Report of Summer Training Conducted at

SHAREKHAN Ltd.
Comparative analysis of Sharekhan ltd. with other Stock Broking Firms

Submitted in partial fulfillment of the requirements

for the award of the degree of

Master of Business Administration (International Business)

To

Guru Gobind Singh Indraprastha University, Delhi

Guide Name:
Ms Anamika Sharma
(Assistant professor) GIBS

Submitted by:
Student Name: Kamal Tetri
Roll No: 02819114314

Gitarattan International Business School

New Delhi 110085
Batch 2014-16

Certificate
I, Mr. Kamal Tetri, Roll No. 02819114314 certify that the Summer Training Report (Paper
Code MIB201 entitled Comparative analysis of Sharekhan ltd. with other Stock Broking
Firms is done by me and it is an authentic work carried out by me at Sharekhan limited.
The matter embodied in this Report has not been submitted earlier for the award of any degree
or diploma to the best of my knowledge and belief.

Signature of the Student

Date:

Certified that the Summer Training Report (Paper Code MIB-201) entitled Comparative
analysis of Sharekhan ltd. with other Stock Broking Firms done by Mr. Kamal Tetri, Roll
No. 02819114314, is completed under my guidance.

Signature of the Guide

Date:
Name of the Guide: Ms Anamika Sharma
Designation: Assistant professor

Countersigned
Director/Project Coordinator

Acknowledgement

The satisfaction of the successful completion of any task wouldnt be complete without the
expression of gratitude to the people who made it possible.
I express my gratitude to Mr. Amit Garg (Assistant Manager) Sharekhan ltd. who spared his
most valuable time and provided with all the necessary details regarding the company.
I am very thankful to Ms Anamika Sharma (Assistant professor), Faculty of GITARATTAN
INTERNATIONAL BUSINESS SCHOOL, for the guidance and interest evinced throughout the
preparation of this project.
My thanks and appreciation also goes to Mr. Baljeet Singh Hothi (Academic Co-ordinator) of
GITARATTAN INTERNATIONAL BUSINESS SCHOOL.
I also extend my heartfelt gratitude and thanks to Dr. S. Chaturvedi (Director) of
GITARATTAN INTERNATIONAL BUSINESS SCHOOL.
I also extend my gratitude to the respondents of my survey for their kind co-operation.
Finally I wish to extend my sincere acknowledgement to my parents for their moral and financial
support.
Name: Kamal Tetri
Enrolment No: 02819114314

ii

CONTENTS
S No

Topic

Page No

Title Page

Certificate (s)

Acknowledgements

ii

List of Tables

iv

List of Figures

List of Abbreviations

vi

Executive Summary

Chapter-1: Profile of the Firm/Company

Chapter-2: SWOT Analysis of the Company

10

10

Chapter-3: Data Presentation & Analysis

17

11

Chapter-4: Summary & Conclusions

41

12

References/Bibliography

44

13

Appendices

45

iii

LIST OF TABLES
Table
No

Title

Page No

Profile of the company

Stock Broker Charges

19

Brokerage Charges

20

Services offered by Sharekhan

23

Awareness of share market

31

Investment preferences

32

De-mat & Trading account

33

Reason behind trading with the present company

34

Company preferred by customers

35

10

firm preferred as a first time investor

39

11

Customers switching over to sharekhan

40

iv

LIST OF FIGURES
Figure
No

Title

Page No

Porters Five Force Model of Competition

11

Product Mix

19

Buying and Selling Process

27

Awareness of share market

31

Investment preferences

32

De-mat & Trading account

33

Reason behind trading with the present company

34

Brokerage Structure

35

Quality Research report

36

10

Brand Name

36

11

Software

37

12

AMC plan

38

13

Customer Service

38

14

firm preferred as a first time investor

39

15

Customers switching over to sharekhan

40

LIST OF ABBREVIATIONS
S No

Abbreviated Name

Full Name

BSE

Bombay Stock Exchange

NSE

National Stock Exchange

De-mat

Dematerialized Account

DP

Depository Participant

MCX

Multi-Commodity Exchange

NSDL

National Securities Depository Limited

AMC

Annual Maintenance Charges

F&O

Futures and Options

IPO

Initial Public Offering

vi

Executive Summary
Sharekhan is one of the leading retail brokerage firms in the country. It is the retail broking arm
of the Mumbai-based SSKI [S.S Kantilal Ishwarnath Limited].It has one of the largest networks
in the country with 1800+ share shops in 550 cities. Sharekhan provides services like Portfolio
management, trade execution in equities, derivatives and commodities.
Sharekhan Ltd. is a brokerage firm which is established on 8th February 2000 and now it is
having all the rights of SSKI. The company was awarded the 2005 Most Preferred Stock Broking
Brand by Awaaz Consumer Vote. It is first brokerage Company to go online. The Company's
online trading and investment site www.sharekhan.com was also launched on Feb 8, 2000.
Chapter 1 includes the profile of Sharekhan ltd. along with its address, vision and mission. The
product range, size of the company, companys organizational structure and source of data
collection had also been discussed.
Chapter 2 includes SWOT analysis of the company and also Porters Five forces Model to
analyse the level of competition faced by the company.
Chapter 3 includes data collection, presentation and analysis. Firstly, the primary data is
collected through questionnaire. The collected data is also represented in tabular and graphical
form for easier understanding and interpretations. It also includes functional analysis of different
functional areas that have been done through theoretical concepts.
Chapter 4 includes findings and conclusions of the project. The analysis is divided into 2 sub
categories i.e. finding /results and suggestions. This includes the learning, result out of practical
experience gained and suggestions that can be considered related.

