Project report on

Overview on Share Market.

A REPORT SUBMITTED IN PARTIAL FULFILLMENT OF BACHELOR OF BUSINESS

ADMINISTRATION FROM GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY.

UNDER THE GUIDANCE OF SUBMITTED BY

Mr. Sumit Goyal Rahul Bothra

(Assistant Professor) 03614001715
BBA ( V SEMESTER)

Jagan Institute Of Management Studies

Page 1
 ACKNOWLEDGEMENT

It gives me immense pleasure to express my deep regards and sincere sense of gratitude to my

project guide Mr. Sumit Goyal for their valuable guidance throughout the training.

Getting a project ready requires the work and effort of many people. I would like to thanks all

those persons who have contributed in completing this project.

I would like to take an opportunity to thank all the people who helped me in collecting necessary

information and making of the report. I am grateful to all of them for their time, energy and

wisdom.

(RAHUL BOTHRA)

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 DECLARATION

I hereby declare that the projects entitled as Overview On Share Market has been prepared by

me under the guidance of my project guide Mr Sumit Goyal.

I also declare that this project is the result of my effort and has not been submitted to any other

University or Institution for the award of any degree, or personal favours whatsoever. All the

details and analysis provided in the report hold true to the best of my knowledge.

Place: (Rahul Bothra)

Date:

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 EXECUTIVE SUMMARY

There is growing competition between brokerage firms in port reform India. For
investor it is very difficult to decide which brokerage firm to choose. Research was
carried out to find which brokerage house people prefer and to figure out what
people prefer while investing in stock market.

This study suggests that people are reluctant while investing in stock market and
derivative market due to lack of knowledge.

Main purpose of investment is retures and liquidity, commodity market is less

preferred by investors due to lack of awareness. The major findings 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 comr to know
what, can be the basis of pitching to a potential client.

I also gave suggestions to the companywhat improvements can be done to our

product.

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 Table of Contents

ACKNOWLEDGEMENT

DECLARATION

EXECUTIVE SUMMARY

TABLE OF CONTENTS

Chapetr 1

Introduction.(7-38)
1.1 Overview........8
1.2 Profile of the organization..21
1.3 SWOT analysis..31
1.4Competitors.33

Chapter 2

Methodology(39-43)

2.1 Significance...40
2.2 Objectives......40
2.3 Scope..41
2.4Methodology...41

2.5 Data collection41

2.6 Sampling Techniques..42

2.7 Limitations..42

Chapter 3

Data Analysis.(44-54)

Chapter 4

Suggestions and recommendations..(55-58)

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 4.1 Suggestions..56

4.2 Findings....57

4.3 Conclusion and recommendations58

Chapter 5

Bibliography.59

Appendix...64

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Chapter 1
Introduction

Page 7
1.1 Introduction

Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago.
The earliest records of security dealings in India are meager and obscure. The East India
Company was the dominant institution in those days and business in its loan securities used to be
transacted towards the close of the eighteenth century.

By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in
Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers
recognized by banks and merchants during 1840 and 1850.
The 1850's witnessed a rapid development of commercial enterprise and brokerage business
attracted many men into the field and by 1860 the number of brokers increased into 60.
In 1860-61 the American Civil War broke out and cotton supply from United States of Europe
was stopped; thus, the 'Share Mania' in India begun. The number of brokers increased to about
200 to 250. However, at the end of the American Civil War, in 1865, a disastrous slump began
(for example, Bank of Bombay Share which had touched Rs 2850 could only be sold at Rs. 87).

In 1887, they formally established in Bombay, the "Native Share and Stock Brokers'
Association" (which is alternatively known as "The Stock Exchange"). In 1895, the Stock
Exchange acquired a premise in the same street and it was inaugurated in 1899. Thus, the Stock
Exchange at Bombay was consolidated.
Thus in the same way, gradually with the passage of time number of exchanges were increased
and at currently it reached to the figure of 24 stock exchanges.
Basically, the company is a market leader in providing broking services and has a top turnover in
trading and the high turnover makes it the no. 1 in the market. The main difference is the services
that they provide to the investors who really need it. the services are discussed in more detail in
the marketing activities. The clients are managed with a friendly corporate culture to give him
more benefited investment ideas and motivate him whenever he needs. The company is
providing as many tips to the clients for more and more trading ideas and the manager helps each
client to concentrate on a few scripts so that he can manage the profit/loss.

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Introduction of Stock Market

The Bombay Stock Exchange (BSE) and the National Stock Exchange of India Ltd (NSE) are
the two primary exchanges in India. In India, in addition, there are 22 Regional Stock Exchange.
However, the BSE and NSE have established themselves as the two leading exchanges and
account for about 80 percent of the equity volume traded in India. The average daily turnover at
the exchanges has increased from Rs 851 crore in 1997-98 to Rs 1,284 crore in 1998-99 and
further to Rs 2,273 crore in 1999-2000 (April-August 1999).
NSE has around 1500 shares listed with a total market capitalization of around Rs9, 21,500
crore (Rs 9215-bln). The BSE has over 6000 stocks listed and has a market capitalization of
around Rs 9,68,000 crore (Rs 9680-bln). Both exchanges have a different settlement cycle,
which allows investors to shift their positions on the bourses. The primary index of BSE is BSE
Sensex comprising 30 stocks. NSE has the S&P NSE50 Index (Nifty), which consist of fifty
stocks. Both the exchanges have switched over from the open outcry trading system to a fully
automated computerized mode of trading known as BOLT (BSE on Line Trading) and NEAT
(National Exchange Automated Trading) System. It facilitates more efficient processing,
automatic order matching, faster execution of trades and transparency.
The scrips traded on the BSE have been classified into A, B1, B2, C, F, and Z groups.
The A group shares represent those, which are in the carry forward system (Badla). The F
group represents the debt market(fixed income securities) segments. The Z group scrips are the
blacklisted companies. The C group covers the odd lot securities in A, B1 & B2 groups
and right renunciations. The key regulator governing Stock Exchanges, Brokers, Depositories,
Depository participants, Mutual Funds, FII and other participants in Indian secondary and
primary market is the Securities and Exchange Board of India (SEBI) Ltd.

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Meaning of Stock Exchange

A stock exchange or bourse is an exchange where stock brokers and traders can buy and sell
stocks (also called shares), bonds, and other securities. Stock exchanges may also provide
facilities for issue and redemption of securities and other financial instruments and capital events
including the payment of income and dividends. Securities traded on a stock exchange include
stock issued by listed companies, unit trusts, derivatives, pooled investment products and bonds.
Stock exchanges often function as "continuous auction" markets with buyers and sellers
consummating transactions at a central location such as the floor of the exchange.
To be able to trade a security on a certain stock exchange, it must be listed there. Usually, there
is a central location at least for record keeping, but trade is increasingly less linked to such a
physical place, as modern markets use electronic networks, which gives those advantages of
increased speed and reduced cost of transactions. Trade on an exchange is restricted to brokers
who are members of the exchange. In recent years, various other trading venues, such as
electronic communication networks, alternative trading systems and "dark pools" have taken
much of the trading activity away from traditional stock exchanges.
The initial public offering of stocks and bonds to investors is by definition done in the primary
market and subsequent trading is done in the secondary market. A stock exchange is often the
most important component of a stock market. Supply and demand in stock markets are driven by
various factors that, as in all free markets, affect the price of stocks (see stock valuation).

