1

Mentoring Project On
COMPARATIVE ANALYSIS OF INDIABULL SECURITIES
WITH OTHER COMAPNIES

Submitted in the Partial Fulfilment for the Requirement of Post
Graduate Diploma in Management
(PGDM)


Submitted to: Submitted by:
DR.GARIMA SACHDEVA Pratyush joshi
(Project Guide) ROLL NO 71
Batch(2013-15)
Jagannath International Management Kalkaji, New Delhi

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Table of contents

S.no Topic
Page no
1 Acknowledgement

2 Executive summary
3 Objective of the study
4 Company overview
5 History
6 Why indiabull securities
7 Overview of the stock market
8 Methodology
9 Limitations
10 SWOT analysis of india infoline
11 SWOT analysis of indiabulls
12 SWOT analysis of icici direct
13 SWOT analysis of Angel broking
14 SWOT analysis of Share khan
15 Recommendations
16 conclusion
17 Biblography
18 Questionnaire
19 Glossary/Terminology




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ACKNOWLEDGEMENT
I take this opportunity to express my profound gratitude and deep regards to
my guide Dr. Garima Sachdeva for her exemplary guidance, monitoring and
constant encouragement throughout the project.
I also take this opportunity to express a deep sense of grat itude to
Mr. Ravikant Chopra,Indiabull Securities Ltd. for his cordial support,
valuable information and guidance which helped me in completing this task
through various stages.
Above all i thank god, the almighty has been of inspiration who throughout
standby me in my entire endeavour to complete the successful work of mine.









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EXECUTIVE SUMMARY

The obj ecti ve of the study was to do the competi ti ve anal ysi s of DP
servi ce and broki ng servi ce provi ded by INDIABULLS SECURITIES and
i ts major competitors in Delhi region on the basis of marketing strategy .The study
was conducted to measure the customer satisfaction level of I ndi abul l s
Secur i t i es. St udy was f ocuses on cl i ent s wi t h i n del hi r egi on
Indiabulls Securities provides many products and services but we focused
our study on DP services and Broking services only. Outcome of the analysis shows
that though INDIABULLS SECURITIES is new pl ayer In the market , that i s
why they are sti l l behi nd i n many more factors and they need to
i mprove those factors. Some recommendations are
given to improve. (Project study has been done with the help of primary and
secondary data.)








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Objectives of the study:

1. To study the working procedure of Indiabulls investment solution as a
broking House.

2 .To study the Indiabulls Securities Competitors weaknesses in relation
to Indiabulls
.
3 To analyze the product& services of Indiabulls investment solution.

4. To analyze the customer reflection on investment sector.

5 .To study on customer portfolio.










6



Company Overview

Type Public company
Traded as NSE: INDIABULLS
BSE: 532544
Industry Financial Services, Real Estate,Power
Founded January, 2000
Headquarters Gurgaon, India
Key people Sameer Gehlaut Chairman & CEO, Rajiv Rattan, Vice Chairman, Saurabh Mittal, Vice Chairman
Products Securities, Consumer Finance,Mortgages, Real Estate
Revenue Rs. 6571 Crore($ 1.07 billion)
Net income Rs. 1,454 Crore ($ 238 million)
Total equity Rs. 19,356 Crore ($ 3.17 billion)
Employees ~ 9000 (2014)
Website www.Indiabulls.com


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Indiabulls Group is an Indian conglomerate headquartered in Gurgaon
with business interests in financial services, real estate, power and
information technology. Indiabulls Group was founded in 2000 by three
IIT Delhi classmates Sameer Gehlaut, Rajiv Rattan and Saurabh Mittal.
The Group has 7 listed companies each operating independently with a
combined market capitalization of INR 13,376 Crore ($ 2.19 billion).
The major Indiabulls Group companies are Indiabulls Housing Finance
Ltd., Indiabulls Real Estate Ltd., Indiabulls Power Ltd., Indiabulls
Securities Ltd and IB Technology. During the year 2012-13 the group
had combined revenues of Rs. 6,571 Crore ($ 1.07 billion) and earned
profit after tax of Rs. 1,454 Crore ($ 238 million). The net worth of the
Group as on 30th September 2013 stood at Rs 19,356 Crore ($ 3.17
billion).

History
In middle of 1999, when e-commerce was just about starting in India,
Sameer Gehlaut and his close IIT Delhi friend Rajiv Rattan got together
and bought a defunct securities company with a NSE membership and
started offering brokerage services. A Few months later, their friend
Saurabh Mittal also joined them. By December 1999, the company
embarked on its journey to build one of the first online platforms in India
for offering internet brokerage services. In January 2000, the 3 founders
incorporated Indiabulls Financial Services and made it as the flagship
company.
In mid 2000, Indiabulls Financial Services received venture capital
funding from Mr L.N. Mittal & Mr Harish Fabiani. In late 2000, Indiabulls

