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A

Project Study Report

On

Training Undertaken at

INDIABULLS SECURITIES LTD.

UDAIPUR

“A STUDY OF CONSUMER BEHAVIOUR TOWARDS EQUITIES AND DERIVATIVES

MARKET IN UDAIPUR CITY”

Submitted in partial fulfillment for the


Award of degree of
Master of Business Administration

2008-2010

Submitted By: -
Submitted To:-
AVINASH DAGRIA
MR. ASHOK CHIDWANI
MBA-II SEM
Content given in this format.
Cover Page

Certificate from the Company/Organization


Preface/Prelude
Acknowledgement
Executive Summary
Contents:
1. Introduction to the Industry
2. Introduction to the Organization
3. Research Methodology
3.1 Title of the Study
3.2 Duration of the Project
3.3 Objective of Study
3.4 Type of Research
3.5 Sample Size and method of selecting sample
3.6 Scope of Study
3.7 Limitation of Study
4. Fact & Finding
5. Analysis and Interpretation
6. SWOT
7. Conclusion
8. Recommendation and Suggestions
9. Appendix
10. Bibliography
PREFACE

The main motive behind the summer training of the MBA program is to provide
the practical aspect of the organizations working environment. The study is the
outcome of my project that has been produced as partial fulfillment of the
Masters of Business Administration from Advent Institute of Management
Studies, Udaipur.

This training has helped to visualize and realize about the congruency between
the theoretical learning in the college and the actual practices of management.
This overall project has given me an insight into the actual corporate world apart
from the theoretical environment. It has allowed me to face the world full of ups
and downs and to get a glance of the future corporate world in which we are
going to enter.

My summer training project at IndiaBulls Securities Ltd. Is a complete


experience in itself and it has become an inspirable part of my knowledge of
management being learned in MBA programme.

AVINASH DAGRIA
MBA-II SEM.
Acknowledgement

I express my sincere thanks to my project guide Dr.N.S.Rao (Director)


Advent Institute Of Management, Udaipur for guiding me right from the
inception till the successful completion of the project. I sincerely acknowledge
him for extending their valuable guidance, support for literature, critical
reviews of project and the report and above all the moral support he had
provided to me with all stages of this project.

I would also like to thank the supporting staff Ms. Payal Sachdev, Mr. Ranjan
Mishra, Ms. Sakshi Chauhan, Ms.Prachi Mathur, Ms.Sweety Jain, Ms. Reshu
Goyal Advent Institute Of Management, Udaipur for their help and
cooperation throughout our project.

AVINASH DAGRIA
MBA-II SEM
EXECUTIVE SUMMARY

TITLE

"A STUDY OF CONSUMER BEHAVIOUR TOWARDS EQUITIES AND DERIVATIVES


MARKET IN UDAIPUR CITY”

1. BACK GROUND OF THE STUDY

This study is conducted for Indiabulls Securities Ltd. at Udaipur, by AVINASH


DAGRIA first year of Master in Business Administration (MBA) student as requirement
for partial fulfillment for MBA.

Indiabulls is lead by a highly regarded management team that has invested Thousand
Lac of Rupee into a World class Infrastructure that provides their clients with real-time
service & around Clock i.e.24 Hrs. access to all information and products.

2. Objectives

 The objectives of the study include…

A) To study customers trading behavior


B) To know what major factors effects or influence customer’s trading behavior.
C) To know the satisfaction level of customers towards INDIABULLS services.
3. Research Methodology

The methodology includes collection of data with the help of structured questionnaire;
the data has been collected by interviewing around 100 clients.

4. Data collection & Interpretation

It includes cross tabulation of questionnaire by classification of responses and


frequency distribution and appropriate graphical representation question with
comments.

5. Observations & Findings

Observation is related those issues only, which are not included and explored through
the questionnaire, it may not require a data support.

Findings are strictly based on the collected data, attempting to answer the objectives.

6. Limitation of the study

The study can be biased to the extent of personal perception, historical nature of data
collection and of the time limit.

7. Suggestion

Based on findings, suggestions were given in order to improve the communication


strategy and widen company’s market.
CHAPTER -1

Introduction to the Industry


INTRODUCTION TO INDIABULLS LTD.

Indiabulls is India’s leading Financial Services and Real Estate Company having over
640 branches all over India. Indiabulls serves the financial needs of more than 4,50,000
customers with its wide range of financial services and products from securities,
derivatives trading, depositary services, research & advisory services, consumer
secured & unsecured credit, loan against shares and mortgage & housing finance. With
around 4000 Relationship Managers, Indiabulls helps its clients to satisfy their
customized financial goals. Indiabulls through its group companies has entered Indian
Real Estate business in 2005. It is currently evaluating several large-scale projects
worth several hundred million dollars.

Indiabulls Financial Services Ltd is listed on the National Stock Exchange, Bombay
Stock Exchange and Luxembourg Stock Exchange. The market capitalization of
Indiabulls is around USD 2,350 million (25th April 2007). Consolidated net worth of the
group is around USD 510 million (31st March 2007). Indiabulls and its group companies
have attracted USD 500 million of equity capital in Foreign Direct Investment (FDI) since
March 2000. Some of the large shareholders of Indiabulls are the largest financial
institutions of the world such as Fidelity Funds, Goldman Sachs, Merrill Lynch, Morgan
Stanley and Farallon Capital.

Business of the company has grown in leaps and bounds since its inception. Revenue
of the company grew at a CAGR of 159% from FY03 to FY07. During the same period,
profits of the company grew at a CAGR of 184%.

Indiabulls became the first company to bring FDI in Indian Real Estate through a JV with
Farallon Capital Management LLC, a respected US based investment firm. Indiabulls
has demonstrated deep understanding and commitment to Indian Real Estate market
by winning competitive bids for landmark properties in Mumbai and Delhi.

Group Companies of Indiabulls

INDIABULLS
LTD.

INDIABULLS INDIABULL
SECURITIES
S REAL
LTD.
ESTATE
INDIABULLS
CONSUMER
FINANCE LTD.

INDIABULLS SECURITIES LTD.

Indiabulls Securities, the retail equity broking arm of the Indiabulls group, has
experienced strong growth over the last two financial years. Currently, it has a client
base of 75000 (29000 as at March 31, 2004) and enjoys a market share 3 of about 4
per cent. Its widespread network, (79 offices in 60 cities) a strong technology base, and
the facility of loan against shares provided to clients (through Indiabulls Financial
Services) for purchasing equity shares has enabled it to gain market share. Its client
diversity reduces its dependence on any single client.

These strengths are, however, partially offset by the fact that it operates in a high-
volume, price-sensitive business segment. Retail brokerage rates are significantly lower
than institutional brokerage rates primarily because of an institutional broker’s expertise
level and on account of its offering of value-added services.