There is usually no obligation for stock to be issued via the stock exchange itself, nor must stock
be subsequently traded on the exchange. Such trading may be off exchange or over-the-counter.
This is the usual way that derivatives and bonds are traded. Increasingly, stock exchanges are
part of a global securities market.
An exchange is an institution, organization, or association which hosts a market where stocks,
bonds, options and futures, and commodities are traded.

Buyers and sellers come together to trade during specific hours on business days. Exchanges
impose rules and regulations on the firms and brokers that are involved with them. If a particular
company is traded on an exchange, it is referred to as "listed".

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Securities that are not listed on a stock exchange are sold OTC, which stands for Over-The-
Counter. Companies that have shares traded OTC are usually smaller and riskier because they do
not meet the requirements to be listed on a stock exchange. Many giant blue chip stocks, such
as Berkshire Hathaway, at one time traded on the over-the-counter market before migrating to
the so-called "Big Board", or New York Stock Exchange.

Organized and regulated financial market where securities (bonds, notes, shares) are
bought and sold at prices governed by the forces of demand and supply. Stock exchanges
basically serve as
Primary markets where corporations, governments, municipalities, and other incorporated
bodies can raise capital by channeling savings of the investors into productive ventures;
and
Secondary markets where investors can sell their securities to other investors for cash,
thus reducing the risk of investment and maintaining liquidity in the system. Stock
exchanges impose stringent rules, listing requirements, and statutory requirements that
are binding on all listed and trading parties.
Trades in the older exchanges are conducted on the floor (called the 'trading floor') of the
exchange itself, by shouting orders and instructions (called open outcry system). On
modern exchanges, trades are conducted over telephone or online. Almost all exchanges
are 'auction exchanges' where buyers enter competitive bids and sellers enter competitive
orders through a trading day. Some European exchanges, however, use 'periodic auction'
method in which round-robin calls are made once a trading day. The first stock exchange
was opened in Amsterdam in 1602; the three largest exchanges in the world are (in the
descending order) New York Stock Exchange (NYSE), London Stock Exchange (LSE),
and the Tokyo Stock Exchange (TSE).

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Indian Stock Markets

The Bombay Stock Exchange (BSE) and the National Stock Exchange of India Ltd (NSE) are
the two primary exchanges in India. In India, in addition, there are 22 Regional Stock Exchange.
However, the BSE and NSE have established themselves as the two leading exchanges and
account for about 80 percent of the equity volume traded in India. The average daily turnover at
the exchanges has increased from Rs 851 crore in 1997-98 to Rs 1,284 crore in 1998-99 and
further to Rs 2,273 crore in 1999-2000 (April-August 1999). NSE has around 1500 shares listed
with a total market capitalization of around Rs9, 21,500 crore (Rs 9215-bln). The BSE has over
6000 stocks listed and has a market capitalization of around Rs 9,68,000 crore (Rs 9680-bln).
Both exchanges have a different settlement cycle, which allows investors to shift their positions
on the bourses. The primary index of BSE is BSE Sensex comprising 30 stocks. NSE has the
S&P NSE50 Index (Nifty), which consist of fifty stocks. Both the exchanges have switched over
from the open outcry trading system to a fully automated computerized mode of trading known
as BOLT (BSE on Line Trading) and NEAT (National Exchange Automated Trading) System. It
facilitates more efficient processing, automatic order matching, faster execution of trades and
transparency. The scrips traded on the BSE have been classified into A, B1, B2, C, F,
and Z groups. The A group shares represent those, which are in the carry forward system
(Badla). The F group represents the debt market(fixed income securities) segments. The Z
group scrips are the blacklisted companies. The C group covers the odd lot securities in A,
B1 & B2 groups and right renunciations. The key regulator governing Stock Exchanges,
Brokers, Depositories, Depository participants, Mutual Funds, FII and other participants in
Indian secondary and primary market is the Securities and Exchange Board of India (SEBI) Ltd.

The Bombay Stock Exchange

Bombay Stock Exchange is located on Dalal street, Mumbai. In terms of market capitalization,
BSE is the eleventh largest stock exchange in the world on 31st December, 2012. BSE is the
oldest stock exchange in India. In the beginning during 1855, some stock brokers were gathering
under Banyan tree. But later on when the number of stock brokers increased, the group shifted in
1874. In 1875, the group became an official organization named as The Native Chor and Stock
Brokers Association. In 1986, BSE developed its Index named as SENSEX to measure the
performance of the exchange. Initially, there was an open outcry floor trading system which in

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1995 switched to electronic trading system. The exchange made the whole transition in just fifty
days. BSE Online Trading, known as BOLT is a automated, screen based trading platform with a
capacity of 8 millions orders per day. BSE provides an transparent and efficient market for
trading in equities, debentures, bonds, derivatives and mutual funds etc. It also provides
opportunity to trade in the equities of small and medium term enterprises. About 5000 companies
are listed in Bombay Stock Exchange. As on January 2013, the total market capitalization of the
companies listed in BSE is $1.32 trillion. In terms of transactions handling, BSE Ltd. is worlds
fifth exchange. As far as Index Options trading is concerned, BSE is one of the worlds leading
exchanges. Some other services like risk management, settlement, cleaning etc. The purpose of
BSE automated systems and techniques are to protect the interest of the investor, to stimulate
market and to promote innovations around the world. It is the first exchange across India and
second across world to get an ISO 9000:2000 certification.
The Bombay Stock Exchange (BSE) is an Indian stock exchange located at Dalal Street, Kala
Ghoda, Mumbai (formerly Bombay), Maharashtra, India.
Established in 1875, the BSE is Asias first stock exchange, It claims to be the world's fastest
stock exchange, with a median trade speed of 6 microseconds,[3] The BSE is the world's 11th
largest stock exchange with an overall market capitalization of more than $ 2 Trillion as of July,
2017.[4] More than 5500 companies are publicly listed on the BSE. Of these, as of November
2016, there are only 7,800 listed companies of which only 4000 trade on the stock exchanges at
BSE and NSE. Hence the stocks trading at the BSE and NSE account for only about 4% of the
Indian economy.
BSE (formerly known as Bombay Stock Exchange Ltd.), is Asia's first & the Fastest Stock
Exchange in world with the speed of 6 micro seconds and one of India's leading exchange
groups. Over the past 141 years, BSE has facilitated the growth of the Indian corporate sector by
providing it an efficient capital-raising platform. Popularly known as BSE, the bourse was
established as "The Native Share & Stock Brokers' Association" in 1875. Today BSE provides
an efficient and transparent market for trading in equity, currencies, debt instruments,
derivatives, mutual funds. It also has a platform for trading in equities of small-and-medium
enterprises (SME). India INX, India's 1st international exchange, located at GIFT CITY IFSC in
Ahmadabad is a fully owned subsidiary of BSE. BSE is also the 1st listed stock exchange of
India.

