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DECLARATION

I understand here declare that the project report entitled


Consumer Awareness Regarding Financial Service at Sharekhan
Ltd written and submitted by me under the guidance of Mr. Vikas
Kumar is my original work. The findings in this project are based
on data collected by myself.

Karan Soni

ACKNOWLEDGEMENT
Before a get into the thick of the studies I would like to add a few
heart felt words for the people who were a part of this project in
numerous ways that.
First of all I would like to express my sincere thanks to Mr. Vikas
Kumar who extended his valuable guidance from time to time and
support in completing project report as guided me at each step
with his valuable advice.

TABLE OF CONTENTS

PAGE NO.
ACKNOWLEDGEMENT
EXECUTIVE SUMMARY
1. INTRODUCTION TO STOCK
MARKET..1
2. COMPANY PROFILESHAREKHAN5
3. OFFERING OF THE
COMPANY11
4. PRODUCTS AND
SERVICES16
SHARE ONLINE
SHARE OFFLINE
MUTUAL FUNDS
DERIVATIVES
COMMODITIES ONLINE
PORTFOLIO MANGEMENT SERVICES
ADVISORY PRODUCTS
FIXED DEPOSITS
MUTUAL FUNDS
5. RESEARCH
METHODOLOGY
.57
6. LEARNING
61
7. ANNEXURE
.67
BIBLIOGRAPHY
71

EXECUTIVE SUMMARY
This report specially focuses on Sharekhan, a leading broking house in
India. The project deals with the how is the Sharekhan as a broking
house, what services it provides. Among the services, the report
mainly flash light on the DEMAT service of Sharekhan, facilities
provided by sharekhan, steps to open an a/c are mainly covered in this
part.
The SIP is an opportunity to experience the professional environment,
making the internship meaningful to the company one works with and
to oneself in ones career prospects.
With the commencement of the SIP, the progress of SIP is as follows
By the end of first two weeks, understanding the company as a whole
by giving through various departments of the company. And to
understand the industry in which the company is operating so that it
will help us in gaining more knowledge about the position of the
company.
With the next following weeks, the products and services offered by
the company is studied. The distribution network of the company,
product portfolio, sales force, pricing and promotional strategies used
by them for their product, customer service, market share, competitors
of the company and their products and services.
In the next weeks, understanding the organisational structure and
chart, department functions, staff strength. And after understanding
the company services, then to understand the products and services if
its competitors. So that, it makes us capable of marketing their
products better as compared to the competitors.

INTRODUCTION TO STOCK MARKET


A stock market is a place where stocks, bonds or other securities are bought
and sold. An association of stockholders who meet to buy and sell stocks and
bond according to fixed regulations. A stock exchange, organised market for
the trading of stocks and bonds. Such markets were originally open at all but
at present only members of the owing association may buy and sell directly.
Members or stock brokers, by and sell for themselves or for others, charging
commissions for their services. A stock may be bought or sold only if it is
listed on an exchange, and it may not be listed unless certain requirements
set by the exchanges board of governs.
The market in which shares are issued and traded either through exchanges
or over-the counter markets. Also known as the equity market, it is one of
the most vital areas of a market economy as it provides companies with
access to capital and investors with a slice of ownership in the company and
the potential of gains based on the companys future performance. This
market can be split into two main sections. The primary and secondary
market. The primary market is where issues are first offered, with any
subsequent trading going on the secondary market.

TERMINOLOGY:
Blue Chip
A security from a well-established and financially-sound company that has
demonstrated its ability to pay dividends in both good and bad times. These
stocks are usually less risky than other stocks.
Equity

The residual value of a business or property beyond any mortgage thereon


and liability therein. The market value of securities less any debt incurred
shareholder or stockholder is an individual or company (including a
corporation) that legally owns one or more shares of stock in a joint stock
company.
1

Shareholders
The shareholders are the owners of a corporation. Companies listed at the
stock market strive to enhance shareholder value. The shareholder concept
is the theory that a market company only has responsibilities to its
shareholders and owners, and should work solely to benefit these people.
The trading of securities such as stocks and bonds is conducted in stock
exchanges, which are grouped under the general term stock market.
A stock exchange is essentially a marketplace foe stocks and bonds, with
stockbrokers earning small commissions on each transaction they make.
Stocks that are handled by one or more stock exchanges are called listed
stocks. For a corporations stock to be listed on an exchange, the company
must meet certain exchange requirements. Each exchange has its own
criteria and standards, but in general a company must show that it has
sufficient capital and is in sound financial condition. Once a company is
listed, trading in its stock will be suspended if the companys financial
condition decline to the point that it no longer meets the exchanges
minimum requirements.
When a person wishes to purchase a stock, she places an order with a
brokerage house. The brokerage gets a quotation or price and sends the
order to the firms representative on the floor of the stock exchange. The
representative negotiates the sales and notifies the brokerage house.
Transactions happen rapidly, and each one is recorded on a computer system
and sent immediately to an electronic ticker that displays stock information
on a screen. At one time this information was generally only available at
stock brokerage houses, but the daily stock ticker is now available on
television and through the internet.
In short selling, the trader borrows stock (usually from his brokerage which
holds its clients shares or its own shares on account to lend to short sellers)

then sells it on the market, hoping for the price to fall. The trader event buys
back the stock, making money if the price fell in the meantime or losing
money if it rose. Existing a short position by buying back the stock is called
covering a short position. This strategy is also used by unscrupulous
traders to lower the price of stock. Hence most markets either prevent a
short sell or place restrictions on when and how sell can occur. These
restrictions are usually referred to as tick rule.
In margin buying, the trader borrows money (at interest) to buy a stock and
hopes for it to rise.