Chapter 1
Profile of the Company
1.1 Introduction
Sharekhan is one of the leading retail broking House of SSKI Group which was running
successfully since 1922 in the country. It is the retail broking arm of the Mumbai-based SSKI
Group, which has over eight decades of experience in the stock broking business. Sharekhan was
established by Morakhia family in 1999-2000 and Morakhia family, continues to remain the
largest shareholder. It is the retail broking arm of the Mumbai-based SSKI [Shripal Shewantilal
Kantilal Ishwarnath Limited] Group.
Sharekhan Ltd. is a brokerage firm which is established on 8th February 2000 and now it is
having all the rights of SSKI. The company was awarded the 2005 Most Preferred Stock Broking
Brand by Awaaz Consumer Vote. It is first brokerage Company to go online. The Company's
online trading and investment site www.sharekhan.com was also launched on Feb 8, 2000. This
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
content-rich and research oriented portal has stood out among its contemporaries because of its
steadfast dedication to offering customers best-of-breed technology and superior market
information
Share khan is a market leader in providing broking services and has a top turnover in trading and
the high turnover makes it the no. 1 in the market. The main difference is the services that they
provide to the investors who really need it. the services are discussed in more detail in the
marketing activities. The clients are managed with a friendly corporate culture to give him more
2

benefited investment ideas and motivate him whenever he needs. The company is providing as
many tips to the clients for more and more trading ideas and the manager helps each client to
concentrate on a few scripts so that he can manage the profit/lose.
To sum up, Sharekhan brings to you a user- friendly online trading facility, coupled with a
wealth of content that will help you stalk the right shares.

Name of the company

Sharekhan ltd.

Owner

Shripal Morakhia

Year of Establishment

2000

ShareKhan SSKI
A-206 Phoenix House
Headquarter

Phoenix Mills Compound

Lower Parel
Mumbai - Maharashtra, India- 400013

Website

www.sharekhan.com

Phone

022-66621111, 1-800-22-7500

Email

info@sharekhan.com

Tagline

Your Guide to The Financial Jungle

Table No 1: Profile of the company

1.11 Regional Offices

Branch

Manager

Bangalore-jayanagar

Mr. Channaraj k.j.

Bangalore-gandhinagar

Mr. Basappa d.m.

New delhi

Mr. Hemendra Agarwal

Kochi

Mr. Dinsena Kallidil

Chennai

Mr. V.Krishnamurthy

Coimbatore

Mr. V.Mohankrishnan

1.2 Nature of the Business

Sharekhan offers its customers a wide range of equity related services including trade execution
on BSE, NSE, Derivatives, depository services, online trading, investment advisory, Mutual
Fund Advisory etc. With their research expertise, customer commitment and superior
technology, they provide investors with end-to-end solutions in investments. Sharekhan facilitate
purchase and sale of securities of companies and the securities or bonds issued by the
government in the course of its borrowing operation. They provide trade execution services
through multiple channels - an Internet platform, telephone and retail outlets.

1.3 Companys vision & mission

1.31 Vision
To be the best retail brokering Brand in the retail business of stock market
1.32 Mission
To educate and empower the individual investor to make better investment decisions through
quality advice and superior service

1.4 Product range of the company

1.41 Demat account
Dematerialization is the process of converting physical shares (share certificates) into an
electronic form. Shares once converted into dematerialized form are held in a De-mat account.
4

Sharekhan is a depository participant. This means that we can keep the shares in dematerialized
form in Sharekhan. But for this one has to purchases the Demat account in Sharekhan.
1.42 Trading account
A trading account works as an intermediary between the savings account and Demat account.
When you want to buy shares, first the money is transferred from your savings account to trading
account. After that required amount of shares are purchased and finally shares are stored in
electronic form in the Demat account. It works just in opposite way during the time of selling
shares.
1.43 Classic account
This account allows the client to trade through the website www.sharekhan.com and is suitable
for the retail investor who is risk-averse and hence prefers to invest in stocks or who do not trade
too frequently. It allows investor to buy and sell stocks online along with the following features
like multiple watch lists, Integrated Banking, De-mat and Digital contracts, Real-time portfolio
tracking with price alerts and Instant money transfer.
1.44 Trade Tiger
Trade tiger is an internet-based software application which is the combination of equity
&commodities that enables you to buy and sell share and well as commodities item instantly. It
is ideal for every client of sharekhan ltd.
1.45 Dial & Trade
Along with enabling access for your trade online, the classic and trade tiger account also gives
you our Dial-n-trade services. With this service, all you have to do is dial their dedicated phone
lines which are 1800-22-7500, 3970-7500.

1.46 Fundamental Research

Research and in-depth knowledge of markets provide better analysis than speculations or
reacting to rumors. Sharekhan research team of dedicated analysis is therefore, constantly at
work to track performance and trends and determine the winners.
1.47 Relationship Manager
Sharekhan provides personal relationship manager to its customer. The work of relationship
manager in Sharekhan ltd is to punch in trades for clients, communicate intra-day trading calls
and investment ideas to customers, monitoring day to day operations at branch etc

1.5 Size of the Organization

Over 3500 employees are working in Sharekhan all over India in 1800 offices which includes
branches & franchises in over 550 cities across India. As of Dec 2014, Sharekhan has over 13
lakh customers and has annual turnover more than Rs400 crores

1.6 Organizational Structure

CEO
DIRECTORS
VICE PRESIDENT
REGIONAL HEAD

DEALING SIDE

SALES SIDE

REGIONAL SALES MANAGER

CLUSTER HEAD

AREA SALES MANAGER

BRANCH MANAGER

TERRITORY MANAGER

ASSISTANT BRANCH MANAGER

DEPUTY MANAGER
EQUITY ADVISOR
ASSISTANT SALES MANAGER
SENIOR RELATIONSHIP MANAGER
BUSINESS DEVELOPMENT EXECUTIVES
RELATIONSHIP MANAGER
SENIOR SALES EXECUTIVES
DEALER

SALES EXECUTIVES

JUNIOR DEALER

SUPER TRAINEES

TRAINEES

1.7 Market share & position of the company in the industry.

Incorporated in February 2000, Sharekhan is India's 3rd largest stock broker (after ICICI Direct
and HDFC Securities). Sharekhan provides brokerage services through its online trading website
Sharekhan.com and 1800 offices which includes branches & franchises in over 550 cities across
India. Sharekhan has seen incredible growth over last 10+ years though it's very successful
online trading platform and the chain of franchises located in almost every part of India.
Sharekhan also has international presence in the UAE and Oman.
Sharekhan offers its services to all kinds of customers including individual investors and traders,
corporate, institutional and NRI's. As of Dec 2014, Sharekhan has over 13 lakh customers.

