Summer Training Report

On
A COMPETITIVE ANALYSIS OF SHAREKHAN LTD.
WITH OTHER MARKET COMPETITORS
AT

Submitted in partial fulfillment of the requirement

For the award of degree
BACHELOR IN BUSINESS ADMINISTRATION

(Session 2013-2016)

SUBMITTED BY:
RISHABH MISRA
02119801813(BBA B&I)

Vivekananda Institute of Professional Studies

AU Block (Outer Ring Road) Pitampura
Delhi - 110034

STUDENT DECLARATION
I do hereby declare that the project entitled A COMPETITIVE ANALYSIS OF
SHAREKHAN
LTD. WITH OTHER MARKET COMPETITOR. This project report is being
submitted as a partial
fulfillment of the course BACHELOR OF BUSNIESS ADMINISTRATION (BBA)
program from VIVEKANANDA INSTITUTE OF PROFESSIONAL STUDIES .
This information given herein is purely the result of my survey and has not
been copied or published earlier; neither has it been submitted elsewhere.
The entire work has been done during the tenure of my training at sharekhan
ashok vihar phase 2 , delhi branch.

ACKNOWLEDGEMENTS
Knowledge is an endless ocean and one requires the satisfying, supporting, guiding, inspiring
and constructively criticizing several specialists in order to drive out a handful pearls from its
depth. As this comes wordlessly it cant be acknowledged in words.
I am greatly obliged to SHAREKHAN LTD. For providing me this opportunity to take up
this project as long as a platform to learn and enhance my professional skill.

I would like to express my deep sense of gratitude to Mr. Sonu Verma -- Assistant
Manager, my corporate guide, for his kind help and support and valuable guidance
throughout the project. I am thankful to him for providing me with necessary insights and
helping me out at every single step.

Words can never express my feelings towards my academic guide

Dr. Ashish Chandra.

This

was not possible without his buoyant support and assurance. I am also thankful to the entire
teaching staff without which this acknowledgement will be incomplete.

RISHABH MISRA
VIVEKANANDA INSTITUTE OF PROFESSIONAL STUDIES

PREFACE

The successful completion of this project was a unique experience for me because by visiting for me
because by visiting many place and interacting various person, I achieved a better knowledge about
different broking companies. The experience which I gained by doing this project was essential at this
turning point of my career this project is being submitted which content detailed analysis of the research
under taken by me.
The research provides an opportunity to the student to devote his/her skills knowledge and competencies
required during the technical session.
The research is on the topic A COMPETITIVE ANALYSIS SHAREKHAN LTD WITH OTHER
MARKET COMPETITOR

Executive Summary

There is growing competition between brokerage firms in post reform India. For investor it is
always difficult to decide which brokerage firm to choose. Research was carried out to find
which brokerage house people prefer and to figure out what people prefer while investing in
stock market.
The study suggests that people are reluctant while investing in stock and commodity market due
to lack of knowledge. Main purpose of investment is returns and liquidity, commodity market is
less preferred by investors due to lack of awareness . The major finding of this study are that
people are interested to invest in stock market but they lack knowledge.
Through this report we were also able to understand , what are our companys (share Khan ltd. )
Positive and strong points , on the basis of which we come to know what, can be the basis of
pitching to a potential client.
We also gave suggestions to the company, what improvement can be done to our product.

Table of Contents
Page
No.
Declaration

Acknowledgement

II

Preface

III-IV

Chapter 1-Introduction of the Study

1-5

Introduction to the project

Significance of the study

Focus of the problem

Objectives of the study

Limitations of the study

Chapter 2- Industry Profile

6-13

Industry Profile

Depository (NSDL & CDSL)

7-9

Market Intermediaries

10

BSE Stock Market

11-12

Companies listed in BSE

13

Chapter 3-Company Profile

14-35

Introduction

14-15

Vision & Mission

16

Company group and Structure

17

Highly Rated Research

18

Network of Sharekhan

19

Management Team

20

Hierarchy in Sharekhan

21

Services offered by Sharekhan

22

Different areas of trading

23-24

Trading Procedure

25-33

Research Section in Sharekhan ltd.

34-35

Chapter 4- Research Methodology

36-41

Introduction

36

Research Design

37-38

Universe and Survey population

39

Data Collection

40-41

Chapter 5- Analysis and Interpretations

42-57

Companys Background

42-46

Comparison of Depository Participant

47-57

Chapter 6-Conclusions

58-61

Findings

58-59

Recommendations

60-61

Chapter 7- Annexure

62-65

Bibliography

62

Questionnaire

63-65

CHAPTER 1
INTRODUCTION
OF THE
STUDY

INTRODUCTION TO THE PROJECT

This project is a very good task for the analyze of the companys market share and
the satisfaction level of the customers of various companies. Sharekhan Securities
Pvt. Ltd. Is a brand name in the field of securities. The major other players in this
field are Indiabulls, ICICI Direct. Com, Karvy, India Infoline, etc. This project includes
the various services provided by the company like research mails, online trading,
online terminal, etc. In my project I have covered the various functions of the
company mainly taking into consideration the share broking. The comparison of
various companies will help in the study to make a clear cut idea of the market
demand of the company as well as this will provide the base to improve the
strategies to make the company more competitive.

In the project I have also analyzed the customer perception about the various
services offered by the company and the market scenario. It will help in comparison
of the companies from the point of view of the customers. There is a need of this
study because customers have the veto power to accept or reject a product or a
service.