Stock Market Indices


The movements of the prices in a market or section of a market are captured
in price indices called stock market INDICES, of which there are many, e.g.,
the S&P, the FTSE and the Euro next indices.
The financial systems performs three main tasks: firstly, it handles transfer of
payments; secondly, it channels savings to investments with a god return for
future consumption; and thirdly, it spreads and reduces (local enterprise)
economic risks in relation to the players targeted returns.
The smooth functioning of all these activities facilitates economic growth in
that lower costs and enterprise risks promote the production of goods and
services as well as employment. In this way the financial system contributes
to increased prosperity.
The stock market is one of the most important sources for companies to raise
money.
The price of shares and other assets is an important part of dynamics of
economic growth. Rising share prices for instance, tend to be associated with
increased business investment and vice versa. Share prices also affect the
wealth of households and their consumption.

SECURITIES MARKET IN INDIA

Initially, trading on stock exchanges in India used to take place through


open outcry without use of information technology for immediate
matching or recording of trades.
NSE, incorporated on November 27, 1992, started its operations on
June 30,1994.It introduced a nation-wide on-line fully automated
screen based trading system(SBTS).
NSDL was set up as a first Depository in India, in November 1996.
NSE commenced trading in Dematerialized securities from December
26, 1996.
NSE launched NIFTY (NSE-50 Index) on April 22, 1996.
NSE and NSCCL went live with inaugural session for ALBM, i.e.,
Automatic Lending and Borrowing Mechanism for lending and
borrowing of securities on February 10, 1999.

4
COMPANY PROFILE
Training is defined as the systematic development of the knowledge,
skills and attitudes required by an individual to perform a given task or
job successfully. Training aims at improving the organizations
performance through the enhanced performance of the employees.
The major purposes of training are preparing an individual to work as
per the corporate world, updating skills, managerial succession and
satisfying personal growth needs.
Organizations provide training as per the company policies and
procedures.
OJT helps an individual to know the actual working situation and to
understand the culture of that organization.
The project given by the organization helps a lot to gain knowledge
about their product and services and its competitors. Through this
project, a trainee can understand make comparison between them.
Need of the study
The need of the study arises because of the reason that a trainee
must understand the company, its achievements and tasks, products
and services and also to collect information about its competitors, its
products and services offered. So that, after understanding and

collecting information about the organization and its competitors, a


trainee will be able to work well for the organization.

Objectives
To develop the qualities required for a manager and
provides an excellent learning opportunity.
To understand the Financial Market with due Focus on
trading in stock markets.
To understand the significance of share brokers as
regards trading in stock market.
To compare services provided by Share khan vis--vis
other brokers.
The SIP provides the students to know the actual
working situation and understand the corporate
culture.
To provide a platform to take up On-the-job training and
develop a network which will be useful in enhancing
career prospects.
To gain a deeper understanding of the work, culture,
deadlines, work pressure and achieving targets of an
organization.

Vision
To be the best retail broking brand in the Indian Equities
Market

Mission

To educate and empower the individual investor to make


better investment decisions through quality advice and
superior service.

SSKI Group
( Shri Satya Kantilal Iswarlal)
Founded in 1923, SSKI group is based in Mumbai.
Ventured into institutional broking and corporate
finance 18 years ago.
Its institutional broking arm accounts for
7% of the market for foreign institutional
Portfolio investment.
5% of all domestic institutional portfolios.
Investment in India.
Having 60 institutional clients spread across India, Far
East, UK and US.

SSKI Group of Companies


SSKI Investor Services Ltd (Sharekhan).
S.S.Kantial Ishwarlal Securities.

I dream Productions.

SHAREKHAN
Head office
: Shripal Morakhia (Maximum stakeholder),
HSBC , INTEL &
Carlyle.
CEO
its 1988)

: Tarun P. Shah (Been with the SSKI Group since

WEBSITE
: www.sharekhan.com (launched on 8 feb,2000
for providing online trading).

SSKI Corporate Structure


Retail Broking Arm of SSKI Group
Share Holding Pattern

Promoters
HSBC Pvt Equity India Fund Ltd

19

First Cartyle Ventures Mauritius


55

Intel Pacific Inc

18

Investement Banking Arm of SSKI


Group

Share Holding Pattern

SSKI Securities Pvt.Ltd


Morakhla Family
50

50

9
SHAREKHAN is the retail broking arm of SSKI.
It has 518 Sharekhan outlets in over 350 cities.
Been in the business for over 80 years, Share khan provides
assistance and the advice to the investors.
Share khan is amongst top 3 branded retail service providers.
Largest network of branded broking outlets in the country.
In the survey conducted by economic times, Share Khan was
ranked at the top of all Indian Brokerage houses for giving
returns of 127 % to its clients in 2005. As per the daily, most
other brokerage houses managed returns of only 50-70%.
1 online BSE AND NSE execution ( through BOLT and NEAT
terminals ).
2 Better customer Services and free access to investment
advice from share Khan research team.
3 Depository Services (Demat and Remat transaction).
4 Internet based online trading.
5 IPO services.
6 Commodities trading on MCX and NCDEX.