However, CRISIL believes that the leadership position of Indiabulls in the retail equity
brokerage segment places it in a better position to weather the inherent risk in the
segment.

Indiabulls securities ltd. is the retail broking house that caters to the needs of individual
investors. While the investment world abounds with ‘jack of all trades’, the co. chose to
build the business by focusing on what it knows best – market driven investment
avenues like equities and derivatives. The co. facilitate the investment process for its
clients and also provide value added services like research, stock ideas, online trading,
demat, etc. to make the investment experience rewarding.

CORE SERVICES

1. Equity and derivatives trading on NSE


2. Depository services
3. Online trading
4. IPO services
5. Portfolio management services
6. Technical analysis
7. Research reports
INDIABULLS CONSUMER FINANCE LTD.

Indiabulls, a retail focused organization fulfills the credit need of a large percentage of
population in India. The key aspect of Indiabulls business model is to provide an
extremely unique customer experience. The blend of power of the Internet with
personalized services allows Indiabulls to expand its geographical coverage and
capture a greater share in the highly competitive retail market. It offer consumer loans,
home loans, personal loans, securities brokerage, and other financial products and
services to retail customers from across 640 Indiabulls offices in 127 leading cities of
the country.

Indiabulls Fast Loans

The company offers the shortest route to a loan with minimum paperwork and
procedures. With Indiabulls Fast Loans, one can avail easy loans for a minimum of
Rs.10, 000 to a maximum amount of Rs.1, 00,000.

1. Features of Personal Loan


• Flexible loan tenure of up to 4 years (i.e. 1 month to 48 months).
• Loans available from a minimum of Rs.10, 000 up to a maximum of Rs.100, 000.
• Easy monthly repayment through equated monthly installments (EMI).
• Easy documentation and quick disbursal.

2. Commercial Vehicle Loans

Indiabulls started Commercial Vehicle Finance under the flagship of Indiabulls Credit
Services Ltd. in April 2006 to provide refinance to its commercial vehicle clients. It have
sound fundamentals, competent management and expertise in financing the
transporters. The company's reach gives it a unique market position enabling it to excel
in customer satisfaction, quick service and growth-led profitability.

The Commercial Vehicle Finance provided by helps the small and medium operators to
acquire vehicles with minimum hassle and documentation. Co.’s strength lies in the
quick completion of transactions, long association with transporters and the intimate
knowledge of the market and its nuances.

3. Mortgage Loans

Indiabulls has commenced lending of Mortgage Loans to prospective customers under


the flagship of Indiabulls Housing Finance Ltd. Here it enable home-seekers to access
finance to buy their homes. The co. also provide plot loans, Loan against Residential,
Commercial and Rental Property, thereby enabling the borrower to leverage the
property owned to fund any legitimate needs be it Business Expansion, Child's
Education, Child's Marriage or for Holiday Abroad.

4. Indiabulls Home Loans


Indiabulls Housing Finance Company helps to realize a long cherished dream of
owning home through hassle free and customer friendly home loans. A person can avail
of the Home Loans purchasing a ready built house/flat, residential plot and even for re-
financing existing loans of other banks or housing finance companies.

INDIABULLS REAL ESTATE

The Indiabulls group has recently made an investment in real estate. Though the
articulated purpose of the investment is to acquire fixed assets for office space,
nevertheless it is an equity exposure in real estate and is thus exposed to the inherent
risks in real estate to the extent of the equity capital that would be invested by the
group.
Growth Story

Indiabulls has emerged as one of the leading and fastest growing financial company in
less than two year, since its initial public offering in September 2004. It has a market
capitalization of around 2,350 million (25th April 2007) and consolidated net worth of the
group is around USD 510 million.

• Indiabulls Financial Services Ltd. established India’s one of the


2000-01 first trading platforms with the development of an in house team.

• Indiabulls expands its service offerings to include Equity, F&O,


2001-03 and Wholesale Debt, Mutual fund, IPO distribution and Equity
Research.
• Indiabulls ventured into Insurance distribution and commodities
2003-04 trading.

• Company focused on brand building and franchise model.


• Indiabulls came out with its initial public offer (IPO) in Sep.2004.
• Indiabulls started its consumer finance business.
2004-05
• Indiabulls entered the Indian Real Estate market and became the
first company to bring FDI in Indian Real Estate.
• Indiabulls is a market leader in securities brokerage industry, With
around 31% share in online trading,
• Farallon Capital and its affiliates, the world’s largest hedge fund
2005-06 committed Rs. 2000 million for Indiabulls subsidiaries Viz.
Indiabulls Credit Services Ltd. and Indiabulls Housing Finance Ltd.

• Steel Tycoon Mr. LN Mittal promoted LNM India Internet venture


Ltd. Acquired 8.2% stake in Indiabulls Credit Services Ltd.
• Indiabulls entered in a 50/50 joint venture with DLF, Kenneth
Builders & Developers (KBD). KBD has acquired 35.8 acres of
land from Delhi Development Authority through a competitive
bidding process for Rs 450 crore to develop residential
apartments.
• Indiabulls ventured into commodity brokerage business.
2006-07 • Indiabulls has received an “in principle approval” from Government
of India for development of multi product SEZ in the state of
Maharashtra.

• Indiabulls Financial Service Ltd. Board resolves to Amalgamate


Indiabulls Credit Services Ltd. and demerge Indiabulls Securities
Ltd.

Board Of Directors
Management Team

Board of Directors
Name Designation

Mr. Rajiv Rattan Whole Time Director

Mr. Aishwarya Katoch Director

Mr. Saurabh K Mittal Director

Mr. Gagan Banga Director

Mr. Shamsher Singh Director

Mr. Karan Singh Director

Mr. Sameer Gehlaut Chairman & Wholetime Director

Mr. Prem Prakash Mirdha Independent Director


CHAPTER -2

Introduction to the Organization

COMPANY / ORGANIZATION PROFILE


Indiabulls is India’s leading Financial Services and Real Estate Company having over
640 branches all over India. Indiabulls serves the financial needs of more than 4,50,000
customers with its wide range of financial services and products from securities,
derivatives trading, depositary services research & housing finance. With around 4000
Relationship Managers, Indiabulls helps its clients to satisfy their customized financial
goals.

Indiabulls Financial Services Limited was established in the year2000 by three


promoters all of whom are engineers from Indian Institute of Technology, New Delhi,
and has attracted over Rs. 700 million of investments from venture capital firms, private
equity funds and institutional investors. The investors include the proprietary fund of Mr.
L.N. Mittal-LNM India Internet Venture Limited, Transatlantic Corporation Ltd., Farallon
Capital Partners LP and Infinity Technologies Trustee Private Limited.