SINIFICATION OF THE STUDY

The study of comparing the services offered by the company and the market share
will be helpful for the company in making future decisions to increase its market
share as well as its client satisfaction level.

This study will be helpful for the company in this respect also that what are the
strategies used by other major competitors and at what extent they get success.

This study also helps the students who want to study the share market and various
broking houses. It is helpful for customers also because by reading it carefully it
they can choose a good broking house which can fulfill their needs.

FOCUS OF THE PROBLEM

Every research work is based on some problems. If there is not a problem then there
is no need for a research. So to make a research 1 st of all make the problem clearly
defined and then we can start any study. For this very study I have made the focus
on Equities. It is the 1 st step for a person who wants to enter in the share market. In
it I have taken the services offered by various companies as well as their brokerage
and other charges.

OBJECTIVES OF THE STUDY

Setting objective is very important for any research or a project. The project is decided to
compare the services offered by various broking houses with taking consideration of client
satisfaction.
To obtain this main objective, I have divided it into sub objectives .These are as:
1. The 1st objective is to find out the various services offered by the company.
2. To get knowledge about the market share of the company.
3. To get familiar with the services offered by other major players in securities.
4. To check the satisfaction level of the people.

LIMITATIONS
In making any research work a researcher has to face many problems which fix the
boundary of any research. So a researcher has to make his study carefully to obtain
good and fruitful results. In my project also I have to face many limitations which
are as:

1. The data was collected from various sources which are not equally
reliable
2. To collect data I have to visit so many places
3. People were not cooperative in providing data
4. The market was taking high fluctuations at that time
5. Many other companies are also entering in the market which up to
some extent affected the study

CHAPTER 2
INDUSTRY
PROFILE

INDUSTRY PROFILE
SEBI has regulated the whole capital market in which investors trade. All the
transactions are controlled and executed by the SEBI. It has established 2
depositories named NSDL and CDSL. These now make the transactions in various
stock exchanges like Bombay stock exchange, National stock exchange and various
other Regional stock exchanges. These 2 depositories directly dont interact with
the clients. Clients and the depository have at least 1 intermediate depository
participant who makes all these transactions possible and generate the brokerage.
The depository participant opens the Demat a/c and provides base to the clients to
do trade and give them guidelines also. NSE and BSE are the 2 major stock
exchanges which have established their index named by NIFTY and SENSEX, which
shows the markets position of 50 and 30 big companies respectively. BSE is the
oldest stock exchange in India and the SENSEX of the last financial year was more
volatile than previous years. But the value of shares in the BSE is going up .the
trend of it is increasing. For this vary reason more and more investors from
domestic country and FIIs are trading in it.
SEBI has regulated all the transactions and make it compulsory to have the PAN
card for operating the share trading. It also has made the transactions easier by
providing the facility of dematerialization of shares. Earlier the shares were in
physical form but now they are in electronic form and it takes less than 1 minute to
execute an order.

DEPOSITORY
The depositories are important intermediaries in the securities market that makes the scrip-less
trading. In India, the Depositories Act defines a depository as:

"A company formed and

registered under the Companies Act, 1956 and which has been granted a certificate of
registration under sub-section (IA) of section 12 of the Securities and Exchange Board of
India Act, 1992."
Dematerialization of securities occurs when securities, issued in physical form, are destroyed and
an equivalent number of securities are credited into the beneficiary owner's account. In a
depository system, the investors stand to gain by way of lower costs and lower risks of theft or
forgery, etc. They also benefit in terms of efficiency of the process. But the implementation of
the system has to be secure and well governed.
A depository established under the Depositories Act can provide any service connected with
recording of allotment of securities or transfer of ownership of securities in the record of a
depository. A depository cannot directly open accounts and provide services to clients. Any
person willing to avail of the services of the depository can do so by entering into an agreement
with the depository through any of its Depository Participants.

Type of Depository
1. NSDL
2. CDSL

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.
The 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. In the depository system, securities are held in
depository accounts, which is more or less similar to holding funds in bank accounts.

CDSL
Central depository of stock limited is also a depository for keeping record of the clients. This is
helpful in reducing the time spend and the money for transaction. It has eliminated the paper
work completely and keeps the record of shares and other transactions in electronic form.
The main reason of Indian capital market growth is the depository establishment. FIIs are also
taking benefit from it. It has increased the safety as well as the soundness in the transactions.
CDSL works with the help of depository participant like Indiabulls which is an intermediate
between investors and the depository.
Transfer of ownership of securities is done through simple account transfers. Consequently, the
cost of transacting in a depository environment is considerably lower as compared to transacting
in certificates.

10

MARKET INTERMEDIARIES
There are several institutions, which facilitate the smooth functioning of the
securities market. They enable the issuers of securities to interact with the investors
in the primary as well as the secondary arena. These intermediaries are very
important for any company because all the money is not provided by the customers
at the time of applying of IPOs. So a company uses the benefits of these
intermediaries to fulfill their daily needs and for the growth of the company. The
various intermediaries are as follow:

MERCHANT BANKERS

CREDIT RATING AGENCIES

STOCK BROKERS

CUSTODIANS

MUTUAL FUND

DEPOSITORY PARTICIPANTS

11

BSE STOCK MARKET

(Apl 2005- Mar 2006)

12

Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich heritage.
Popularly known as BSE, it was established as The Native Share & Stock Brokers
Association in 1875. It is the first stock exchange in the country to obtain permanent
recognition in 1956 from the Government of India under the Securities Contracts (Regulation)
Act, 1956.The Exchanges pivotal and pre-eminent role in the development of the Indian capital
market is widely recognized and its index, SENSEX, is tracked worldwide.
The trend of sensex in the financial year 2005-2006 has increased in a great extent. It reached the
point of 6606.41 high and 6134.86 at low in the month of April 2005. In March 2006 it reached
the point high and low at 11307.04 and 10508.85 resp. this shows its volatility. Sensex closed at
the end of period at the point 11279.96 with a rising trend. This increasing trend of the market
also affected the mind set of the customers. Earlier they were thinking about the share market as
an uncertainty but now it is considered as a calculated risk.