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Securities, a subsidiary of Indiabulls Financial Services started offering
online brokerage services and simultaneously opened physical offices
across India. By 2003, Indiabulls securities had established a strong pan
India presence and client base through its offices and on the internet.
In September 2004, Indiabulls Financial Services went public with an
IPO at Rs 19 a share. In late 2004, Indiabulls Financial Services started
its financing business with consumer loans. In March 2005, Indiabulls
Properties Private Ltd, a subsidiary of Indiabulls Financial Services,
participated in government auction of Jupiter Mills, a defunct 11 acre
textile mill owned by NTC in Lower Parel, Mumbai. Indiabulls Properties
private Ltd won the mill in auction and that purchase started Indiabulls
real estate business. A few months later, Indiabulls Real Estate
Company Pvt Ltd bought Elphinstone mill in Lower Parel, another textile
mill auctioned by NTC.
With real estate business gaining size, Indiabulls Financial Services
demerged the real estate business under Indiabulls Real Estate and
each shareholder of Indiabulls Financial Services received additional
share of Indiabulls Real Estate through the demerger. Subsequently,
Indiabulls Financial Services also demerged Indiabulls Securities and
each shareholder of Indiabulls Financial Services also received a share
of Indiabulls Securities.
In year 2007, Indiabulls Real Estate incorporated a 100% subsidiary,
Indiabulls Power to build power plants and started work on building
Nashik & Amrawati thermal power plants. Indiabulls Power went public
in September 2009.



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WHY INDIABULLS SECURITIES ?

Why customer would choose INDIABULLS SECURITIES as a preferred
Service Provider?

Well integrated front and back office, paper and electronic systems. A
focused Client Relation Team to manage your needs & queries. A single
point contact for your comfort .
In-house capability to address all IT needs in terms of software
development, maintenance, back office processing,
databaseadministration, network maintenance, backups and disaster rec
overy
Multilevel security is maintained in software, applications and guard s
to access to various data, client and internal reports
Expertise in running processes utilizing digital signatures.
Constant review and benchmarking of processes to ensure adherence
to global best practices

Insurance cover with international re-insurance
Full Confidentiality of business operations

VALUES OF INDIABULLSSECURITIES
Safety & Efficiency of Operations is a hallmark of INDIABULLS SECURITIES
Professionalism & Integrity
Customer First

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Relationship building
Commitment to Quality irrespective of asset size




Indian Stock Market Overview


The Bombay Stock Exchange (BSE) and the National Stock Exchange of India
Ltd (NSE) are the two primary exchanges in India. In India, in addition, there
are 22 Regional Stock Exchange. However, the BSE and NSE have established
themselves as the two leading exchanges and account for about 80 percent of
the equity volume traded in India. The average daily turnover at the exchanges
has increased from Rs 851 crore in 1997-98 to Rs 1,284 crore in 1998-99 and
further to Rs 2,273 crore in 1999-2000 (April-August 1999). NSE has around
1500 shares listed with a total market capitalization of around Rs9, 21,500 crore
(Rs 9215-bln). The BSE has over 6000 stocks listed and has a market
capitalization of around Rs 9,68,000 crore (Rs 9680-bln). Both exchanges have
a different settlement cycle, which allows investors to shift their positions on
the bourses. The primary index of BSE is BSE Sensex comprising 30 stocks.
NSE has the S&P NSE50 Index (Nifty), which consist of fifty stocks. Both the
exchanges have switched over from the open outcry trading system to a fully
automated computerized mode of trading known as BOLT (BSE on Line
Trading) and NEAT (National Exchange Automated Trading) System. It
facilitates more efficient processing, automatic order matching, faster execution
of trades and transparency. The scrips traded on the BSE have been classified
into A, B1, B2, C, F, and Z groups. The A group shares represent

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those, which are in the carry forward system (Badla). The F group represents
the debt market(fixed income securities) segments. The Z group scrips are the
blacklisted companies. The C group covers the odd lot securities in A, B1
& B2 groups and right renunciations. The key regulator governing Stock
Exchanges, Brokers, Depositories, Depository participants, Mutual Funds, FII
and other participants in Indian secondary and primary market is the Securities
and Exchange Board of India (SEBI) Ltd.


Working of the stock Market

A person desirous of buying/selling shares in the market has to first place his
order with a broker. When the buy order of the shares is communicated to the
broker he routes the order through his system to the exchange. The order stays
in the queue exchanges systems and gets executed when the order logs on to
the system within buy limit that has been specified. The shares purchased will
be sent to the purchase by the broker either in physical or demat format.


Rolling Settlement Cycle

In a rolling settlement, each trading day is considered as a trading period and
trades executed during the day are settled based on the net obligations for the
day. At NSE and BSE, trades in rolling settlement are settled on a T+2 basis i.e.
on the 2
nd
working day. Typically trades taking place on the Monday are settled
on the Wednesday, Tuesdays trades settled on Thursday and so on.




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Primary Markets

Securities available for the first time are offered through the primary securities
markets. The issuer may be a brand-new company or one that has been in
business for many, many years, like that of MARUTI. The securities offered
may be a new type for the issuer or additional amounts of a security used
frequently in past. The key is that these securities absorb new funds for the
coffers of the issuer.


