently it reached to the figure of 24 stock exchanges.

HISTORY OF ONLINE TRADING: Online stock trading is very old concept for big institutions who trade thru private networks owned by Reuter's "Instinet" and a system called "Posit" since 1969. But it becomes internet based for lay men only in late 90s. Funny, that actually idea was first time used by a company making Beer called "WIT beer" to help its shareholders trade its shares. Thats how "WIT Capital" was born which is considered pioneer of this concept. It was made mainstream and household name by a offshoot of Charles Schwab & Co called eschwab which is used by millions of people in USA. Lot of NRI's i know play in US stock market even when they come to India for holidays via website of eschwabe. There are other serious players like E*trade, DATEK online etc. All this companies ask you to start account with US $5000 and you can buy and sell stock using these funds. They also issue you a check book which you can use to make payments from this account. Or use their ATM card to withdraw cash from your stock trading account. Today practically every big name brokerage firm offers online stock trading

as it reduces their costs. Earlier they had army of brokers on phone with clients executing trade, which is done by computers accepting orders from clients directly. This firm now offers human access to high net worth accounts, and to rest at charge per trade. OBJECTIVES OF INTERNET TRADING Increase transparency in the markets. Enhance market quality through improved liquidity, by increasing quote continuity and market depth. Reduce settlement risks due to open trades, by elimination of mismatches. Provide management information system (MIS). Introduce flexibility in system, to handle growing volumes easily and to support nationwide expansion

Overview of 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

DEMAT BENEFITS:

The benefits of demat are enumerated[by whom?] as follows:

Easy and convenient way to hold securities Immediate transfer of securities No stamp duty on transfer of securities Safer than paper-shares (earlier risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc. are mostly eliminated) Reduced paperwork for transfer of securities Reduced transaction cost No "odd lot" problem: even one share can be sold Change in address recorded with a DP gets registered with all companies in which investor holds securities eliminating the need to correspond with each of them separately. Transmission of securities is done by DP, eliminating the need for notifying companies. Automatic credit into demat account for shares arising out of bonus/split, consolidation/merger, etc. A single demat account can hold investments in both equity and debt instruments. Traders can work from anywhere (e.g. even from home).

Benefit to the company

The depository system helps in reducing the cost of new issues due to lower printing and distribution costs. It increases the efficiency of the registrars and transfer agents and the secretarial department of a company. It provides better facilities for communication and timely service to shareholders and investors.
Benefit to the investor

The depository system reduces risks involved in holding physical certificates, e.g., loss, theft, mutilation, forgery, etc. It ensures transfer settlements and reduces delay in registration of shares. It ensures faster communication to investors. It helps avoid bad delivery problems due to signature differences, etc. It ensures faster payment on sale of shares. No stamp duty is paid on transfer of shares. It provides more acceptability and liquidity of securities.
Benefits to brokers

It reduces risks of delayed settlement. It ensures greater profit due to increase in volume of trading. It eliminates chances of forgery or bad delivery. It increases overall trading and profitability. It increases confidence in their investors.
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. 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. 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.

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. INTRADAY: The day to day buying and selling or daily transactions are called as Intraday. You have to buy or sell the shares within the day only. DELIVERY: It is the three day transaction. The day you buy the share and the next two days after that day is called as Delivery. It includes thre days. If you are buying any share then you have to sell it within three days including the buying day. T+2 = Today + 2 days Demat a/c Charges: Account Opening Charges: Nil Annual Maintenance Charges: Rs 150

DOCUMENTS NEEDED FOR OPENING DEMAT A/C

Apart from two passport size photographs, one needs to provide with the following documents in order to open an account with Escorts Securities Limited.: 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: a. Passport (valid) b. Voters ID Card c. Ration Card d. Driving License (valid) e. Electricity Bill (should be latest and should be in the name of the client) f. Telephone Bill (should be latest and should be in the name of the client) g. Flat Maintenance Bill (should be latest and should be in the name of the client) h. Insurance Policy (should be latest and should be in the name of the client) i. Lease or Rent Agreement. j. Saving Bank Statement** (should be latest) * Cheques drawn in favour of Escorts Limited, one for the Account

