INTRODUCTION

The topic is to study the competitors of Anand Rathi with respect to Demat Account .
DEMAT A/C is a pool of various scripts and securities, where as online trading A/C is a
tool of purchasing/ selling of shares or scripts online. These scripts are then transferred to
DP i.e. Depository account after three days.
This topic includes the practical experience of selling company product that is followed
by studying the consumer preference or interest towards share market. This is a market,
which is uncertain some time it gives huge profit and also vice versa; it depends up on the
investment customer made. This is a better option to have better returns on the
investments then investing in banks, mutual fund or bonds . But risk is high in this case.
This product offers customer two type of investment option INTRADAY and
DELIVERY both has there own benefits and limitation but a better way to have more
returns on investment. Intraday means investing in share market for a day i.e. purchasing
and selling of the share in one day. Delivery is purchasing share and selling those shares
next day. The charges that company charge in terms of brokerage is different in both the
cases.

OBJECTIVE OF THE STUDY

1

1) The main objective is selling and promotions of the DMAT Account cum Online
Trading Account.
2) Marketing of the product.
3) To make a comparative study to know the different companies
4) To collect the real time information about preference level of customers using Demat
account and their inclination towards various other brokerage firms.
5) To provide pricing strategy of competitors to fight cut throat competition.

COMPANY PROFILE

Tagline: Behind every successful investor

Anand Rathi is a leading full service investment bank founded in 1994 offering a wide
range of financial services and wealth management solutions to institutions, corporations,
highnet worth individuals and families. The firm has rapidly expanded its footprint to
over 350 locations across India with international presence in Hong Kong, Dubai &
London. Founded by Mr. Anand Rathi and Mr. Pradeep Gupta, the group today employs
over 2,500 professionals in India and its international offices.
The firms philosophy is entirely client centric, with a clear focus on providing long term
value addition to clients, while maintaining the highest standards of excellence, ethics
and professionalism. The entire firm activities are divided across distinct client groups:
Individuals, Private Clients, Corporates and Institutions. Anand Rathi has been named
The Best Domestic Private Bank in India by Asia money in their Fifth Annual Private
Banking Poll 2009. The firm has emerged a winner across all key segments in Asia
moneys largest survey of high net worth individuals in India.

MISSION :
To be India's first Multinational providing complete financial services
solution across the globe

VISION : Providing integrated financial care driven by the relationship of trust and
confidence.

Anand Rathis Core Services

ANAND RATHI is one of Indias leading broking houses providing a complete lifecycle of investment solution.

Research Based
Investment Advice

Training and
Seminars

EQUITIES
DERIVATIVES
COMMODITIES

Technology Based
Investment Tools

Investment and
Trading Services

Integrated Demat
Facility

PRESENCE

The offices of AnandRathi in 197 cities across 28 cities and it has also branches in
Dubai and Bangkok with more than 44000 employees. It has daily turnover in excess
of Rs. 4billion. It has 1,00,000+ clients nationwide. It is also leading Distributor of
IPO's.

In India AnandRathi is present in 21 States:

Andhra Pradesh , Assam, Bihar , Chhattisgarh, Delhi , Goa, Gujarat, Haryana Jammu &
Kashmir, Jharkhand, Karnataka, Kerala, ,Madhya Pradesh, Maharashtra, Orissa, Punjab,
Rajasthan, Tamil Nadu, Uttar Pradesh, Uttaranchal, West Bengal.

MILESTONES

1994: Started activities in consulting and Institutional equity sales.

1995: Set up a research desk and empanelled with major institutional investors
1997: Introduced investment banking businesses Retail brokerage services launched
1999: Lead managed first IPO and executed first M & A deal
2001: Initiated Wealth Management Services
2002: Retail business expansion recommences with ownership model
2003: Wealth Management assets cross Rs1500 crores Insurance broking launched.
Launch of Wealth Management services in Dubai. Retail Branch network exceeds 50.
2004: Commodities brokerage and real estate services introduced Wealth Management
assets cross Rs 3000 crores. Institutional equities business re-launched and senior
research team put in place. Retail Branch network expands across 100 locations within
India
2005: Real Estate Private Equity Fund Launched
Retail Branch network expands across 200 locations within India

2006: AR Middle East, WOS acquires membership of Dubai Gold & Commodity
Exchange (DGCX). Ranked amongst South Asia's top 5 wealth managers for the ultrarich by Asia Money 2006 poll Ranked 6th in FY2006 for All India Broker Performance in
equity distribution in the High Net worth Individuals (HNI) Category
Completes its presence in all States across the country with offices at 300+ locations
within India.
2007: Citigroup Venture Capital International picks up 19.9% equity stake Retail
customer base crosses 100 thousand Establishes presence in over 350 locations
2009: Anand Rathi has been Ranked as the #1 Private Bank - Domestic in India by
Asiamoney Polls 2009 and Ranked as the #2 Private Bank - Overall in India by
Asiamoney Polls 2009
2010: Anand Rathi Private Wealth adjudged Best Domestic Private Bank (India) by Asia
Money Polls 2010 for the second consecutive year.
2011: AnandRathi for the third time in a row has been voted as the 'Best Domestic
Private Wealth Management Firm' by Asiamoney Polls 2011.