Secondary Markets

Once investors have purchased new issues, they change hands in the secondary
markets. There are actually two broad segments of the secondary markets the
organized exchanges and the over-the-customer (OTC) market. The primary
middlemen in the secondary market are brokers and dealers. Broker act as an
agent while dealer as a principal in a transaction.
Organized stages are physical market place where the agent of buyers and
sellers operate through the auction process.

Depository

The organization responsible to maintain investors securities in the electronic
from is called the depository. In other words, a depository can therefore be
conceived of as a Bank for securities. In India there are two such

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organizations viz. NSDL and CDSL.The depository concept is similar to the
banking system with the expectation that bank handle funds whereas a
depository handles securities of the investors. An investor wishing to utilize the
services offered by a depository has to open an account with the depository
through a depository participant. Depository participant: the market
intermediaries through whom the depository services can be availed by the
investors are called a Depository Participant (DP).

Indian online share trading
Realizing there is untapped market of investors who want to be able to execute
their own trades when it suits them, brokers have taken their trading rooms to
the Internet known as online brokers, they allow you to buy and sell shares via
Internet. There are 2 types of online trading service:
Discount brokers
Discount online brokers allow you to trade via Internet at reduced rates. Some
provide quality research, other dont.
Full service online
Full service online brokerage is linked to existing brokerages. These brokers
allow their clients to place online orders with the option of talking/ chatting to
brokers if advice is needed. Brokerage rates here are higher. 5Paisa.com,
ICICIDirect.com, IndiaBulls.com, Sharekhan.com, Geojit securities.com,
HDFCsec.com, Tatatdw.com, Kotakstreet.com are some of the online broking
sites in India.


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Factors investors keep in mind while selecting online
brokers in India

Brokerage cost
It is important to weigh up the subscription and trading costs charged by an
online broker against benefits offered by the site. All online brokers display
their charges on their sites. Some make sure you find the charges easily, while
with others you will have to search a bit.

Security
Please make sure site has 128-bit encryption to ensure safety of transaction
online.You normally get a secured Login id and password. It is always
advisable to frequently change trading password. Ideally online trading site
should be fully integrated. The greater the backward integration, the better it is
for the customer. Ideally broking account, Demat account and bank account
should be linked electronically.

Rate refresh

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Rate refresh has to be real-time with no time lag. The speed and reliability
comes with huge investment in technology. It is always advisable to check rates
of online broking sites with BSE/ NSE terminal rates.


Speed of execution
System has to be fast and reliable that does just one job- executes your trades.
The last thing you need is a site that is heavily congested with the users who are
downloading heavy jpeg graphs or pulling the latest story why market is
moving. The site should be one click wonder where squaring off all your
positions or canceling all your pending orders takes one click and a
confirmation of action.
Trading Exposure
For trading, all sites provide 4 times buy and sell limit against margin money
put in by customer. For delivery of shares, buying limit is equal to margin
money put in by customer. Couple of sites also provides margin funding for
buying of shares.

Free trial period
Site should allow users free trial period to familiarize yourself with system
before you decide to become trading member of the site.


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Intraday chart/ historical chart
The site should provide intraday chart tick-by-tick time and price data /
historical chart for technical analysis by investors of particular scrip. Lot of
people trade based on charting packages.
Before you can trade, you need to open an account and register as a trader as
with online broking site. This involves filling up trading account form, Demat
account form and for faster transfer of money- Internet enabled bank account.
Please read terms and condition of each site before commencing to deal with
them. As per SEBI rule, Photo id proof and current address proof is a must for
opening trading account.
Online share dealing on the Internet is now a way of life for thousands of
investors. 80% of South Korea and 30%-40% US trade are executed online. If
you want to deal in shares, thereto deal in shares, there is no easier way.




Sensex and Nifty

Sensex and Nifty are the two important indices that track the Indian equity
market. There are however many differences in their construction and
behaviour. Investors must choose one between the two to benchmark their
portfolios. It is sometimes seen that these indices move with a low correlation to
each other, that is to say that they are not moving together.

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An index is used to give information about the price movements of products
in the financial, Commodities or any other market. A stock index is created to
provide investors with information regarding the average share price in the
stock market.
Generally the stock price of any company is vulnerable to three types of
news:
Company specific
Industry specific
Economy specific

Functions of an index:
The main objective is to give all market participants an indicator of the
general movement of the stock.

The primary function of a stock index is to serve as a barometer of the
equity market. The ups and down in the index represents the movement
of the equity market.
Investors can have a clear picture on equity market.
Secondly, stock market indices are lead indicators of the performance of
the overall economy. Similarly, sectoral index serves as a lead indicator
of the performance of that particular sector.
Perhaps, the most important use of an equity market index is as a
benchmark for a portfolio of stocks. The systematic risk of ones
portfolio can also be measured by comparing it to the index.

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Finally, indices are useful in modern financial applications of derivatives.
Indices serve as the underlying for Future & Options products. In the
Indian market, both Sensex and Nifty are underlying for Futures and
Options contracts.
Margin Trading

Margin Trading is nothing but borrowing money to invest in stocks, Here the
investor borrows money from his/her broker to invest in stocks through the
same broker. The margin here is the money actually borrowed from the
broker. The margin loan can be up to 50% of the total amount invested. This
effectively means that you can invest in shares worth Rs 100 by borrowing Rs
50 from your broker. This is called buying shares on a 50% margin. If the value
of the shares goes down, the investor has to pay a maintenance margin to
bring the margin up to 40% of the market value of the shares. This margin is
paid when the broker makes a margin call to the investor, and investor has to
pay the difference between current margin and maintenance margin to take it to
40%. If the margin falls below 30%, the broker has the discretion of liquidating
the clients holdings and thus recovering the loan advanced.