7 Portfolio Management Service (PMS).

10

Offering of the
Company

Sharekhan provides 4 in 1 account.


1
2
3
4

de- mat a/c


trading a/c { for cash calculation ]
bank a/c { for fund transfer}
dial and trade [ for offline trading/for query relating trading }

[1] Dematerialization account


Dematerialization is the process of converting physical shares
( share certificates ) into an electronic form shares once
converted into dematerialization form are held in a de-mat
account Sharekhan is a depository participant. This means that
we can keep the shares in dematerialized for in Sharekhan. But
for this one has to purchases the demat account in Sharekhan.
Sharekhan provides no opening charge.
Sharekhan provide de-mat account free of charge for first year,
Rs 400/ year from the next year ( year continued from the day of
opening )
Auto pay-in & auto pay- out of securities.

Waver of pay- in and pay-out charges ( due to link de-mat account


).

11

FOR OPENING AN ACCOUNT:


2 passport size photograph
Identify proof
Cheque (min Rs. 10,000 margin balance ).

Proofs of Identify
Customer can submit a photo copy of any one of the
following

Voter ID
Passport
Pan card
Driving license
Photo I card issued by employer registered under
MAPIN
Copy of ration card

Address Proof
Customer can submit a photo copy of any one of
the following

Voter ID card
Driving license
Passport
Ration card
Telephone bill
Electricity bill
Leave- license
Bank passbook
Latest Bank Statement
12

[2] Trading Account:


It is an electronic account which enables customers to
trade in share through interest without help to broker.
1 ) NSE/ BSE/commodity terminal live screen:
Provides online fluctuations rate on computer screen
2) online Daily Tips :
Sharekhan is providing tips through mails in 4 sessions

Pre market
Noon session
Post market
Late evening

Sharekhan is provide tips through SMS ( chargeable )

Sharekhan is provide tips through yahoo Messenger


Online
3) IPO /MF Online :
Sharekhan provide IPO and MF facility for the customers.

13
[3] Saving Account:
In Sharekhan, a customer can have a saving account for
trading online with net banking, facility: Sharekhan have
a tips ups with following banks.
1. HDFC Bank
2. CITI Bank
3. OBC Bank
4. Yes Bank
5. UTI Bank
6. IDBI Bank
7. ICICI bank
8. Union Bank

9. IndusInd Bank
10. Bank of India
11. Deutsche Bank
A customer can allocate and transfer fund from your
respective bank account to your Sharekhan account for
trading and transfer back to link bank account when and
where needed.
[4] Dial- N-Trade:
Sharekhan provide dial-n trade facility to the customer.

14

Products & Services

Sharekhan Ltd. Provide different Product as


follows

Share online & offline


Derivatives
Mutual fund online
Commodities online
IPO online
Portfolio management Services
Insurance
Fixed deposits
Advisory products
Currency trading

15
SHARE ONLINE:
Sharekhan provide online facilities.

BENEFIT
1. Freedom from paperwork : Integrated trading, bank
and de-mat account with digital contracts removers
all paperwork.
2. Instant credit and transfer : instant transfer of funds
of from bank account of the choice to Sharekhan
trading account.
3. Trade anywhere : enjoy the ease of trading from any
part of the world in a completely secure
environment.
4. Dial n trade : call toll free number ( 1-800-22-7050)
to place orders through telebrokers.
5. Timey advice : make informed decisions with expert
advice, investment call and live market commentary.

6. Real-time portfolio tracking : benefit from real time


information for investment and current portfolio
value.
7.After-hour orders : place order after market hours,
which get executed as soon as the markets open.

Sharekhan provide two different accounts:


1. Classic account
2.
Trade tiger

CLASSIC ACCOUNT:

16

The classic account enables customers to trade online on


the NSE and the BSE , invest in IPO and mutual funds and
access all the research and transaction reports through
Sharekhans website. This account is suitable for the
retail investors.
In this account shown the maxium script are 25 in
the terminal and the technical chart are not shown in
this account.
The life time registration charge for this account is
750 rupees.
Features
Online trading account for investing in equities
and derivates
Free trading through phone (dial-n-trade).

o Two dedicated numbers for placing your


orders with your cell phone or landline.
o Automatic funds transfer with phone
banking (for Citibank and HDFC bank
customers).
o Simple and secure interactive voice
response based system for authentication.
o Get the trusted , professional advice of our
telebrokers.
o After hours order placement facility between
8.00 am and 9.30 am

17
Integration of : online trading + bank+ demat
account
Instant cash transfer facility against purchase &
sale of shares
IPO investments
Instant order and trade confirmations by e-mail
Single screen interface for cash and derivates

18

FAST TRADE :
Features
Streaming quotes.
Personalized market watch.
Single screen interface for cash, derivatives and
commodities.
New fast trade is platform independent will support
by all operating system.
New fast trade will support all browsers in the
market.
New fast trade is independent of existing website
and can work even if content website is down.
Fast trade is web base product and its a shown
fluctuation rate.