PRODUCTS

Equity & Derivatives Brokerage

Anand Rathi provides end-to-end equity solutions to institutional and individual
investors. Consistent delivery of high quality advice on individual stocks, sector trends
and investment strategy has established us a competent and reliable research unit across
the country.
Clients can trade through us online on BSE and NSE for both equities and derivatives.
They are supported by dedicated sales & trading teams in our trading desks across the
country. Research and investment ideas can be accessed by clients either through their
designated dealers, email, web or SMS.

Mutual funds:
A mutual fund is a body corporate registered with SEBI that pools money from the
individuals/corporate investors and invests the same in a variety of different financial
instruments or securities such as Equity Shares, Government Securities Bonds,
Debentures, etc.
Anand Rathi is one of India's top mutual fund distribution houses. Our success lies in our
philosophy of providing consistently superior, independent and unbiased advice to our
clients backed by in-depth research. We firmly believe in the importance of selecting
appropriate asset allocations based on the client's risk profile.

 Depository services
Anand Rathi Depository Services provides you with a secure and convenient way for
holding your securities on both CDSL and NSDL.
Our depository services include settlement, clearing and custody of securities, registration
of shares and dematerialization. We offer you daily updated internet access to your
holding statement and transaction summary.

Commodities
Commodities broking - a whole new opportunity to hedge business risk and an attractive
investment opportunity to deliver superior returns for investors.
Our commodities broking services include online futures trading through NCDEX and
MCX and depository services through CDSL. Commodities broking is supported by a
dedicated research cell that provides both technical as well as fundamental research. Our
research covers a broad range of traded commodities including precious and base metals,
Oils and Oilseeds, agri-commodities such as wheat, chana, guar, guar gum and spices
such as sugar, jeera and cotton.

Insurance broking
As an insurance broker, we provide to our clients comprehensive risk management
techniques, both within the business as well as on the personal front. Risk management
includes identification, measurement and assessment of the risk and handling of the risk,
of which insurance is an integral part. The firm deals with both life insurance and general
insurance products across all insurance companies.

 IPO
We are a leading primary market distributor across the country. Our strong performance
in IPOs has been a result of our vast experience in the Primary Market, a wide network of
branches across India, strong distribution capabilities and a dedicated research team.
We have been consistently ranked among the top 10 distributors of IPOs on all major
offerings. Our IPO research team provides clients with indepth overviews of forthcoming
IPOs as well as investment recommendations. Online filling of forms is also available

Demat Account
Demat account allows you to buy, sell and transact shares without the endless paperwork
and delays. It is also safe, secure and convenient.
In India, a demat account, the abbreviation for dematerialized account, is a type of
banking account which dematerializes paper-based physical stock shares. The
dematerialized account is used to avoid holding physical shares: the shares are bought
and sold through a stock broker.This account is popular in India. The Securities and
Exchange Board of India (SEBI) mandates a Demat account for share trading above 500
shares

Services

Risk Management

Due diligence and research on policies available

Recommendation on a comprehensive insurance cover based on clients needs

Maintain proper records of client policies

Assist client in paying premiums

Continuous monitoring of client account

Assist client in claim negotiation and settlement

10

MANAGEMENT TEAM
AR brings together a highly professional core management team that comprises of
individuals with extensive business as well as industry experience. Our senior
Management comprises a diverse talent pool that brings together rich experience from
across industry as well as financial services.

1)

Mr. Anand Rathi - Group Chairman, Chartered Accountant, Past.

President, BSE; Held several Senior Management positions with one of
India's largest industrial groups

2) Mr. Pradeep Gupta - Vice Chairman; Plus 17 years of experience in

Financial Services

3) Mr.Amit Rathi - Managing Director; Chartered Accountant & MBA; Plus

11 years of experience in Financial Service

11

ORGANIZATION STRUCTURE

Anand Rathi

Branch

Web
Dealer

Franchise

Sales
Executive

Sales
Coordinator

Customer
Care
Receptionist

12

Account Head

JOB DESCRIPTION
The company placed me as a Summer Trainee. I have been handling the Following
responsibilities:
The job profile is to sale of product (Demat Account) of the organization.
Job profile is to generate the lead by cold calling.
Job profile is to understand customers needs and their feedback.
Job profile is to do sales promotion through e-mails, canopies, making cold
calling, distributing pamphlets and etc.
Job profile is to analyze the pricing and marketing strategies of the competitors.

AREA ASSIGNED :
The areas covered were of M.I.D.C phases of Badlapur, Ambarnath, Kalyan, Dombivli
Ulhasnagar.

13

Basics of Stock Market

Corporations issue official-looking sheets of paper that represent ownership of the
company. These are called stock certificates, and each certificate represents a set number of
shares. The total number of shares will vary from one company to another, as each makes
its own choice about how many pieces of ownership to divide the corporation into. One
corporation may have only 2,500 shares, while another, such as IBM or the Ford Motor
Company, may issue over a billion shares. Companies sell stock (pieces of ownership) to
raise money and provide funding for the expansion and growth of the business. The
business founders give up part of their ownership in exchange for this needed cash. The
expectation is that even though the owners have surrendered a portion of the company to the
public, their remaining share of stock will become increasingly valuable as the business
grows. Corporations are not allowed to sell shares of stock on the open stock market without
the approval of the Securities and Exchange Commission (SEC). This transition from a
privately held corporation to a publicly traded one is called going public, and this first sale
of stock to the public is called an initial public offering, or IPO.