Risks in Margin Trading:
You can lose more money that you have invested

You may have to deposit additional cash or securities in your account on
short notice to cover market losses;


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You may be forced to sell some or all your securities when falling stock
prices reduce the value of your securities

Your brokerage firm may sell some or all of your securities without
consulting you to pay off the loan it made to you.

Benefits of Margin Trading:
I. The main benefit of Margin Trading for the investors is that it serves
as an avenue for the investor who wants to buy more shares than
the cash available.
II. The investor leverages the transaction and aim to make more
money on the investment than the interest payable on the margin
loan.
III. It can be very effective tool in the hands of the experienced and
heavy trades, who can invest up to double his investible sum in the
hope to earn high profits.

IV. Trading on Margin improves liquidity in the market. With lesser
amounts of cash with investors, they can assume higher risk and
can invest in higher value of stocks.

V. The Official and structured market for Margin Trading will most
likely lead to an expansion of day trading activity in the market.
Day Trading provides the market needed liquidity to the equity
market.

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Online Trading
Investors can have complete control of their stock investing actions, now that
they have the convenience of buying and selling shares on the NSE online and
in real time. Each individual has access to the latest information and tools to
analyse any stock investment decision. Plus the power to execute the sale or
purchase right before them on their personal computer screen.


Advantages of online trading:
The convenience of desktop investment-trade from anywhere at any time.
Not just online but real time-from placing an order to having it executed-in
a few seconds.
Continuous feedback of all transactions orders and their status.
three level security via Firewalls, data encryption using Secure Socket Layer
(SSI) technology, User IDs and Passwords i.e your personal information
remains for your eyes only.
Online access to a wealth of live information that can facilitate better
investment decisions.







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METHODOLOGY
This is a two dimensional project focusing on two aspects, as already
mentioned (objectives). For my project work I have focused on both
primary and secondary data as well.
Basically any research work proceeds as:

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Fig: 1
For this project my challenge was to find out the factors and the
competitive advantages. For which I conducted a descriptive
research.
I have collected primary data through questionnaire and
survey.
For secondary data, company records, some reviews in
economic times, data on money control site, some online
research works have been referred.

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I have taken some factors in my survey so my population size is
of 66. I have targeted only investors, who were customers,
general investors and company employees.
For rest my own analytical skill is used.





LIMITATIONS OF STUDY
The population size is limited to delhi area.
There may be redundancy of data or area surveyed.
Due to time and resource constraints some important segment of
population might have been missed out.




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SWOT ANALYSIS OF INDIABULLS
This is a strategic planning method to evaluate the Strength,
Weaknesses (limitations), Opportunities and Threats involved in a
project or business venture. It involves specifying the objectives of
the business venture or project and identifying internal and external
factors that are favorable or unfavorable to achieve it. This technique
is credited to Albert Humphrey of Stanford University.





25




Online trading platform.
Diverse branches and networks provide a great
oppourtunity to cater tapped and untapped
market as well.
Provides competitive brokerage and DP charges.
Equity analysis reports to support its clients.
Both online and offline trading facility.
Real time online transfer of funds and exposure
facility with HDFC, Citybank, ICICI, etc



Strength
It should have its own mutual
funds asit provides advises on
mutual funds.
Position to answer the questions
of the clients in their fields.
It does not provide indices on
major world markets, ADR
prices of Indian scripts.
Lacks banking arm
Weaknesses

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Financial services like mutual funds and
insurance.
It is registered with Luxemberg Stock
Exchange so can target other stock
exchanges also.
ATM facility should be provided for
easy withdrawals.
Tie-ups with third party companies for
selling products.
High client base will help for cross sales
of its products.
Oppourtunities
Companies like Sharekhan, ICICI
Direct, Kotak Securities, and private
brokers are major threats.
Banks with demat facilities are
jockeying for position.
Local brokers capable of charging
lower brokerage.
Changes in SEBI guidelines and other
tax implications.
Government regulations
Threats

27


COMPARISON OF INDIABULLS BROKERAGE SERVICES
COMPARISON OF DELIVERY AND INTRADAY

*MMC Minimum Monthly Charges.
Fig: 35





28


COMPARISON OF VARIOUS RATES

FIRMS

FACTOR

HDFC

SHAREK
HAN

MOTILAL
OSWAL

ICICI

KOTAK

INDIABULLS

BROKERAG
E

5p to 50p

5p to 25p

5p to50p,
1p-10p ( min)

3p to 25p


4p to 40p

2p to 20p or
1p to 10p (min)

MINIMUM
AMOUNT

Rs 10000,
Rs 0
(for big
corporate
clients)

Rs 10000

Rs 50000

Rs 0

Rs 10000

Rs 0

MINIMUM
OPENING
CHARGES

Rs 799

Nil

Rs 200

Rs 555

Rs 550

Rs 950

PRODUCTS

-Equity, features
and options,
ETF, IPO,
mutual funds.
-Do it yourself
systematic
investment
planning, and
-NRI offerings,
loans, FD.