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The National Stock Exchange

The National Stock Exchange of India Limited (NSE) is the leading stock exchange of India,
located in Mumbai. The NSE was established in 1992 as the first demutualized electronic
exchange in the country. NSE was the first exchange in the country to provide a modern, fully
automated screen-based electronic trading system which offered easy trading facility to the
investors spread across the length and breadth of the country.Mr Vikram Limaye is Managing
Director & Chief Executive Officer (MD & CEO) of NSE.
National Stock Exchange has a total market capitalization of more than US$1.41 trillion, making
it the worlds 12th-largest stock exchange as of March 2016. NSE's flagship index, the NIFTY
50, the 51 stock index (50 companies with 51 securities inclusive of DVR), is used extensively
by investors in India and around the world as a barometer of the Indian capital markets.
However, only about 4% of the Indian economy / GDP is actually derived from the stock
exchanges in India.
NSE was set up by a group of leading Indian financial institutions at the behest of the
government of India to bring transparency to the Indian capital market. Based on the
recommendations laid out by the government committee, NSE has been established with a
diversified shareholding comprising domestic and global investors. The key domestic investors
include Life Insurance Corporation of India, State Bank of India, IFCI Limited IDFC Limited
and Stock Holding Corporation of India Limited. And the key global investors are Gagil FDI
Limited, GS Strategic Investments Limited, SAIF II SE Investments Mauritius Limited, Aranda
Investments (Mauritius) Pte Limited and PI Opportunities Fund I.
NSE offers trading, clearing and settlement services in equity, equity derivatives, debt and
currency derivatives segments. It is the first exchange in India to introduce electronic trading
facility thus connecting together the investor base of the entire country. NSE has 2500 VSATs
and 3000 leased lines spread over more than 2000 cities across India.
The exchange was incorporated in 1992 as a tax-paying company and was recognized as a stock
exchange in 1993 under the Securities Contracts (Regulation) Act, 1956, when P. V. Narasimha
Rao was the Prime Minister of India and Manmohan Singh was the Finance Minister. NSE
commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The capital
market (equities) segment of the NSE commenced operations in November 1994, while
operations in the derivatives segment commenced in June 2000.

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Unlike countries like the United States where nearly 70% of the GDP is derived from
larger companies and the corporate sector, the corporate sector in India accounts for only
12-14% of the national GDP (as of October 2016). Of these only 7,800 companies are
listed of which only 4000 trade on the stock exchanges at BSE and NSE. Hence the
stocks trading at the BSE and NSE account for only around 4% of the Indian economy,
which derives most of its income related activity from the so-called unorganized sector
and households.
The National Stock Exchange is located in Mumbai. It was incorporated in 1992 and
became a stock exchange in 1993. The basic purpose of this exchange was to bring the
transparency in the stock markets. It started its operations in the wholesale debt market in
June 1994. The equity market segment of the National Stock Exchange commenced its
operations in November, 1994 whereas in the derivatives segment, it started it operations
in June, 2000. It has completely modern and fully automated screen based trading system
having more than two lakh trading terminals, which provides the facility to the investors
to trade from anywhere in India. It is playing an important role to reform the Indian
equity market to bring more transparent, integrated and efficient stock market. As on July
2013, it has a market capitalization above than $989 billion. The total 1635 companies
are listed in National Stock Exchange. The popular index of NSE, The CNX NIFTY is
extremely used by the investor throughout India as well as internationally. NSE was
firstly introduced by leading Indian financial institutions. It offers trading, settlement and
clearing services in equity and debt market and also in derivatives. It is one of Indias
largest exchanges internationally in cash, currency and index options trading. There are
number of domestic and global companies that hold stake in the exchange. Some
domestic companies include GIC, LIC, SBI and IDFC ltd. Among foreign investors, few
are City Group Strategic Holdings, Mauritius limited, Norwest Venture Partners FII
(Mauritius), MS Strategic (Mauritius) limited, Tiger Global five holdings, have stake in
NSE.

Page 15
Market Index
Index values help investors track changes in market values over long periods of time. For
example, the widely used Standard and Poor's 500 Index is computed by combining 500 large-
cap U.S. stocks together into one index value. Investors can track changes in the index's value
over time and use it as a benchmark against which to compare their own portfolio returns.

A stock index measures the value of a hypothetical portfolio of stocks. Surprisingly, the easy part
of composing an index is choosing which stocks to include.

For instance, the Dow Jones Industrial Average consists of 30 bellwether American companies in
different sectors. There can not be a significant shift in any industry that will not affect the Dow.
With that said, the hard part of making an index is choosing the relative weight of each company.

An popular bond index is the Barclays Capital U.S. Aggregate Bond Index, which can be used as
benchmark to compare treasury bills, corporate bonds, government bonds and foreign bonds.

Different methods are used to calculate a market index's value, such as price-weighting, market-
value-weighting and capitalization-weighting, that each have their own set of pros and cons. A
variety of these methods are prevalent today, and the mathematical intricacies of each ultimately
determine their true usefulness.

The Bombay stock exchange most popular index is S&P BSE SENSEX, the sensitive index is
also known as BSE30. It is a index which is free-float and market weighted stock market index.
BSE consist of 30 companies which are well settled and financially very strong. These
companies are large and very actively traded stocks comprise different industrial sectors of the
Indian economy. SENSEX from its inception has become the major indicator to see the health of
Indian equity market.

The base value of S&P BSE SENSEX was decided to be 100 on 1st April. 1979 and the base
year taken was 1978-79. The free-float market capitalization of BSE was US$240 billion the 21st
April, 2011. During the period of 2008-12, S&P BSE SENSEX market capitalization reduced
from 49% to 25% because some other indices were introduced like BSE PSU, Bankex, BSE-
TECK etc.

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The 30 companies constituted BSE SENSEX index are continually assessed and changed
according to changes in their position so that it can indicates the true market conditions.
SENSEX is calculated by the use of method free float capitalization. Its different from traditional
method in the sense that in free float market capitalization method, at a particular point of time, it
reflects free float market value of the 3o companies proportional to the base year. To calculate
the market capitalization of a company, the price of the companys share is multiplied by the
number of the shares.