14

 Stock exchanges
The introduction of the concept of the stock exchanges in India came with the breaking of
the American Civil War and the idea materialized first in 1874 with the foundation of the
Bombay Stock Exchange at the Dalal Street in Mumbai.
Currently, in all the India Stock Exchanges the trading system is computerized for more
efficient and transparent trading. There has been a significant boom in the degree of
development and volume of trading in the stock exchanges .
The two most important exchange houses of the Indian stock market are the Bombay
Stock Exchange and the National Stock Exchange. Many of the regional stock exchanges
have obtained the membership of these two stock exchanges in India. The index of the
Bombay Stock Exchange, BSE Sensex is a value-weighted index composed of 30
companies.
Another significant feature of the India Stock Exchanges is the regulatory agency,
Securities and Exchange Board of India or SEBI which supervises the activities of stock
markets, regulates the functioning of stock exchanges and intermediaries and registers
Foreign Investors trading in Indian scrip .
Stock Exchanges are an organized marketplace, either corporation or mutual
organization, where members of the organization gather to trade company stocks or other
securities. The members may act either as agents for their customers, or as principals for
their own accounts.
Stock exchanges also facilitate for the issue and redemption of securities and other
financial instruments including the payment of income and dividends. The record keeping
is central but trade is linked to such physical place because modern markets are
computerized. The trade on an exchange is only by members and stockbroker do have a
seat on the exchange.
List of Stock Exchanges In India :

Bombay Stock Exchange

National Stock Exchange

Regional Stock Exchanges.

15

 Establishment Of SEBI
The Securities and Exchange Board of India was established on April 12, 1992 in
accordance with the provisions of the Securities and Exchange Board of India Act, 1992.
In 1988 the Securities and Exchange Board of India (SEBI) was established by the
Government of India through an executive resolution, and was subsequently upgraded as
a fully autonomous body (a statutory Board) in the year 1992 with the passing of the
Securities and Exchange Board of India Act (SEBI Act) on 30th January 1992. In place of
Government Control, a statutory and autonomous regulatory board with defined
responsibilities, to cover both development & regulation of the market, and independent
powers have been set up.
The Preamble of the Securities and Exchange Board of India describes the basic
functions of the Securities and Exchange Board of India as
to protect the interests of investors in securities and to promote the development
of, and to regulate the securities market and for matters connected therewith or
incidental thereto
The basic objectives of the Board were identified as:
1. To protect the interests of investors in securities.
2. To promote the development of Securities Market.
3. To regulate the securities market.
SEBI has introduced the comprehensive regulatory measures, prescribed registration
norms, the eligibility criteria, the code of obligations and the code of conduct for different
intermediaries like, bankers to issue, merchant bankers, brokers and sub-brokers,
registrars, portfolio managers, credit rating agencies, underwriters and others. It has
framed bye-laws, risk identification and risk management systems for Clearing houses of
stock exchanges, surveillance system etc. which has made dealing in securities both safe
and transparent to the end investor.

16

 Bombay stock exchange

Of the 22 stock exchanges in the country, Mumbai's Bombay Stock Exchange is the
largest, with over 6,000 stocks listed. The BSE accounts for over two thirds of the total
trading volume in the country. Established in 1875, the exchange is also the oldest in
Asia. Among the twenty-two Stock Exchanges recognized by the Government of India
under the Securities Contracts (Regulation) Act, 1956, it was the first one to be
recognized and it is the only one that had the privilege of getting permanent recognition
ab-initio.
The main aims and objectives of the BSE is to provide a market place for the purchase
and sale of security evidencing the ownership of business property or of a public or
business debt. It aims to promote, develop and maintain a well-regulated market for
dealing in securities and to safeguard the interest of members and the investing public
having dealings on the Exchange. It helps industrial development of the country through
efficient resource mobilization. To establish and promote honorable and just practices in
securities transactions

17

 National stock exchange

In the fast growing Indian financial market, there are 23 stock exchanges trading
securities. The National Stock Exchange of India (NSE) situated in Mumbai - is the
largest and most advanced exchange with 1016 companies listed and 726 trading
members.
It was set up in 1993 to encourage stock exchange reform through system modernization
and competition. It was recently accorded recognition as a stock exchange by the
Department of Company Affairs. The NSE is owned by the group of leading financial
institutions such as Indian Bank or Life Insurance Corporation of India. However, in the
totally de-mutualised Exchange, the ownership as well as the management does not have
a right to trade on the Exchange. Only qualified traders can be involved in the securities
trading.Indian stock market marks to be one of the oldest stock market in Asia. Stock
Market which is a market where the trading of company stock, both listed company
securities and unlisted take place. It is different from stock exchange because it also puts
all stock indices and stock index movements on the same platform.The most tracked
index on NSE, CNX Nifty also has more number of stocks than the BSE Sensex. While,
the Nifty represents 50 stocks, the Sensex represents only 30 stocks. The presence of
more stocks on Nifty also gives a better valuation than Sensex

18

 NSDL
Although India had a vibrant capital market, which is more than a century old, the
paper-based settlement of trades caused substantial problems like bad delivery and
delayed transfer of title till recently. The enactment of Depositories Act in August 1996
paved the way for establishment of NSDL, the first depository in India. This depository
promoted by institutions of national stature responsible for economic development of the
country has since established a national infrastructure of international standard that
handles most of the trading and settlement in dematerialized form in Indian capital
market. Using innovative and flexible technology systems, NSDL works to support the
investors and brokers in the capital market of the country. NSDL aims at ensuring the
safety and soundness of Indian marketplaces by developing settlement solutions that
increase efficiency, minimize risk and reduce costs. At NSDL, we play a quiet but central
role in developing products and services that will continue to nurture the growing needs
of the financial services industry.
In the depository system, securities are held in depository accounts, which is more or less
similar to holding funds in bank accounts. Transfer of ownership of securities is done
through simple account transfers. This method does away with all the risks and hassles
normally associated with paperwork. Consequently, the cost of transacting in a depository
environment is considerably lower as compared to transacting in certificates.