COMPANIES LISTED IN BSE SENSEX

Company Code

Company Name

500410
500490
500103
532454
500087
500124
500300
500425
500010
500180
500182
500440
500696
532174
500209
500875

Associated Cement Companies

Bajaj Auto Ltd.
Bharat Heavy Electricals Ltd.
Bharti Airtels
Cipla Ltd.
Dr Reddys Laboratories Ltd.
Grasim Industries Ltd.
Gujarat Ambuja Cements Ltd.
HDFC
HDFC Bank Ltd.
Hero Honda Motors Ltd.
Hindalco Industries Ltd.
Hindustan Lever Ltd.
ICICI Bank Ltd.
Infosys Technologies Ltd.
ITC Ltd.

13

500510
532500
532555
500312
500359
532712
500390
500325
500376
500112
532540
500570
500470
507685

Larsen & Toubro Ltd.

Maruti Udyog Ltd.
National Thermal Power Corporation Ltd.
ONGC Ltd.
Ranbaxy Laboratories Ltd.
Reliance Communications
Reliance Energy Ltd.
Reliance Industries Ltd.
Satyam Computer Services Ltd.
State Bank of India
Tata Consultancy Services Ltd.
Tata Motors Ltd.
Tata Steel Ltd.
Wipro Ltd.

The companies listed in BSE sensex are 30 which show the trend of the market. On
12-06-2006 TATA POWERS LTD. Was removed from the list and a new one is added
named RELIANCE COMMUNICATION VENTURES LTD.

14

CHAPTER 3
COMPANY
PROFILE

13

INTRODUCTION
Sharekhan is the retail broking arm of S S Kantilal Ishwarlal securities pvt.
Ltd. It is Indias leading retail financial Services provider Company. It is in the Indian
securities business since 1927. Its institutional Research team is rated as one of the
best in the industry and rated 1 st by Asia Money .Its research team covers more
than 100 stocks spread over 20 sectors.

The company has over 331 share shops across 117 cities excluding franchisees
in India. While our size and strong balance sheet allow us to provide you with varied
products and services at very attractive prices, our over 750 Client Relationship
Managers are dedicated to serving your unique needs.

Sharekhan is lead by a highly regarded management team that has invested crores
of rupees into a world class Infrastructure that provides our clients with real-time
service & 24/7 access to all information and products.

Our Sharekhan Professional Network offers real-time prices, detailed data and
news, intelligent analytics, and electronic trading capabilities, right at your
fingertips. This powerful technology complemented by our knowledgeable and
customer focused Relationship Managers.
It creates a world of Smart Investor. Sharekhan offers a full range of financial
services and products

ranging

from

Equities

to

Derivatives which

enhance our wealth. Relationship Managers are available to help with financial

14

planning and investment needs. To provide the highest possible quality of service,
Sharekhan provides full access to all our products and services through multichannels.

In starting it was only a research house but now it has got increased its area and
deals in every field of trading like shares, commodity, mutual fund, PMS, etc.The
main aim of the company is to provide quality services at the least cost. Sharekhan
security has established now a brand name which provides the clients useful and
timely information about the future at their home. The vision and mission of the
company proves all these facts clearly and very soon it will achieve its mission.

15

VISION
The vision of any company plays a key role for the success in the long term. It is decided by the
key persons at the beginning of the organization. The vision of Sharekhan is to be the best retail
broking brand in the Indian Equity market.

MISSION
The vision is decided by the company for the long run but it is not possible for any
organization to fulfill its vision which is decided in the beginning. For the very
reason it divides its vision into small period Missions. So a mission is a short term
target where a company wants to reach. The mission of Sharekhan is to educate
and empower the individual investors to make better investment decisions through
quality advice and superior service which leads the growth of the organization.

16

SSKI GROUP COMPANIES

SSKI Investor Services Ltd (Share khan)

S.S. Kantilal Ishwarlal Securities

SSKI Corporate Finance

Idream Productions

SSKI CORPORARE STRUCTURE

17

HIGHLY RATED RESEARCH

Research team ranks very high in fund-manager surveys. At the time of

establishment of S.S.Kantilal Ishwarlal Securities Pvt. Ltd. It was only a research
house. After this it extended its area and came into the share trading. Many surveys
tell the story of the growth of the company like:

Best Domestic Securities House

Euromoney Survey July 1995

Euromoney Survey July 1996

Top ranked Domestic Brokerage House

Asiamoney Survey September 1994

Asiamoney Survey September 1995

Asiamoney Survey September 1996

Asiamoney Survey October 1998

Asiamoney Survey October 2004

18

NETWORK OF SHAREKHAN

From sharekhan.com to
s largest chain of branded retail share
Shops
331 branded share shops across 117 cities in

The network of the Sharekhan Securities is very wide. It has emerged as a back bone for the
whole country. The area of its network is 331 share shops in 117 cities of the country excluding
franchisee. It has the largest chain of share shops with a brand name of Sharekhan which serves
more than 100,000 clients.