19
TRADE TIGER
Trade tiger is a next generation online trading product
that brings the power of brokers terminal to customer pc.
It is session to capitalize on intra-day price movement.
Trade tiger is an internet based application available on
a CD, which provides everything a trader needs on one
screen.
Key Features : A single platform for multiple exchange BSE & NSE
( cash & F&O), MCX, NCDEX, MUTUAL, IPO.
Multiple market watch available on single screen.
Multiple charts with tick by tick intraday and end of
day charting powered with various studies.

Graph studies include average, band-bollinger ,know


sure thing, MACD, RSI, etc.
Apply studies such as vertical ,horizontal, trend,
retracement & free lines.
User can save his own defined screen as well as
graph template, that is saving the layout for future
use.
User-defined alert settings on an input stock price
trigger
Tools available to gauge market such as tick query,
ticker, market summary, actionwatch, option
premium calculator, span calculator
Shortcut key for FAST access to order placements &
reports
Online fund transfer activated with 11 banks.

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Advantages :

Live streaming quotes


Access all trading calls
Advanced charting features
Create your own technical rules for trading
A single trading Screen for all segments

THE PLATINUM CIRCLE :

The HNI product


Personalized portfolio tracking & restructuring
advice.
Monthly stock valuation report on transaction sent in
printed format as well as available online.
Research- based investment advice tailored for
different investment approaches.

21

Share Offline

SHARE OFFLINE :
As the internet has taken over the physical trade, the
same is the situation in trading in shares. Even the
internet has not spared trading in shares and still the
conventional system of offline trading continues in
todays s world.

Merits of offline trading

Low brokerage
Less margin
Flexibility in credit period
Customized advice

Demerits of offline trading

Problems in getting in touch with the broker


Limited clientele
Problem of attention from the broker due to load
Reliance on the brokers information
Customer has to believe what the broker says
Broker might not give the best price
Reconciliation of account and cash settlements
Paperwork
Geographical Restriction

22
DIAL- N TRADE :
Sharekhan provides complete trading facility like they
are giving toll free numbers the phone trading facility as
an alternative of net trading where a customer can call
n number of times.
Toll free numbers ; 1800-22-7500
1800-22-7050
Local number ;

079-30307600 ( chargeable )

Exposure ; for Intraday = 10 times


For Delivery

= 04 times

Sharekhan is also providing the margin on DP balance.

23
INDEXES OF EQUITY MARKET ONLINE
NSE;

The national stock exchange of the India was the


promoted by leading financial institutions at the behest
of the government of India, and was incorporated in
November 1992 as a tax paying company. In April 1993, it
was recognized as a stock exchange under the securities
contracts (Regulation) Act, 1956 NSE commenced its
operation in the wholesale Debt market (WDM) segment
in June 1994. The capital market (Equities) segment of
the NSE commenced operation in November 1994.

24
BSE;

The Bombay stock exchange is the oldest stock exchange


in Asia. It is located at dalal street, Mumbai, India.

The Bombay stock exchange was established in 1985.


There are around 3500 Indian companies listed with
stock exchange, and has the significant stock volume. As
of 29 may 2007 , the market capitalization of the BSE is
about Rs.40.5 trillion. The BSE SENSEX (SENSITive
index ), also called the BSE 30. Is a widely used market
index in India and Asia. As of 2005, It is among the five
biggest stock exchanges in the world in terms of
transactions volume.

25

Derivatives

DERIVATIVES;
Derivatives are financial contracts whose value is
depends on the bebaviour of price of one or more basic
underling assests. These contracts are legally binding
agreement made on the trading scree of stock exchange,
by or sell an assest in future. The assests can be share,
index, interest rate, bond, rupee-dollar exchange rate,
sugar, crude oil, soybean, cotton, coffee etc.

EQUITY FUTURE AND OPTION:


Future;
An agreement between two parties to buy or sell an asset
at a certain in the future at a certain price. Stock futures

on certain specified securities and interent rate futures


are available for trading at NSE ( NATIONAL STOCK
EXCHANGE). All the futures contracts are settled in cash.

Options;
An options is a contract which gives the right, but not but
or sell the underlying at a stated price, which a buyer of
an operation pays the premium and options are of two
types calls an put.
Calls give the buyer the right but not the obligation to
by a given quantity of the underlying assest, at a given
price on or before a given future date. Calls also known as
bulls.Puts give the buyer the right, but not obligation to
sell a given quantity of the underlying assest at a given
price on or before a given date. Puts also known as
bears.
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Commodities Online