19

1.) Stockbrokers :
A Stock broker is a member of a recognized stock exchange, who is permitted to do
trades on the screen-based trading system of different stock exchanges. He is
enrolled as a member with the concerned exchange and is registered with SEBI.
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 is obligatory for the person to abide
by the rules, regulations and the buy-law. Stock brokers are commission broker,floor
broker, arbitrageur etc.

2.) Sub-broker :
Sub broker is a person who is registered with SEBI as such and is affiliated to a member
of a recognized stock exchange.
A sub-broker acts as agent of stock broker. He is not a member of a stock
exchange. He assists the investors in buying, selling or dealing in securities through
stockbroker. The broker and sub-broker should enter into an agreement in which
obligations of both should be specified. Sub-broker must be registered SEBI for dealing
in securities. For getting registered with SEBI, he must fulfill certain rules and regulation

20

DEMATERIALIZATION
The dematerialization system is an alternative to the physical existence of securities. In this
system securities are converted into the electronic form and deposited in a depository
account in the name of the investor .In order to dematerialize certificates, an investor will
have to first open an account with a DP and then request for the dematerialization of
certificates by filling up a Dematerialization Request Form (DRF), which is available with
the DP, and submitting the same along with the physical certificates. The investor has to
ensure that before the certificates are handed over to the DP for demat, they are defaced by
marking "Surrendered for Dematerialization" on the face of the certificates.

Procedure for selling dematerialized securities

The procedure for selling dematerialized securities in stock exchanges is similar to
the procedure for selling physical securities. Instead of delivering physical securities
to the broker, you instruct your DP to debit your account with the number of
securities sold by you and credit your broker's clearing account. This delivery
instruction has to be given to your DP using the delivery instruction booklet received
from the DP at the time of opening the account. The procedure for selling securities is
given here below:
1) Investor sells securities in any of the stock exchanges linked to NSDL through a
broker.
2) Investor gives instruction to DP to debit his account and credit the broker's (clearing
member pool account.
3) Before the pay-in day, investor's broker gives instruction to his DP for delivery to
clearing corporation.
21

4) The broker receives payment from the stock exchange (clearing corporation).

5) The investor receives payment from the broker for the sale in the same manner
payment is received for a sale in the physical mode.

Demat Account
Demat account allows you to buy, sell and transact shares without the endless paperwork
and delays. It is also safe, secure and convenient.
In India, a demat account, the abbreviation for dematerialized account, is a type of
banking account which dematerializes paper-based physical stock shares. The
dematerialized account is used to avoid holding physical shares: the shares are bought
and sold through a stock broker.This account is popular in India. The Securities and
Exchange Board of India (SEBI) mandates a Demat account for share trading above 500
shares

Is a demat account a must?

Now a day, practically all trades have to be settled in dematerialized form. Although the
market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades
of up to 500 shares to be settled in physical form, nobody wants physical shares any
more. So a demat account is a must for trading and investing.

22

Why Demat Account?

The demat account reduces brokerage charges, makes pledging/hypothecation of shares
easier, enables quick ownership of securities on settlement resulting in increased
liquidity, avoids confusion in the ownership title of securities, and provides easy receipt
of public issue allotments.
It also helps you avoid bad deliveries caused by signature mismatch, postal delays and
loss of certificates in transit. Further, it eliminates risks associated with forgery,
counterfeiting and loss due to fire, theft or mutilation. Demat account holders can also
avoid stamp duty (as against 0.5 per cent payable on physical shares), avoid filling up of
transfer deeds, and obtain quick receipt of such benefits as stock splits and bonuses.

23

 Benefits of Demat Account

1) A safe and convenient way to hold securities.
2) Immediate transfer of securities.
3) No stamp duty on transfer of securities;
4) Elimination of risks associated with physical certificates such as bad delivery, fake
securities, delays, thefts.
5) Reduction in paperwork involved in transfer of securities;
6) Reduction in transaction cost.
7) No odd lot problem, even one share can be sold.
8) Nomination facility.
9) Change in address recorded with DP gets registered with all companies in which
investor holds securities electronically eliminating the need to correspond with each
of them separately.
10) Transmission of securities is done by DP eliminating Correspondence with
companies.
11)

Automatic

credit

into

demat

account

of

shares,

arising

bonus/split/consolidation/merger etc.
12) Holding investments in equity and debt instruments in a single account.

24

out

of

 Benefits of having Anand Rathi Demat Account.