Buying and Selling of Dematerialization

INTRODUCTION:

The procedure for buying and selling dematerialized securities is similar to the procedure for buying and selling physical securities. The difference lies in the process of delivery (in case of sale) and receipt (in case of purchase) of securities. In case of purchase:The broker will receive the securities in his account on the payout day. The broker will give instruction to its DP to debit his account and credit investors account. Investor will give Receipt Instruction to DP for receiving credit by filling appropriate form. However one can give standing instruction for credit in to ones accounts that will obviate the need of giving Receipt Instruction every time. In case of sale:-

The investor will give delivery instruction to DP to debit his account and credit the brokers account. Such instruction should reach the DPs office at least 24 hours before the pay-in as otherwise DP will accept the instruction only at the investors risk. Rights 1.Dematerialized securities can be traded on those stock exchanges connected to NSDL. At present, NSE, BSE, CSE, DSE, LSE, OTCEI etc are connected to NSDL. At these stock exchanges, two segments would be available to trade in dematerialized securities : o Unified (erstwhile physical) segment - In this segment delivery obligation can be met by delivering dematerialized or physical securities at the option of the seller. However, for a select list of securities prescribed by SEBI, securities cannot be delivered in physical form in the unified

segment, of stock exchanges connected to NSDL. This list presently covers 160 securities. This list has been expanded to cover a total of 200 securities with effect from January 17, 2000. Over a period, this list would cover all actively traded securities. o Exclusive demat segment - In this segment delivery obligation can be met by delivering dematerialized securities only. Physical securities cannot be delivered in the exclusive demat segment. Procedure Trading in dematerialized securities is done through your broker just like trading in physical securities. After your broker executes the trade, your DP will help to deliver shares to your broker (in case you sell) on the basis of valid instruction given by you to your DP and receive shares from your broker (in case you buy) on basis of valid instruction given by your broker to his DP. Buy dematerialized securities 1.You purchase securities in any of the stock exchanges connected to NSDL through a broker of your choice and make payment to your broker. Make sure you tell your broker you want only demat shares. 2.Broker arranges payment to clearing corporation/ clearing house of the stock exchange. 3.Broker receives credit in his clearing account with his DP on the pay-out day. He can immediately transfer these securities to your depository account, provided your account is already active. 4.Broker gives instructions to his DP to debit his clearing account and credit your depository account. 5.You give instruction to your DP for receiving credit in your depository

account. If you have given standing instruction to receive credits, no separate instruction for receiving credit will be required. 6.If the instructions match, your account with your DP is credited. Sell dematerialized securities 1.You sell your dematerialized securities in any of the stock exchanges linked to NSDL through a broker of your choice.

2.You give instruction to your DP for debit of your depository account and credit of your brokers clearing member account at least 24 hours i.e. one working day prior to the pay-in date or before the deadline prescribed by your DP, so that your brokers clearing account is credited at the time arranged with him. 3.On the pay-in day, your broker gives instruction to his DP for delivery to clearing corporation/clearing house of the relevant stock exchange. 4.The broker receives payment from the clearing corporation / clearing house. 5.You receive payment from the broker for the sale in the same manner you would receive payment for a sale in the physical mode. Points To Remember 1.Trading continues to be through brokers. In case of any problem in execution of trade, contact your broker and if he fails to resolve the problem you may contact the stock exchange. 2.When you buy securities through the stock exchange, your brokers clearing account is credited to the extent of the securities purchased, on receipt of instruction from clearing corporation/ clearing house of the stock exchange. Your depository account is credited only when your broker gives a delivery

instruction to his DP. Securities are not directly credited to your account by the clearing corporation/ clearing house of the stock exchange. In case your broker does not give a delivery instruction, contact him or concerned stock exchange or SEBI. If your depository account is not credited, in spite of your broker giving valid instruction to his DP, contact the DP and if he fails to resolve the same you may contact NSDL.