Trade
Tigers,
IPO, MF
online,
contract note
on paper,
and ODIN
Software.

ETF, IPO,
mutual
funds, and
NRI
offerings.

IPO,
Mutual
Funds,
and
Commod
ities

K-25 and
T-25.
Brokerage,
IPO,
Mutual
Funds,
Commodit
ies.

IPO, Mutual
Funds, Real
Estate, Home
loans, Commodity,
and Derivatives.

SERVICES

-J2 ME windows,
blackberry,
android, iphone.
- Call and trade,
online and
offline services
for different time
zones.

Brokerage
services,
trade on
mobile,
online, call
and trade,
dedicated
dealer desk
at every city.

Call and
trade.


Brokerag
e-e and
banking
services.


Brokerage
and
banking
services.

Brokerage, Online
and Offline
Trading available
on all phones, No
extra charges on
calls from clients.

QUALITY OF
SALESPERSO
N

Good

Good

Good

Good

Good

Good

PROCESS

T+2 days

T+2 days

T+2 days

T+2 days

T+2 days

T+2 days



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PRICE COMPARISON CHART


Fig: 37
In the above price band, Indiabulls is facing somewhat strong
competition from Sharekhan, as it is more or less near to what
Indiabulls is charging. At the same time Kotak Securities also poses a
threat because of the improved technology used by them and constant
research and development. Where ICICI Direct is a little below
Kotak. Motilal Oswal and HDFC both are commodity side of the
graph with relatively higher prices charged for their product. Thus
with its current pricing Indiabulls enjoys price leadership as far as
brokerage is concerned.



30

SWOT ANALYSIS OF COMPETITOR FIRMS

SWOT OF SHAREKHAN





Market share leadership.
High Research and
Development.
Strong management team,
financial position and
competitive pricing.
Reputation management,
Unique products diverse
products and offers for the
customers.
Strong brand recall and
strong reach to masses.


Strength
Diseconomies of scale.
Not much differentiated products.
More employee turnover.
Less small investors.
Weaknesses

31





Fig: 38






Financial markets (raise money
through debt, etc)
Innovation, OnlineProduct and
services expansion.
Penetration in developing
cities.
Increase in awareness of people
about stock market
Oppourtunities
Competition.
Cheaper technology.
Economic slowdown.
External changes (government,
politics, taxes, etc).
Exchange rate fluctuations.
Threats

32


SWOT OF INDIA INFOLINE



Brand image.
Brand experiance.
Innovative products.
Strength
High targets for the
financial advisors and sales
department.
Many competitors, less
differentiated products.
The reach in semi-urban
areas and rural markets is
still very less.
Weaknesses

33



Fig: 39


Growing Financial
Services industry's share
of wallet for disposable
income.
Regulatory reforms would
aid greater participation by
all class of investors.
Leveraging technology to
enable best practices and
processes.
Increased appetite (need)
of Indian corporate for
growth
Oppourtunities
Execution risk.
Slowdown in global
liquidity flows.
Increased intensity of
competition from local and
global players.
Unfavorable economic
conditions.
Threats

34

SWOT ANALYSIS OF ICICI DIRECT


Banking arm.
Upgraded product design
and development facilities
to develop new products.
Ongoing activities to
support up gradation of
operational performance.
Team of talented and
committed professionals
available to improve
companies performance.
Strength
Not innovative.

Not diversified

high employee turnoverless.

small investors
Weaknesses

35





Innovation.

Increse in penetration in
the market.
Oppourtunities


Constant pressure to be cost
competitive to meet
customer expectations.
Threats

36

Fig: 40
SWOT OF MOTILAL OSWAL

Large and diverse
distribution network.

Strong research and sales
team..

Brand recognition.

Experienced top
management.

Strong financial results.
Strength


Charges are high compare to
other companies in industry.
Weaknesses

37




Growing Financial
Services industry's share
of wallet for disposable
income.
Regulatory reforms would
aid greater participation by
all class of investors.
Leveraging technology to
enable best practices and
processes.
Increased appetite (need)
of Indian corporate for
growth capital.

Oppourtunities

Execution risk.

Slowdown in global
liquidity flows.

Increased intensity of
competition from local and
global players.

Unfavorable economic
conditions.
Threats

38

SWOT OF ANGEL BROKING



Service

Distribution network

Products
Strength

Customer Satisfaction.

Branding.

Competition from Banks.
Weaknesses


39



Fig: 42


Ever increasing market.

Improving technology.

Unfulfilled needs of
customers..

Education level.
Oppourtunities


New competitorsTechnology
based business.
Threats

40


Bibliography

1) www.nseindia.com
2) www.sebi.gov.in
3) www.indiabulls.com
4) www.kotakstreet.com
5) www.indiainfoline.com
6) www.yahoofinancials.com
7) www.hindubonline.net
10) www.icicidirect.com









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Questionnaire


Q1. Do you invest?
a)Yes b) No



From this graph i can interpret that 83.3% investors invest and 16.6% investors
are not interested in investing.