19

MANAGEMENT TEAM

MR. TARUN SHAH CEO- SHARE KHAN

MR SHANKAR VAILAYA- DIRECTOR (OPERATION)

MR. JAIDEEP ARORA DIRECTOR (PRODUCT & TECHNOLOGY)

20

HIERARCHY IN SHAREKHAN:
Sales Side

Dealing Side

Trainees

Junior Dealer

Super Trainees

Dealer

Sales Executives

Relationship manager

Senior sales executives

Senior Relationship manager

Business
executive

Equity advisor

Assistant sales manager

Assistant Branch Manager

Deputy manager

Branch Manager

Territory manager

Cluster Head

Area sales manager/ Cluster

manager

Directors

Regional sales manager

CEO

Regional Head

Vice president

Directors
CEO

development

21

PRODUCTS AND SERVICES OF SHAREKHAN LIMITED

The different types of products and services offered by Sharekhan Ltd. are as follows:

Equity and derivatives trading

Depository services

Online services

Commodities trading

Portfolio management

Share shops

Fundamental research
Technical research

Dial-n-trade

22

DIFFERENT AREAS OF TRADING

Equity

Sharekhan provides the services in equity trading. For this it opens the Demat a/c
with trading a/c, which provide the investors a base from there they can make the
share trading. Sharekhan deals in NSE and BSE both which gives the investors more
choices. To help new investors it also provides the research mails.

Derivatives

Sharekhan deals in derivatives also in which an investor can play with future and
option. This is a more advanced feature in trading but there is a need of full
knowledge. Without the proper knowledge it may be harmful for the investor.

Mutual

Fund

23

Sharekhan deals in Mutual Funds, the funds of small investors are collected and
then the total amount is invested by the company in some beneficial shares. Small
investors cant get benefit individually from their small investment but the company
can provide them more return by making a collective amount of the various
investors.

Initial Public Offer

Sharekhan also deals in Initial Public Offers. These are the first offering to the public
of a company's shares on the stock market. Earlier it was very difficult task to apply
for an IPO but now it is as easy as the purchase of a share. All the information
relating to the IPO is provided by the company online to its customers.

Commodity
Sharekhan deals in commodity also which is a booming sector now a day. It is right
that the commodity market is not so popular but the investment is going quickly
increasing. To invest in commodity it opens the a/c and also gives research mails.

Portfolio Management

24

Sharekhan also provide the services of portfolio management service which is

managed by the company itself and the investor has to do nothing. All the decisions
are taken by the company to buy or sell the shares taking into consideration the
market scenario. This facility is provided by the company to the big investors who
can invest more than 5 lakhs.

TRADING PROCEDURE

To make the trading in the stock market we have to fulfill some formalities according
to the SEBI. These formalities includes the account opening form, verification of the
documents, PAN card compulsory, address proof, etc. After we can make the trade
in he shares and commodities.

Account Opening Form

Any investor who wishes to avail depository services must first open an account with a
depository participant of NSDL or CDSL. The process of opening a demat account is very
similar to a bank account.
The investor can open an account with any depository participant. There are several DPs offering
various depository-related services. Each DP is free to fix its own fee structure. Investors have
the freedom to choose a DP based on criteria like convenience, comfort, service levels, safety,

25

reputation and charges. After exercising this choice, the investor has to enter into an agreement
with the DP.
The form and contents of this agreement are specified by the business rules of NSDL and CDSL.
When the account is opened an investor can buy or sell the shares. The record is kept by the
depository. The depository participant charges its brokerage for providing the various services
like research mails, portfolio management services, online facility, etc. the charges of brokerage
is cut down automatically by the DP so that any fraud does not exist.
If an investor wants to change his account, he can do it and can apply for the other
one. For closing the account he has to give an application in the office and the
charges of transferring the shares is deducted only, which are very less.

Document for Verification

For the purpose of verification, all investors have to submit the following documents
along with the prescribed account opening form:

PAN Card
PAN card is mandatory after the date of 31st may, so any person who wants to open
an account has to get first of all his PAN card. After getting this he can apply for the
D-MAT account. It has reduced the fraud cases also.

Proof of Address

26

The account opening form should be supported with proof of address also. Without
this the application is not accepted. The documents for the verification may be any
one of them such as:

Verified copy of ration card

Passport

Voter ID card

Driving license

Telephone bill

Bank statement

Rent agreement

Electricity bill

Common Information
The processes of opening an account with a depository (NSDL /CDSL), nature of such an
account, and other various factors for opening a depository account are essential. Some details
are common to all types of accounts. These are:

Name of the holder

Fathers name

Date of birth (for individual accounts)

27

Occupation

Address & phone/fax number

E-mail address

Verified photo

Bank details like name of bank, saving account, account number, branch address, etc.

PAN number

Details of nomination (if required)

Verified signature

28

Closure of Clients A/C

A DP can close a depository account on receipt of an application in the prescribed
format. The application should be made by the account holder or by all the jointholders. An account can be closed only when there is no balance in the account. In
case there is any balance in the account sought to be closed, the following steps are
necessary.
(a) Re-materialization of all securities standing to the credit of the account at the
time of making the application for closure; or
(b) Transferring the balance to the credit of another account opened by the same
account holder(s) either with the same participant or with a different participant.
Before closing the account the DP should ensure that all pending transactions have
been settled. The request for closure should be processed only after ensuring that
there is unbalance lying in the account.
The DP may also initiate closure of a client's account if the client has defaulted in
performing its obligations laid out in the client-participant agreement. The
participant should give sufficient notice to the client before initiating closure of his
account. The notice should clearly state the reasons for closure of account. The
process of closing account in such a case is the same that of client-initiated closure.