COMMODITIES ONLINE;
Commodities are agreements to buy and sell virtually
anything expect, for some reason, onions. The primary
commodities that are traded are oil, gold and agricultural
products. Commodity derivatives comprise of raw
materials and products that can be traded on special
commodity exchanges across the country. Commodities
expands customer investing horizon from investing in a
metal company to trading in the metal itself. Trading in

commodity derivative provides unique market


opportunities for a wider section of participants like;
investor, hedgers, arbitragers, traders, manufactures
planters, exporters and importers. While trading
commodities through an exchange, there are no
transportation charges, no insurance costs, no storage
charges and complete security when customer trade
though an exchange. Customer can trade in commodities
at nominal costs and carry the investment in paper from
as customer want. The fundamentals for commodities are
quite simple; price is a function of demand and supply.
Sharekhan provides commodity facility. Sharekhan trades
on two major commodity exchanges in India.
1)MCX
2)NCDEX

27

INDEXES OF COMMODITIES
MCX;

MCX (MULTI COMMODITY EXCHANGE OF INDIA LTD)


is a state- of the-art electronic commodity futures
exchange. MCX is an independent commodity
exchange based in India. It was established in 2003
and is based in Mumbai. The turnover of the
exchange for the period. Apr-Dec 2008 was INR 32
trillion. MCX offers futures trading in agriculture
commodities, Bullion, ferrous and non-ferrous
metal, pulses, oil and oilseeds, energy, plantations,
spices and other soft commodities. MCX has also
setup in joint venture the national spot exchange a
purely agricultural commodity exchange and
national bulk handing corporation (NBHC) which
provides bulk storage and handling of agricultural
products.

28
NCDEX;

National Commodity and Derivatives Exchange limited


( NCDEX) is a professionally managed online multi
commodity exchange promoted by ICICI bank limited
( ICICI bank), life Insurance corporation of India (LIC),
national bank for agriculture and rural development
(NABARD) and national stock exchange of india limited
(NSE). Punjab national bank (PNB), CRISIL limited (formely
the credit rating information services of india limited),
Indian farmers fertilizer cooperative limited (IFFCO) and
canara bank by subscribing to the equity shares have
joined the initial promoters as shareholders of the
exchange.
NCDEX is the only commodity exchange in the country
promoted by national level institutions. This unique
parentage enables it to offer a bouquet of benefits, which
are currently in short supply in the commodity markets.
The institutional promters of NCDEX are prominent
players in their respective fields and bring with them
institutional building experience, trust, nationwide reach,
techonogy and risk management skills. NCDEX is a public
limited company incorporated on April 23, 2003 under the
companies act, 1956 . it obtained its certificate for
commencement of business on may 9,2003. It has
commenced its operations on December 15, 2003.
NCDEX is a national level, techonolgy driven demutualized on-line commodity
29

exchange with an independent board of directors and


professionals not having any vested interest in
commodity markets. It is committed to provide a worldclass commodity exchange platform for market
participants to trade in a wide spectrum of commodity
derivatives driven by best global practices,
professionalism and transparency.
NCDEX is regulated by forward market commission in
respect of futures trading in commodities. Besides,
NCDEX is subjected to various laws of the land like the
companies Act, stamp act, contracts Act, forward
commission (Regulation) act and various other
legislations, which impinge on its working. NCDEX is
located in Mumbai and offes facilities to its members in
more than 390 centre throughout India. The reach will
gradually be expanded to more centres.
NCDEX currently facilitates trading of thirty six
commodities- Cashew, castor seed, chana, chilli, coffee,
cotton,cottonseedsoilcake, crude plamoil, expeller
mustard oil, gold, guar gumseeds, gur, jeera, jutesacking
bags, mild steel ingot, mulberygreen cocoons, pepper,
rapessed-mustardseed raw jute, RBD palmolein, refined
sory oil, rice, rubber, sesame seeds, silk, silver, soy bean,
sugar, tur, turmeric, urad ( black matpe), wheat, yellow
peas, yellow red maize & yellow soybean meal. At
subsequent phases trading in more commodities would
be facilitated.

30

Initial Public
Offering

IPO;
Initial public offering, the first sale of stock by a company
to the public, companies offering an IPO are sometimes
new, young companies, or sometimes companies which
has been around for many years but are finally deciding
to go public. IPO are often risky investments, but often
have the potential for significant gains. IPO are often used
as a way for a young company to gain necessary market
capital.
From an investor point of view, IPO gives a chance to by
shares of a company, directly from the company at the
price of their choice ( In book build IPO). Many a times
there is a big difference between the price at which
companies decides for its shares and the price on which
investor are willing to by share and that gives a good
listing gain for shares allocated to the investor in IPO.
From a company prospective, IPO help them to identify
their real value which is decided by millions of investor
once their shares are listed in stock exchange. IPO also
provide funds for their future growth or for paying their
previous borrowings. Sharekhan provides to their
customer the online IPO facility. In this facility, the
customer has to feel only the bid price and the quantity
for which he/she wants to by the stock.