1.8 People with whom I have interacted during the summer training.
Name

Designation

Mr. Raman Goel

Territory manager

Mr. Amit Garg

Assistant manager

Mr. Amit Gupta

Assistant manager

Mr. Rajesh Antil

Assistant manager

Mr. Sumit Goel

Assistant manager

1.9 Source of data collection

1.91 Primary data
Primary data is data, which is collected by the researcher themselves. This kind of data is new,
original research information. A primary source reflects the individual viewpoint of a participant
or observer. Trainee used:
8

a) Questionnaires
1.92 Secondary data
Secondary research is using information that has already been produced by other people. A
secondary source is used by a person usually not present at the event and relying on primary
source documents for information. Trainee used:
a)

Internet

b) Books

Chapter 2
SWOT Analysis
A study undertaken by an organization to identify its internal strengths and weaknesses, as well
as its external opportunities and threats.
Helpful

Harmful

Strength

Weakness

Opportunity

threats

Internal origin

External origin

The SWOT Analysis of internal as well as external environment provides a clear picture of what
strength & weakness are possessed by the company, what are the various opportunities and
threats available to be grabbed.
2.1 Porter Five Forces Model
Porter five forces analysis is the framework for industry analysis and business strategy. Porter
five forces analysis is a framework to analyze level of competition within an industry and
business strategy development. It draws upon industrial organization (IO) economics to derive
five forces that determine the competitive intensity and therefore attractiveness of a market.
Attractiveness in this context refers to the overall industry profitability. An "unattractive"
industry is one in which the combination of these five forces acts to drive down overall
10

profitability. A very unattractive industry would be one approaching "pure competition", in

which available profits for all firms are driven to normal profit. This analysis is associated with
its principal innovator Michael E. Porter of Harvard University

Potential Entrants
(a) Threat of New Entrants

Competition

Capital Requirement

Competition in the
Supplier Power

Buyer Power

industry

(a) Bargaining power

(a)Number of firms & Relative

(b) Switching Cost

market share.

(a)Number of Buyer relative to

sellers.

(b)State of growth of industry

(c)Diverse Competitors

(b)Buyer switching
(c)Product Differentiation

Threat of Substitute Products

(a)Low risk product

Figure No 1: Porters Five Force Model of Competition

11

2.11 Competition in the industry

The company is facing competition from local as well as national level players. The local players
provide facility for offline trading while the national players like ICICI direct, Kotak Securities
and HDFC Securities provide online trading services
There are also other big names like Indiabulls, Motilal Oswal and 5 paisa encircles the company
from both the sides by providing online and offline trading with competitive services.
2.12 Potential of new entrants
The market for Non Banking Financial Companies or rather broking houses are flourishing. This
new trend poses for new threats also; this may be either the entry of local players who can
provide lower rates or a very big player who can enter into a price war. Threat of new entry is
high when:
a)

Capital requirements to start the business are less

b) Few economies of scale are in place

c)

Customers can easily switch (low switching cost)

d) Your key technology is not hard to acquire or isnt protected well

e)

Your product is not differentiated

2.13 Power of suppliers

Sharekhan has very high profile corporate suppliers, who for obvious reasons have great
bargaining power and offers from competitors also. The operations largely depend on these
supplies. Bargaining Power of supplier means how strong is the position of a seller. Suppliers are
more powerful when:

12

a)

Suppliers are concentrated and well organized

b) Few substitutes available to suppliers

c)

Their product is most effective or unique

d) Switching cost, from one suppliers to another, is high

e)

You are not an important customer to Supplier

2.14 Power of customers

Customer is the king of the market. They have a lot of options while planning to purchase
products. Products offered by Master trust are unsought in nature and are industry dependent.
The threats which lies here are:
a)

Too many goods chasing too few consumers.

b) Buyer purchases in bulk quantities and are mostly corporate clients.

c)

Product is not much differentiated.

d) Buyers cost of switching to a competitors product is low.

e)

Shopping cost is low.

f)

Credible Threat of integration.

2.15 Threat of substitutes

Master Trust poses great threat of substitutes like people of low risk appetite would like to invest
in bank rather than in share market, real estate, commodities, etc. Its products can very well be
substituted by substitutes offered by competitors

13

2.2 An overview of the four factors (Strengths, Weaknesses, Opportunities and Threats)
2.21 Strengths - Strengths are the qualities that enable us to accomplish the organizations
mission. These are the basis on which continued success can be made and sustained. Strengths
can be either tangible or intangible. Strengths are the beneficial aspects of the organization or the
capabilities of an organization, which includes human competencies, process capabilities,
financial resources, products and services, customer goodwill and brand loyalty. Examples of
organizational strengths are huge financial resources, broad product line, no debt, committed
employees, etc.

a)

Well-maintained infrastructure.

b) Dedicated, Intelligent and Loyal staff.

c)

Big client base of over 1 million customers.

d) On-line as well as offline Trading products.

e)

Dedicated research teams for fundamental and technical research, which constantly track the
pulse of the market.

f)

The best investment advice correct up to 70-90% through dedicated research and reports.

g) Wide product range to enable the clients to choose the best alternative.
h) A positive image in the mind of existing clients.
i)

SSKI has more than eight decades of trust and credibility in the Indian stock market.

2.22 Weaknesses - Weaknesses are the qualities that prevent us from accomplishing our mission
and achieving our full potential. These weaknesses deteriorate influences on the organizational
success and growth. Weaknesses are the factors which do not meet the standards we feel they
should meet. Weaknesses in an organization may be depreciating machinery, insufficient
research and development facilities, narrow product range, poor decision-making, etc.
14

Weaknesses are controllable. They must be minimized and eliminated. For instance - to
overcome obsolete machinery, new machinery can be purchased. Other examples of
organizational weaknesses are huge debts, high employee turnover, complex decision making
process, narrow product range, large wastage of raw materials, etc.

a) Time consuming process for account opening, resolving the problems of the customers, etc.
b) Service quality is not maintained accordingly how they are promoted.
c) Lesser emphasis on customer retention.
d) Higher brokerage charges.
e) Focuses more on HNIs than retail investors which results in meager market-share as
compared to close competitors.

