Beruflich Dokumente
Kultur Dokumente
DECLARATION
Im Vijay Rana, a student of Chitkara Business
School, Which is approved by PTU, Jalandhar hereby
declare that the project entitled Comparative Analysis
Of
Stock
Brokers
In
Chandigarh
Region
at
(Vijay Rana)
Date: -
CONTENTS
1.ACKNOWLEDGEMENT
7
2.INTRODUCTION
10
Introduction to stock exchange
Introduction of the company
3.COMPANY
PROFILE
18
4.REVIEW
OF
37
5.RESEARCH METHODOLOGY
40
Objective of study
Type of research
Sample design
Size of sample
Sources of data collection
6.COMPARATIVE ANALYSIS
46
7.FINDING & ANALYSIS
50
LITERATURE
8.SUGGESTIONS
60
9.LIMITATIONS
61
10. CONCLUSION
62
11. APPENDIX(Questionnaire)
63
12. BIBLIOGRAPHY
67
PREFACE
A good broker system must be able to cope with
an extremely complex and dynamic environment.
ACKNOWLEDGEMENT
Preservation, inspiration and motivation have always
played a key role in the success of any venture. In the
present world of competition and success, training is like
a bridge between theoretical and practical working;
willingly I prepared this particular Project. First of all I
would like to thank the supreme power, the almighty god,
who is the one who has always guided me to work on the
right path of my life. I would like to thank Mr. Gurpreet
others
Executive Summary
There is growing competition between brokerage firms in
post reform India. For investor it is always difficult to
decide which brokerage firm to choose.
Research was carried out to find which brokerage house
people prefer and to figure out what people prefer while
investing in stock market.
This study suggest that people are reluctant while
investing in stock and commodity market due to lack of
knowledge
Main purpose of investment is returns and liquidity,
commodity market is less preferred by investors due to
lack of awareness. The major findings of this study are
10
11
INTRODUCTION
In most industrialized countries, a substantial part of
financial wealth is not managed directly by savers, but
through a financial intermediary, which implies the
existence of an agency contract between the investor
(the principal) and a broker or portfolio manager (the
agent). Therefore, delegated brokerage management is
arguably one of the most important agency relationships
intervening in the economy, with a possible impact on
financial market and economic developments at a macro
level.
In most of the metros, people like to put their money
in stock options instead of dumping it in the bank-lockers.
Now, this trend pick pace in small but fast developing
cities like Chandigarh, Gurgaon, Jaipur etc. My research is
based on the residents of Chandigarh and its nearby
areas.
As the per-capita-income of the city is on the higher
side, so it is quite obvious that they want to invest their
money in profitable ventures. On the other hand, a
number of brokerage houses make sure the hassle free
investment in stocks.
Portfolio
Strategy:
strategy
that
13
14
15
The entrance fee for new member was Re.1 and there
were 318 members on the list, when the exchange was
constituted. The numbers of members increased to 333 in
1896, 362 in 1916and 478 in 1920 and the entrance fee
was raised to Rs.5 in 1877, Rs.1000 in 1896, Rs.2500 in
1916 and Rs. 48,000 in 1920. At present there are 23
recognized stock exchanges with about 6000 stock
brokers.
Organization
structure
of
stock
exchange
varies.
14 stock exchanges are organized as public limited
companies, 6 as companies limited by guarantee and 3
are non-profit voluntary organization. Of the total of 23,
only
stock
exchanges
have
been
permanent
16
1.) Stockbrokers
Stock brokers are the members of stock
exchanges. These are the persons who buy, sell or deal in
securities. A certificate of registration from SEBI is
mandatory to act as a broker. SEBI can impose certain
conditions while granting the certificate of registrations. It
17
and
the
buy-law.
Stock
brokers
are
Detail of registered
brokers
Total
no.
of Total
no.
31.03.2008
9000
24,000
of
sub-
as
on
2.) Sub-broker
A sub-broker acts as agent of stock broker.