31

Portfolio Management
Service

PMS;
PORTFOLIO MANAGEMENT SERVICES (PMS);
Sharekhan unfolds for customer an enable of PMS to
choose from that helps customer sit back, relax and see
customer money grow without worrying about the ups
and downs at the stock market. Talks to Sharekhan
specialists and theyll help customer choose a PMS plan
that suits customer risk taking appetite expectation
from the market.
There are two types of PMS in Sharekhan Limited
A) PROPRIME
B) PROTECH

A)

PROPRIME (FUNDAMENTAL);

Proprime uses in-depth independent fundamental


research through primary analysis in high-quality
companies. The proprime line is designed for varying riskreturn profiles and investment, Ideal for investors looking
at superior returns with low to medium risk appetite. This
portfolio consists of a blend of quality blue chip and
growth stocks ensuring a balanced portfolio with

relatively medium risk profile. The portfolio will mostly


have large capitalization stocks based on sectors &
themes that have medium to long term growth potential.

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PRODUCT APPROACH
Investments are based on 3 tenets;
1. Consistent, steady and sustainable returns
2. Margin of safety
3.
Low volatility

Product Characteristics
Bottom up stock selection
In-depth, independent fundamental research
High quality companies with relatively large
capitalization.
Disciplined valuation approach applying multiple
valuation measures
Medium to long term vision, resulting in low portfolio
turnover.

Why Invest?

PMS proprime uses the expertise of 35 financial analyst to


get the best possible returns.
Fundamental research based on in-depth analysis of
companies including past performance, management,
growth potential etc.

33

How to Invest?
Minimum investment = Rs 20 Lakhs
Lock in period; 06 months
Reporting; Access to website showing client
holding & quarterly reporting of portfolio
holding/transaction.
Charge; 2.5% p.a, fees charged every quarter,
0.5% brokerage, 20% profit sharing after 15%
hurdle crossed end of every fiscal.

How to check?
You can access your portfolio through branches of
franchisees for services.
Daily NAN can be viewed online.
Quarterly reporting of portfolio holding/transaction.

34
B)

( TECHNICAL);

Protech uses the knowledge of technical analysis and the


power of derivatives market to identify trading
opportunity in the market. The protech lines of, products
are designed around various risk/reward/volatility profiles
for different kinds of investment needs.
Protech is based on;
(1) Long short strategies
(2) Focus on absolute returns
(3) Timing the market
Products Offered
1. Nifty thirty
2. Beta portfolio
3. Trailing stops
Product Approach
Superior performances can be achieved through
sheer market timing by picking stocks/nifty before
the infection points in their trading cycles.

Linear returns are possible from having sell market


positions in downtrends and by using the options
market to change the portfolio beta.
Money management rules will be in place.

35
Product Characteristics
Using swing based index trading systems, stop and
reverse, trend following and momentum trading
techniques.
Nifty based products for low impact cost and low
product volatility.
To earn return both in rising & falling market.
Trading in futures market to allow for active risk
protection using trailing stop losses.

Why Invest?
Different product based on risk-reward for different types
of investor having different time horizon of investment &
return expectation.
Aspect from fundamental analysis, a successful investor
can take a market view based on technical analysis &
power of derivatives for timing the market
If customer wants to be ahead in the race of timing the
market correctly, then protech PMS is the option for
customer. So far Sharekhan is the first company to come

out with this kind of PMS in India based on technical


Analysis.

36
How to invest?
Lock in; 6 months.
Reporting; fortnightly reporting of portfolio net worth,
monthly reporting of portfolio holdings/ transactions.
Charges; 0% AMC fees, 0.05% brokerage for derivatives,
20% profit sharing on booked profits on a quarterly
basis.

37

Fixed Deposits

FIXED DEPOSITS;
Fixed deposits are loan arrangements where a specific
amount of funds is placed on deposit under the name of
the account holder. The money placed on deposit earns a
fixed rate of interest, according to the terms and
conditions that govern the account. The actual amount of
the fixed rate can be influenced by such factors at the
type of currency involved in the deposit, the duration set
in place for the deposit, and the location where the
deposit is made.
The most unusual characteristic of a fixed deposit is that
the funds cannot be withdrawn for a specified period
time, in most cases; fixed deposits carry duration of five
years. During that time, the money remains in the
account and cannot be withdrawn for any reason;
Individuals, corporate entities, and even non-profit
organizations that wish to set aside funds and limit their
access to the funds for a period of time often find that
fixed deposits are a simple way to accomplish this goal.
As an added benefit, the monies in the account will earn a
fixed rate of interest regardless of any fluctuations in
interest rates that apply to other types of account.

However, both these benefits can also turn into


disadvantages under certain circumstances, because the
money cannot be withdrawn until the duration is
complete, the funds cannot be used in emergency
situations. Changes in the going interest rate may also
rise to point above and beyond the interest rate applied
to existing deposits. This means account holders are
actually earring less interest with fixed deposits than with
other types of loans and accounts.
38
While the interest rate on fixed deposits cannot be
changed, there is
sometimes a way to work around the issue of obtaining
use of funds in
an emergency situation. At times, the lending institution
where the fixed deposit is placed may be willing to extend
a separate loan to the account holder, using the fixed
account as collateral. While not ideal, this can at least
make it possible to deal with the current financial crunch.
Fixed deposits are a credible way to make return on
investment that is somewhat higher than a standard
savings account. The use of fixed deposits can be helpful
when working with various types of currency. By
establishing what is known as a foreign currency fixed
deposit or FCFD, it is possible to choose the currency
involved in the deposit and lock in a rate of interest. If the
choice of currency is a good one, this means the investor
can enjoy a healthy fixed deposit currency rate for the

duration of the deposit and earn more than with a


standard fixed deposit strategy, however, going with an
FCFD does contain a slightly higher amount of risk, since
the funds deposit must be converted to the currency of
choice and then converted back when the deposit is
fulfilled. If the currency did not fare well in the interim,
there is some chance of obtaining a loss, due to the
changes in the rate of exchange from the time the fixed
deposit was activated until the time the deposit is
considered complete. Sharekhan has the tie up Unitech
Limited and HDFC Corporations Limited.