3.When you sell securities, you have to give a delivery instruction to your DP to transfer the securities to your brokers clearing account. They are not automatically debited from your account by NSDL or by the clearing corporation/ clearing house of the stock exchange. In case the DP defaults in executing your instruction, the DP is liable to compensate you for the loss incurred, provided your instruction was in order and has been submitted to the DP at least 24 hours i.e. one working day prior to the pay-in date or before the deadline prescribed by DP. In case the DP fails to resolve your problem, you can contact NSDL.

RESEARCH DESIGN

RESEARCH DESIGN

INTRODUCTION

A Research Design is the framework or plan for a study which is used as a guide in collecting and analyzing the data collected. It is the blue print that is followed in completing the study. The basic objective of research cannot be attained without a proper research design. It specifies the methods and procedures for acquiring the information needed to conduct the research effectively. It is the overall operational pattern of the project that stipulates what information needs to be collected, from which sources and by what methods.

TITLE OF THE STUDY

STUDY ON DEMAT ACCOUNT AND ONLINE TRADING

STATEMENT OF THE PROBLEM

This study was undertaken to identify awareness of online trading & demat a/c among investors in India. A survey was undertaken to understand the awareness of Indian investors with respect to securities market. While marketing financial products asper the needs of investors.

In effect plans (financial products) should be flexible to suit individual requirements. This research tries to analyze some key factors which influence the purchase of securities like equities, derivatives & mutual funds.

RESEARCH METHODOLOGY

TYPE OF DATA COLLECTED

There are two types of data used. They are primary and secondary data. Primary data is defined as data that is collected from original sources for a specific purpose. Secondary data is data collected from indirect sources. (Source: Marketing Research)

PRIMARY SOURCES

These include the survey or questionnaire method, telephonic interview as well as the personal interview methods of data collection.

SECONDARY SOURCES
These include books, the internet, company brochures, product brochures, the company website, competitors websites etc, newspaper articles etc.

SAMPLING

Sampling refers to the method of selecting a sample from a given universe with a view to draw conclusions about that universe. A sample is a representative of the universe selected for study.

Convenience sampling is used in exploratory research where the researcher is interested in getting an inexpensive approximation of the truth. As the name implies, the sample is selected because they are convenient. This non probability method is often used during preliminary research efforts to get a gross estimate of the results, without incurring the cost or time required to select a random sample. (Source: www.statpac.com)

SAMPLE SIZE

The sample size for the survey conducted was 50 respondents.

SAMPLING TECHNIQUE

Random sampling technique was used in the survey conducted.

PLAN OF ANALYSIS

Tables were used for the analysis of the collected data. The data is also neatly presented with the help of statistical tools such as graphs and pie charts. Percentages and averages have also been used to represent data clearly and effectively.

STUDY AREA
The samples referred to were residing in DELHI City. .

LIMITATIONS OF THE STUDY

The study was limited only to the city of DELHI

The study was conducted only for a short period of 6 week.

Since the area is not known before it takes lot of time in convincing people to start investing in shares primarily in IPOs.

Some people are comfortable with traditional system: As people are doing trading from there respective brokers, they are quite comfortable to trade via physical form of paper.

Some respondents are unwilling to talk: Some respondents either do not have time or willing does not respond, as they are quite annoyed with the phone call.

COMPETITIVE ANALYSIS

COMPETITIVE ANALYSIS

1.8 KEY PLAYERS IN FINANCIAL SERVICES INDUSTRY: 1) ICICI Securities Ltd. ICICI Securities Limited (i-SEC) is a wholly owned investment-banking subsidiary of ICICI Limited. ICICI is the only non-Japanese Asian financial institution to be listed on the New York Stock Exchange (NYSE). ICICI Securities was formed on 22nd Feb. 1993, when ICICI's Merchant Banking Division was spun off into a new company; ICICI Securities today is India's leading Investment Bank and one of the most significant players in the Indian capital markets. ICICI Brokerage Services Limited (IBSL) set up in March 1995; IBSL is a 100% subsidiary of iSEC. It commenced its securities brokerage activities in February 1996 and is registered with the National Stock Exchange of India Limited and The Stock Exchange, Mumbai. ICICI has started a website ICICIdirect.com which is the most comprehensive website, which allows you to invest in Shares, Mutual funds, Derivatives (Futures and Options) and other financial products. ICICI has a large network of branches all over India.