Q2). Which firm do you prefer for investment?
a)Indiabulls Securities
INVEST
YES=83.3
NO=16.7

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b ) I I L
c) Kotak Securities
d) Motilal Oswal
e) ICICI Direct
f ) O t h e r s


From this graph i can interpret that investors invest 30.3% in each indiabull
securities and kotak securities, 7.57% in motilal oswal, 22.72% in Icici, & 6% in
others.

Q4 Which feature do you prefer for selecting the broking firm?
.a) Past record of company
b) Brokerage
c) Goodwill of the company
d) Service quality e) Ot her s
0
5
10
15
20
25
indiabull kotak motilal oswal icici others
investment
investment

43







From this graph i can interpret that 45.4% investors see the past record of the
company, 22.7% investors see brokerage services, 15% see the goodwill of the
company, 7% investors see the service quality & 6% see others









0
5
10
15
20
25
30
past record brokerage goodwill service
quality
others
Series 1
Series 1

44


Q5. What is your purpose to invest in stock market?
a) Savi ng
b) Short term gains
c) Long term gains




From this graph i can interpret that37.8% investors looking for
long term gain, while 45.4% investors looking short term gain,
& 22.7 looking for saving.






Q6. How long have you been to invest in the stock market?
Series 1
0
5
10
15
20
25
30
long term gain
short term gain
saving
Series 1
Series 1

45

a) Less than 1 year
b)1-3 year
c) 3- 5 year
d) More than 5 year


From the graph it is clear that 15% of investors ve been investing since
less than 1 year ,37.8 % more than 1 year, 30.3% more than 3 year &
16.6% more than 5 year.

Q7. What is your investing money range for stock?
a) Rs.0-50000
b) Rs.50000-100000
c) Rs.100000-500000
d) Rs500000 and above
0 5 10 15 20 25 30
< 1yr
1-3yr
3-5yr
5yr>
investors
investors

46





From the graph its very clear that most range of investors 60% invest
upto 50k, 30.3% investors invest up to 1L, 9% range of investors invest
Up to 5L and 1% investors do not invest more than 5L.

Q8. How you invest your money?
a) Mont hl y
b) Quar t er l y
c) Hal f year l y
d) Annual l y
0
5
10
15
20
25
30
35
40
45
0-50k 50k-1L 1L-5L 5L=>
investors
investors

47



From the graph it can interpret that 68.1% investors invest monthly,
15.1% investors invest quarterly, 9.09% invest half-yearly,& 7.57%
invest annually.






investors
monthly=68.1
qauterly=15.1
half-yearly=9.09
annually=7.57

48

RECOMMENDATION

After doing my project work by survey of market position following
recommendations is required for Indiabulls to take top position in
investment sector.

Need different strategy for different sector of equity.

For equity market they need to pull the young generation 0f 20-
35yrs. Who are ready to take risk as client ? Also need to look after the
old client properly.

Indiabulls have to search those clients who are investing their money
monthly and yearly basis.

I t i s more prof i t abl e f or t he company get t hose cl i ent s who
are i nvest i ng10%-
20% f rom t hei r i ncome because t hese t ypes of peopl e have
a l argenumber in market. So these types of people increase the no of
client of the Company which is the profitable for the company.

Indiabulls should build up a good relation with their customer.
Indiabulls should give extra facilities to their client than other broking
houses



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Conclusion
Public have a good response about the investment market.

Public prefer the risk factor than quick profit.

Investment sector has a g o o d market in future.

Public preferred short term investment than long term.

Publ i c preferred to i nvest ei ther monthl y or yearl y basi s
than quarterl y andyearly basis.

Major part of public paid tax for their investment

Young generations are more interested to the equity market.








50


GLOSSARY\TERMINOLOGY

Arbitrage- Profiting from differences in price of the same share traded on two
or more stock exchanges.

Automated Screen Trading- Electronic trading in stocks through Visual Display
Units (VDU). The associated computer enters, matches, and executes the deal.
It makes possible a floorless exchange and brings transparency to deals.

Bears- Those who sell shares anticipating a fall in prices.

Bear Hammering- Persistent selling pressure by bears, bringing the prices
down.

Beta Shares- Listed, but infrequently traded, shares of companies with a
generally low equity capital.

Blank Sales- Sale of securities by BEARS who do not possess the securities at
the moment of selling, but hope to buy them at a lower price when the market
has fallen.

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Book Closure-Before a company declares a dividend or issues bonus or rights
shares, it closes its register of members for a certain period, from one week to
a month, during which no transfer of shares is registered.

Brokers- are intermediaries who compete for the right to help people buy or
sell something of value on his clients behalf.

Bulls-Those who buy shares in anticipation of increase in price.

Call Option- Right to buy at fixed price.

Capital Market-includes primary market, securities market term lending
institutions, banks, investors engaged in providing long-term capital (whether
equity capital or debt capital) to the Industrial Sector.

Commodities Market-Market for trading bulk & basic goods like grain, edible
oils, rubber, cotton, metals, etc. Certain special items like tea & coffee are
traded in auctions with inspection facilities for the goods.