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The Sensex and Nifty

SENSEX is the stock market index for BSE Limited, previously known as the Bombay Stock
Exchange. Located on Dalal Street in Mumbai, BSE was established in 1875. Nifty is the stock
market index for the National Stock Exchange (NSE). The NSE is another stock exchange which
operates in India.
Indian stock market is regarded on parity with the developed market as so many developments
have taken place in the stock market arena during the last decade. The important feature of the
Indian stock market is growing dominance of foreign institutional investors. Last one decade,
FIIs; foreign institutional investors investments play vital role to bull and bear circumstances of
Indian stock market. So, this is main objectives of this research study which employed and
investigated result by the researcher. The studies confer a very apparent depiction of the impact
of foreign institutional investors on Indian stock indices. It also describes the market trends due
to FIIs inflow and outflow. Moreover, it would be beneficial to gain knowledge regarding
foreign institutional investments their process of registration and their impact on Indian stock
market and different industrial sectors.
Foreign Institutional Investors are said to be the driver of the market. Those are the one cause
behind the rise and fall of SENSEX. FII investment trends tell us about many effects that the
Indian market is experiencing. The companies in which they investment are getting overvalued.
Whenever FII find any trouble they withdraw their investments. The empirical investigation of
the course of causation between FIIs activities and Indian stock market performance over the
time period year 2003 to year 2012 for 10 years has revealed that FIIs activities are caused by
rather than causing the Indian stock indexes. Researcher has used the BSE SENSEX and NIFTY
nationalised index for study and investigated the effect of FIIs investments on volatility of BSE
SENSEX and NIFTY for the year 2003 to year 2012. Moreover, researcher exercised year
average of BSE SENSEX and NIFTY Indian stock index and average FIIs purchase, sales, net
investments for 10 years for direction to accomplish objectives; to study the scope and trading
mechanism of Foreign Institutional investors in India, to find the relationship between the FIIs
equity investment pattern and Indian stock indices, to study the trend of FIIs investments in India
stock market and BSE & NSE Indices, to discover the role of foreign institutional investors in
Indian stock market.

Page 18
The whole growth in stock market is attained during 2003 and 2007, besides this time period, the
stock market has given only substandard returns. The scrip prices have high returns but overall
stock market doesnt raise much.
Volatility Index (VIX)

India VIX is a volatility index based on the index option prices of NIFTY. India VIX is
computed using the best bid and ask quotes of the out-of-the-money near and midmonth NIFTY
option contracts which are traded on the F&O segment of NSE. India VIX indicates the
investors perception of the markets volatility in the near term. The index depicts the expected
market volatility over the next 30 calendar days. i.e. higher the India VIX values, higher the
expected volatility and vice-versa. Basu et. al. (2010) focused on explaining the merits and
demerits of the volatility index (VIX). The Volatility Index (VIX) measures the implied volatility
in the market using the price levels of the index options. The attractiveness of VIX stems from
the fact that it is negatively correlated with the underlying index, and that it creates a new asset
class which bases itself on non directional volatility views.

Investor Sentiment and Volatility

Investor psychology plays an import role in the stock market. How an investor reacts to
information and regulatory procedures of the market has an immediate effect on equity market
which in turn brings volatility. Sehgal et. al. (2009) believed that better regulatory framework
does influence investor sentiment especially with regard to legal provisions relating to corporate
governance and investor grievance redressal mechanism. Investor sentiment and market returns
were highly correlated and in fact influence each other and so with the volatility.

Causes of Volatility
There are number of factors which are contributing to stock market volatility. Some of these are
as follows:
1.) Fear Factor: Fear is the reason because of which an investor can see to avoid losses. It can
be few people opinion giving a trigger to sell. Fear of loss makes the investor vary defensive
which results into selling. Others also feel the same and start selling at the larger level.
2.) Double Dip Worries: There are two types of people risk taker and risk averse. Risk taker
believes that market is going to be rise and there is positive signal in the market. On the other
hand, risk averse feels that market can sink any time. So these mixed reactions in the equity
market make it more volatile.

Page 19
3.) Changes in Economic Policy: FOMC (Federal Open Market Committee) monetary policy
has its influence in the market. The market receives a positive response when news arrives that
Fed is going to expand its quantitative easing programme, on the contrary, negative sentiments
cover the market on arriving the news of tapering of quantitative easing programme by Fed.

4.) Economic Crisis: Market reacts negatively to any major economic crisis, the more severe the
crisis, the more strongly is reacted by the investors. Because of fear of loss, most of the investors
start selling, and only few people take this as an opportunity to buy. Investors dont go for
fundamental and technical analysis of their portfolio instead they just got influenced by the
negativity of economic crisis.

Page 20
1.2 Company Profile
Sharekhan is an equities focused organization tracing its lineage to SSKI, a
veteran equities solutions company with over 8 decades of experience in the
Indian stock markets .

If you experience our language, presentation style, content or for that matter the online trading
facility, youll find a common thread; one that helps you make informed decisions and
simplifies investing in stocks. The common thread of empowerment is what Sharekhan is all
about.

Sharekhan is also about focus. Sharekhan does not claim expertise in too many things.
Sharekhans expertise lies in stocks and thats what he talks about with authority. So when he
says that investing in stocks should not be confused with trading in stocks or a portfolio-based
strategy is better than betting on a single horse, it is something that is spoken with years of
focused learning and experience in the stock markets. And these beliefs are reflected in
everything Sharekhan does for you!

To sum up, Sharekhan brings to you a user-friendly online trading facility, coupled with a
wealth of content that will help you stalk the right shares.

Those of you who feel comfortable dealing with a human being and would rather visit a brick-
and-mortar outlet than talk to a PC, youd be glad to know that Sharekhan offers you the facility
to visit (or talk to) any of our share shops across the country. In fact Sharekhan runs Indias
largest chain of share shops with over hundred outlets in more than 80 cities! Whats a share
shop? How do you locate a share shop in your city?

To find the answers of these questions, you must visit Sharekhan. In other words Sharekhan is a
company that provides you an outstanding trading facility with a wide variety of products and
acts as an investment consultant to manage your portfolio and secure a high rate of return on
your investments in the securities market.

Basically, the company is a market leader in providing broking services and has a top turnover in
trading and the high turnover makes it the no. 1 in the market. The main difference is the services
that they provide to the investors who really need it. The services are discussed in more detail in
the marketing activities. The clients are managed with a friendly corporate culture to give him
Page 21
more benefited investment ideas and motivate him whenever he needs. The company is
providing as many tips to the clients for more and more trading ideas and the manager helps each
client to concentrate on a few scripts so that he can manage the profit/lose.

In short, Sharekhan is currently having a good position in the market with the highest no of
transactions and also the highest turnover (buying & selling) in India and a leader in providing
better services to the investors. Sharekhan, Indias leading stock broker is the retail arm of SSKI,
and offers you depository services and trade execution facilities for equities, derivatives and
commodities backed with investment advice tempered by decades of broking experience. A
research and analysis team is constantly working to track performance and trends. Thats why
Sharekhan has the trading products which are having one of the highest success rate in the
industry. Sharekhan is having 180 share shops in 90 cities, the largest chain of retail share shops
in India is of Sharekhan.

In future, Sharekhan is planning to enter in Mutual funds, Insurance sector and banking sector to
expand beyond the market currently covered by it. And it has started MFs on priority basis but
wants to grow in it.

Share khan is the retail broking arm of SSKI, an organization with more than eight decades of
trust & credibility in the stock market. It is India's leading retail financial Services Company
with We have over 250 share shops across 115 cities 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.. This powerful technology complemented by our knowledgeable and customer
focused Relationship Managers.

Page 22
 Services Offered by Sharekhan

Sharekhan is one of the top retail brokerage houses in India with a strong online trading
platform. The company provides equity based products (research, equities, derivatives,
depository, margin funding, etc.). It has one of the largest networks in the country with 704 share
shops in 280 cities and Indias premier online trading portal www.sharekhan.com. With their
research expertise, customer commitment and superior technology, they provide investors with
end-to-end solutions in investments. They provide trade execution services through multiple
channels - an Internet platform, telephone and retail outlets.