2.23 Opportunities - Opportunities are presented by the environment within which our
organization operates. These arise when an organization can take benefit of conditions in its
environment to plan and execute strategies that enable it to become more profitable.
Organizations can gain competitive advantage by making use of opportunities.

a) Open interest of the people to enter in stock market for investing.

b) Awareness campaigns about online trading create new market.
c) Bullish phase of the market attracts investing public.
d) Large potential market for delivery and intra-day transactions.
e) Attract the customers who are dissatisfied with other brokers & DPs.
f) An indirect opportunity generated by the market from its bullishness.
15

2.24 Threats - Threats arise when conditions in external environment jeopardize the reliability
and profitability of the organizations business. They compound the vulnerability when they
relate to the weaknesses. Threats are uncontrollable. When a threat comes, the stability and
survival can be at stake. Examples of threats are - unrest among employees; ever changing
technology; increasing competition leading to excess capacity, price wars and reducing industry
profits; etc.

a) Decreasing rates of brokerage in the market.

b) Increasing competition against other brokers & DPs.
c) Aggressive promotional strategies by close competitors like Religare, Angel Broking and
India bulls.

d) A threat of losing clients for any kind of weakness of the company.

e) Indirect threat from instable stock market, i.e., low/no profit of Sharekhans clients would
lead them to go for other broker/DP.

16

Chapter 3
Data Presentation & Analysis
A. Data Collection
3.1 Marketing
The main aim or marketing activities at Sharekhan is that the customer should get enough
guidance to join the company and how he can get the best service than any other stockbroker.
There is an officer for handling the marketing activities followed by two executives and it is not
limited to them but the other people are also having some responsibilities to increase the no. of
clients and retain them by providing them the services needed by them.
There are many services those are designed such that the specific target segments of the
customers are covered and the products are positioned in the minds of customers as the best one
in India. The services are as given below:
Sharekhan is Indias leading national network of stock-broking outlets. It is having the largest
retail distribution chain in India. Sharekhan is not only a share-broking firm, but it avails of
various services and other financial products to its clients.
a)

Offline Trading facility

b)

Online BSE and NSE executions (through BOLT, i.e. BSE Online Trading and NEAT, i.e.
National Exchange Automated Trading)

c)

Free access to investment advice from Sharekhans Research team.

d)

Depository services: Demat and Remat transactions (Sharekhan is registered with NSDL,
i.e. National Securities Depository Ltd., as a Depository Participant)

e)

Derivatives trading, i.e. Futures and Options (through NEAT F&O)

17

f)

Internet based online trading.

g)

Other investment products: Mutual Funds, RBI Bonds, Insurance, etc

3.11 Marketing Mix

The marketing mix of Sharekhan is an excellent example we have seen in the industry because
no other stock brokering organization has such products to target the investors of different
minds, incomes and aims. There is an objective of satisfying the customer as to make him
delighted with affordable prices and convenient services. The four Ps of the marketing mix is the
best at Sharekhan in India because the total no. of share shops are widespread all over to have the
maximum contacts and awareness about Sharekhan, and we can say that it has achieved that
because it is having the maximum turnover than any other broker in India.
The marketing is done based on leads generated through the web contact, tele-contact and
personal contact with the customer and is a planned procedure to find out new customers. The
marketing management is carried out in an excellent way at Sharekhan.
3.12 Service (Product)
Service is an act or performance that one party offers to another for sell and it is not a physical
product that you can touch but it is that one can feel. It is not likely to result into the ownership
of anything. A service can be a fully service or a mixture of service and physical product.
The trading products of Sharekhan are such a mixture of services like DP service (managing the
demat account), providing reports for investment advice etc. and thus we can define its service
mix as a hybrid product mix of different physical products with accompanying services.
Therefore, the two types of accounts offered by Sharekhan i.e., Offline and Online are the two
main product lines in the product mix of the company. The offline a/c with Sharekhan is defined
as the account having which you can trade anywhere in the share shop of Sharekhan and the
18

online a/c is that you can trade on your PC through the software provided by Sharekhan and it
also offers tele-trading in both the cases but the major difference is of the service and prices for
opening an account. The product mix is as shown below:
Sharekhan

Offline
Account

Classic
Account

Trade Tiger

Figure No 2: Product Mix

The product mix is showing the products offered by Sharekhan to its customers and it is one type
of a tree structure diagram that shows the products of a company.
The products are actually services and are at the completion of the second stage of Product-LifeCycle, i.e., Growth and are entering into maturity stage. So there should be some changes in the
marketing strategies of the company.
3.13 Price
Prices for the trading products are as given below:
Stock Broker Charges
Trading Account opening fees

Rs.750

Trading Account AMC

Free

Demat Account opening fees

Free

Demat Account AMC

Rs.400

Table No.2: Stock Broker Charges

19

Brokerage charges

Equity Intraday Brokerage

0.10%

Equity Delivery Brokerage

0.50%

Equity Futures Brokerage

0.1.%

Equity Options Brokerage

Rs 100/- per lot or 2.5% on premium

(whichever is higher)

Commodity Trading Brokerage

0.10%

Table No 3: Brokerage Charges

3.14 Promotion
Promotional activities at Sharekhan are done by web, e-mails and personal contact. Sharekhan is
also organizing seminars and presentations and promotes its services to the clients. It is spending
Rs.20000 per month for promotional activities.
As explained earlier, Sharekhan is having the largest distribution chain of retail outlets of share
shops. And it can be seen also because there are 1800 share shops in 500 cities, which gives the
maximum awareness to Sharekhan. The distribution of Sharekhan is also proved by its turnover
and awareness among the investors in the stock market.
The marketing strategies followed by Sharekhan at this point are as given below:
The excellent marketing mix i.e., the Product-Price-Place-Promotion and for services additional
3Ps viz. People, Process and Physical evidence, are managed according to the needs of the
customers and try the best to deliver the maximum value to the customers for what they pay a
price.
20

The HR and Operations are one of the best at Sharekhan to help the customers for getting the
needs fulfilled with a family culture and atmosphere of harmony, peace and brotherhood and it is
focusing on the specific segments like HNI, Delivery-based and Intra-day traders
3.2 Human Resource Management
Human resource is the crucial resource that a company can use to grow with the work of the
employees. HRM activities at Sharekhan start form induction to the specific job training and are
done by H/O at Mumbai. H/O takes a written test and selection interview for filling up vacancies
in branches but the recruitment is done by the branch itself and the selection is performed by
H/O from the screened applicants.
Any new recruit is firstly inducted to the company and sent to T & D department that is covered
under HRD and T&D programs makes employees aware about all the activities/jobs within the
department he/she is to be recruited. Suppose if, I would be recruited for finance department then
the finance related employees are known to me with their work profiles, that is, what they really
do?
Then the specific job training is provided at H/O and the person has to keep in touch with the
concerned department at H/O on internet because he/she has t solve many conflicts arising in the
investors mind and to have an up-to-date information regarding the procedures and any new
facilities or policies to resolve the problems of the clients. It is a must for each employee because
the employee is the people by whom the company gets its customers and retains them.
HRP (Human Resource Planning), HRIS (Human Resource Information System), Recruitment &
Selection, Career planning and development, Assessment & development of employees for
Performance appraisal, etc. activities of managing the HR at Sharekhan is maintained in a way to
meet the requirements.
21