Merchant Banking

2) HDFC Ltd: Housing Development Finance Corporation Limited is the leading financial company in India. IT has large network of branches all over India. HDFC Securities which is fully subsidiary of HDFC provides Demat service. HDFC and its subsidiary provides following services.

3) Kotak Securities Ltd:

Kotak Securities needs no introduction as one of the largest stock broking houses in the country and a leading distributor of primary market offerings. Kotak Securities limited is a joint venture between Kotak Mahindra Bank and Goldman Sachs, the international investment banking and brokerage firm.

Kotak Securities is a corporate member of both the BSE and the NSE. It is also a depository participant with the National Securities Depository Limited (NSDL) for trading and settlement of dematerialized shares. Services offered: Financial Product Distribution

4) Motilal Oswal Securities Ltd. Motilal Oswal Securities Ltd (MOSL) is one of the leading equity research and broking houses of India. MOSL has a 20-member research team, which is engaged round the clock in analyzing the Indian economy and corporate sectors to identify equity investment ideas. Asia Money Broker's Poll 2002 has rated MOSL as one of the best Indian broking house, for research, for the second time since 2000. Motilal Oswal is member of NSDL and CDSIL for DP. It has wide network of branches. It has 158 branches all over India. Services Offered:

5) Sharekhan: Sharekhan is online stock trading company of SSKI Group, provider of India-based investment banking and corporate finance service. ShareKhan is one of the largest stock broking houses in the country. S.S. Kantilal Ishwarlal Securities Limited (SSKI) has b een among Indias leading broking houses for more than a century. Sharekhan's equity related services include trade execution on BSE, NSE, Derivatives, commodities, depository services, online trading and investment advice. Trading is available in

BSE and NSE. Along with Sharekhan.com website, ShareKhan has around 510 offices (share shops) in 170 cities around the country. Services Offered:

6) Indiabulls: Indiabulls Group is one of Indias top Business houses with businesses spread over Real Estate, Infrastructure, Financial Services, Securities, Retail, Multiplex and Power sectors. The group companies are listed on important Indian and Overseas markets. Indiabulls group includes Indiabulls Financial Services, Indiabulls Real Estate Ltd and Indiabulls Securities Ltd. Indiabulls Financial Services is an integrated financial services powerhouse providing Consumer Finance, Housing Finance, Commercial Loans, Life Insurance, Asset Management and Advisory services.

SWOT ANALYSIS
Strengths:

It is a pioneer in online trading and more than 800 peoples working in the organization. Escorts provides multi-channel access to all its customers through a strong online presence with www.escorts securities ltd.com. Escorts ltd has dedicated research teams for fundamental and technical research. Which constantly track the pulse of the market and provide timely investment advice free of cost to its clients which has a strike rate of 70-80%. Weakness: Localized presence due to insufficient investments for country wide expansion. Lack of awareness among customers because of non-aggressive promotional strategies (print media,

newspapers, etc). Lesser emphasis on customer retention. Opportunities: With the booming capital market it can successfully launch new services and raise its clients base. It can easily tap the retail investors with small saving through promotional channels like print media, electronic media, etc. As interest on fixed deposits with post office and banks are all time low, more and more small investors are entering into stock market. Abolition of long term capital gain tax on shares and reduction in short term capital gain is making stock market as hot destination for investment among small investors. Increasing usage of internet through broadband connectivity may boost a whole new breed of investors for trading in securities. Threats: Aggressive promotional strategies by close competitors may hamper Escortss acceptance by new clients. Lack of sufficient branch-offices for speedy delivery of services. Other players are providing margin funds to investors on easy terms where as there is no such facility in share khan. More and more players are venturing into this domain which can further reduce the earnings of Escorts.