Indiabulls headquarter are co-located in Mumbai and Delhi, allowing us to access the
two most important regions for Indian financial Markets, the Western region including
Mumbai, rest of Maharashtra Gujarat and the Northern region, including the National
Capital Territory of Delhi, nearby cities, parts of Haryana, Uttar Pradesh and Punjab;
and access the highly skilled and educated workforce in Delhi; and back office, risk
management and internal finance are headquartered out of one central location in New
Delhi, allowing us to scale these process efficiently for the nationwide network. All the
back office work, transaction processing work and issuance of cheques takes place
from the New Delhi office enabling us to have better control and efficiency in the support
functions.

Promoters and Their Background


The company was established by three engineers from IIT Delhi, and has attracted
significant amount of investment from venture, private equity and institutional investors.
The details are as follows:-

Sameer Gehlaut, Chairman, CEO & Whole Time Director

Sameer, aged 30 years graduated with a Mechanical Engineering degree from the
Indian Institute of technology, Delhi. He has gained extensive experience in the
Financial Services sector and developed in-depth knowledge and strong understanding
of all aspects of the Securities Industry and Financial Services Business. Under his
Leadership, Indiabulls group has grown from one office, 310 clients, and 8 employees in
FY 2000 to 32,359 clients, 70 office and 606 employees as on April 30, 2004.

Rajiv Rattan, President CFO & Whole Time Director:

Rajiv, aged 30 years, an NTSE Scholar, graduated with and Electrical Engineering
Degree from the Indian Institute of Technology, Delhi. He gained extensive experience
in international best practices, process management and risk management, which he
brought to Indiabulls Group as one of the founders of the company.

Saurabh Mittal, Director:

Saurabh, aged 30 years, graduated with and Electrical Engineering Degree from the
Indian Institute of Technology, Delhi. He worked a citigroup Asset Management as an
investment analyst, and is currently a senior portfolio manager at Farallon Capital. He
has developed and understanding of International financial markets and extensive
experience in the securities industry Saurabh is responsible for strategic decision-
making and is the director of the company.
BUSINESSOVERVIEW

Indiabulls Financial Services Limited

Indiabulls Securities Indiabulls Commodities


Indiabulls Insurance
Limited
Advisors Pvt. Limited Pvt. Limited

1. Equity & Debt Stock Insurance Product


Broking Commodities Trading
Distribution
2. Depository Services
3. Derivative Broking
Services
4. Equity Research
Services
5. Mutual Fund
Distribution
6. IPO Distribution

Competitors:

• Karvy Computer share Private Ltd.


• G S Raheja Finance
• ICICI Securities Limited
• India Infoline Ltd.
• Indbank Merchant Banking Services Ltd.
• Share Khan Securities
• Zuari Investments Kotak Mahindra SHCL
• Others……….

Equity Broking Account


A passport size photograph.

Proof of Demat Account. If you intend to get a Depository account opened with
Indiabulls as well, please see the relevant requirements for that.

Proof of Bank Account - A cancelled cheque would be sufficient.

Photocopy of Income Tax Permanent Account Number (PAN) Card - If you do not have
a PAN, then you would be required to give a declaration to that effect.

Identity Proof - Photocopy of any of the following :-

 Passport
 PAN Card
 Voter ID
 Driving License
 Ration Card

Address Proof - Photocopy of any one of Driving License / Passport/Ration Card/Voter


Card/ Telephone Bill / Electricity Bill/ Bank Statement.

A Partnership firm desirous to open an account would require the following as well -

A certified true copy of the partnership deed

Copy of last Income Tax Returns filed.

Corporate desirous of opening an account would require the following additional


documents -

Certified true copy of a resolution passed by the Board of Directors naming the
authorized officials to sign the Member constituent agreements.

Regardless of how the market is performing or which way the economic winds are
blowing, you, as a trader, are researching, charting, crafting a strategy, buying and
selling. You are getting in, getting out and moving on to the next trade.

Choose from a comprehensive offering of accounts, platforms and products. Customize


our technology and services to support the way you work.

Features of Power India bulls :


• Live Streaming Quotes
• Fast Order Entry
• Tic by Tic Live Charts
• Technical Analysis
• Live News and Alerts
• Extensive Reports for Real-time Accounting

Introduction About Demat Market

What is Demat account


The depository converts your physical holding of securities (backed by paper certificates
as evidence of ownership) to electronic balances held in a Demat account with a
Depository Participant (DP). A Demat account holder (also called a beneficiary owner)
can have securities balances either by converting his existing physical certificates or by
buying in Demat form.

Benefits of Demats :-

• Electronic settlement of trades

• No stamp duty on transfer of securities

• Elimination of risks associated with physical certificates such as bad delivery, fake

Securities

• Reduction in paperwork involved in transfer of securities

• Reduction in transaction cost

• Nomination facility Change in address recorded with DP gets registered electronically

With all companies in which investor holds securities eliminating the need to

Correspond with each of them separately

• Transmission of securities is done by DP eliminating correspondence with


Companies

• Investments in Equity, Debt instruments, Mutual Funds, Kisan Vikas Patras, National

Saving Certificates and other Government Securities can be held in a single account

• Automatic credit of shares, arising out of split / consolidation / merger, bonus, IPO

allotments etc., into demat account.

What is a stock market?


The stock market is a central market place for raising funds by Governments and
various corporations to expand their businesses and shareholding base. This is usually
done by issuing shares in a company which can then be bought and sold.

What is a stock exchange?


The fundamental role of a stock exchange is to provide a fair and internationally
competitive market place for the trading of financial securities for the benefit of all
participants (Listed Companies, Institutions and small investors).

All countries who have a local stock exchange aim to provide a market place whereby:

• Companies and Governments can raise funds, and


• Investors can invest surplus funds in anticipation of receiving dividends and
capital gain from their share investments.

What is a share market?


The share market comprises of two markets:
The first is a primary market whereby companies or Governments issue new shares in
order to raise capital to expand their operations (for whatever reason) and take on a
wider range of shareholders. This is done by issuing an investment statement and/or a
prospectus through an organizing or underwriting broker.
The second is the secondary market, which is the central market place provided by the
stock exchange, where investors trade existing securities/shares.

What is a share and what is their use?


• A share is a basic unit of ownership in a company. When you buy a share, you
become a part-owner of a company. Ownership of that company is divided into
millions of parts. These parts are called shares and each person who buys a
share is a shareholder.
• The directors of the company are employed to manage the business, but the
company is wholly owned by its shareholders.
• When a company is founded, it often progresses and develops and often to
expand, it requires financial help. The company can opt to borrow funds from the
bank and pay interest like a loan or they can opt to raise funds by becoming a
listed company on the share market. There are many Rules and Regulations that
a company must abide by and comply with, if they wish to list and issue
securities on the New Zealand Stock Exchange. These Rules are administered
and enforced by an independent Market Surveillance Panel
Once a Company has become a Listed Company on the NZX, it can raise funds
by offering shares in return for 'cash'. A share of ownership is what the investor
gets in exchange for their financial support.