Sharekhan was established by Morakhia family in 1999-2000 and Morakhia family, continues to
remain the largest shareholder. It is the retail broking arm of the Mumbai-based SSKI
[SHANTILAL SHEWANTILAL KANTILAL ISWARNATH LIMITED] Group.

SSKI which is established in 1930 is the parent company of Sharekhan ltd. With a legacy of
more than 80 years in the stock markets, the SSKI group ventured into institutional broking and
corporate finance over a decade ago. Presently SSKI is one of the leading players in institutional
broking and corporate finance activities.

Sharekhan offers its customers a wide range of equity related services including trade execution
on BSE, NSE, and Derivatives. Depository services, online trading, Investment advice,
Commodities, etc.

Sharekhan Ltd. is a brokerage firm which is established on 8th February 2000 and now it is
having all the rights of SSKI. The company was awarded the 2005 Most Preferred Stock Broking
Brand by Awwaz Consumer Vote. It is first brokerage Company to go online. The Company's
online trading and investment site - www.Sharekhan.com - was also launched on Feb 8, 2000.

This site gives access to superior content and transaction facility to retail customers across the
country. Known for its jargon-free, investor friendly language and high quality research, the
content-rich and research oriented portal has stood out among its contemporaries because of its
steadfast dedication to offering customers best-of-breed technology and superior market
information.

Page 23
Share khan has one of the best states of art web portal providing fundamental and statistical
information across equity, mutual funds and IPOs. One can surf across 5,500 companies for in-
depth information, details about more than 1,500 mutual fund schemes and IPO data.

One can also access other market related details such as board meetings, result announcements,
FII transactions, buying/selling by mutual funds and much more.

Its core services are:

Equities, and Derivatives trading on the National Stock Exchange of India Ltd. (NSE),
and Bombay Stock Exchange Ltd. (BSE),
Commodities trading on National Commodity and Derivatives Exchange India
(NCDEX) and Multi Commodity Exchange of India Ltd. (MCX),
Depository services,
Online trading services,
IPO Services,
Dial-n-Trade
Portfolio management services,
Fundamental and Technical Research services,
In addition to this they also provide advisory services and distributions for mutual
funds.
Sharekhan ValueLine (a monthly publication with reviews of recommendations, stocks
to watch out for etc.)
Daily research reports and market review (High Noon & Eagle Eye)
Pre-market Report
Daily trading calls based on Technical Analysis
Cool trading products (Daring Derivatives and Market Strategy)

Page 24
COMPANY

Name of the company: Sharekhan ltd.

Year of Establishment: 1925

Headquarter: Sharekhan SSKI

A-206 Phoenix House

Phoenix Mills Compound

Lower Parel Mumbai - Maharashtra, INDIA- 400013

Nature of Business: Service Provider

Services: Depository Services, Online Services and Technical Research.

Number of Employees: Over 3500

Website: www.sharekhan.com

Slogan: Your Guide to The Financial Jungle.

Vision

To be the best retail brokering Brand in the retail business of stock market.

Mission

To educate and empower the individual investor to make better investment

decisions through quality advice and superior service.

Page 25
Sharekhan is infact-

Among the top 3 branded retail service providers

No. 1 player in online business

Largest network of branded broking outlets in the country serving more than

7, 00,000 clients.

Sharekhan's management team is one of the strongest in the sector and has positioned Sharekhan
to take advantage of the growing consumer demand for financial services products in India
through investments in research, pan-Indian branch network and an outstanding technology
platform. Further, Sharekhan's lineage and relationship with SSKI Group provide it a unique
position to understand and leverage the growth of the financial services sector.

SSKI Corporate Finance Private Limited (SSKI) is a leading India-based investment bank with
strong research-driven focus. Their team members are widely respected for their commitment to
transactions and their specialized knowledge in their areas of strength.

Sharekhan provides 4 in 1 account.

- Demat a/c
- Trading a/c: for cash calculation
- Bank a/c: for fund transfer
- Dial and Trade: for query relating trading

Page 26
PRODUCTS AND SERVICES OF SHAREKHAN LIMITED

(Figure-3)

Page 27
Account opening:

Opening a DP account with Sharekhan-

One can open a Depository Participant (DP) account, either through a Sharekhan branch or
through a Sharekhan Franchisee center.

There is no fee for opening DP accounts with Sharekhan. However a nominal deposit
(refundable) is charged towards services which will be adjusted against all future billings.

All investors have to submit their proof of identity and proof of address along with the prescribed
account opening form.

Documents Required

1. Two colored Photographs

2. Identification Proof
3. Residence Proof
4. One cancelled cheque / latest bank statement / Front page of passbook
5. Account opening cheque

Photo ID Proof Residence proof (Permanent or Correspondence)

Pan Card Passpot (valid)

Passport Voters Id
Driving Licence Driving Licence
Telephone or elecricity bill (latest)
Voters Id
Bank statement and Bank passbook (latest)
Aadhar card

Page 28
Types of Accounts

TYPE OF DEMAT DEPOSIT (Refundable) CHARGES (nonrefundable)

ACCOUNT TERMINAL

CLASSIC Rs.5000 Rs.750

Rs.10000 Nil

TRADETIGER Rs.5000 Rs.1000

Rs.10000/25000 Nil

Classic Account
Classic account, learned how to buy and sell shares through these online terminals, Sales
technique, Sharekhan`s brokerage.

Classical account is a web-based product of sharekhan and consists of

Online trading in Equity & Derivative

Dial-n-Trade

Online Trading + Bank + demat

Cash transfer

Order and trade confirmation through e-mails

Single screen interface for cash and derivative

Page 29
Speed Trade

Speed trade tiger is a software of sharekhan which is given to its customers for trading. Speed
trade enables its users-

Online trading in Equity & Derivative

Dial-n-Trade

Online Trading + Bank + Demat

Cash Transfer

Order and trade confirmation through e-mails

Single screen interface for cash and derivative

Live Terminal

BROKERAGE STRUCTURE OF SHAREKHAN

BROKERAGE:

INTRADAY DELIVERY

CASH- EQUITIES 0.05% 0.5%

FnO 0.05%

PREPAID SCHEME 0.025% 0.25%

Page 30
1.3 SWOT ANALYSIS

During this training at Sharekhan, we had come to know the Strengths Weaknesses
Opportunities Threats for the company and it is very useful for a company to analyze them.
Therefore, the SWOT analysis is presented here and the suggestions for maintaining strengths
and removing weaknesses are explained.
Strengths:

Well-maintained infrastructure.
Dedicated, Intelligent and Loyal staff.
On-line Trading products.
Lowest brokerage and other charges w.r.t. competitors.
The best investment advice correct up to 70-90% through dedicated research and
reports.
Wide product range to enable the clients to choose the best alternative.
One of the best DPs in India.
A positive image in the existing clients.

Weaknesses:

Less awareness in the market.