Day Trading-Buying and selling the same share during a single day, hoping to
make a profit from price fluctuations.

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Depth market- refers to the number of participants in the market ready to
transact at a given price to ensure sufficient liquidity.

Derivatives- is a product whose value is derived from the value of underlying
asset, index etc. The underlying assets can be equity, forex commodity, or any
other asset.
Government Securities- means a security created & issued by the Central
Government or State Government for the purpose of raising a public loan.

Grey Market- Unofficial premium market in which new, not-yet-listed shares
rebought and sold.

Equity Market- Ownership of tangible assets are bought & sold in Equity
Market.

Ex-Dividend Date-A publicly announced date on or after which a buyer will not
be entitled to the dividend declared on a share. The share price is usually
shade lower on the ex-dividend date.

Exercise-To put into effect, the right to buy or sell.


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Financial Market- provide the channel for allocation of savings to investment
& provide a variety of assets to savers as well as various forms in which the
investors can raise funds.

FI- Financial Institution
FII-Financial Institutional Investor

Floor Broker-A person who actually does the buying & selling of shares on
behalf of a member of the stock exchange for a small share of the commission
charged by a broker.

Forward Dealing/Trading-Contracts to buy or sell specific quantities of goods,
currency, or freight at a stated price and a stated time in the future. Forward
contracts are bought & sold in the FUTURES MARKET.

Futures-Shares or commodities bought or sold for delivery at a future date.
These can be sold at a profit before delivery if prices in the market have
changed.

Holding the Market-Market intervention by public corporations like the UTI or
LIC with large buy orders of shares to stabilize a falling market. It is a part of
their government mandate.

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Hot Shares- 1. Shares in great demand.
2. Stolen shares.

In-and-Out Trader-One who buys and sells the same share in the course of the
trading day, hoping to profit from sharp price movements & keeps no over-
night position.

IPO- Initial Public Offering. New shares offered to public in the Primary Market.

Jobbers- Brokers broker. One who specializes in specific securities catering to
the needs of other brokers.
Liquid Market- One where the size of an order creates minimal affects on the
transactions price.

Lot-A fixed number in which shares are bought & sold.

Low-The lowest price paid for a share in the last twelve months.


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Mark Down- When a broker is buying shares on his own account from a
customer he takes the best Bid Price and deducts a commission, which is the
mark down.

Mark Up- When a broker is selling from his own account to a customer, he
charges the best Ask Price and adds a commission, which is the mark up.

Market at Rest- The days closing prices that are taken into account while
preparing share price movements charts.

Market Capitalization- The total market value, at the current stock exchange
list price, of the total number of equity shares issued by a company.

Market Order- Order to the stockbroker to buy or sell a share at the best
available price.

Market Price- The last reported price of a share at which it was sold on the
stock exchange.

Market Lot- Each Company specifies the minimum number of securities, which
makes an even or market lot.


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Margin- The difference in prices at which a Jobber will buy and sell. Also called
a Haircut.

Margin Account-An account with a brokerage firm, which will allow the client
to buy shares with money borrowed from the broker. Margin requirements
can be met with a deposit in cash or shares.

Maturity-Day on which option is exercised.

Meltdown- The phenomenon of fast, uncontrolled fall in share prices.

Member Code- A unique code given to each member of the stock exchange to
enable the clearinghouse to check his payment or delivery position.

Member Firm- A brokerage firm which has at least one membership on a
major stock exchange.

MIT- Market If Touched. A limit order which automatically becomes a market
order when the price is reached.
Nave Buy-and-Hold Strategy- Selecting shares randomly, buying them, and
holding them regardless of any information available in the market.

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Naked Call Writing- Selling a call option on shares the writer does not own.

Naked Option- A Call option for which the seller does not own the supporting
shares.

One Way Market- A market dominated by only buyers or sellers.

Out of the money-Option exercised price is above (in case of call) or below (in
case of put) prevailing price of underlying asset.

Over the Counter Market or OTC Market- A market where shares which are
not listed on the stock exchange are traded.

Panic Selling- A condition of the stock market in which not only inexperienced
investors, but also sturdy bulls, take fright and start selling.

Portfolio- Combined holding of many kinds of financial securities- shares,
debentures, government bonds, Unit Trust certificates, and other financial
assets. Reducing risk by diversification and maximization of gains are the
primary objects.

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Portfolio Manager- A professional who manages other peoples or institutions
investment portfolios with the objectives of profitability, growth and risk
minimization.

Premium- 1. A price above the face value of a share or any other financial
security.
2. Price paid for buying an Option.

Price Gap- A shares high and low during a day does not overlap the prices on
the previous.

Profit Booking- Selling shares when their prices have risen above their
purchase price.

Profit Taking- Selling a share, bought when its price was relatively low, when
the market price has risen.

Punter- Small speculator who hopes to make a quick buck by buying shares,
holding them for short period, and selling them to make a quick profit.
Purchase Order- Written instruction to a share broker to buy or sell particular
shares in a particular way.

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Put Option-Right to sell at fixed price.