PRODUCT PORTFOLIO / PRODUCT BUCKET

Indiabulls Securities Ltd works in three market :-

1. Equity
2. Derivatives
3. Commodities

Equity

Equity is a term whose meaning depends very much on the context. In general, you can
think of equity as ownership in any asset after all debts associated with that asset are
paid off. For example, a car or house with no outstanding debt is considered the owner's
equity since he or she can readily sell the items for cash. Stocks are equity because
they represent ownership of a company, whereas bonds are classified as debt because
they represent an obligation to pay and not ownership of assets.

To support its investment, a firm must find means to finance them. Equity and debt
represent two broad sources of finance for a business firm.

Derivatives
Derivatives as a term conjures up visions of complex numeric calculations, speculative
dealings and comes across as an instrument which is the prerogative of a few ‘smart
finance professionals’. In reality it is not so. In fact, a derivative transaction helps cover
risk, which would arise on the trading of securities on which the derivative is based and
a small investor, can benefit immensely.

A derivative security can be defined as a security whose value depends on the values of
other underlying variables. Very often, the variables underlying the derivative securities
are the prices of traded securities.

Let us take an example of a simple derivative contract:

Ram buys a futures contract.

He will make a profit of Rs 1000 if the price of Infosys rises by Rs 1000.

If the price is unchanged Ram will receive nothing.

If the stock price of Infosys falls by Rs 800 he will lose Rs 800.

As we can see, the above contract depends upon the price of the Infosys scrip, which is
the underlying security. Similarly, futures trading has already started in Sensex futures
and Nifty futures. The underlying security in this case is the BSE Sensex and NSE Nifty.

Derivatives and futures are basically of 3 types:

Forwards and Futures

Options

Swaps

( i ) Forward contract
A forward contract is the simplest mode of a derivative transaction. It is an agreement to
buy or sell an asset (of a specified quantity) at a certain future time for a certain price.
No cash is exchanged when the contract is entered into.

What is an Index?
To understand the use and functioning of the index derivatives markets, it is necessary
to understand the underlying index. A stock index represents the change in value of a
set of stocks, which constitute the index. A market index is very important for the market
players as it acts as a barometer for market behavior and as an underlying in derivative
instruments such as index futures.

The Sensex and Nifty


In India the most popular indices have been the BSE Sensex and S&P CNX Nifty. The
BSE Sensex has 30 stocks comprising the index which are selected based on market
capitalization, industry representation, trading frequency etc. It represents 30 large well-
established and financially sound companies. The Sensex represents a broad spectrum
of companies in a variety of industries. It represents 14 major industry groups. Then
there is a BSE national index and BSE 200. However, trading in index futures has only
commenced on the BSE Sensex.

While the BSE Sensex was the first stock market index in the country, Nifty was
launched by the National Stock Exchange in April 1996 taking the base of November 3,
1995. The Nifty index consists of shares of 50 companies with each having a market
capitalization of more than Rs 500 crore.

Futures and stock indices


For understanding of stock index futures a thorough knowledge of the composition of
indexes is essential. Choosing the right index is important in choosing the right contract
for speculation or hedging. Since for speculation, the volatility of the index is important
whereas for hedging the choice of index depends upon the relationship between the
stocks being hedged and the characteristics of the index.

Choosing and understanding the right index is important as the movement of stock
index futures is quite similar to that of the underlying stock index. Volatility of the futures
indexes is generally greater than spot stock indexes.

Every time an investor takes a long or short position on a stock, he also has an hidden
exposure to the Nifty or Sensex. As most often stock values fall in tune with the entire
market sentiment and rise when the market as a whole is rising.
Retail investors will find the index derivatives useful due to the high correlation of the
index with their portfolio/stock and low cost associated with using index futures for
hedging.

Understanding index futures


A futures contract is an agreement between two parties to buy or sell an asset at a
certain time in the future at a certain price. Index futures are all futures contracts where
the underlying is the stock index (Nifty or Sensex) and helps a trader to take a view on
the market as a whole.

Index futures permits speculation and if a trader anticipates a major rally in the market
he can simply buy a futures contract and hope for a price rise on the futures contract
when the rally occurs. We shall learn in subsequent lessons how one can leverage ones
position by taking position in the futures market.

In India we have index futures contracts based on S&P CNX Nifty and the BSE Sensex
and near 3 months duration contracts are available at all times. Each contract expires
on the last Thursday of the expiry month and simultaneously a new contract is
introduced for trading after expiry of a contract.

( ii ) Options
Stock markets by their very nature are fickle. While fortunes can be made in a jiffy more
often than not the scenario is the reverse. Investing in stocks has two sides to it –a)
Unlimited profit potential from any upside (remember Infosys, HFCL etc) or b) a
downside which could make you a pauper.

Derivative products are structured precisely for this reason -- to curtail the risk exposure
of an investor. Index futures and stock options are instruments that enable you to hedge
your portfolio or open positions in the market. Option contracts allow you to run your
profits while restricting your downside risk.

Apart from risk containment, options can be used for speculation and investors can
create a wide range of potential profit scenarios.

What are options?


Some people remain puzzled by options. The truth is that most people have been using
options for some time, because options are built into everything from mortgages to
insurance.

An option is a contract, which gives the buyer the right, but not the obligation to buy or
sell shares of the underlying security at a specific price on or before a specific date.

‘Option’, as the word suggests, is a choice given to the investor to either honour the
contract; or if he chooses not to walk away from the contract.

To begin, there are two kinds of options:

Call Options and Put Options.

A Call Option is an option to buy a stock at a specific price on or before a certain date.
In this way, Call options are like security deposits. If, for example, you wanted to rent a
certain property, and left a security deposit for it, the money would be used to insure
that you could, in fact, rent that property at the price agreed upon when you returned. If
you never returned, you would give up your security deposit, but you would have no
other liability. Call options usually increase in value as the value of the underlying
instrument rises.

When you buy a Call option, the price you pay for it, called the option premium, secures
your right to buy that certain stock at a specified price called the strike price. If you
decide not to use the option to buy the stock, and you are not obligated to, your only
cost is the option premium.

A Put Options are options to sell a stock at a specific price on or before a certain date.
In this way, Put options are like insurance policies

If you buy a new car, and then buy auto insurance on the car, you pay a premium and
are, hence, protected if the asset is damaged in an accident. If this happens, you can
use your policy to regain the

insured value of the car. In this way, the put option gains in value as the value of the
underlying instrument decreases. If all goes well and the insurance is not needed, the
insurance company keeps your premium in return for taking on the risk.

With a Put Option, you can "insure" a stock by fixing a selling price. If something
happens which causes the stock price to fall, and thus, "damages" your asset, you can
exercise your option and sell it at its "insured" price level. If the price of your stock goes
up, and there is no "damage," then you do not need to use the insurance, and, once
again, your only cost is the premium. This is the primary function of listed options, to
allow investors ways to manage risk.