Time consuming process for account opening, resolving the problems of the
customers, etc.
Service quality is not maintained accordingly how they are promoted.

Opportunities:

Large primary market to sit as a book runner for the other companies just like
Kotak Securities Ltd. that runs the books of share holdings for many companies.
Slope of stock market towards delivery based transactions.
Large potential market for delivery and intra-day transactions.
Open interest of the people to enter in stock market for investing.
Attract the customers who are dissatisfied with other brokers & DPs.
An indirect opportunity generated by the market from its bullishness.

Page 31
Threats:

Decreasing rates of brokerage in the market.

Increasing competition against other brokers & DPs.
Poor marketing activities for making the company known among the customers.
A threat of loosing clients for any kind of weakness of the company.
Indirect threat from instable stock market, i.e., low/no profit of Sharekhans
clients would lead them to go for other broker/DP.

Page 32
1.4 Competitors Information

Competitors of share khan are:

ICICI Direct (or ICICIDirect.com) is stock trading company of ICICI Bank. Along with stock
trading and trading in derivatives in BSE and NSE, it also provides facility to invest in IPOs,
Mutual Funds and Bonds.
Trading is available in BSE and NSE.
ICICI Direct offers 3 different online trading platforms to its customers.
Type of Account:

1. Share Trading Account:

Share Trading Account by ICICI Direct is primarily for buying and selling of stocks in BSE and
NSE.
This account allows Cash Trading, Margin Trading,
Margin PLUS Trading, Spot Trading, Buy Today Sell Tomorrow and Call and Trade on phone.
ICICIDirect.com website is the primary trading platform for this trading account. They also
provide installable application terminal based application for high volume trader.

2. Wise Investment Account:

1. Online Mutual funds investment allows investor to invest on-line in around 19 Mutual
Fund companies. ICICI Direct offers various options while investing in Mutual Funds
like Purchase Mutual Fund, Redemption and switch between different schemes,
Systematic Investment plans, Systematic withdrawal plan and transferring existing
Mutual Funds in to electronic mode. This account also provides facility to invest in
Government of India Bonds and ICICI Bank Tax Saving Bonds.

Page 33
 2. Active Trader account gives more personalized investment options to the investors. It
allows investor to use online and offline stock trading. It also provides with independent
market expertise and support through a dedicated Relationship Manager from ICICI.
Active Trader also provides commodity trading.
Brokerage and fees
Account opening fees : Rs 750/- (One time nonrefundable)
Brokerage: ICICIDirect.com brokerage varies on volume of trade and inclusive of demat
transaction charges, service taxes and courier charges for contract notes. It ranges from 0.1% to
0.15% for margin trades, 0.2% to 0.425% for squared off trades and 0.4% to 0.85% on delivery
based trades.
Disadvantages of ICICI Direct:
1. Getting access to ICICIDirect.com website during
market session can be frustrating.

India Bulls
Indiabulls is India's leading retail financial services company with 77 locations spread across 64
cities. Its size and strong balance sheet allows providing varied products and services at very
attractive prices, our over 750 Client Relationship Managers are dedicated to serving your unique
needs.
Indiabulls is lead by a highly regarded management team that has invested crores of rupees into a
world class Infrastructure that provides real-time service & 24/7 access to all information and
products. The Indiabulls Professional Network offers real-time prices, detailed data and news,
intelligent analytics, and electronic trading capabilities, right at your finger-tips. This powerful
technology is complemented by our knowledgeable and customer focused Relationship
Managers.

Indiabulls offers a full range of financial services and products ranging from Equities,
Derivatives, Demat services and Insurance to enhance wealth.

Page 34
 Kotak Securities Limited (kotakstreet.com):

Kotak Securities Ltd., a strategic joint venture between Kotak Mahindra Bank and Goldman
Sachs (holding 25% - one of the worlds leading investment banks and brokerage firms) is
Indias leading stock broking house with a market share of 5 - 6 %. Kotak Securities Ltd. has
been the largest in IPO distribution - It was ranked number One in 2003-04 as Book Running
Lead Managers in public equity offerings by PRIME Database. It has also won the Best Equity
House Award from Finance Asia - April 2004.

The company has a full fledged research division involved in Macro Economic studies, sectoral
research and company specific equity research combined with a strong and well networked sales
force which helps deliver current and up to date market information and news.

Kotak Securities Ltd is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services
wherein the investors can use the brokerage services of the company for executing the
transactions and the depository services for settling them.The company has 42 branches
servicing around 1, 00,000 customers. Kotakstreet.com the online division of Kotak Securities
Limited offers Internet Broking services and also online IPO and Mutual Fund Investments.

Kotak Securities Limited manages assets over 1700 crores under Portfolio Management Services
(PMS) which is mainly to the high end of the market. Kotak Securities Limited has newly
launched Kotak Infinity as a distinct discretionary Portfolio Management Service which looks
into the middle end of the market.

Page 35
 Motilal Oswal Securities Ltd. (MOSt):

One of the top-3 stock-broking houses in India, with a dominant position in both institutional and
retail broking, MOSt is amongst the best-capitalized firms in the broking industry in terms of net
worth.
MOSt was founded in 1987 as a small sub-broking unit, with just two people running the show.
Focus on customer-first-attitude, ethical and transparent business practices, respect for
professionalism, research-based value investing and implementation of cutting-edge technology
have enabled it to blossom into a thousand-member team.

The institutional business unit has relationships with several leading foreign institutional
investors (FIIs) in the US, UK, Hong Kong and Singapore. In a recent media report MOSt was
rated as one of the top-10 brokers in terms of business transacted for FIIs.
The retail business unit provides equity investment solutions to more than 50,000 investors
through 270 outlets spanning 150 cities and 22 states. MOSt provides Advice-Based Broking,
Portfolio Management Services (PMS), E-Broking Services, Depository Services, Commodities
Trading, and IPO and Mutual Fund Investment Advisory Services. Its Value PMS Scheme gave
a 160% post-tax return for the year ended March 2004.

With value investing at the core of its investment philosophy, a strong research team consistently
provides high-performance ideas.

MOSts equity research has been consistently ranked very highly in surveys conducted by
leading international publications like Asiamoney and Institutional Investor. In Asia Money
Brokers Poll 2003 MOSt has been rated as the Best Domestic Research House - Mega Funds
,while in 2000 and 2002 it has been rated as the Best Domestic Equity Research House and
Second best amongst Indian Brokerage firms respectively.

Page 36
 IDBI Capital Market Services Ltd.

IDBI Capital is a leading Indian securities firm offering a complete suite of products and services
to individual, institutional and corporate clients.

IDBI Capital Market Services Ltd. (IDBI Capital), a wholly owned subsidiary of Industrial
Development Bank of India (IDBI), is a leading Indian securities firm, offering a complete suite
of products and services to individual, institutional and corporate clients. Our services include
fixed income trading, equities brokerage, debt and equity derivatives, research, private
placements, depository services, portfolio management and distribution of financial products.
Over the last five years, we have emerged as a leading player in each of these businesses.