39

Advisory
Products

ADVISORY PRODUCT;
Sharekhan provide advisory products by which customer
can get proper advise for investing their money in proper
way by which they can earn more profit.
Need of Advisory Products;

Wide product range to meet diverse needs of clients


Disciplined approach
Dedicated product manager backed by research
Performance track record

ADVISORY PRODUCTS;
Top picks portfolio
123 portfolio
Smart trade portfolio

Derivatives portfolio
Nifty portfolio
Portfolio doctor

(1) Top picks portfolio;


A compilation of the best stock market ideas from the
Sharekhan basket.
Released Monthly
Ideal for every Investor
Picked by the highly acclaimed Sharekhan research
team
Quality stock selection.
40
Effective for long term and medium term.
Excellent track record.
Good strike record.

(2) 123 portfolio;


What is it?
123 portfolio is a cash market delivery portfolio. In this
portfolio, calls will be generated by advisory team in
consultation with research team in both fundamental and
technical term. 123 portfolio is for short term delivery
clients with the time frame of 1-3 months.

(3) Smart Trade Portfolio;

A model portfolio runs by the Sharekhan advisory


team centrally.
Delivery calls are generated by the advisory based
on the market pulse (not based on the fundamental
research).
Ideal for short term investor looking for aggressive
returns with medium risk.
Aggressive
No leverage
Actively Managed

41
(4) Derivatives Portfolio;
A model portfolio runs by the Sharekhan advisory team
centrally. Ideal for traders looking for aggressive returns
with medium risk.

Aggressive
Leverage
Actively managed
Super strike Rate

(5) Nifty Portfolio;


It is a trading portfolio managed by Sharekhans
technical team which generated calls in both (BSE&
NSE) Index.
This portfolio is meant for traders who want to trade
for short and long index.

Why nifty portfolio?


History 1/3 of F&O turnover is in nifty.
Ample Liquidity and low impact cost.
Predefined method and rules.

Dividend

distribution

Positive return on investment will be consider for monthly


dividend

42

(6) Portfolio Doctor;


It is a tool for the comprehensive analysis of your
existing portfolio.
Recommendations for improvement on a continuous
basis on market outlook .
Analysis of your existing from Sharekhan
Creation of model portfolio

43

Currency
Trading

Currency trading means to trade in currency of


different countries and price varies because of supply
and demand.
Currency trading is mostly done by large companies
or by people who is import export business.
In price of currency there is always fluctuation. So it
can be dangerous for people who have import
export business. So they make reverse position or it
is also known as hedging.
So by this way people minimize their risk with the
help of currency trading.
Currency trading is not much useful to individual
investors.
Sharekhan is providing offline currency trading to
interested customers.
Online currency trading in not given because
individual investors still not prefer currency trading.

44

Mutual Fund

MUTUAL FUNDS:
Mutual fund is an investment company that pools money
from shareholders and invests in a variety of securities,
such as stocks, bonds and money market instruments.
Most open-end mutual funds stand ready to by back
(redeem) its shares at their current net asset value, which
depends on the total market value fund s investment
portfolio at the time of redemption. Most open-end
mutual funds continuously offer new shares to investors.
Security exchange board of India is the regulatory
body for all mutual fund. All mutual funds must get
registered with the SEBI.
Benefits of investing in mutual funds;

Small investment
Professional fund management
Spreading risk
Transparency
Choice

Regulation

45

Research
Methodology

Objective of the Research:


The objective of the research is to know how many people
are aware about the share market.
To know about how many people are eager to know about
stock market.
To know the company awareness among the people.
Research Source:
In this research we have used primary sources for data
collection.
Sample Size:
In this research 100 respondents are there included.
Research Instrument:
In this research we have used telephonic and face to face
conversation for getting the result.

46
Q: Do you invest into stock market?
Objective: to know how many people are doing
investment in stock market?
Finding:
Yes
No

52%
48%

Investors in Stock Market

Yes
48%

No
52%

INTERPRETATION;
From the above chart we can conclude that there are 57%
people are doing investment in stock market and 43%
people are not doing investment in stock market.
47
Q: If yes, where do you investing?
Objective: To know in which area people are interested to
doing investment
Findings:
Equity
Mutual Fund

33%
5%

Commodity
Other

3%
11%

Where are You Investing ?

Equity

21%

Mutual Fund
Commodity

6%
10%

Other
63%

INTERPRETATION;
From the above chart we can see there are from 33
people in equity, 5 in mutual fund, 3 in commodity and 11
in other doing investment.