Technically, an option is a contract between two parties. The buyer receives a privilege
for which he pays a premium. The seller accepts an obligation for which he receives a
fee.

There are two types of options:

• Call Options
• Put Options

Call options
Call options give the taker the right, but not the obligation, to buy the underlying shares
at a predetermined price, on or before a predetermined date.

Put Options

A Put Option gives the holder of the right to sell a specific number of shares of an
agreed security at a fixed price for a period of time.

eg: Sam purchases 1 INFTEC (Infosys Technologies) AUG 3500 Put --Premium 200

This contract allows Sam to sell 100 shares INFTEC at Rs 3500 per share at any time
between the current date and the end of August. To have this privilege, Sam pays a
premium of Rs 20,000 (Rs 200 a share for 100 shares).

The buyer of a put has purchased a right to sell. The owner of a put option has the right
to sell.

Commodities
A commodity is something that is relatively easily traded, that can be physically
delivered, and that can be stored for a reasonable period of time. It is a characteristic of
commodities that prices are determined on the basis of an active market, rather than by
the supplier (or other seller) on a "cost-plus" basis. Examples of commodities include
not only minerals and agricultural products such as iron ore, crude oil, ethanol, sugar,
coffee, aluminium, rice, wheat, gold, diamonds, or silver, but also so-called
"commoditized" products such as personal computers.

Linguistically, the word commodity came into use in English in the 15th century, being
derived from the French word "commodité", meaning today's (2000) "convenience" in
term of quality of services. The Latin root meaning is commodities, referring variously to
the appropriate measure of something; a fitting state, time or condition; a good quality;
efficaciousness or propriety; and advantage, or benefit. The German equivalent is die
Ware, i.e. wares or goods offered for sale. The French equivalent is "product de base"
like energy, goods, or industrial raw material

TARGETS/TASKS

I am doing my Executive Training with INDIABULLS SEDCURITIES LIMITED in


Udaipur Branch. INDIABULLS SEDCURITIES LIMITED provides an online trading
account in which three type of facilities are provided to customers.

These are:

• Demat account.
• Trading account.
• Margin Funding

My task in the company is to meet with the customers and convince them to open their
account with the company. Daily my company guide tells us the areas where we have to
target for achieving the target .

For this period of four months training our company has provided us not specific target
for each month.
Targets mentioned above are the minimum targets which we are expected to achieve.
Only after achieving these targets, our path to get Pre Placement Offer and Final
Placement Offer.

Through focused guidance of my company guide and by my ability to work hard, I am


confident that I will be able to achieve my targets on time and that would be help me out
to give edge of my carrier.

Out of four months training period, I have completed my one month of training and the
second month is about to complete. In this month, I have learned many things. The
following table depicts the target I have done to achieve in this period of one month and
what I actually achieved.
CHAPTER -3

Research Methodology

Title of the Study

"A Study on significance and relevance of internal & interactive

marketing for financial marketing with special reference to INDIA BULLs"


Duration of the Project

The project is Submitted in partial fulfillment for the Award of degree of Master of
Business Administration & The duration of the project is ………………………

Objective of study

The main objectives of the study are as follows :-

 To know more about the Company / Organization


 To find strength & weakness of the Company / Organization
 To know significance and relevance of internal & interactive marketing
 To know what major factors effects or influence internal & interactive marketing
for financial marketing

RESEARCH METHODOLOGY

“A Research is careful investigation or inquiry, especially through search for new facts
in any branch of knowledge. It is a systemized effort to gain more knowledge.”
Research methodology is a way to systematically solve the research problem. It may
be understood as a science of studying how research is done scientifically. We study
the various steps that are generally adopted by a researcher in studying his research
problem along with the logic behind them. It is necessary for the researcher to know not
only the research methods or techniques but also the methodology. Researcher always
needs to understand the assumptions underline various technique and they need to
know the criteria by which they can decide that certain technique and procedures will be
applicable to certain problems and other will not.

The predefined objective can be achieved by following ways:

o Studying the buying behavior of customer.


o Comparing sales of different players.

TYPE OF RESEARCH:

Personal interview approach was adopted for the project. In this type of research, the
researcher has to contact the person directly to know the available information and
analyze the data was available in interviewer’s statements. This was one of the main
sources for the project.

The other approach was PERSONNEL RESEARCH. It is based on the personal


knowledge. It is applicable to phenomenon that can be expressed in terms of words.

RESEARCH PROCESS:
Research Process consists of a series of action or steps necessary to effectively carry
out the research and the desired sequencing of these steps. The various steps, which
provided guidelines to the research process pertaining to the project, are as follows:

1) Formulating the research problem

Formulation of research problem involves understanding the problem thoroughly


and rephrasing the same into meaningful terms from an analytical point of view.

2) Extensive literature survey

It is necessary for the researcher to conduct an extensive survey connected with


the problem. For the purpose manual, company records, journals, published data
can be used.

3) Development of working hypotheses

Working hypotheses is a tentative assumption made in order to draw out and rest
its logical or empirical consequences.

4) Preparing the research design

The researcher will be required to prepare a research i.e. he will have to state the
conceptual structure within which research would be conducted. The function of
research design is to provide the collection of relevant evidence with minimum
expenditure of efforts, time and money.

5) Determining the sample design

The researcher must decide a way of selecting a sample or what is popularly


known as sample design. The types of sample design are:

o Simple Sampling
o Random Sampling
o Systematic Random Sampling
o Stratified Sampling
o Quota Sampling
o Cluster and Area Sampling
o Multistage Sampling
o Sequential Sampling
o Census

For this project, Random Sampling was used among the above-mentioned types.

Since the time period was limited to 2 months, the sampling size was limited to 75.

6) Collection of data

While deciding the methods of data collection to be used for study the researcher
should keep in mind two types of data viz.

Primary Data

The Primary Data are those, which are collected a fresh and for the first time and
thus happen to be original in character.

Secondary Data

Secondary data means data that are already available i.e. they refer to the data
which have already been collected and segregated by someone else. The
researcher has to determine the various sources of obtaining secondary data.
Secondary data may be published or unpublished in nature.
Published data are available in:

Publications of central, state and local newspapers

• Publication of foreign government or of international bodies


• Technical or trade journals
• Books, magazines and newspaper and Internet
• Public record and statistics, historical documents and sources of public
information.

Data Collection

Data used for the project was the secondary and primary data.

Methods of Data Collection

• Personal Interview
• Questionnaire &
• Telephonic Interview.

7) Analysis of data

Analyses of data can of two types:

• Quantitative analysis
• Qualitative analysis

Thus analysis of data require a number of closely related operations such as


establishment of categories, the application of these categories into raw data through
tabulation, chart and then draw inferences. Analysis work is generally based on the
computation of various percentage, co-efficient etc. by applying various statistical
formulae.
Preparation of Reports

After analysis, the next step is in the preparation of the report. The report has been
prepared according to the report writing principles.