Its cost effective
You pay comparatively lower transaction fees. As an Introductory offer, we invite you to
pay a flat fee of just Rs. 550/- and transact through Anand Rathi.
Its offers single
Through Anand Rathi associates, you can transact in equity, equity and derivatives,
offshore investments mutual funds, IPOs life insurance, general insurance, money
transfer, money changing and credit cards, amongst others.
Its convenientYou can access Anand Rathi services through
The internet
The phone (call & transact)
It provides you value- added services at http://www.rathi.com/ you will get
Reliable research, including views of external experts with an enviable track record
Live news updates from Reuters and Dow Jones
CEOs / expert views on the economy and financial markets
Tools that help you plan your investments, tax, retirement, etc. in the personal finance
section
Risk Analyzer for analysis of your risk profile
Asset allocators to build an appropriate investment portfolio
Innovative use of technology for facilitating

25

ANAND RATHI DEMAT CHARGES

Demat Account Opening Charges

Rs.550/-

Demat Account Maintenance

Rs.100 (Above Rs. 10,000)

Rs. 330/- per annum

Charges
Account Closing Charges
Brokerage:

Rs.2100-(Lifetime AMC free)

Rs. 100/40 paisa (delivery)

Depositary Services

8 paisa (intra-day)
Included in AMC

Process of Account Opening

LEAD MANAGEMENT SYSTEM (LMS)/ REFERENCES
26

CONTACT
TELEPHONE AND PERSONAL VISIT

APPOINMENT

DEMONSTRATION

AGREE

DISAGREE

DOCUMENTATION

FILLING THE FORM

SUBMISSION THE FORM

LOGIN OF THE FORM
SENDIND ACCOUNT OPNING KIT TO CUSTOMER

TRADING

Demat Account Opening Requirements

27

NO

For opening a Trading Account through Anand Rathi Securities one either needs to have
a Saving Account with HDFC/UTI/ICICI Bank & Demat Account with Anand Rathi
Ltd., i.e. one can link his / her existing HDFC/ UTI/ICICI Bank Savings Account with
Trading Account or else, we would assist in opening a 3 - in - 1 Account.
Please note that as per SEBI vide Circular dated 26th-August-2004, has specified
Uniform Documentary Requirements, for clients intending to open a trading with any
SEBI Registered Broker. As per the said Guideline, we would require following
documentation:
Identity Proof: (Self Attested copies)
Pan Copy
Passport Copy
Driving License
Voter ID
Mapin Card
Address Proof: (Self Attested copies)
Passport
Driving License
Voter ID
Ration Card
Bank Passbook/Statement (Attested by banker)
Rental Agreement/lease Agreement

28

SWOT
analysis

is

a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities,

and Threats involved in a project or in a business venture. It involves specifying the
objective of the business venture or project and identifying the internal and external
factors that are favorable and unfavorable to achieve that objective.
Strength:-

16 years of research and broking experience

Understandings of the markets
All financial needs under one roof
Scalable and robust infrastructure
Full fledge research unit comprising of both fundamental & technical research
Dedicated, Qualified and Loyal staff
Flexible Brokerage charges
Low annual maintenance charge
Weakness:

Low Brand Image in the market.

Low Professionalism.

Low Advertisements.

29

Opportunity:

Large potential market for delivery and intra-day transactions.

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

Attract the customers who are dissatisfied with other brokers & DPs.

Up growing markets in commodity and forex trading

Threats:

Decreasing rates of brokerage in the market. A Increasing competition against other

brokers & DPs

Poor marketing activities for making the company known among the customers. A
threat of losing clients for any kind of weakness of the company. An Indirect threat
from instable stock market, i.e., low/no profit of ANAND RATHI's clients would
lead them to go for other broker/DP.

30

COMPETITOR ANALYSIS
Competitor analysis in marketing and strategic management is an assessment of the
strengths and weaknesses of current and potential competitors. This analysis provides
both an offensive and defensive strategic context to identify opportunities and threats.
Some businesses think it is best to get on with their own plans and ignore the
competition. Others become obsessed with tracking the actions of competitors (often
using underhand or illegal methods). Many businesses are happy simply to track the
competition, copying their moves and reacting to changes.
Competitor analysis has several important roles in strategic planning:
1) To help management understand their competitive advantages/disadvantages relative
to competitors.
2) To generate understanding of competitors past, present (and most importantly) future
strategies.
3) To provide an informed basis to develop strategies to achieve competitive advantage
in the future.
4) To help forecast the returns that may be made from future investments (e.g. how will
competitors respond to a new product or pricing strategy?).

31

Competitors of Anand Rathi

During the survey the local Competitors were as follows :

1)

2)

3)

4)

5)
32

 Information and Details of the competitors :

1)

Sharekhan is online stock trading company of SSKI Group, provider of India-based

investment banking and corporate finance service. ShareKhan is one of the largest stock
broking houses in the country.
Sharekhan's equity related services include trade execution on BSE, NSE, Derivatives,
commodities, depository services, online trading and investment advice. Trading is
available in BSE and NSE. Along with Sharekhan.com website, ShareKhan has around
510 offices (share shops) in 170 cities around the country.
Share khan has one of the best state of art web portal providing fundamental and
statistical information across equity, mutual funds and IPOs. You can surf across 5,500
companies for in-depth information, details about more than 1,500 mutual fund schemes
and IPO data. You can also access other market related details such as board meetings,
result announcements, FII transactions, buying/selling by mutual funds and much more.
Trade In: BSE and NSE

33

 Advantages of Sharekhan:
1.

Sharekhans online trading is very user friendly and one doesn't need any
software to access.

2. A good quality of customer services like daily SMS alerts, mail alerts, stock
recommendations etc are provided to its customers.
3. Its ability to transfer funds from most banks makes it different. Unlike ICICI
Direct, HDFC Sec, etc., so investor not really needs to open an account with a
particular bank as it can establish link with most modern banks for their trading
transactions.