29

Shifting of the A/C

A member may transfer its clearing account from one DP to another DP. For this,
simultaneously applications have to be made for closure of account to the earlier DP
and for opening of new clearing member account to the new DP. On receipt of the
application, the new DP forwards the application to the depository for approval and
allotment of a new A/C. Once the new A/C is allotted, the new DP opens a new
clearing account and intimates the depository about the new client-ID. On receipt of
intimation from the new participant, the depository advises the old DP to close the
account. The old DP then closes the account and intimates the clearing member. All
pay-out of securities, subsequent to closure of old clearing account, take place in
the new account.

30

Freezing of Account
Account freezing means suspending any further transaction from a depository
account till the account is de-frozen. A depository account maintained with a DP
may be frozen in certain cases.
1. If a written instruction is received from the client by the DP, requesting freezing
of account; or
2. If written instructions are received from the depository pursuant to an order of
the Central or State Government, SEBI, or any order by the court, tribunal, or any
statutory authority. An account may be frozen only for debits (preventing transfer of
securities out of the account). By freezing an account for debits only, no securities
can be debited from the account; however, the client can receive securities in his
account. An account can also be freezed for debits as well as credits (preventing
any movement of balances out of the account). No transaction can take place in
such an account until it is reactivated.

A frozen account may be de-frozen or re-activated, by taking the reverse steps:

1. On the valid written request of the account holder where he had requested
freezing,
2. On directions of depository made in pursuance of the order of the appropriate
authority. The DP should immediately inform the client about change in status of the
account from 'active' to 'suspended' and vice versa.

31

Changes in Client Details

A client may change any of the following particulars in the depository system. All he
has to do is to submit the changes in writing to the DP.
1. Father's/Husband's Name (change from father's name to husband's name
may be necessary on account of marriage).
2. Standing instruction facility (an investor can activate/deactivate it)
3. Address, telephone number (clients may make this change at any time
depending on their need). Clients have to provide proof of new address while
submitting application for change of address.
4. Occupation details
1. 5: Nominee details (the DP has to obtain the required form from the client
duly filled and effect the changes)
5. Bank details (clients may revise the bank details given by him before record
date to ensure that the dividend/interest warrants bear the correct bank
details)
6. PAN Number details
7. In case of NRIs, the Reserve Bank of India Reference number and approval
date. However, the names of the account holders cannot be changed after
opening of demat account.

32

Trading Process
After opening the demat a/c an investor can trade in the securities and
commodities. He has to 1st of all transfer money in his a/c for purchase of shares
and then he can buy the shares at the market rate. He has no need to go anywhere
because all the information is provided to him on the interne which can be easily
accessible from anywhere in the country. He has been provided an online terminal
which shows the per second up and downs of the market. In addition he has been
given the research mails which guide him to invest in he particular shares for more
and more profit. On these bases he chooses the best suitable securities and uses in
equity or derivative. Share trading can be in equity or in derivative form. In equity
an investor deals in the current prize or he can make a bid. In derivatives he can
choose the options of share prize of the future. He can also have the option of
nullifying the contract in future if he thinks that it is not beneficial for him.
The various types of derivatives are as:

Derivative
Definition under SEBI Act:
The term Derivatives indicates that it has no independent value, i.e. its value is
entirely derived from the value of the underlying asset. The underlying asset can
be securities, commodities, bullion, currency, live stock or anything else. In other
words, derivative means a forward, future, option or any other hybrid contract of
pre determined fixed duration, linked for the purpose of contract fulfillment to the
value of a specified real or financial asset or to an index of securities.

33

34

Types of Derivatives
Derivatives are very important for the investor. An investor can get benefits by
investing through derivatives. It gives an investor more options to invest like future
contracts, etc. various type of derivatives are as:

Forwards
A forward contract is customized contract between two entities, where settlement
takes place on a specific date in the future at todays pre-agreed price.

Futures
A future contract is an agreement between two parties to buy or sell an asset at a
certain time in the future at a certain price. Future contracts are special types of
forward contract in the sense that the former are standardized exchange-traded
contracts.

Options
Options are of two types- calls and puts. Calls give the buyer the right but not the
obligation to buy a given quantity of an underlying asset, at a given price on or
before a given future date. Puts gives the buyer the right, but not the obligation to
sell a given quantity of the underlying asset at a given price on or before a given
date.

Swaps
Swaps are private agreements between two parties to exchange cash flows in the
future according to a pre arranged formula. They can be regarded as portfolios of
forward contracts.

35

RESEARCH SECTION IN SHAREKHAN LIMITED

Sharekhan Limited has its own in-house Research Organisation which is known as Valueline. It comprises
a team of experts who constantly keep an eye on the share market and do research on the various aspects
of the share market. Generally the research is based on the Fundamentals and Technical analysis of
different companies and also taking into account various factors relating to the economy.
Sharekhan Limiteds research on the volatile market has been found accurate most of the time.
Sharekhan's trading calls in the month of November 2007 has given 89% strike rate.
Out of 37 trading calls given by Sharekhan in the month of November 2007, 33 hit the profit target. These
exclusive trading picks come only to Sharekhan Online Trading Customer and are based on in-depth
technical analysis.
As a customer of Sharekhan Limited, one receives daily 5-6 Research Reports on their emails which they
can use as tips for investing in the market. These reports are named as Pre-Market Report, Eagle Eye,
High Noon, Investors Eye, Daring Derivatives and Post-Market Report. Apart from these, Sharekhan
Limited issues a monthly subscription by the name of Valueline which is easily available in the market.