MARKETING PROBLEMS
MARKETING PROBLEMS
The old and out dated technique of marketing is used to prospect customers. More modern techniques must be adopted. The company must sponsor shows and give presentations in corporate houses. The financial health check must be performed for every prospect to assess his/her true financial position and needs. Some of the advisors skip this vital step and the prospect ends up with a plan they do not appreciate and soon surrender or discontinue. Some of the main problems are: Large amount of competition (many players in the market) Other brands are well advertised and have higher recall value Due to High brokage are difficult to market Incorrect perception about securities market Customers do not have risk appetite to invest in shares Some prospects have already invested and are not interested in further investments Large amount of documentation Customers do not like their money locked up for many years Lack of awareness about the securities market SUGGESTIONS FOR IMPROVEMENT 1. MORE BRANCHES Need to open more branches to be a topper in market Because it has a low distribution network.

 2. LESS TIME They should try to make some arrangements to reduce account opening time by verifying documents at branch it selves. 3. LINK-BANK A/Cs Linked as many accounts as client wants to its online account.

Create a positive perception about securities Speak about the good features of investment plan offers like high returns Improve the efficiency in operations Attract the youth of India with higher returns on investment as returns are the motivating factor which influence purchase of securities Tap the urban market where there is large potential Diversify product portfolio Make products more straight forward reduce complexities

ANALYSIS & INTERPRETATION

DATA ANALYSIS AND INTERPRETATION
Q1. In which of these Financial Instruments do you invest into?
Financial Instrument Percentage of respondent

Mutual Fund Bond Online trading Derivative

75% 16% 7% 2%

Result of Preference of Investment Interpretation: This shows that although the mutual funds market is on the rise yet, the most favoured investment continues to be in the Share Market. So, with a more transparent system, investment in the Stock Market can definitely be increased. Q2. Are you aware of online Share trading? Aware of online share trading Percentage of respondent

Yes No

72% 28%

Result of awareness of online trading Interpretation: With 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. Q3. Heard about FARSIGHT SECURITIES ltd.? Awareness of Farsight securitiesltd. Percentage of respondent

Yes No

70% 30%

Interpretation:

This pie-chart shows that This brand image should be further leveraged by the company to increase its market share over its competitors.

Q4. Do you know about the facilities provided by farsight ltd.? Awareness of farsight ltd. Services Percentage of respondent

Yes No

36% 64%

1st Qtr 2nd Qtr

Interpretation: Although there is sufficiently high brand equity among the target audience yet, it is to be noted that the customers are not aware of the facilities provided by the company meaning thereby, that, the company should concentrate more towards promotional tools and increase its focus on product awareness rather than brand awareness.

Q.5 Which company provide a less BROKARAGE rate ?

Company Name Percentage of respondent

Sharekhan ltd. HDFC Escorts

22 11 17

Q. 6 Which company provide you a large number of product and services? Company Name Percentage of respondent

Sharekhan ltd. HDFC ICICI

22 10 18

INTERPRETATION:44% have respondent of Sharekhan ltd., 20% have respondent of HDFC, 36% have respondent of ICICI. Q. 7 How many of you satisfy with the level of current broker? Interpretation: This pie chart accentuates the fact that Strategic marketing, today, has gone beyond only meeting Sales targets and generating profit volumes. It shows that all the competitors are

striving hard not only to woo the customers but also to make them Brand loyal by generating customer satisfaction.

Satisfaction level among Customers with current broker

Yes NO

92% 8%

Sales

1st Qtr 2nd Qtr

Q. 8 How many of do training: A) Daily B) Monthly C) Weekly D) Yearly Interpretation: In spite of the huge returns that the share market promises, we see that there is still a dearth of active traders and investors. This is because of the non transparent structure of the

Indian share market and the skepticism of the target audience that is generated by the volatility of the stock market. It requires efficient bureaucratic intervention on the part of the Government. Frequency of Trading

Sales

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Daily Weekly Monthly Yearly -

9% 27% 53% 11%

Q. 9According to your perspective which investment gives You maximum return? (1) Share market (2) Mutual funds (3) Purchasing insurance policy

Interpretation As of today people believe in secured investment with no risk & high return. So insurance policy are the best option for them as they give good return after a period of time .Share market has also come up in a big way though the risk factor is a bit too high despite good return. Represent a pie chart