Disadvantages of Sharekhan:
1. Sharekhan charges minimum brokerage of 10 paisa per stock would not let you
trade stocks below 20 Rs. If one trade, you will lose majority of your money in
brokerage.
2. There are lots of hidden rules and charges in Sharekhan.
3. To book limit order trades during after-hours is not provided by them.
4. The holders of Classic account cannot trade commodities.
5. The customers cannot purchase mutual funds online.

34

SHAREKHAN Demat Account Charges:

Demat Account Opening Charges
Demat Account Maintenance

Rs.750/Rs. 400/- per annum

Charges
Account Closing Charges
Brokerage:

Rs. 100/10 paisa (delivery)

Depositary Services
Intra Day Trading

5 paisa (intra-day)
Included in AMC
25 times

35

2)
ICICIDirect (or ICICIDirect.com) is stock trading company of ICICI Bank. Along with
stock trading and trading in derivatives in BSE and NSE, it also provides facility to invest
in IPOs, Mutual Funds and Bonds. Trading is available in BSE and NSE.
Trade In: BSE and NSE

Advantages of ICICI Direct :

1) 3-in-1 account integrates your banking, broking and demat accounts. All accounts
are from ICICI and very well integrated.
2) Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal

Savings

Schemes all from one website.

Disadvantages of ICICI Direct

1) Getting access to ICICI Direct.com website during market session can be
frustrating.
2) ICICI Direct brokerage is high and not negotiable.
3) Not all stocks are available under Margin Plus
4) The choice of bank is restricted to ICICI Bank

36

ICICI Demat Account Charges:

Demat Account Opening Charges
Demat Account Maintenance

Rs.750/Rs. 500/- per annum

Charges
Account Closing Charges
Brokerage:

Rs. 100/10 paisa (delivery)

Depositary Services
Intra Day Trading

5 paisa (intra-day)
Included in AMC
25 times

37

3)

A subsidiary of Kotak Mahindra Bank, Kotak Securities is a stock broking and

distribution arm of Kotak Mahindra Bank and was set up in 1994. It is a corporate
member of both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
Kotak securities online trading is the online trading portal of the Kotak Securities Ltd, the
leading stock broking house of India. The online division of Kotak Securities Limited
provides services like internet broking services, online IPO and mutual fund investments.
Trade In: BSE and NSE

Advantages of Kotak Securities Limited:

1. Kotak provides a Call & Trade facility to its customers wherein they can place and
track their orders through phone when they are away from home.
2. They provide daily SMS alerts, market pointers, periodical research reports, stock
recommendations etc.
3. Kotak provides exclusive online tool to monitor what is happening in the market and
also investor can view gains/losses in real-time.

Disadvantages of Kotak Securities Limited:

1. In online trading sometimes delay comes. So it can be frustrating.

Kotak Securities Demat Account Charges:

38

Fee Heads
Account Opening Charges
Account Maintenance Charges

Charges
Rs. 750/Individual Rs. 30/- pm

Brokerage:

Corporate Rs 50/- pm
59 paisa (delivery)

Depository Services
Intra Day Trading

6p (intra-day)
Rs.100 to Rs. 500
7 Times

4)

39

Angel Trade Stock Trading / Angel Trade Demat / Angel Trade Brokerage
Angel Group has emerged as one of the top 3 retail broking houses in India. Incorporated
in 1987, it has memberships on BSE, NSE and the two leading commodity exchanges in
India i.e. NCDEX & MCX. Angel is also registered as a depository participant with
CDSL.
Angel's retail stock broking house offering a gamut of retail centric services.
* E-broking
* Investment Advisory
* Portfolio Management Services
* Wealth Management Services
* Commodities Trading
Trade In: BSE and NSE.
Trading Platforms:
Angel Trade provides 4 trading platforms, 2 are browser based & 2 are application based.
1. Angel investor:
It is a browser based trading platform. The rates are updated on clicking the refresh
button. This facility ensures it is not blocked by firewall. Thus it is useful for investor
who needs to access information from places where firewall blocks such data.

2. Angel Trade:
It is a browser based trading platform. The rates are updated automatically. This platform
40

is useful for investors & traders to access market from different terminals.
3. Angel Diet:
It is an application based trading platform where rates are updated automatically. All
segments are available on a single screen. This is ideal platform for the daily traders.
4. Angel Anywhere:
It is an application based trading platform where rates are updated automatically. This is
ideal for investors & traders who are inclined towards trading based on charts & technical
tools.

Advantages of Angel Trade:

1. User friendly browser-based / application based online trading platform.
41

2. The auto square off time is at 3:15 and an investor can buy up to 4 times the value
in his account.
3. Trading account can be linked with popular private banks like HDFC Bank, ICICI
Bank, UTI bank etc.
4. Trading is available in both BSE and NSE.