36

Poll Results: Broker Preference

5paise

10

24.39%

Sharekhan

12

29.27%

Motilal Oswal

0%

ICICI Direct

19.51%

HDFC

4.88%

India Bulls

17.07%

Kotak Securities

2.44%

any other

2.44%

37

CHAPTER 4
RESEARCH
METHODOLOG
Y

38

INTRODUCTION
Research
In common words research is known as a search for knowledge. Research is also known as a
movement, a movement from the known to the unknown. It is actually a voyage of discovery. To
make any project or study work there is a need of research. Without this any work cant be
completed.
According to Advanced Learners Dictionary, It is a careful investigation or enquiry
especially through search for new facts in any branch of knowledge.
According to Redman and Mory, It is a systematized effort to gain new knowledge.

Research Process
The process of a research work goes through different stages. By going through these stages one
by one a work becomes very easy and attractive. These stages are as followed

Formulation
of problem
uuuuuk

Interpretati
on of data

Literatur
e
survey

Develop
hypothes
es

Prepare
research
design

Analysis
of data

Collection
of data

Determin
e sample
design

36

RESEARCH DESIGN
It is the arrangement of conditions for collection and analysis of data in a manner that aims to
combine relevance to the research purpose with economy in procedure. In fact, research design is
the conceptual structure within which research is conducted.

Types of Research Design

Exploratory
The main aim of this research is to formulate the problem in the more precise manner. The major
emphasis is on the collection of related data and insights more and more. In it the researcher
review and build upon the work, which is already done by others.

Descriptive and Diagnostic

These are the studies, which are related with describing the characteristics of a
particular individual, or of a group. In Diagnostic research studies determine the
frequency with which something occurs. In these research works it must be clearly
defined that what to measure and how to measure with predefined population.

Experimental
In this research work the hypothesis of casual relationship between variables are tested. It makes
the study more reliable and unbiased. It is sure that it will require more hard and mentally work
but it also provides good and extraordinary results many a times.
In my project work I have used the Analytical research. In
the project I want to make the critical evaluation of the Sharekhan Security. For these I have used
the primary as well as secondary data. By using the data and making comparison with other
companies I would find out the market share as well as the growth and services of Sharekhan

37

Security. I have also analyzed critically the services offered by the various companies and what
the customer demands.

38

UNIVERSE AND SURVEY POPULATION

Universe
All items in any field of inquiry constitute a universe or population. A complete enumeration of
all items in the total population is known as census inquiry. It can be presumed that in search an
inquiry when all items are covered, no element of chance is left and highest accuracy is obtained.
But when the field of inquiry is large, this method becomes difficult to adopt because of the
resources involved. In this position this method is practically beyond the reach of ordinary
researcher. In this case we use the survey population method in which we use the randomly
selected items who represents the whole population.
In my research study I have not used the total population because there are hundreds of
depository participants and to analyze them is not so easy. So I have used the survey method.

Sample Design
Sample Design is an effective technique for obtaining a sample from a given population. It refers
the procedure a researcher uses for analyzing the whole big population. Sample design is
determined before data are collected. For the study I have used the sample survey method in
which I have used the 6 major competitors in securities.
To analyze the satisfaction level of the customers I have also used this technique in which my
sample size is 50 customers of different depository participants. These are chosen randomly from
various places in Gurgaon.

39

DATA COLLECTION
To make any research work collection of reliable and valid data is very important. Without data
any research comparison is not possible. There are 2 types of data, which can be used for the
study. These are
1 Primary
2 Secondary
A researcher who is conducting a survey or comparison has to decide in advance that what short
of data he is using for his study. These data can be collected by various sources but the need is
that there should be authenticity of the data otherwise it will provide a meaning less and funny
result.

Primary Data
These are the data, which are collected afresh and for the 1st time. This type of data is not
available earlier so have to collect by the researcher himself/herself. These are original in
character and collected by various sources like:
1. Questionnaire
2. Interview
3. Schedule
4. Expert opinion

40

Secondary Data
These are the data, which have already been collected by someone else, and they have been used
for the different study. This type of data can be taken from various sources according to the
researchers choice and motive. The main issue is that validity and authenticity of the data is in a
big question so the data should be used carefully for the better result. The various sources of
secondary data collection are as follows:
1. Books, magazine and newspapers
2. Various publications
3. Researchers report
4. Historical documents
5. Various published journals
6. Diaries and letters
7. Unpublished biographies, etc

41

CHAPTER 5
ANALYSIS
AND
INTERPRETATI
ONS

41

COMPANYS BACKGROUND
5 PAISA.COM

5 Paisa.Com is also known as India Infoline and was founded in 1995 and positioned as a
research firm in 2000. E-broking was started under the brand name of 5 Paisa.com. Apart from
offering online trading in stock market the company offers mutual funds online. It also acts as a
distributor of various financial services i.e. GOI securities, Company Fixed Deposits, Insurance.
Limited ground network, present in 20 Cities. It deals in shares, commodities, and derivatives
also of NSE and BSE both. It has established as a major player in the market in a very short
period. The company targets only the potencial customers and provides them more and more
facility at the least cost. The motto of the company is to become a country wide organization
with target customers. It has increased its client base from last 1 year in a rapid growth rate.
Company is now in the major competitors in the industry and no research work is completed
without it. To make the comparison with other companies we will consider all the services it
provides to the customers and in response what it charges from them.