48
Q: If yes, from which brokerage house you do trading?
Objectives: To know which company has taken priority
place in customers mind.
Findings:
Sharekhan

23%

HDFC Securities
ICICI Direct
Edelweiss
Religare

15%
9%
3%
2%

Companies

Sharekhan

6% 4%
17%

HDFC Securities
ICICI Direct
44%

Edelweiss
Religare

29%

INTERPRETATION;
We can know from above chart that most of the people
are doing trade from Sharekhan as 23 and 15 from HDFC
Securities, 9 from ICICI Direct , 3 from Edelweiss, 2 from
Religare.
49

Q: Which way you prefer for trading?


Objective: To know how many people are doing trade
online and offline?

Findings:
Online
Offline

23%
29%

Method of Trading

Online
44%

Offline

56%

INTERPRETATION;
Here we can conclude that now people are aware with
internet facilities. So 23% investors prefer online trading
and 29% investors prefer offline trading because of low
availability of internet facility and busy in routine work.
50
Q: Have you ever heard about Sharekhan broking firm?
Objective: To know how many people aware with
Sharekhan ltd.
Findings:

Yes
No

33
19

Awareness

Yes

19

No
33

INTERPRETATION;
From the above chart we can conclude that there are 33%
people are aware with Sharekhan Ltdand 19% people are
not .

51
Q: Are you interested because we have scheme going
on?
Objective: To know how many people are eager to know
Sharekhan scheme.

Findings:
Yes
No

13
20

Interested if Scheme is there

Yes
13

No

20

INTERPRETATION;
From the above chart we can conclude that the Scheme
of free opening Demat A/c and life time free available
online software, are 13% people are interested to know
about Sharekhan Ltd services.

52
Q: If yes can we take an appointment?
Objective:-To know how many people are interested for
live demonstration of Sharekhans online software.

Finding:Yes
No

7
6

Appointment

Yes
No

6
7

INTERPRETATION;
From the above chart we can conclude that there are 7%
people are ready for live demonstration of Sharekhans
online software and 6% people are neglect for that.

53
LEARINING

Sharekhan provides highly authentic reports.

It provides maxium comfort to the customers in


terms of account opening by providing personalized
services.
It has networking with seven top leading banks for
funds transfer.
It provides the facility in all the exchanges.
It has good staff which supports all the customers.
Sharekhan provides time to time research reports.
In Sharekhan I have learned how to maintain good
relations with the customers by giving them the
proper service and solving their queries regarding
the share market.
I have also learned how to maintain good relation
with the employees and the co-trainees.
I have learned the meaning of the words that are
mostly used in the share market.

54

CONCLUSION

Importance of information technology in the field of


stock broking is immense.
Buying and selling of shares through the internet is
so easy.
As soon as prices of share a goes up and comes
down then the customer can sell or purchase the
share instantly within seconds.
Products and services of the Sharekhan are good
from others. Especially the software of Sharekhan
trade tiger is unique from others.
There are people are doing trading in stock market.
In it 33 % people are doing trading in equity and
others are in commodity, mutual fund.
Mostly the people have opening the account from
Sharekhan ltd and HDFC Securities Ltd.

55

ANNEXURE
Q1. What is your investment pattern?
{ } Fixed deposits And BONDS
{ } GOLD
{ } MUTUAL FUNDS AND COMMODITIES
{ } STOCKS

Q2. Which SEGMENT you prefer to deal in?


{

} online

} offline

Q3. If offline, what would be your preference?


{ } local

} corporate

Q4. If corporate, which one would be your preference?


{
{

} Sharekhan
} HDFC securities

} ICICI direct

} Edelweiss

} Religare

56

Q5. AND WHY?


{

} RESEARCH REPORTS.

} CUSTOMER CARE .

} SOFTWARE / WEBSITE .

{
{

} BROKERAGE.
} ANY

Q6. HOW WOULD YOU RATE THE FOLLOWING


COMPANIES ?
A. ON THE BASIS OF RESEARCH ON A SCALE OF 5 ?

SHAREKHAN { 1 2 3 4 5 }
HDFC SECURITIES { 1 2 3 4 5 ]
ICICI DIRECT {1 2 3 4 5 }
EDELWEISS {1 2 3 4 5 }
RELIGARE {1 2 3 4 5 }

57

B . ON THE BASIS OF CUSTOMER CARE AND AFTER SALE


SERVICES ?
SHAREKHAN { 1 2 3 4 5 }
HDFC SECURITIES {1 2 3 4 5 }
ICICI DIRECT {1 2 3 4 5 }
EDELWEISS {1 2 3 4 5 }
RELIGARE {1 2 3 4 5 }

C. ON THE BASIS OF SOFTWARE / WEBSITE ?


SHAREKHAN {1 2 3 4 5 }
HDFC SECURITIES {1 2 3 4 5 }
ICICI DIRECT {1 2 3 4 5 }
EDELWEISS {1 2 3 4 5 }
RELIGARE {1 2 3 4 5 }

58

BIBLIOGRAPHY
Websites:

www.sharekhan.com
www.bseindia.com
www.nseindia.com
www.ncdex.com
www.mcxindia.com
www.mutualfunds.com
www.derivatives.com

59

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