Quotation- Highest bid and lowest offers for a share.

Quoted Price- The price at which a share was last bought and sold on the stock
exchange.

Quoted Shares- The shares of a company which are officially registered on a
stock exchange, and whose prices are quoted on the Official List.

Rally- Noticeable rise in the price of a share, or a noticeable rise in the share
market index, after a period of stagnancy or a declining trend.

Ramping- Large-scale buying of a stock from the market with the object of
boosting the image of the stock and the company behind it to increase its
demand and consequently its price.

Rate of Turnover- Total annual sales divided by the average inventory shows
the speed with which stock has been turned over.


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Record Date- For the purpose of dividend distribution and entitlements to
Bonus or Rights Issues, a company fixes a date on which a shareholder must
officially own shares to qualify.

Resistance Level- A level at which the rise in price of a share has repeated
halted, as there are more sellers at that price than buyers.

Retail Investor- He is the individual buying shares for himself, as opposed to
the institutional investor who buys for others.

Rigging- Manipulation of share prices so as to attract nave investors to buy or
sell shares.

Rights Issue- Issue of shares at par or at a premium by an existing company to
its shareholders in a certain proportion to their holdings, as a matter of their
right to receive preferential treatment.

Roll Over- Transfer of funds from one investment to another.

Round Lot- The minimum number of shares in a trading lot; 10 or 50 in the
case of Rs.10 shares, and 10 or 5 for Rs.100 shares.


61

Running Ahead- A broker buying or selling a share on his own account before
his clients order for the same share.
Sauda Book- A book used by members of a stock exchange or their authorized
assistants to record sales and purchase transactions.

Screening Stocks- A process of looking for shares, which meet predetermined,
financial and investment criteria. With computerized share scan the process
has now become much simpler.

Scrip- Share Certificate.

SEBI (Securities & Exchange Board of India)- is the National Regulatory body
for the securities market set up under the SEBI ACT, 1992 to protect the
interests of investors in securities & to promote the development of, & to
regulate, the securities market & for matters connected therewith or
incidental to.

Secondary Market- Place where already issued and outstanding shares are
bought and sold. Distinguished from the primary market in which the issuer
sells shares directly to the investor.

Securities Market-refers to the markets for those financial instruments/
claims/ obligations that are commonly & readily transferable by sale.

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Sellers Market- Characterized by a shortage of shares in the market in relation
to their demand and consequent high prices, indicating a BULL MARKET.

Sell Out- When a client fails to pay and take delivery of the shares bought on
behalf of him by the broker, the broker sells off the shares at the best market
price and the client is responsible for any financial loss to the broker.

Selling Short- Sale of shares, which he doesnt possess, by a speculator.

Sensitive Market- Market easily influenced by good or bad news.

Settlement Date- In a spot delivery contract the delivery of share certificates
and payment for them have to be concluded on the same day or the next day.
In hand delivery contracts the delivery and payments have to be made on an
agreed date, not exceeding a fortnight from the date of contract.

Settlement/Badla Trading Buy share even if we do not have the requisite
amount of money or sell shares even if we do not have the Share Certificates.

Share- A share is one unit of ownership of a company.

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Share Certificate- Documentary evidence of the ownership of a block of
shares.
Shareholder- A person or a legal entity who owns equity or preference shares
of a company.

Share Premium- An amount in excess of the face value of a share charged by a
company on its share issue.
SHCIL-Stock Holding Corporation of India Ltd. Set up in 1988 to provide post-
trade services like holding stocks on behalf of investors.

Specified Shares- The most widely traded shares, also known as GROUP A
SECURITIES, CLEARED SECURITIES, transactions in which are made through the
clearinghouse of the stock exchange.

Spot Delivery- Delivery of shares and payment for the same on the date of
purchase or within 48 hours.

Spot Market- Commodities market in which goods are sold against cash and
delivered immediately.


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Squaring Up- Settling of accounts on ACCOUNTS DAY, by actual delivery of
shares or carrying forward ones transactions to the next account day, by
paying BACKWARDATION.

Stock Exchange- A marketplace where shares change hands for consideration.
An association of individual members called member brokers/ members/
brokers formed for the purpose of regulating & facilitating the buying & selling
securities by the public & institutions at large.
Stock Exchange operates with due recognition from the Government under the
Securities & Contracts (Regulations) Act, 1956. BSE controls 80% of total
volume of transactions.

Stock Option- In share trading, it is the right to buy or sell a hare at a particular
price within a particular period, in order to hedge the investment.

Striking or Exercise Price: Fixed price at which the option may be exercised
and the underlying asset bought or sold.

Take a Position- To buy a share for the long-term.

Take Delivery- Physical acceptance of shares, which have been bought on his
account, by a client.

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Trading Floor- The area in a stock exchange in which dealers trade through
personal contact, as against impersonal screen trading.

Trading Halt- Suspension of trading in a share for a time while important news
from the issuing company is being evaluated.

Unloading- Selling shares off when prices are falling to avoid further loss.
Wash Sale- Buying & selling of a share simultaneously or within a short period
of time by an individual or a group to generate artificial market activity and a
rise in the shares price which the manipulators can then cash in on.






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