The Objective, clarity in presentation of ideas and the uses of charts have been
maintained throughout the report.

Once the data has been collected, the researcher has to process, analyze and interpret
the same. It was emphasized that the researcher should exercise good care to ensure
that reliable data are not properly processed and analyzed. Sufficient attention is often
not given to these aspects, with the result that the quality of the report suffers.

Editing – The first task in data is editing. It is the process by which data are prepared
for subsequent coding. As it is very subjective process, editing is the process of
examining errors and omission in the collected data and making necessary in the same
this is desirable when there is more inconsistency in the responses.

Coding – Coding is the procedure of classifying the answers to a question in


meaningful categories the symbol used to indicate the categories are called codes.
Coding is necessary to carry out the subsequent operation of tabulation and analyzing
data.

Coding involves two steps:

Tabulation: Tabulation comprises of sorting of data into different categories and


counting the number of cases that belongs to each categories.

One is unvaried tabulation. This includes the numbers of responses to one question or
to count. It’s very simplest way to tabulate where two or more variables are involved in
tabulation. It is called vicariate or multivariate tabulation. In marketing research project,
generally both type of tabulation is used.
INDIAN Capital Market-

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).

At the end of the American Civil War, the brokers who thrived out of Civil War in 1874,
found a place in a street (now appropriately called as Dalal Street) where they would
conveniently assemble and transact business. 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.

GROWTH
The working of stock exchanges in India started in 1875. BSE is the oldest stock market
in India. The history of Indian stock trading starts with 318 persons taking membership
in Native Share and Stock Brokers Association, which we now know by the name
Bombay Stock Exchange or BSE in short. In 1965, BSE got permanent recognition from
the Government of India. National Stock Exchange comes second to BSE in terms of
popularity. BSE and NSE represent themselves as synonyms of Indian stock market.
The history of Indian stock market is almost the same as the history of BSE.
The 30 stock sensitive index or Sensex was first compiled in 1986. The Sensex is
compiled based on the performance of the stocks of 30 financially sound benchmark
companies. In 1990 the BSE crossed the 1000 mark for the first time. It crossed 2000,
3000 and 4000 figures in 1992. The reason for such huge surge in the stock market was
the liberal financial policies announced by the then financial minister Dr. Man Mohan
Singh.

The up-beat mood of the market was suddenly lost with Harshad Mehta
scam. It came to public knowledge that Mr. Mehta, also known as the big-bull of Indian
stock market diverted huge funds from banks through fraudulent means. He played with
270 million shares of about 90 companies. Millions of small-scale investors became
victims to the fraud as the Sensex fell flat shedding 570 points.

To prevent such frauds, the Government formed The Securities and Exchange Board of
India, through an Act in 1992. SEBI is the statutory body that controls and regulates the
functioning of stock exchanges, brokers, sub-brokers, portfolio managers investment
advisors etc. SEBI oblige several rigid measures to protect the interest of investors.
Now with the inception of online trading and daily settlements the chances for a fraud is
nil, says top officials of SEBI.

• Sensex crossed the 5000 mark in 1999 and the 6000 mark in 2000.
• The 7000 mark was crossed in June and the 8000 mark on September 8 in
2005.
• Sensex crossed the 10000 mark in 2006.
• Many foreign institutional investors (FII) are investing in Indian stock markets on
a very large scale.
• The liberal economic policies pursued by successive Governments attracted
foreign institutional.
Future of Indian stock markets

The stock market is booming in spite of the low agriculture output. The Monsoon is good
in an overall sense but still the question remains about who will take the credit for it. The
answer is the karma of the people. I would like to appreciate the Indian politicians and
the industrialists who are pawns of destiny for doing many things positive and
productive. India as a country is running a very good period and the very position of the
planets in transit are giving wonderful result.

• Only less than 1 per cent of the population own stocks and less than 1,000
individuals control the market, the majority being the FIIS, the promoters of the
company. The credit should go to the media for making stock markets the
headlines.

First of all, Indian bourses in the future will be one of the best investments in the world.
There will be a time when it can even reach 3000 points in the Nifty. India will begin one
of the best data of sun which will work in its favor. So before 2009 Indian bourses
should go from high to high from time to time.

• Now this bull run will continue.


• There can be some correction in the BSE Sensex at the 7500 points level.
• The market will hover between the 6000-7000 till mid-August.
• There will be huge fluctuations.
• Better for many investors and new entrants for the market to cool down a bit and
let it come well below 7000.
• In any case, if you are long-term players, then step in and buy now and forget for
another 10 years. You will make a killing in the Indian markets.
• Most of the tech companies and the main index will do well but slightly on the
lower side of expectations.
National Stock Exchange (NSE)

With the liberalization of the Indian economy, it was found inevitable to lift the Indian
stock market trading system on par with the international standards. On the basis of the
recommendations of high powered Pherwani Committee, the National Stock Exchange
was incorporated in 1992 by Industrial Development Bank of India, Industrial Credit and
Investment Corporation of India, Industrial Finance Corporation of India, all Insurance
Corporations, selected commercial banks and others.

Trading at NSE can be classified under two broad categories:

(a) Wholesale debt market and

(b) Capital market.


Wholesale debt market operations are similar to money market operations - institutions
and corporate bodies enter into high value transactions in financial instruments such as
government securities, treasury bills, public sector unit bonds, commercial paper,
certificate of deposit, etc.

There are two kinds of players in NSE:

(a) trading members and

(b) participants.

Recognized members of NSE are called trading members who trade on behalf of
themselves and their clients. Participants include trading members and large players
like banks who take direct settlement responsibility.

Trading at NSE takes place through a fully automated screen-based trading mechanism
which adopts the principle of an order-driven market. Trading members can stay at their
offices and execute the trading, since they are linked through a communication network.
The prices at which the buyer and seller are willing to transact will appear on the
screen. When the prices match the transaction will be completed and a confirmation slip
will be printed at the office of the trading member.
NSE has several advantages over the traditional trading exchanges. They are as
follows:

• NSE brings an integrated stock market trading network across the nation.
• Investors can trade at the same price from anywhere in the country since inter-
market operations are streamlined coupled with the countrywide access to the
securities.
• Delays in communication, late payments and the malpractice’s prevailing in the
traditional trading mechanism can be done away with greater operational
efficiency and informational transparency in the stock market operations, with the
support of total computerized network.
Unless stock markets provide professionalized service, small investors and foreign
investors will not be interested in capital market operations. And capital market being
one of the major sources of long-term finance for industrial projects, India cannot afford
to damage the capital market path. In this regard NSE gains vital importance in the
Indian capital market system.