He is not a member of a stock exchange. He assists the
18
A combination of securities
such as stocks, bonds and money market instruments is
collectively called as portfolio. Whereas the portfolio
consultants are the persons, firms or companies who
advise,
direct
or
undertake
the
management
or
company
which
It is basically a stock
deals
in
security
and
20
INTRODUCTION OF THE
COMPANY
Sharekhan is one of the leading retail brokerage of Citi
Venture which is running successfully since 1922 in the
country. Earlier it was the retail broking arm of the
Mumbai-based SSKI Group, which has over eight decades
of experience in the stock broking business. Sharekhan
offers its customers a wide range of equity related
services including trade execution on BSE, NSE,
Derivatives,
depository
services,
online
trading,
investment advice etc.
21
WORK STRUCTURE OF
SHAREKHAN
Sharekhan has always believed in investing in technology
to build its business. The company has used some of the
best-known names in the IT industry, like Sun
Microsystems, Oracle, Microsoft, Cambridge Technologies,
Nexgenix, Vignette, Verisign Financial Technologies India
Ltd, Spider Software Pvt Ltd. to build its trading engine
and content. The Citi Venture holds a majority stake in
the company. HSBC, Intel & Carlyle are the other
investors.
22
over
700+
The firms online trading and investment site www.sharekhan.com - was launched on Feb 8, 2000. The
site gives access to superior content and transaction
facility to retail customers across the country. Known for
its jargon-free, investor friendly language and high quality
research, the site has a registered base of over 3 Lacs
customers. The number of trading members currently
stands at over 7 Lacs. While online trading currently
accounts for just over 5 per cent of the daily trading in
stocks in India, Sharekhan alone accounts for 27 per cent
of the volumes traded online.
23
Experience
SSKI has more than eight decades of trust and credibility
in the Indian stock market. In the Asia Money broker's
poll held recently, SSKI won the 'India's best broking
house for 2004' award. Ever since it launched Sharekhan
as its retail broking division in February 2000, it has been
providing institutional-level research and broking services
to individual investors.
24
Technology
With their online trading account one can buy and sell
shares in an instant from any PC with an internet
connection. Customers get access to the powerful online
trading tools that will help them to take complete control
over their investment in shares.
Accessibility
Sharekhan provides ADVICE, EDUCATION, TOOLS AND
EXECUTION services for investors. These services are
accessible through many centers across the country
(Over 650 locations in 150 cities), over the Internet
(through the website www.sharekhan.com) as well as
over the Voice Tool.
Knowledge
In a business where the right information at the right time
can translate into direct profits, investors get access to a
wide range of information on the content-rich portal,
www.sharekhan.com. Investors will also get a useful set
of knowledge-based tools that will empower them to take
informed decisions.
Convenience
25
Customer Service
Its customer service team assist their customer for any
help that they need relating to transactions, billing,
demat and other queries. Their customer service can be
contacted via a toll-free number, email or live chat on
www.sharekhan.com.
Investment Advice
Sharekhan has dedicated research teams of more than 30
people for fundamental and technical research. Their
analysts constantly track the pulse of the market and
provide timely investment advice to customer in the form
of daily research emails, online chat, printed reports etc.
26
Benefits
Special Personal
confirmations.
Anytime Ordering.
Inbox
27
for
order
and
trade
CLASSIC ACCOUNT
This is a User Friendly Product which allows the client to
trade through website www.sharekhan.com and is
suitable for the retail investors who is risk-averse and
hence prefers to invest in stocks or who do not trade too
frequently.
Features
28
SPEEDTRADE
SPEEDTRADE is an internet-based software
application that enables you to buy and sell in an instant.
It is ideal for active traders and jobbers who transact
frequently during days session to capitalize on intra-day
price movement.
Features
Technical Studies.
Multiple Charting.
29
DIAL-N-TRADE
Along with enabling access for trade online, the
CLASSIC and SPEEDTRADE ACCOUNT also gives Dial-ntrade services. With this service, one can dial sharekhans
dedicated phone lines 1-800-22-7500, 3970-7500.
Beside this, Relationship Managers are always
available on Office Phone and Mobile to resolve customer
queries.