42

INDIABULLS

Indiabulls is a retail financial service provider company present in 70 locations Covering 62

cities and having more than 150 branches in India.. It offers a full range of financial services and
Products ranging from Equities to Insurance. More than 450 Relationship Managers who act as
personal financial advisors to the clients. Indiabulls is a brand name in the DP. It gives online and
offline services to its customers. The cliental area of the company is very wide and it is listed
with the CDSL depository. The clients of Indiabulls are very selective and really work in the
share market whole heartedly. Company provides them more and more facilities but its cost is
some high. This company has established its standards in the market and having a good brand
image. The people in the share market are very familiar with it. Company provides research
mails and online terminals also to its clients. The a/c opened by it is pooled a/c and it is enlisted
in CDSL. It s a major market player in the industry and it was very necessary to focus on it.

43

ICICI DIRECT.COM

ICICI Web Trade Limited (IWTL) maintains ICICI direct.com. IWTL is an Affiliate of ICICI
Bank Limited and the Website is owned by ICICI Bank Limited. The Direct.Com started in the
year of 1998. It has increased very fast because it provides saving account with the D-mat
account. Actually it provides a 3 in 1 account which are D-mat, trading and saving a/c. it is also a
major competitor in share market. It provides online money transfer and the online trading. The
company is in the market by its brand name. the name of ICICI is very famous in the Indian
market and the company spends a much more portion of their profit in the advertising. The
reason of being in the major players in the securities is that its marketing skills. It attracts the
customers by its ad and then it provides him a full kit of 3 in 1 a/c which is more beneficial or
easy for an investor to make trading.

44

HDFC SECURITIES
The HDFC Bank started its functioning as a depository participant in the year of 1993 with the
name of HDFC Securities. It has gained the benefit of association of bank which provides it
many services like online money transfer and free saving a/c, etc.It deals in shares, commodity,
and mutual fund, insurance and loans all major fields. The investor can get with these facilities
online trading and dial and trade facility. It is a major player in the security market as well as in
the banking sector also. It provides the investors saving a/c also which helps him to transfer the
money online in a/c. This is the main strength of the company. It has increased very fast in the
industry and now and then it is growing and growing. The target of the company is to capture all
its clients of its bank. The main focus of the company is to provide a full package of benefits to
the customers so that they dont have to go anywhere else.

45

KARVY SECURITIES

Karvy stock broking depository participant is a famous and big player in the security market. It
has incorporated in the year of 1975. Since then it is growing very fast and became the 1 st
depository participant in Andhra Pradesh in January, 1998. The total branches in India of Karvy
are 558 in more than 390 cities. It also provides services of mutual fund and loans with
commodity and share trading. Karvy also helps in making the PAN card which is the main
necessity of having a demat a/c. Karvy has the client base services which helps the company to
retain its clients. The company gives more and more benefits to the customers for making its area
wide and overall accepted. In the south side it has a very good name and fame. Now it is
increasing its area in the whole country but till now it is a leader of security market in south.

46

COMPARISON OF DEPOSITORY PARTICIPANTS

The comparison of different companies is not so easy but I have covered it up to some extent by
taking into consideration various crucial factors. I have compared the depository participants on
the 2 basis which are company based and client based of various companies. It includes that what
a company provides to the clients at what charges and what the clients demand.

47

CHARGES OF THE COMPANIES

Brokerage
Trading a/c Charges
Intraday
Delivery 1st year Afterwards

D-mat a/c charges

Equity Commodity

Sharekhan

0.10

0.50

300

750

200

Indiabulls

0.10

0.70

1000

750

Karvy

0.05

0.50

100

HDFC Sec.

0.05

0.15

799

500

500

ICICI
Direct.com
5 Paisa. Com

0.10

0.75

500

750

500

0.05

0.50

240

555

555

48

BROKERAGE CHARGES

The main factor which influences the decision of investors is brokerage. ICICI direct. Com is
charging the highest brokerage for Intraday and Delivery.The lowest brokerage is charged by the
HDFC Securities.

49

TRADING A/C CHARGES

The charges for the opening of the trading a/c are also an important factor. Indiabulls charges no
money for taking a demat a/c. it is free of cost for the whole life.
The highest charges are made by the HDFC Securities for operating a demat a/c.

D-MAT A/C CHARGES

50

There are the charges for opening the demat a/c also. Although this is not very high, it plays a
very important role. Yet at this time government has not allowed Karvy to open a demat a/c for
some security reason.
The highest charges for this are charged by Indiabulls and the lowest are charged by Sharekhan
in Commodity and by HDFC in equities.

51

CUSTOMERS PRECEPTION

To make any comparison it is not right to see only one side of the coin. So to make the
comparison between the various companies I have tried to see the perception and demands of the
customers also. Now a day the whole power is in the hand of customers to accept or reject a
proposal so it is very necessary to analyze them indifferently.
The various bases have been chosen for the differentiation. These are as under:

52

AWARENESS

The awareness among the customers is high but not perfect. The survey made on
the 50 customers and everybody was having the basic knowledge about the share
market.
There was a lack of knowledge among the customers in the area of depository like
NSDL and CDSL up to some extent.

53

FREQUENCY OF TRADE

The frequency of the trading in share market is very important for making any
comparison. If we dont care of it, it will provide us false results.