Bombay Stock Exchange (BSE)


Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich
heritage. Popularly known as "BSE", it was established as "The Native Share & Stock
Brokers Association" in 1875. It is the first stock exchange in the country to obtain
permanent recognition in 1956 from the Government of India under the Securities
Contracts (Regulation) Act, 1956.The Exchange's pivotal and pre-eminent role in the
development of the Indian capital market is widely recognized and its index, SENSEX,
is tracked worldwide. Earlier an Association of Persons (AOP), the Exchange is now a
demutualised and corporatized entity incorporated under the provisions of the
Companies Act, 1956, pursuant to the BSE(Corporatization and Demutualization)
Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI).

With demutualization, the trading rights and ownership rights have been de-linked
effectively addressing concerns regarding perceived and real conflicts of interest. The
Exchange is professionally managed under the overall direction of the Board of
Directors. The Board comprises eminent

professionals, representatives of Trading Members and the Managing Director of the


Exchange. The Board is inclusive and is designed to benefit from the participation of
market intermediaries.

In terms of organization structure, the Board formulates larger policy issues and
exercises over-all control. The committees constituted by the Board are broad-based.
The day-to-day operations of the Exchange are managed by the Managing Director and
a management team of professionals.

The Exchange has a nation-wide reach with a presence in 417 cities and towns of India.
The systems and processes of the Exchange are designed to safeguard market integrity
and enhance transparency in operations. During the year 2004-2005, the trading
volumes on the Exchange showed robust growth.

The Exchange provides an efficient and transparent market for trading in equity, debt
instruments and derivatives. The BSE's On Line Trading System (BOLT) is a proprietary
system of the Exchange and is BS 7799-2-2002 certified. The surveillance and clearing
& settlement functions of the Exchange are ISO 9001:2000 certified.

Demat account, short term for dematerialized account is a type of banking account
which dematerialize the paper-based physical shares.

The idea of dematerialized account is to avoid the need to hold physical shares--the
shares are virtually being bought and sold through the banking account.
Report card of Indiabulls Financial Ltd.

PE ratio 25.96 28/03/07


EPS TTM (Rs) 15.81 Mar, 06
Sales (Rs crore) 610.29 Mar, 06
Face Value (Rs) 2
Net profit margin (%) 41.32 Mar, 06
Last dividend (%) 100 31/01/07
Return on average19.27 Mar, 06
equity

Relevance of Internal & Interactive Market

Internal marketing (IM) is an ongoing process that occurs strictly within a company
or organization whereby the functional process aligns, motivates and empowers
employees at all management levels to consistently deliver a satisfying customer
experience.

Key concepts of internal marketing include:

o IM functioning as a continual internal 'up skilling' process.


o Alignment of the organization’s purpose with employee behavior.
o Employees internalizing the core values of the organization.
o Motivation, reframing and empowerment of employee attitude.
o Inside-out management approach.
o Retaining a positive customer experience throughout the business
objectives
Internal marketing is an important 'implementation' tool. It aids communication and
helps us to overcome any resistance to change. It informs, ands involves all staff in new
initiatives and strategies. It is simple to construct, especially if you are familiar with
traditional principles of marketing.
If not, it would be valuable to spend some time considering marketing plans. Internal
marketing obeys the same rules as, and has a similar structure to, external marketing.
The main differences are that your customers are staff and colleagues from your own
organization.

In previous lessons, you will have seen that the process of marketing follows a familiar
pattern for which we use the acronym AOSTC - Analysis, Objectives, Strategies,
Tactics, and Control. In the diagram above, Jobber (1995) uses a similar approach as a
structure for the implementation of internal marketing. The process is straightforward.

• Set objectives for internal marketing e.g. to persuade 100 staff to join a new
Performance Related Pay (PRP) scheme.
• Your strategy is 'internal marketing.'
• Tactics would include an internal application of the marketing mix, and could
include staff forums, presentations, an intranet, away days, videos, personal
visits by company directors or newsletters.
• Evaluation would consider the take up of PRP against your objectives, attendees
at away days, visits to an intranet page, and so on..

Let's have a look a closer look at the practicalities of internal marketing

Internal marketing

In previous lessons, you will have seen that the process of marketing follows a familiar
pattern for which we use the acronym AOSTC - Analysis, Objectives, Strategies,
Tactics, and Control. In the diagram above, Jobber (1995) uses a similar approach as a
structure for the implementation of internal markefrom your own organization.

• Set objectives for internal marketing e.g. to persuade 100 staff to join a new
Performance Related Pay (PRP) scheme.
• Your strategy is 'internal marketing.'
• Tactics would include an internal application of the marketing mix, and could
include staff forums, presentations, an intranet, away days, videos, personal
visits by company directors or newsletters.
Implications of marketing

• Who are our existing / potential customers?


• What are their current / future needs?
• How can we satisfy these needs?
• Can we offer a product/ service that the customer would value?
• Can we communicate with our customers?
• Can we deliver a competitive product of service?
• Why should customers buy from us?

The marketing concept

• choosing and targeting appropriate customers


• positioning your offering
• interacting with those customers
• controlling the marketing effort
• continuity of performance

Successful marketing requires:

• Profitable
• Offensive (rather than defensive)
• Integrated
• Strategic (is future orientated)
• Effective (gets results) Hugh Davidson 1972

Marketing management process

• Analysis/Audit - where are we now?


• Objectives - where do we want to be?
• Strategies - which way is best?
• Tactics - how do we get there?
• (Implementation - Getting there!)
• Control - Ensuring arrival

Why is marketing planning necessary?

• Systematic futuristic thinking by management


• better co-ordination of a company’s efforts
• development of performance standards for control
• sharpening of objectives and policies
• better prepare for sudden developments
Why is marketing planning necessary?

• Systematic futuristic thinking by management


• better co-ordination of company efforts
• development of better performance standards for control
• sharpening of objectives and policies
• better prepare for sudden new developments
• managers have a vivid sense of participation

Criticisms of marketing planning

• Formal plans can be quickly overtaken by events


• Elements of the plan my be kept secret for no reason
• gulf between senior managers and implementing managers
• the plan needs a sub-scheme of actions

Objectives of the marketing plan

• Acts as a roadmap
• assist in management control and monitoring the implementation of strategy
• informs new participants in the plan of their role and function
• to obtain resources for implementation
• to stimulate thinking and make better use of resources
• Assignment of responsibilities, tasks and timing
• Awareness of problems, opportunities and threats
• Essential marketing information may have been missing
• if implementation is not carefully controlled by managers, the plan is
worthless!