The corporate culture at Sharekhan is maintained in such a way that the people are helpful to
each other and eager to get the work done as soon as possible with a co-operative thinking. An
additional Rs.10000 is provided for each outlet of Sharekhan to motivate its employees by
performance appraisal and also the heads of each departments and branches has to go through a
3606 performance appraisal for maintaining the consistency in growth of the company.
In the end we can say that the human resource of Sharekhan is a best managed and used for the
continuous growth and development of the company for its future plans to be achieved time-totime.
3.3 Production and operations
3.31 Inputs
There are many inputs to the production & operations viz., land & buildings, machinery
&equipments, furniture & fixtures, employees, technology, capital (invested by promoters &
deposited by the customers) and the most important input, i.e., management functions carried out
at national, regional and branch level in Sharekhan.
3.32 Conversion Process
The main aim of it is to make profit with customer satisfaction. The conversion of inputs works
as the Sharekhan earn brokerage from the customers. The profits are generated from getting a
higher return on the invested amount of money than the amount payable to the customers. The
process is facilitated by a centralized computer system in which the data is stored and recovered
for the whole India and it is having the CPU at the H/O in Mumbai, Sharekhan is regulating the
brokerage rates all over India by keep watch on each transaction done from the branch office.
The data of a customer will be stored in the central computer and all facilities such as bills,
credit/debit reports etc. are provided by that computer to all customers on-line on the internet
22

The conversion process is also facilitated by some adjustments to the inputs and then the random
fluctuations are also handled in the process and lastly the monitoring of the process is done and a
feedback is given to do the adjustments for the process as indicated in the figure given.
3.33 Outputs
Outputs are those services generated by Sharekhan with the help of the inputs and using the
conversion process. These services are as listed in the figure above.
Services
Consumer

Retail brokering

Services

Corporate Broker Capital

advisor

Fundamental and Financial

Complain

Technical

advisory

resolvance

Research

Services

markets Nationwide
electronic

Depository

Others

data participant

transfer
Table No 4: Services offered by Sharekhan
3.34 Operations Strategy at Sharekhan
Operations strategies are implemented in Sharekhan as shown in the chart given above and the
main points of consideration are Efficiency, Dependability, Quality and Flexibility.
The points demand a facility mission that is made up of process, capacity, facilities, vertical
integration, and infrastructure facilities provided to get the desired outputs as per the plan.
The main aim of the operations strategy at Sharekhan is that the efficiency of the organization
and high level of it is desired outputs with low costs i.e., productivity with effectiveness. Quality
should be high and consistent in delivering services; Flexibility is related with fast introduction
of new services and providing a wide range to select an option to the customer. This is facilitated
by the process of operations, capacity/ability of the organization, competitive advantages,
vertical integration and the infrastructure created by the firm.
23

Sharekhan plans the strategies to get a working plan from it and the planning is done from topto-bottom level, i.e., national level, regional level, divisional level and the branch level planning
is carried out by the managers.
In this way, the Operations are managed with the best efforts in a direction that is to facilitate
future plans by achieving success in time and create milestones in the industry by driving the
company with excellence.
3.35 Account opening process
For online trading with Sharekhan Ltd., investor has to open an account. Following are the ways
to open an account with Sharekhan Ltd.:
a)

One need to call them at phone number provided below and asks that he want to open an
account with them. One can call on the Toll Free Number: 1-800-22-7500 to speak to a
Customer Service executive

b) One can visit any one of Sharekhan Limiteds branch. Sharekhan has a huge network all
over India. one can also log on to http://www.sharekhan.com/ContactUS/ContactUS.aspx
link to find out the nearest branch.
c)

One can send them an email at info@sharekhan.com to know about their products and
services.

d) One can also visit the site www.sharekhan.com and click on the option Open an Account
to fill a small query form which will ask the individual to give details regarding his name,
city he lives in, his email address, phone number, pin code of the city, his nearest Sharekhan
Ltd. shop and his preferences regarding the type of account he wants.
These information are compiled in the headquarter of the company that is in Mumbai from where
it is distributed throughout the countrys branches in the form of leads on the basis of cities and
24

nearest share shops. After that the executives of the respective branches contact the prospective
clients over phone or through email and give them information regarding the various types of
accounts and the documents they need to open an account and then fix appointment with the
prospective clients to give them demonstration and making them undergo the formalities to open
the account. After that the forms that has collected from the clients, is scrutinized in the branch
and then it is sent to Mumbai for further processing where after a few days the clients account
are generated and activated. After the accounts are activated, a Welcome Kit is dispatched from
Mumbai to the clients address mentioned in the documents provided by them. As soon as the
clients receive the Welcome Kit, which contains the clients Trading ID and Trading Password,
they can start trading and investing in shares.
3.36 Documents required to open Trading and Demat Account
Apart from two passport size photographs, one needs to provide with the following documents in
order to open an account with Sharekhan Limited.:
a)

Photocopy of the clients PAN Card which should be duly attached

b) Photo copy of any of the following documents duly attached which will serve as
correspondence address proof:
i.

Passport (valid)

ii.

Voters ID Card

iii.

Ration Card

iv.

Driving License (valid)

v.

Electricity Bill (should be latest and should be in the name of the client)

vi.

Telephone Bill (should be latest and should be in the name of the client)

vii.

Flat Maintenance Bill (should be latest and should be in the name of the client)

viii.

Insurance Policy (should be latest and should be in the name of the client)
25

c)

ix.

Lease or Rent Agreement.

x.

Bank Statement (should be latest)

Two cheques drawn in favor of Sharekhan Limited, one for the Account Opening Fees and
the other for the Margin Money (the minimum margin money is Rs. 500).