ShareMobile
Sharekhan had introduced ShareMobile, A mobile
based software where one can watch Stock Prices, Intra
Day Charts, Reasearch & Advice and Trading Calls live on
the Mobile.
(As per SEBI regulations, buying-selling
shares through a mobile phone are not yet permitted.)
30
PREPAID ACCOUNT
Customers pay Advance Brokerage on trading
Account and enjoy uninterrupted trading in their Account.
Beside this, great discount are also available (up to 50%)
on brokerage.
Prepaid Classic Account
: - Rs. 2000
: - Rs. 6000
IPO ON-LINE
Customers can apply to all the forthcoming IPOs
online. This is quite hassle-free, paperless and time
saving. Simply allocate fund to IPO Account, Apply for the
IPO and Sit Back & Relax.
31
Charge
Classic Account
Speed
Account
Account Opening
Rs. NIL
Rs. NIL
Monthly
Rs. NIL
Rs. NIL
Trade
Commitment
Brokerage
32
Depository Charges
Rs. NIL
from
year
33
KARVY is
premier
integrated
financial
services
team
and
ranks
among
the
best
in
the
flagship
company,
Karvy
Consultants
1. Karvy comtrade.
2. Karvy consultant ltd.
3. Karvy merchant banking.
4. Karvy global services ltd.
ICICI DIRECT
ICICI
Web
Trade
Limited
(IWTL)
maintains
35
to
comply
with
36
regulatory
guidelines.
no:
NSEIL/CMO/INET/1103/2000
dated
37
finance:-
It
Deals
In
Mutual
Fund
And
Insurance.
Online Trading :- It provides services in stock and
commodity trading (through Internet).
38
HDFC SECURITY
HDFC security is the subsidiary of HDFC (Housing
Development Financial Corporation). www.hdfcsec.com
would
have
an
exclusive
discretion
to
decide
the
Online IPO's.
40
REVIEW OF LITERATURE
According to SEBI, Professional Rating of market
intermediaries, as a concept, is a matter of debate and
discussions. The need for rating is felt not only from the
point of view of greater disclosure requirements for
investors interests, considering the important role such
intermediaries play, being an interface between investors
and exchanges but also from the point of view of
measuring the adequacy of systems and controls to meet
internal as well as external compliance requirements.
So that need for Intermediaries Rating services (Brokers),
In view of the developments that are taking place in the
capital markets, the need to constantly upgrade and
improve systems and procedures in operation as well as
skill sets has gained considerable importance. Besides
42
and
others
who
will
benefit
from
the
Risk
Management
Policy
and
System,
43
44
RESEARCH METHODOLOGY
Objective Of Research
Each research study has its own specific purpose. It is like
to discover to Question through the application of
scientific procedure. But the main aim of our research to
45
find out the truth that is hidden and which has not been
discovered
as
yet.
Our
research
study
has
two
objectives:-
46
TYPES OF RESEARCH
On the basis of theoretical study a research has many
types. All of these are distributed on the nature of
research. Some of these are like
1. Descriptive and Analytical
2. Qualitative and Quantitative
3. Conceptual and empirical
4. Applied and fundamental
5. One time research
Our research is based on Descriptive, Qualitative and
Quantitative research.
Qualitative
Research:-
In
our
research
we
need
is
especially
important
in
the
behavioral
SAMPLE DESIGN
48
SAMPLING UNITS
Sampling unit may be a geographical one, such as state,
district, village etc. The researcher will have to decide
one or more of such units that he has to select for his
study.
In my research study Chandigarh as a sampling unit.
SIZE OF SAMPLE
49
50
phenomena
which
exist
in
the
universe
51
COMPARATIVE ANALYSIS
After the whole study, we find out the following results:
Results on the Basis of charges
There are the two type of the transaction:1. Intra-day based
2. Delivery based
52
others
53
Sharekhan
ltd:-
There
is
no
ACCOUNT
OPENING
opening
charges.