March 1995 - Commenced Equity Broking on NSE CM segment

July 1995 - Built agent Distribution Network across the country
October 1996 - Commenced Debt Broking on NSE WDM segment
December 1996 - Started operations as a Depository Participant
1996 - Started to act as Arranger to Privately Placed Bond issues
April 1998 - Commenced operations as a Portfolio Manager
February 1999 - Acquired membership of BSE, Mumbai
November 1999 - Started operations as a Primary Dealer
June 2000 - Acquired Derivatives memberships of BSE and NSE
March 2002 - Achieved an outright secondary market turnover exceeding Rs100,000 cr
in G-Secs
October 2002- Commenced trading in Interest Rate Swaps

Page 37
Different Competitors

5paise 119 13.45%

Sharekhan 194 21.92%

Motilal oswal 38 4.29%

ICICI Direct 192 21.69%

HDFC 46 5.20%

Indiabulls 121 13.67%

Kotak 59 6.67%

Others 116 13.11%

Page 38
 Chapter 2
Research Methodology

Page 39
2.1 Significance
This project will accomplish to understand the problem faced by the new client with respect to
online share trading and find the way to solve their queries at microscopic level. The study also
aims to highlight the possible hurdles that a prospective client faces who are interested to invest
in securities but is unaware of the system of online share trading. It also aims at finding out the
brand image of the organization among the general investors and give information to the
management about the new developments in the market adopted by the competitors. This project
is the effectiveness of the investments.

2.2 Objectives And Purpose Of Study

There are two types of objectives in research:

I. Primary Objective
1.To study the current scenario of the existence of equity market.

2.To study the effectiveness of the stock exchange as this is one of the best ways of investment.

3. Investigate the difficulties faced by the existing clients of sharekhan.

4. To analyze the competitiveness amongst the different stock brokerages houses.

5. To make clients and let them know about the different services offered by the sharekhan.

6. To convince clients about how sharekhan services outscore there rivals.

II.Secondary objectives
1.To make clients and let them know about the different services offered by the sharekhan.

2.To understand the problem faced by the customers and the way to solve their queries.

3.To understand the problems faced by the existing clients and find a way to solve their queries
at our level.

4.We have to be in a regular contacts with our clients so that we come to know about the
problems they are facing. This also helps us o multiply our clients by getting the further
refrences.

Page 40
2.3 Scope of the study
1.With the growing acceptance and popularity of internet trading the study aims to providing the
ddeper insight into this new field of security trading in India.

2.Assess the penetration of internet handling with respect to the growth of broadband
connectivity provided by varios inter services providers (ISP).

2.4 Methodology
Research Design
The study of research methods provides us with the knowledge and skills we need to
solve the problems and meet the challenges of the fact based decisions. Business
research is the systematic enquiry whose objectives is to provide information to solve
managerial problem.
Descriptive Research
Descriptive study is a fact finding investigation with educate interpretation. It is more
specific than exploratory study, as it has focused on particular aspect of problem studied
it is degisned to get her descriptive information and provide information for formulating
more sophisticated studies.

2.5 Data Collection

Data used for the research work was primary and secondary in nature. The data used in this
project is primary data collected from the various categories of investors from different areas.

Primary data is the first hand information that is collected by the researcher. It helps in
collecting useful and most accurate information that is needed for the research work.

Sources of primary data is Quentionaire.

Secondary data is the data which is collected from existing sources. It also help researcher to
get elaborate information to do his research.

Sources of secondary data are Internet and Journals.

2.6 Sampling Techniques

The basic idea of sampling is that by selecting some of the elements in the population in
order to get first hand information of study.
There are two types of sampling i.e. Probability sampling and Non Probability sampling
. In this research I have used probability sampling.

Page 41
Probability Sampling

Probability sampling is based on the concept of random selections. The number of sample is on
a probability basis.

Sample size
Sample size for the questionnaire prepared for investors and non-investors was 50.

2.7 Limitations Of Research

Lack of awareness of capital market:
Since the area is not known before it takes lot of time in convincing people to start
investing in shares primarily in IPOs.

Some people are comfortable with traditional system:

As people are doing trading from there respective brokers, they are quite comfortable to
trade via physical form of paper.

Lack of Techno Savvy people and poor internet penetration:

Since most of the people are quite experienced and also they are not techno savvy. Also
Internet penetration is poor in India.
Some respondents are unwilling to talk:
Some respondents either do not have time or willing does not respond, as they are quite
annoyed with the phone call.
Inaccurate Leads:
Sometimes leads are provided which had error in it, which varies from only 5-digit phone
number to wrong phone number
Misleading concepts:
Some people think that as all the shares are in electronic form and they dont
have any physical proof. Sometimes this leads to a great misconception of the
entire process.
The time constraint was one of the major problems.
The study is limited to the different schemes available under the Demat account
selected.
The lack of information sources for the analysis part.

Page 42
 Geographical locations.
Extreme variability in MARKET.

Page 43
Chapter 3
Data Analysis

Page 44
Ques 1: Are you interested in share market?

Ans.

S no. Opinion No. of Respondents Percentage

1 Yes 40 80%
2 No 10 20%
TOTAL 50 100%

Percentage of people interested in share

market?

20%

Yes
No

80%

Interpretation
This shows that 80% of people are interested in share market.

Page 45
Ques 2: Do you invest in share market?

Ans.

S no. Opinion No. of Respondents Percentage

1 Yes 30 60%
2 No 20 40%
TOTAL 50 100%

Percentage of people investing in share market

40%
Yes
No

60%

Interpretation
This shows that 60% of people want to invest in share market and 40% dont want to invest in
share market.

Page 46
Ques3: Are you Aware of share market?

Ans.

S no. Opinion No. of Respondents Percentage

1 Yes 30 60%
2 No 20 40%
TOTAL 50 100%

Percentage of people aware of sharekhan ltd.

40%

Yes
No

60%

Interpretation
This shows that 60% of people are aware of Sharekhan and 40% people dont know sharekhan.

Page 47
Ques4: Do you know about the facilities provided by share khan?

Ans.

S no. Opinion No. of Respondents Percentage

1 Yes 24 48%
2 No 26 52%
TOTAL 50 100%

Percentage of people know about the facilities

provided by sharekhan ltd.

48% Yes

52% No

Interpretation
This shows that 24 people out of 50 know about the facilities provided by sharekhan.

Page 48
Ques5: Do you have a demat account?

Ans.

S no. Opinion No. of Respondents Percentage

1 Yes 30 60%
2 No 20 40%
TOTAL 50 100%

Percentage of people having demat account

40%

Yes
No

60%

Interpretation
This shows that 60% of people have Demat account and 40% of people dont have a demat
account.

Page 49
Ques6: Do you think stock market is essential for investing your to money to earn high returns?

Ans.

S no. Opinion No. of Respondents Percentage

1 Yes 30 60%
2 No 20 40%
TOTAL 50 100%

Percentage of people want high returns from

investments

40%

Yes
No

60%

Interpretation
This shows that the 60% of people think stock market is essential for investing your money to
earn high return and 40% are against them.

Page 50
Ques7: You purchase share to

Ans.