3.4 Finance Department

Like blood is the most important factor in our body, Finance is the blood of any business.
Finance is needed for all the activities like production or services as well as their distribution.
The finance department directly influences all the functions of the other departments. Also
finance has to give equal importance to all departments. Finance is that administrative area or set
of administrative function in an organization may have the means to carry out its objective as
satisfactorily as possible. Sharekhan has special accounts department for separate calculation of
pay-in and pay-out of funds according to the clients Proft/Loss. Finance management is done at
Sharekhan by managing the stocks in the demat accounts and funds in the margin & trading
accounts
Finance

DP

Accounts

Finance is the lifeblood of an organization to continue its activities and the finance management
at Sharekhan can be divided into two major parts viz. DP (Depository Participation) and
Accounts management, which are shown in the figure given above.
DP means providing the facility to the clients for managing the stock bought/sold by them. DP
covers two major terminologies viz. settlements and the auctions which are a part of managing
26

demat account. Settlements as defined by SEBI are T+2, currently and it means that the demat
account of the clients are prone to be sufficient for selling a script with no debit at all, i.e., the
account must have the sold amount of stock to fulfill the settlement after 2 days from trade-day.
Generally, the timings are 9:30 and 3:00 as a deadline for the client and he must provide the
stock for giving a delivery to the buyer.The chart shows the total transaction between two clients:

DP(Sharekhan)

DP (anyone)

Figure No 3: Buying and Selling Process

The chart shows the process that the request for selling and buying passes through the DPs of the
respective clients and finally the exchanges like SKSE (Saurashtra Kutch Stock Exchange)
becomes the controlling intermediary for the delivery of stocks and this process is done in two
days. Nowadays, as banks are becoming fast for E-Fund Transfer (EFT) and Phone-banking is
getting more popularity, SEBI is thinking to make the financial market of India to have a
maximum speed of transactions just like the other nations in the world and proposing for T+1
settlement scheme but the system is not enough competent for that thing. But soon or later we
will have such a settlement system in India, as said by Mr. J. N. Bajpai, chairman of SEBI. The
client, if not capable of providing the delivery of say, 1000 shares of SAIL then the Auctions are
initiated by the exchanges and the client has to pay for the price prevailing in the market with 45% penalty. The penalty can go on maximum to 20% more than the market price of the sold
stock. Generally, it is known as a buying auction and a same kind of auction is for selling the
stock for which the buyer was proved unable to pay the price is carried out by exchange, known
as the selling auction. And a debit or credit note is provided in the respective case of auction to
the clients, i.e., for buying auction debit note is given on the T+4 basis and in case of selling
27

auction the credit note is given on T+5 basis. There are two types of auctions called as Internal
auctions & Market auctions, the internal auctions are defines as the auctions carried out between
the other shops of Sharekhan and market auctions are those as explained earlier, the auction
carried out in the market.
This is all about settlements but now switch to funds management or accounts management at
Sharekhan. The accounts are different that is the margin a/c for deposits of the client and trading
a/c for which Profit/Loss are settled. The collection of funds from the clients who had a debit
balance or made a loss are made on the next day of trading and the payments to the profiting
traders are made after two days of trading because the cheques are received from H/O and then
pay-out is done and Pay-in is as explained that amounts to be taken from the clients. In this way,
accounts are managed but in case if the client is unable to pay, the deposit from the margin a/c is
cut down to the payments and in case if a client is having a credit balance in F&O trading though
he had a debit balance in cash-NSE & BSE trading, a JV request is sent to H/O for totaling the
three balances. The main aim for accounts management is that the clients must have a credit or
no debit on the next day.
The DP services provided by Sharekhan are falling under the regulation of NSDL (National
Securities Depository Limited) and CDSL (Central Depository Services Limited), organizations
governed by SEBI to regulate the depository services in the interest of the investors. So, the
financial market in India is governed by Ministry of finance under which two major bodies viz.
SEBI & RBI are covered and under RBI the banks and other financial institutions are covered
while SEBI covers the exchanges, NSDL & CDSL and the whole DP service providers with the
brokers to the investors.

28

In this way we have gained a meaningful knowledge about Indias financial market and its
structure from this training at Sharekan. In this way, the finance function is carried out at
Sharekhan by following the guidelines given by SEBI. And the company is a private limited one
with its own policies for disclosing its financial statements
3.5 Information Technology
In the past, investors had no option but to contact their broker to get real time access to market
data. The information technology brings data to the investor online and net broking enables him
to trade on a click. Now information has become easily accessible to both retail as well as big
investors. The development of broking in India can be categorized in 3 phases:
a)

Stock brokers offering on their sites features such as live portfolio manager, live quotes,
market research and news to attract more investors.

b) Brokers offering on line broking and relationship management by providing and offering
analysis and information to investors during broking and non-broking hours based on their
profile and needs, that is, customized services.
c)

Brokers (now e-brokers) will offer value management or services such as initial public
offerings on line, asset allocation, portfolio management, financial planning, tax planning,
insurance services and enable the investors to take better and well-considered decisions.

In the US, 82 per cent of the deals are done on line. The European on line broking market is
expected to be of $8 billion and is likely to raise fivefold by 2020. In India, presently Internet
trading can take place through the order routing system, which will route client orders to
exchanges trading systems for execution of trades on stock exchanges (NSE and BSE). This will
also require interface with banks to facilitate instant cash debit or credit and the depository
system for debit or credit of securities.

29

3.6 International Business

Sharekhan has international presence through its branches in Dubai, Abu Dhabi & Muscat in
Middle East. All NRIs from UAE can invest in Indian share markets, Mutual funds, Insurance
products and portfolio management services in Indian market. These services are backed by
quality investment advice from an experienced research team which offers investment and
trading ideas based on fundamental and technical research respectively.
B. Data presentation
3.7 Data Sources
The study is mainly based on the data collection from primary sources.
3.8 Sample size
A sample of 30 customers was selected from the target population for the study.
3.9 Objective
Objective of the study is to understand the factors that influence the preferences of the customer.
3.10 Research Methodology
Research design

: descriptive in nature.

Data source

: data collected from primary sources.

Primary data

: primary data is collected from the respondent through

Structured questionnaire.

30

1. Awareness of share market.

Options

Number of

% of

Respondents

Respondents

Partial

56

70%

Complete

16

20%

Nil

10%

Table No.5 Awareness of share market

Nil
10%

Complete
19%

Partial
Complete
Nil
Partial
71%

Figure No. 4 Awareness of share market

Interpretation
70% of respondents have partial knowledge about share market where as 20% of respondent
have complete knowledge about share market. So majority of the people who were contacted
have got partial knowledge of share market.