Bank
and
Depository
54
Comment:-
India
Bulls
charge
maximum
account
55
Kar
vy
HD
FC
Yes
Share
trading
Yes
Commo
dity
trading
Yes
Yes
Yes
Yes
Yes
Yes
d-mat
Yes
opening
rights
No
Yes
Yes
Yes
No
Yes
KNOWLEDG %AGE
E
Yes
80%
No
20%
TOTAL
100
COMMENT
57
%AGE
Banks
24%
Derivatives &
securities market
28%
Insurance
4%
Bonds
20%
Real estate
20%
Others
4%
TOTAL
100
58
COMMENT
Today scenario is changed so that most area covered by
the derivative and securities market. It is 28% of the total
population.
59
3)
INVESTME PERCENTA
NT
GE
PURPOSE
Liquidity
30%
Returns
25%
Capital
10%
appreciatio
n
Tax benefits
20%
Risk
covering
Others
5%
10%
TOTAL
100
and tax
benefits.
60
And
remaining
25% are
FACTOR
%AGE
Risk
8%
Returns
17%
Both
75%
TOTAL
100
COMMENT
61
PERCENTAGE
Complete
8%
Partial
75%
Nil
17%
TOTAL
100
COMMENT
62
PERCENTAGE
Yes
60%
No
40%
TOTAL
100%
COMMENT
63
PERCENTAGE
SHAREKHAN
38%
INDIAINFOLINE
20%
ICICI DIRECT
14%
INDIA BULLS
12%
KARVY
9%
Others
7%
TOTAL
100
64
COMMENT
In Sharekhan Ltd 38% respondents have de-mat & trading
account because of better services and no annual
maintenance and other charges.
PERCENTAGE
Operating expenses
18%
Services
25%
65
Brokerage
57%
TOTAL
100
FINDINGS
According to the survey most of the customers of
Sharekhan Ltd says that it is pocket friendly.
Coming to faith 70% say Sharekhan Ltd is better than
others stock brokers due to customers satisfaction.
Lack of promotional activities undertaken by Sharekhan
securities Ltd. in Chandigarh Region.
Main purposes of investments are returns & liquidity.
66
SUGGESTIONS
LIMITATIONS
As only CHANDIGARH dealt in survey so it does not
represent the view of the total Indian market.
Size of the research may not be substantial.
There was lack of time on the part of respondents.
68
CONCLUSION
On the basis of the study it is found that Sharekhan Ltd is
better services provider than the other stockbrokers
because of their timely research and personalized advice
on what stocks to buy and sell. Sharekhan Ltd. provide
the facility of Trade tiger as well as relationship manager
69
APPENDIX
QUESTIONNAIRE
70
DATE:
NAME
OCCUPATION
AGE
CONTACT NO.
b) No
b) Banks
c) Real estate
d) Share market
e) Commodity
f) Others
71
a) Liquidity
b) Returns
c) Capital appreciation
d) Risk covering
e) Tax benefits
a) Risk
b) Returns
c) Both
b) Complete
c) Nil
b) No
b) Karvy
72
c) Indiainfoline
d) ICICI direct
e) Indiabulls
f) HDFC securities
g) Others
b) No
b) BSE
73
c) MCX
d) NCDEX
b) No
Suggestion:-
BIBLIOGRAPHY
Books:
74
BERI
G C. MARKETING RESEARCH
NEW DELHI, TATA Mc GRAW-HILL PUBLISHING COMPANY
LIMITED.
KOTHARI
RESEARCH METHODOLOGY
NEW DELHI, VIKAS PUBLISHING HOUSE PVT.LTD.1978.
GOYAL, DR.ALOK,
FINANCIAL MARKET OPERATION
NEW DELHI, V.K. (INDIA) ENTERPRISES .
Magazines:
VALUELINE (SHAREKHAN MONTHLY RESEARCH MAGAZINE)
75
Internet:
http://WWW.MONEYCONTROL.COM
http://WWW.CAPITALINE.COM
http://WWW.SHAREKHAN LTD.COM
http://WWW.INDIAINFOLINE.COM
http://WWW.ICICIDIRECT.COM
http://WWW.HDFCSECURITY.COM
http://WWW.KARVY.COM
76