S.no Opinion No. of Respondents Percentage

1 Invest your money wisely 9 18%
2 For long term money investments 15 30%
3 For high end results 16 32%
4 To invest money regularly 10 20%
TOTAL 50 100%

Percentage of people purchase share for

20% 18%

Invest your money wisely

For long term money investment
For high end results
To Invest money Regularly
30%
32%

Interpretation
This shows thar 18% of people purchases shares for investing, 30% people want to purchase
securities for long term, 32% wants high end results and 20% people purchase securities to invest
money regularly.

Page 51
Ques8: Do you think mutual fund is safe?

Ans.

S no. Opinion No. of Respondents Percentage

1 Yes 35 70%
2 No 15 30%
TOTAL 50 100%

Percentage of people think mutual funds are safe

30%

Yes
No

70%

Interpretation
This shows that 70% of people thinks that mutual funds are safe.

Page 52
Ques9: When you do trading?

Ans.

S no. Opinion No. of Respondents Percentage

1 Daily 16 32%
2 Weekly 16 32%
3 Monthly 16 32%
4 Annually 2 4%
TOTAL 50 100%

Percentage of people trade

4%

32%

32% Daily
Weekly
Monthly
Annually

32%

Interpretation
This shows 32% of people trade daily,32% people trade weekly, 32% trade monthly and 4%
people trade annualy,\.

Page 53
Ques10 :Rate sharekhan ltd.?

Ans.

S no. Opinion No. of Respondents Percentage

1 Good 25 50%
2 Average 15 30%
3 Bad 10 20%
TOTAL 50 100%

Percentage of people rating sharekhan

20%

Good
50% Bad
Average

30%

Interpretation
This shows that 50% of people thinks Share khan is ggod, 30% thinks share khan is bad and 20%
people rate share khan as average.

Page 54
 Chapter 4
Suggestions And recommendations

Page 55
4.1 Suggestions

1. Although people have heard about online trading of securities still people have
great doubt about its operational feasibility as they are not clear about the concept.
Special awareness programs using various media mixes should be carried out to
remove fear from the minds of people and make it familiarize.

2. More emphasis should be laid on the convenience that the trading facilities offer
by either introducing kiosks in the center where the clients could have a
demonstration f o r t h e m s e l v e s a n d u n d e r s t a n d t h e v a r i o u s f e a t u r e s o f t h e
p r o d u c t . T h i s c o u l d h e l p them determine how conventional mode of trading is.

3.There are large numbers of prospective customers, who trades in small

v o l u m e o r make infrequent transactions or like to hold the stock as a long term
investment. Thecurrent price structures are not at all suitable for such population. E-
Tradingcompanies should look at such class.

4. Awareness campaigns like giving idea about futures and options, derivatives,
dividend policies will create interest in online trading. And this helps organization
for market positioning as well as mind positioning

5. Development in public relation management and customer

relationship management will lead organization towards strong brand image as well
goodwill.

6. Comparative study of customer care and services provide by other

c o m p a n i e s w i l l help develop business strategies as well business policies.

7. Seminars can be conducted at corporate level so as to increase

p o t e n t i a l c u s t o m e r base. Corporate people do not go for share trading due to
lack of time. This kind of seminar will motivate them and make them aware about e-
trading.

8.Tie-up with banks will facilitate the customer as maximum customers have their salary
accounts in banks and this account can be used for net banking as well sharetrading.

Page 56
4.2 FINDINGS
Fluctuations are more in secondary market than any other market.

There are more speculators than investors.

Information plays a vital role in the secondary market.

P r e v i o u s l y r o l l i n g s e t t l e m e n t i s T + 5 d a ys , n o w i t c h a n g e d t o T + 2
d a ys a n d further it will be changing to T+1 day.

It was also observed that many broking houses offering internet trading
allowclients to use their conventional system as well just ensure
that they do notloose them and this instead of offering e-broking services
they becomes service providers.

The number of players is increasing at a steady rate and today there are over adozen of
brokerage houses who have opted to offer net trading to their customersand prominent
among them are SHARE KHAN, India bulls, kotakstreet, ICICIdirect.

Page 57
4.3 CONCLUSION AND RECOMMENDATIONS
Things have changed for the better with the SHAREKHAN going on-line coupled with
endeavor to stream line the whole trading system, things have changed dramatically over the last
3 to 4 years. New and advanced technologies have breached geographical and cultural
barriers, and have brought the countrywide market to doorstep.

The introduction of on-line trading would influence the investors resulting in an increase in the
business of the exchange. It has helped the brokers handling a vast amount of transactions and
this can be an efficient trading, delivering, settlement system with adequate protection to
investors. The trading of SHAREKHAN of the first day was Rs. 1.8 crores.

Due to invention of online trading there has been greater benefit to the investors as they could
sell / buy shares as and when required and that to with online trading.

The brokers has a greater scope than compared to the earlier times because of invention of
online trading.

The concept of business has changed today, this is a service oriented industry hence the survival
would require them to provide the best possible service to the clients.

I recommend the exchange authorities to take steps to educate Investors about 51

their rights and duties. I suggest to the exchange authorities to increase the investors
confidences.

I recommend the exchange authorities to be vigilant to curb wide fluctuations of prices.

The speculative pressures are responsible for the wide changes in the price, not
attracting the genuine investors to the greater extent towards the market.

Genuine investors are not at all interested in the speculative gain as t h e i r investment is based
on the future profits, therefore the authorities of the exchange should be more vigilant to curb the
speculation.

Page 58
Chapter 5
Bibliography

Page 59
BIBLIOGRAPHY

Websites:
www.sharkhan.com
www.stocks-investing.com
www.investopedia.com
www.nsdl.co.in
Sharekhan Tutorial
http://www.investopedia.com/terms/d/depository.asp
https://www.quora.com/What-are-Sensex-and-Nifty-2
https://en.wikipedia.org/wiki/BSE_SENSEX
https://en.wikipedia.org/wiki/NIFTY_50

Books;
Rao V.S.P. , Human Resource Management, Vikash Parkashan 4th Edition,1995
Aswathappa K, Human Resource and Personnel Management ,New Delhi, 3rd Edition
1990
Rustagi, R.P. ,Financial Management,(Edition 2008),Galgotia Publishing House.
Pathak, B.V., The Indian Fiancial system, Edition 2011,Vikas Publishing House

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APPENDIX

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Questionnaire;
Ques 1: Are you interested in share market?
a) Yes
b) No

Ques 2: Do you invest in share market?

a) Yes
b) no

Ques3: Are you Aware of share market?

a) Yes
b) No

Ques4: Do you know about the facilities provided by share khan?

a) Yes
b) No

Ques5: Do you have a demat account?

a) Yes
b) No

Ques6: Do you think stock market is essential for investing your to money to earn high returns?

a) Yes
b) No

Ques7: You purchase share to

a) Invest your money wisely

b) For long term money investments
c) For high end returns
d) To invest money regularly

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Ques8: Do you think mutual fund is safe?

a) Yes
b) No

Ques9: When you do trading?

a) Daily
b) Weekly
c) Monthly
d) Yearly

Ques10: Rate sharekhan ltd.?

a) Good
b) Average
c) Bad

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