31

2. Sector preferred for investing in share market

Options

Number of

% of

Respondents Respondents
Equity & Cash

25

31%

Derivative

18

22%

Mutual Fund

14

18%

IPO

12

15%

PMS

4%

Commodities

10%

Table No.6 Investment preferences

Commodities
10%
PMS
4%
IPO
15%

Equity & Cash

Equity & Cash

31%

Derivative
Mutual Fund
IPO
PMS

Mutual Fund
18%

Commodities
Derivative
22%

Figure No. 5 Investment preferences

Interpretation
Most of the customer prefers investing in Equity and Cash i.e 31% and 22% would like to invest
in derivatives followed by mutual fund (18%). People like to invest more in equity sector rather
than any other sector. This is because of the stability and easy liquidity as well as they seeks to
reap potentially higher gains from the equity market.

32

3. Companies in which customers having De-mat & Trading account

Options

Number of

% of

Respondents Respondents
Sharekhan

15

19%

Angel Broking

18

22%

India Infoline

12

15%

ICICI Direct

9%

Religare

13

16%

HDFC Sec.

11%

Others

8%

Table No.7 De-mat & Trading account

Others
8%
HDFC Sec.
11%

Sharekhan
19%

Sharekhan
Angel Broking
India Infoline

Religare
16%

ICICI Direct
Angel Broking
22%

Religare
HDFC Sec.

ICICI Direct
9%

Others
India Infoline
15%

Figure No. 6 De-mat & Trading account

Interpretation
19% of respondents are the customers of sharekhan and 22% of respondents are trading with
Angel broking followed by 16% and 15% with Religare and India Infoline respectively. These
four companies are having major market share in terms of number of clients. Market share of
HDFC securities and ICICI direct is very less as compared to Sharekhan and Angel broking.
33

4. Primary reason behind trading with the present company

Options

Number of

% of

Respondents Respondents
Low brokerage
structure
Better
appreciation in
PMS
Quality of
research report
Comfort level
with software
Customer
Service

31

39%

4
5%
8
19
18

10%
24%
22%

Table No.8 Reason behind trading with the present company

Low brokerage structure

Customer
service
22%
Comfort level
with software
24%

Quality of
research report
10%

Better appreciation in
pms
Low brokerage
structure
39%

Quality of research
report
Comfort level with
software

Better
appreciation in
pms
5%

Customer service

Figure No. 7 Reason behind trading with the present company

Interpretation
39% respondents are happy with the low brokerage structure whereas 24% & 22% respondents
are satisfied with the software and customer service respectively. Maximum number of people
prefers those stock broking companies who are having low brokerage structure.

34

5. Company preferred based on the following parameters

Sharekhan
Angel Broking
Religare
India Infoline
ICICI Direct
Total

Brokerage Quality
Structure research
report
12
28
18
14
8
80

Brand
Name
23
19
13
15
10
80

Software

26
18
14
15
7
80

AMC
Plan
25
19
16
12
8
80

Customer
Service
15
24
17
15
9
80

21
18
15
16
10
80

Table No.9 Company preferred by customers

5.1 Brokerage Structure

Brokerage Structure
ICICI Direct Sharekhan
10%
15%
Sharekhan
India Infoline
18%

Angel Broking
Religare
Angel Broking
35%

India Infoline
ICICI Direct

Religare
22%

Figure No. 8 Brokerage Structure

Interpretation
Brokerage structure wise 35% respondents prefer Angel broking whereas 15% respondents
prefer Sharekhan. ICICI direct and Sharekhan is least preferred as far as brokerage structure is
concerned.

35

5.2 Quality Research report

Quality Research report

ICICI Direct
12%
Sharekhan
29%
India Infoline
19%

Sharekhan
Angel Broking
Religare
India Infoline

Religare
16%

Angel Broking
24%

ICICI Direct

Figure No. 9 Quality Research report

Interpretation
29% respondents think that ShareKhan provides quality research report where as 24%
respondents prefer Angel brokings research report over other broking firms. So majority of
customers prefer Sharekhan and Angel brokings report where as ICICI Direct is least preferred
by the customers.
5.3 Brand Name

Brand Name
ICICI Direct
9%
India Infoline
19%

Sharekhan
32%

Sharekhan
Angel Broking
Religare
India Infoline

Religare
18%

ICICI Direct
Angel Broking
22%

Figure No. 10 Brand Name

36

Interpretation
33% respondents prefer sharekhan as far as brand name is concerned whereas 23% prefer angel
broking and ICICI Direct is among least preferred. Results indicate that Sharekhan is rated as
first choice as far as brand name is concerned.
5.4 Software

Software
ICICI Direct
10%
India Infoline
15%

Sharekhan

Sharekhan
31%

Angel Broking
Religare
India Infoline

Religare
20%

ICICI Direct
Angel Broking
24%

Figure No. 11 Software

Interpretation
From the above data it is concluded that 31% respondent find software offered by Sharkhan is
user friendly and very easy to use and 24% respondents prefer the angel broking software
followed by 20% with Religares software.

37

5.5 AMC plan

AMC plan
ICICI Direct
11%

Sharekhan
19%
Sharekhan

India Infoline
19%

Angel Broking
Religare
India Infoline

Angel Broking
30%

ICICI Direct

Religare
21%

Figure No. 12 AMC plan

Interpretation
Maximum number of respondents i.e.30% prefer AMC plan of Angel broking because it is less
expensive than other firm, 21% customers prefer AMC plan of Religare and 19% of customers
prefer AMC plan of Sharekhan and India Infoline.
5.6 Customer Service

Customer Service
ICICI Direct
13%

Sharekhan
26%

Sharekhan
Angel Broking

India Infoline
20%

Religare
India Infoline

Religare
19%

ICICI Direct

Angel Broking
22%

Figure No. 13 Customer Service

38

Interpretation
From the above data it is concluded that 26% respondents are happy with the sharkhans
customer service where as 23% respondents like the customer service of angel broking and 20%
customers like customer service of India Infoline.
6. Broking firm preferred as a first time investor
Options

Number of

% of

Respondents Respondents
Sharekhan

29

36%

Angel Broking

21

26%

India Infoline

14

18%

ICICI Direct

4%

Religare

11%

HDFC Sec.