Disadvantages of Angel Trade:

1. Online money transfer from trading account to bank account is not available:
Trading account can be linked with popular private banks like HDFC Bank, ICICI
Bank, UTI bank etc. A trader can transfer money from his bank to the trading account
online. But the reverse transactions are not yet available online.
This means money, a trader gets after selling shares doesnt get credited in his bank
account directly. The trader has to call Angel Trade and request for the deposit. This
takes couple of working days.
Website: http://www.angeltrade.com

Angel Broking Demat Charges

Fee Heads
Account Opening Charges
Account Maintenance Charges

Charges
Rs. 491/1st year free. 2cnd year onwards
42

Brokerage:

Rs. 300/- pa
40p (delivery)

Depository Services
Intra Day Trading

8p (intra-day)
Included in AMC
25 times

5)

43

Motilal Oswal Securities Stock Trading / Motilal Oswal Securities Demat / Motilal
Oswal Securities Brokerage
Incorporated in 1987, Motilal Oswal Securities Ltd is a well diversified financial services
firm offering a range of financial products and services such as Wealth Management,
Broking & Distribution, Commodity Broking, Portfolio Management Services,
Institutional Equities, Private Equity, Investment Banking Services and Principal
Strategies.
Company have a diversified client base that includes retail customers (including High Net
worth Individuals), mutual funds, foreign institutional investors, financial institutions and
corporate clients. They are headquartered in Mumbai and as of September 30th, 2009,
had a network spread over 576 cities and towns comprising 1,257 Business Locations
operated by them. As at September 30th, 2009, company had 5,80,667 registered
customers.
Type of Account:
1.Most E-Broking is complete online stock trading solution for Indiaian stock market.
Following are the features of MOSt E-Broking account:
* Easy single screen trader with instant trade confirmation similar to exchange based
trading terminals.
* Access to various online reports like margin report, Demat A/c details, trades executed,
turnover report, net position report with mark to market profit/loss and realized profit.
* Online transfer funds through HDFC Bank.
Website: http://www.motilaloswal.com

Motilal Oswal Demat Account Charges

Demat Account Opening Charges
Demat Account Maintenance

Rs.750/Rs. 400/- per annum

44

Charges
Account Closing Charges
Brokerage:

Rs. 100/10 paisa (delivery)

Depositary Services
Intra Day Trading

5 paisa (intra-day)
Included in AMC
6 Times

RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. In it we study the
various steps that are generally adopted by a researcher in studying his research problem
along with logic behind him. Why a research study has been undertaken, how a research
problem has been defined, in what way and why the hypothesis has been formulated,
45

what data have been collected and what particular method has been adopted, why
particular technique of analyzing data has been used and a host of similar other questions
are usually answered when we talk of research methodology concerning a research
problem or study.

Research Objectives :
1) The main objective is selling and promotions of the DMAT Account cum Online
Trading Account.
2) To make a comparative study to know the different companies
3) To collect the real time information about preference level of customers using Demat
account and their inclination towards various other brokerage firms.
4) To provide pricing strategy of competitors to fight cut throat competition.

Research Design:
A research design is the arrangement of conditions for collection and
analysis of in a manner and aims to combine relevance to the research purpose with
economy in procedure. In fact the research design is the conceptual structure within
which research was conducted. Research design is needed because it facilitates the
smooth sailing of the various research operations thereby making research as efficient as
46

possible yielding maximum information with minimal expenditure of effort, time and
money.

1) Descriptive research design : was adopted . Descriptive research is those

studies, which are concerned with describing the characteristics of a particular
individual or a group. Since the aim is to obtain the accurate information about the
customer in terms of his interest towards investment in stock sector. The techniques
of questioning customer in order to know their consumer behavior, their interests,
their needs. It is very important for the sales executive to study the mind of the
customer so that the personal visit would not be a waste of time, money and efforts.

2) Qualitative Research: - In the research comparison between different

stock brokers was needed . So this based on all qualitative data. In short, Qualitative
research isespecially important in the behavioral sciences where the aim is to discover
the underline motives of human behavior. Through such research we can analyses
various factors which motivate to people to behave in a particular manner or which
make people like or dislike a particular thing.

3) Quantitative research: - Quantitative research is based on the measurement of

quantity or amount. It is applicable to phenomena that can be expressed in terms of
quantity. So we can use it in our research for collection of all the numerical data.

DATA SOURCES
Primary data, secondary data or both were collected. Secondary data are
data that were collected for another purpose and already exist somewhere.

PRIMARY DATA:

47

The Primary Data Is Collected Using Sampling Method and by Survey using
Questionnaire and Tele-Calling.

SECONDARY DATA:
Secondary data includes information regarding present market scenario, information
regarding competitors are collected by internet, magazines and news papers.

C O N TAC T M E T H O D :
The marketing researchers have four choices to contact the respondents:
1) Mail.
2) Telephone.
3) Personal Meeting.
4) Online.

RESEARCH INSTRUMENT : . These questionnaires include Close Ended as well

as Open Ended questions. The questionnaire is attached at the end.

SAMPLE DESIGN
A sample design is a definite plan for obtaining a sample from a given population.
It refers to the technique or the procedure the researcher would adopt in selecting item
for the sample
Generally Sample designs are two types :
48

1.)PROBABILITY RESEARCH DESIGN

2.) NON PROBABILITY RESEARCH DESIGN
In this project probability research design was used.

Sampling Units :
1) Different properties dealers
2) Charted accountants
3) Lawyers
4) Travel agencies
5) Transport business
6) Businessmen
7) Shop Keepers
8) Corporate employees

Sample Size:
This refers to the number of items to be selected from the universe to constitute a
sample
The sample size in this project is 100 Respondents .

DATA ANALYSIS AND INTERPRETATION

1) In which of these Financial Instruments do you invest into?