OBSERVATION To study the sales and distribution management and improve the Customer Acquisition Process by analyzing the consumer behavior, response and mindset towards the product and services the company offers. 1. Preference of Investment: Consumers want to invest 75% in Mutual funds, 16% in Bonds, 7% in online trading and 2% in Derivatives. 2.Awareness on Online Share Trading:

72% consumers are aware of online share trading and 28% consumers are not aware of online share trading. 3. Awareness of escorts ltd. : 70% consumers are know about Escorts ltd. and 30% consumers are not know about Escorts ltd. 4.Awareness about facilities provided by Escorts ltd. : 36% consumers are aware about the facilities provided by Escorts ltd. and 64% consumers are not know about the facilities provided by Escorts ltd. 5.Provide a less BROKARAGE rate: 44% have respondent of Sharekhan ltd., 22% have respondent of HDFC, 34% have respondent of ICICI. 6.Provide a large no. of Products and services: 44% have respondent of Sharekhan ltd., 20% have respondent of HDFC, 36% have respondent of ICICI.

FUTURE LINE OF RESEARCH

FUTURE LINE OF RESEARCH

The future topics for research in the organization could be setting up of an appropriate ad campaign. It is very vital to the companies success that the people of India know about Escorts, its products and their special features and how securities in general can help them in their future.

The other area of research could be in the management of funds Escorts possesses and how it can maximize returns for its investors. A research project could be undertaken on how to ensure that the money gets invested in the right companies and earns a medium high return on investment. Another area of research could be an analysis of the sales and marketing techniques used by escorts. A large number of changes could be introduced and this would help of improving the efficiency of the firm.

FINDINGS
According to the survey most of the customers of farsight security Ltd says that it is pocket friendly. Coming to faith 70% say FARSIGHT SECURITIES Ltd is better than others stock brokers due to customers satisfaction. Main purposes of investments are returns & liquidity. Investors take risk as well as returns into their mind while making the investment. Businessmen are more interested in the stock market than the others. Commodity market is less preferred by the investors. People want to invest their money in the security market but they havent the Proper knowledge.

People are not aware of hedging in stock market. People pay more emphasis on brokerage than service provided by brokerage houses.

CONCLUSION
On the basis of the study it is found that FARSIGHT SECURITIES Ltd is better services provider than the other stockbrokers because of their timely research and personalized advice on what stocks to buy and sell. FARSIGHT Ltd. provide the facility of relationship manager 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.

SUGGESTION
1. MORE BRANCHES Need to open more branches to be a topper in market Because it has a low distribution network. 2. LESS TIME They should try to make some arrangements to reduce account opening time by verifying documents at branch it selves. 3. LINK-BANK A/Cs Linked as many accounts as client wants to its online account.

4.CUSTOMER SATISFACTION The company should focus on the customer satisfaction not on just taking money from their pocket. 5.CONTROLLED BRANCHES The company would have to make some arrangements to control the branches and make standardized procedures for all of them for their better control and performance appraisal.

Commitment should be equalized for every person. Provide the facility of free demonstrations for all. Improvement in the opening of De-mat & contract notice procedure is required. There should be a limited number of clients under the relationship manger. So that he can handle new as well as old customer properly. Some promotional activities are required for the awareness of the customer.

People at young age should be encouraged to invest in stock market. Seminars should be held for providing information to prospective and present customers.

REFERENCES

Historical perspective. Wikipedia. 19 Apr. 2007<http://www.wikipedia.com>. Overview." Indiacore. 18 Apr. 2007 <http://www.indiacore.com>. Reforms." Wikipedia. 17 Apr. 2007 <http://www.wikipedia.com>.

Stock price of Escorts" Money Control. 17 Apr. 2007 <http://www.money control.com Random Sampling. Statpac. 26 Apr. 2007 <http://www.statpac.com>.

BIBLOGRAPHY

Websites:
1. www.Google.com

2. www.bseindia.com 3. www.nseindia.com 4. www.moneycontrol.com 5. www.sharekhan.com 6. www.icicidirect.com 7. www.5paisa.com 8. www.Indiabulls.com 9. www.hdfcsecurities.com

10. www.farsightshares.com

NEWSPAPERS:
1. ECONOMIC TIMES 2. TIMES OF INDIA