5%

Table No.10 firm preferred as a first time investor

HDFC Sec.
Religare 5%
11%
ICICI Direct
4%

Sharekhan
Sharekhan
36%

India Infoline
18%

Angel Broking
India Infoline
ICICI Direct
Religare
HDFC Sec.

Angel Broking
26%

Figure No. 14 firm preferred as a first time investor

Interpretation
36% respondents said that they will prefer Sharekhan broking firm as a first time investor
because of their name and services provided and the quality of software they provide which is
free of cost. 26% and 18% customers prefer Angel broking and India infoline respectively.
39

7. Switching over to sharekhan If offered with better brokerage structure and Services
Options

Number of

% of

Respondents

Respondents

Yes

58

73%

No

12

28%

Table No.11 Customers switching to sharekhan

No
17%

Yes
No

Yes
83%

Figure No. 15 Customers switching to sharekhan

Interpretation
73% respondents said that they will prefer Sharekhan broking firm if better brokerage and
services offered. Majority of customers switching over to sharekhan might increase provided
they charge low brokerage

40

Chapter 4
4.1 Summary & Conclusions
4.11
a)

Findings
According to the data that has been collected, majority of the people who were contacted
have got partial knowledge of share market.

b) People like to invest more in equity sector rather than any other sector. This is because of the
stability and easy liquidity. Also, investors are exempt from tax in case of long term capital
gain and short term capital gain fall under 10% tax slab.
c)

Majority of the first time investor prefers sharekhan over other brand. This is because of the
intensive sales promotion which they carry out and the kind of software and services being
offered to customers.

d) Sharekhan organizes seminars across the country from time to time in order to educate
investors in various subjects related to the stock, derivatives and commodities markets.
e)

In terms of promotional activities sharekhan is much ahead of its competitors. It spends a

huge amount on advertisement on social networking sites like Facebook, Google+ etc.

f)

Regular trader prefers Angel and India Infoline due to the low brokerage being charged by
them. Also the account maintenance cost is low as compare to others.

g) This study reveals probability of customers switching over to sharekhan might increase
provided they charge low brokerage and better AMC plan.
4.12
a)

Lessons learnt
While acquiring clients for new demat accounts, I learned to converse and convince them by
offering investment solutions that best suits their requirement and objective.

b) Sharekhan gave me an opportunity to get into intricacies of share market.

41

c)

In the course of research i gained knowledge about competitive edge of different leading
broking firms in India

d) I increased my knowledge of stock market. I learned various aspects of equity, derivatives

and commodities.
e)

I learned about various products and services offered by sharekhan and their practical
applications.

f)

Its a great experience to hear from clients their trading experience over the years and their
perception about different firms.

g) In order to make clients familiar with the process of on-line trading, i got acquainted with
the entire procedure of demonstration of software.
h) The main and important thing is that we had a practical experience of working in a reputed
company.
4.13
a)

Suggestions
The competitors are trying to get customers with better services than Sharekhan viz.,
account opening process time, low deposits with greater exposure for trading, more focus on
delivery-traders, etc. so Sharekhan must take care with developing fighter products to retain
old customers and gain new customers with competitive prices and services.

b) They should try to make some arrangements to reduce account opening time by verifying
documents at branch it selves.
c)

The company should focus on creating new customers as well as on customer retension.

d) Since they are charging more in comparison to others, they should reduce the account
opening charges as well as brokerage charges.
e)

The company should focus on the customer satisfaction not on just taking money from their
pocket.
42

f)

Necessary steps should be taken by the exchange to deal with the situations arising due to
break down in online trading.

g) For controlling the operations of the company it is recommended that the employees should
be motivated for work and they should have a feeling of satisfaction for working in
Sharekhan, so that the investors get maximum service and satisfaction.

43

References
Books:
a)

Kotler, P. (2012). Marketing Management. Pearson India.

b) Pandey, I.M. (2010). Financial Management. Vikas Publishing house pvt ltd.
c)

Kothari C.R., (2004). Research Methodology. New age international pvt ltd.

d) Gupta, S.P. (2008). Statistical Methods. Sultan Chand & Sons.

Websites:

a)

www.sharekhan.com (downloaded on 25th july 2015)

b) www.chittorgarh.com (downloaded on 14th aug 2015)

c)

www.moneycontrol.com (downloaded on 14th aug 2015)

d) www.sebi.gov.in (downloaded on 22nd aug 2015)

e)

www.sharekhanlearning.com (downloaded on 7th sept 2015)

f)

www.nseindia.com (downloaded on 11th sept 2015)

g) www.bseindia.com (downloaded on 1th sept 2015)

44

Appendices
Appendix A: Questionnaire
I am a final year student currently pursuing my MBA in International Business at
GITARATTAN INTERNATIONAL BUSINESS SCHOOL. I am conducting a research study on
Comparative analysis of Sharekhan ltd. with other Stock Broking Firms. This research
(project) is taken as a partial requirement for the completion of my MBA. I seek your kind
assistance in completing the attached questionnaire which would take few minutes from your
valuable time. Your responses will be treated as Strictly Confidential.

1. Do you have any knowledge of share markets?

a) Partial
b) Complete
c) Nil

2. In which sector would you prefer investing?

a) Equity or Cash Market
b) Derivative Market
c) Mutual funds
d) Initial Public Offer (IPO)
e) Portfolio Management System (PMS)
f) Commodities

3. In which company you have Demat& Trading account?

a) Sharekhan Ltd
b) Angel Broking
c) Indiainfoline
d) ICICI direct
e) Religare
f) HDFC securities
g) Others____________________

45

4. According to you which is the primary reason behind trading with the present company?
a) Low brokerage structure
b) Better appreciation in PMS
c) Quality of research report
d) Comfort level with software
e) Customer Service
5. Which company would you prefer the most based on the following parameters?

Sharekhan
Angel Broking
Religare
India Infoline
ICICI Direct
Total

Brokerage Quality
Structure research
report
12
28
18
14
8
80

Brand
Name
23
19
13
15
10
80

Software

26
18
14
15
7
80

AMC
Plan
25
19
16
12
8
80

Customer
Service
15
24
17
15
9
80

6. Had you been a first time investor, which broking firm you would have preferred the
most?
a) Sharekhan Ltd
b) Angel Broking
c) Indiainfoline
d) ICICI direct
e) Religare
f) HDFC securities

7. If offered with better brokerage structure and Services would you like to switch over to
sharekhan ?
a) Yes
b) No

46

21
18
15
16
10
80