49

Interpretation: 28% of the respondents have invested in Bank FD and 24% of the
respondents invested in also, 20% invested in insurance, 10% have invested in Mutual
Fund and 10% have invested in Commodities. Result was a very few of the respondent
were aware of the share market

2) Do you know about Dmat Account ?

Aware of
Demat

Yes
No

Percentage of
respondent
50

72%
28%

ACCOUNTS

PERCENTAGE

Yes

60%

No

40%

Interpretation:
As mentioned earlier that a Demat Account holds shares in electronic form, which had
been a breakthrough in the long era of shares which were traded in Paper Form.
As shown in the above graph, as high as 72% people are aware of Demat Account as
these people are into share trading and have done Rematerialization of Share Certificates,
easy accessibility for online trading etc. Only a few people here 28 % are not aware of it
because of the reasons like, not interested in share trading, still finding shares in paper
form much more convenient, not being able to access the online facility provided for
trading because of lack of technological updation , people who are risk assertive, lack
of knowledge about the trading done through Demat Account

3) Do you have any Demat Account ?

51

Interpretation:
Only 60% respondents have Demat and trading account and remaining 40 % says no
because they dont know the information on share market.

4) Are you aware of online Share trading?

52

Aware of
online share
trading

Percentage
of
respondent

Yes

72%

No

28%

Interpretation:
With the increase in cyber education, the awareness towards online share trading has
increased by leaps and bounds. This awareness is expected to increase further with the
increase in Internet education.

5) Heard about Anand rathi and their Facilities?

53

Awareness of
Anand rathi

Percentage of
respondent

Yes

36%

No

64%

Interpretation:
This pie-chart shows that Anand Rathi has a low Brand awareness in terms of a premier
Retail stock broking company. This brand image should be further leveraged by the
company to increase its market share over its competitors. It is to be noted that the
customers are not aware of the facilities provided by the company meaning thereby, that,
the company should concentrate more towards promotional tools and increase its focus
on product awareness rather than brand awareness.

6) Which Broker do you prefer for Trading?

54

COMPANY
SHAREKHAN
KOTAK SECURITIES
ICICI DIRECT
ANGEL BROKING
MOTILAL OSWAL
OTHERS
TOTAL

Interpretation:

PERCENTAGE
38%
20%
14%
12%
9%
7%
100

38% of the respondent prefer ShareKhan, 20% of the respondents

prefer Kotak securities, 14 % of respondents prefer ICICI direct ,12% prefer Angel
Broking, 9% prefer MotiLal Oswal and 7 prefer other Brokerage firms that includes
Anand Rathi, India Infoline, BMA, SMC,HDFC ,Edelweiss etc.
55

7) Which feature Do You Prefer in Brokerage Firm ?

Satisfaction

Percentage of
respondent

Brokerage

57%

Service

25%

Security

18%

Interpretation:
Most People prefer cheap brokerage fees. Followed by Services and Security of their
investments.

56

8) Are You Satisfied with service of your Company?

Interpretation:

80% of the respondents are satisfied with their companys service

only 20% are not satisfied with the services and convenience of the company.

FINDINGS

57

1) According to this data very few people know about the share market in the region
(Dombivli, Kalyan, Ulhasnagar ,Ambarnath, Badlapur)
2) People like to invest their money in to bank fixed deposit rather than share
market.
3) Majority of the respondent are aware of Demat Account and they have Demat
Account.
4) According to this data the best preferred broking firm is Sharekhan followed by
ICICI DIRECT.
5) The brand image of Anand Rathi is low and is known amongst very few people.
6) Most People prefer cheap brokerage fees. Followed by Services and Security of
their investments.
7) 80% of the people are satisfied with their broking firm.

LIMITATIONS
58

1) Lack of awareness of share market and Anand Rathi as a stock broker firm .
2) Some people are comfortable with traditional system. As people are doing trading
from their respective brokers, they are quite comfortable to trade via physical form of
paper, they want to trade off line, i.e. through telephone or directly.
3) Lack of Techno Savvy people and poor internet penetration.
4) Some respondents either do not have time or willing does not respond, as they are
quite annoyed with the phone call.
5) The study is limited to the different schemes available under the Demat account
selected.
6) Some people think that as all the shares are in electronic form and they dont have
any physical proof. Sometimes this leads to a great misconception of the entire
process.
7) There cannot give proper comment on competitors services till we use it. As we all
know services are intangible and we cannot predict its quality, it is a thing to feel not
to see.

SUGGESTIONS
59

1) The Brand image of ANAND RATHI Ltd. is average in market and the company
should provide better service which will lead to customer satisfaction. And also
change the Market strategy.
2) Anand Rathi should focus on print and electronic media advertisements to make
more people aware about them.
3) Some promotional activities are required for the awareness of the customer, seminars
should be held for providing information to prospective and present customers about
Share Market and Trading.
4) They should provide proper guidance to their customers about demat.
5) They should provide should offers and facilities to their customers to increase their
attractiveness about demat.
6) For opening an account they require lots of signatures in a kit, which should be
reduced.

60

CONCLUSION
I hope the effort at our end will be of use for all the trading community of
Mumbai Region and they will be able to make use of the available info as
one should be able to negotiate the best brokerage rate and avail the services
provided by different brokerage firms. Happy Trading

61

BIBLIOGRAPHY

www.rathi.com

www.google.com
www.indianmoney.com
www.rathionline.com/

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