54

There are mostly people who are interested in the intraday trading. The 2 nd number
is of monthly basis or long term investors. There are very few who apply for IPOs
only or want to make trading in weeks

OPINION ABOUT CURRENT SCENARIO

The share market is a market about which nothing can be guessed. So it is very
important for the companies to see what the customers perspective about the
market scenario is.

55

In the survey of 50 customers it was discovered that people think that the market is
more volatile than other periods of last 1 or 2 years. They are feeling that it can give
more benefits to them if the investment is done consciously.
Very few people say that the market is risky and they do not want to invest because
of afraid of loss.

BASIS OF INVESTMENT

35

31
25

30
25
20
15
10

11

9
4

5
0
Research Mail
Friend's AdviceTry & ErrorMarket Opinion
Personal Analyse

56

Basis of investment is the criteria on which clients invest in the particular company.
There are various options with the clients for this and it depends on him that what
criteria he/she uses.
In the survey I got that mostly people invest on the basis of research mails. Of
course they utilize their own sense also, but the criterion of try & error is not much
favorable among the clients.

57

PREFERENCE OF INVESTMENT

Preference of investment means that in which field investors want to invest their
money. It is very important for a company to study the behavior and needs of an
investor.
In the survey I got that mostly people want to invest in equities by one or another
reason. The investment in PMS is very low because in it they have to invest a big
money and their money is invested by the company itself.

58

CHAPTER 6
CONCLUSIONS

57

FINDINGS

Based on the real data collected by primary and secondary sources and the
information, we can get the following findings:

1. The broking charges are charged maximum by the ICICI Direct. Com and the
minimum are charged by HDFC Securities.
2. Annual charges for the trading a/c are highest in HDFC Sec. and Indiabulls
charges no money for it.
3. D-Mat a/c charges are highest in Indiabulls and the lowest in the Sharekhan
Securities.
4. Awareness about the basic share market is very high among the customers and
for the Depositories it is very less.
5. Frequency of trade made by the customers is very high on intraday basis and it is
very low for IPOs applications only.
6. The opinion about the current scenario of the market is volatile more than
previous years and very few people think that it is risky to invest at this time.
7. Mostly investment is made on the basis of research mails provided by the
relationship managers and there are very few who want to play try and error.
8. Customers 1st preference of investment is in the equity and the least preference
is PMS.
58

9. Volume of investors who trade less than 1 lakh per month is very high and it is
very low for the investment more than 10 lakh on an average per month.

59

RECOMMENDATIONS

1. The brokerage charges are the main income for any depository participant and it is almost
same for the companies except one or two. These one or two companies are also not
providing other same type of good and beneficiary services to customers so Sharekhan
Securities should not change its brokerage charges to capture the market. The reason for
this is that one side it will reduce the income and the other side it will not increase the
customers in a large extent.
2. Annual charges play a key role for the customers and they consider it very seriously so
the company should reduce its charges from 300 rupees. This type of charges not plays a
significant role in the overall income of the company.
3. D-Mat a/c opening charges are also a key point for the investors so it should be reduced
up to zero so that new customers can be attracted,
4. The trading made by the customers is mostly on the intraday basis so it will generate the
more and more brokerage. Along the other facility company should provide more
exposure to lure the trading more and more.
5. The current scenario is a very good time to catch the customers because they think more
volatility but less risk in the market. So it is very easy to get new clients as well as more
trading in the current time. So it is very necessary for an organization not to think that
current scenario is not good for investors and traders. It will bring a good and surely
result.

60

6. Investment is based mostly on the research mails provided by R.M.s so provide timely
information more and more to get new and increased investment. The relationship
managers can play a crucial role in it so appoint them more and provide them more
facilities but on commission basis. It will increase their potential.
7. Provide information about commodity and derivatives also, it will increase their
investment and tap the customers between the range of 1-10 lakh investment per month.
This is the range which can be motivated to invest in the bulk. But this is possible only
after providing the timely information. People doesnt care for money spending after the
profit, they consider only the information which leads to profit so provide them exact
possible information.

61

CHAPTER
7
ANNEXUR
E

62

62

BIBLIOGRAPHY
Books:
1. Kothari, C.R., Research Methodology, New Age International Publishers, 2nd
Edition.
2. Zikmund William G. (2004), Business Research Methods, Thomson Asia Pvt.
Ltd., Singapore.

Newspapers & Magazines:

1. Economics Times

Websites:
1. www.sharekhan.com
2. www.nsdl.com
3. www.bseindia.com
4. www.nseindia.com
5. www.icicidirect.com
6. www.karvy.com
7. www.hdfcsec.com
8. www.indiabulls.com
9. www.5paise.com
63

10. www.google.com

64

QUESTIONNAIRE (customers)
Are you aware about the terms:
Share market

Sensex/nifty

Dematerialization

Equity/derivative

Broking house

Depository participant

SEBI

How frequently you trade in share market:

Daily

Weekly

Monthly

Name of broking house ------Brokerage charges:

Equity
Intraday -------

delivery -------

Commodity
Intraday -------

delivery -------

65

Never

D-mat a/c charges ------Trading a/c charges:

1st year -------

Afterwards -------

Investment made in mostly:

Intraday

Delivery

Opinion about current scenario of the market:

Risky
Highly volatile

Expensive

Complex

Suitable for investment

Basis of investment:
Research Mail

Market Opinion

advice
Personal Analyze

Try & Error

Preference of investment field:

Equity

Derivative

66

PMS

Friends

Mutual Fund

Commodity

What is your other preference for investment ------Satisfied with company:

Yes

No

Name:

Age:

Gender:

Occupation:

67