The contents and structure of the marketing plan

• The executive summary


• table of contents
• situational analysis and target market
• marketing objectives
• marketing strategies
• marketing tactics
• schedules and budgets
• financial data and control
Scope of study

The scope of the study are as follows :-

Limitation of study

However, I was able to achieve my targets assigned to me in this period of one month,
but there are some roadblocks that hinders me in achieving my targets or to excel me
above my targets. These are as follows: -

1. Competitors :- In security market there are lot many player which are being
emerged as a competitors and they are giving the tough competition to the
Indiabulls Securities Ltd. The competitors’ products are very attractive to create
new customer and grab the existing customer.

2. Lack of Knowledge:- Lack of knowledge is hamper on our target because by


this people are not aware about the share market and they are having same
mind set and they do not want to change their mind.

3. Conventional Ideas:- People are having conventional idea and they do not want
to be changed their account because they believe in maintaining the relationship
whether they are on risk cause of they are having their account in local brokers
so it is also hassle to complete the target.

4. Misconception:- In the mind of the people they are having misconception


because they think that the share market is like gamble so the word to mouth
publicity is going in negative way.
5. Time Constraint:- Time limit is one of the most hassle in the way of achieving
the target because time can not be in hand and some times customers give the
time when we are on other work so it is the lost of customer.

6. Unknown Location:- We are not familiar with the Udaipur city so sometimes we
cannot reach out the customer and that is why customer are switching their idea
to open demat account from Indiabulls to another.

7. Conveyance Problem:- We are out sider in Udaipur so we are not having proper
conveyance so we cannot reach out to last or inside of the city.

8. Irregularity of Market:- It is also one of the most hassle by that investors fear to
invest although they are having good knowledge so we cannot help them out to
break their thinking.

DATA COLLECTION & ANALYSIS


1. INVESTMENT CRITERIA OF CUSTOMERS

FIELDS EQUITIES DERIVATIVES OTHERS


NO. 40 52 8
RESPONDENTS

INTERPRETATION:

From the above graph we can analyze the priority level of the customers in
investing different markets. 52% customers gave priority to do investment in derivatives
marker, 40% liked to invest in equities, but a very low % showed their interest to invest
in others like: funding etc.

2. TYPE OF TRADING
Response Intraday Cash Margin
No. of 33 49 18
respondents

INTERPRETATION:

The above graph shows the comparison between different types of trading. The mass %
of customers shows their interest to trade in cash as it is 49%. The 33% of customers
liked to trade in intra day but very less % was seen to do trading on margin.

3. AGE FACTOER INFLUENCING INVESTMENT IN EQUITIES AND DERIVATIVES

AGE GROUP 18-25 25-40 40-55 ABOVE 55


NO.OF 10 55 25 10
RESPODENTS
INTERPRETATION:

INTERPRETATION:

The above analysis shows that 55% of people invest between the age group of 25-40,
which indicates that the age is big factor which influence the customer’s trading
behavior.

4. PURPOSE OF TRADING
Response Investmen Earning Financial Professio Others
t support n
No. of 38 17 27 9 9
Responden
ts

INTERPRETATION:

From the above graph it is seen that ‘purpose’ of trading is an another major factor
which influence the customer’s trading behavior.

We can see that

 38% of people do trade for the purpose of earning.


 27% people like to trade for the purpose of investment
 17% want financial support.
 Rests 9% do trade for professionalism.

5. FREQUENCY OF TRADING
Response Daily Alternative day Twice a week Weekly Monthly
No. of 20 25 13 15 27
Respondents

INTERPRETATION:

 25% people like to trade alternative day,


 20% daily,
 13% twice a week,
 15% weekly,
 But major %( i.e. 27) shows their interest to trade monthly.

6. SATISFACTION LEVEL OF CUSTOMERS

Response Yes No
No. of Respondents 67 33
INTERPRETATION:

This diagram shows the satisfaction level of customers about the services provided by
the Indiabulls,

67% people were satisfied with the services provided by the Indiabulls & a very least %
of customers i.e. 33% were unsatisfied.

FACT AND FINDINGS

Findings:

 52% of customers prefer to invest in derivatives, 40% in equities & rest in others.
 49% of customers like to trade in cash, 33% in intra day & rest in margin
 The above analysis shows that 55% of people invest between the age group of
25-40.
 38% of people do trade for the purpose of earning, 27% people like to trade for
the purpose of investment, 17% want financial support and 9% do trade for
professionalism.
 Almost 67% of customers are satisfied with the services provided to them by
India bulls securities limited.

Observations:

 In Udaipur most prospects trust brand, which are i.e. local broker for trading of
Equities and Derivatives.
 There are problems in availability of services regarding to the tips, which is given
to the customers.
 In some areas like: small customers, Relatives of the brokers etc. the demand of
the service provided by Indiabulls is very low.
 Services (Tipping/ Funding/ A/c information) for Customer is more important as
compared to make them Customer.
 After giving the good departments in one office there is always a conflict between
both the departments. (Because the work of both departments is same in Online
and Offline.)
 There is also no proper database for the employee about the customers so it
derives conflict between the employees about their prospective customers.

SWOT Analysis

STRENGTH & OPPORTUNITY


• Inflation
• Employment
• Disposable income
• Business cycles
• Energy availability and cost
• Others?

WEAKNESS & THREATS

• Demographics
• Distribution of income
• Social mobility
• Lifestyle changes
• Consumerism
• Levels of education
• Others?

Conclusion
After studying all the aspects of the "A Study on significance and relevance of
internal & interactive marketing for financial marketing with special reference to
INDIA BULLs" including the theoretical aspects we can conclude that internal &
Interactive is applicable to the Indian stock market but to an extend. It can benefit to
stock market.

As far as financial marketing is very necessary for Indian stock market is concerned,
which is constantly monitored and upgraded to pre-empt market failures. It can be
termed as good but it is not enough to reduce the risk of broking house. Broking houses
itself have to take actions for reducing the risk bears by itself and its customers.

As far as Indiabulls securities ltd. is concerned, its internal & interactive marketing for
financial marketing system is good. The company has instituted a specialized internal &
interactive marketing for financial marketing management team and its systems are
managed centrally to ensure that it can, at all times, measure and manage the financial
marketing on online and offline transactions on a real-time basis. Marketing dept. of the
co. is doing well to increase the trading and settlement process.

As we all are very well aware that stock market is so much volatile and unpredictable
that nobody can trace the behavior of the market. In this situation risk management
system provides effective tools to reduce the risk of investors and broking houses.

RECOMMENDATION & SUGGESTION

 Exiting customers should be provided better response & services so that by there
good Word Of Mouth Company will get more customers.
 Advertisements should be given in the magazines related to Business,
Management service, Electronics media, and business world or by installing
stalls in different-different areas etc.
 Awareness should be created among the prospective clients.
 Interest rate on funds provided to investors should be reduced.
 Company should focus on the age group of 25-40.

D-MAT ACCOUNT--- QUESTIONNAIRE


Question 1. Please share some basic information on dmat a/c investing.

Question 2. How should I decide in d-mat a/c investment is right for me?

Question 3. How should I study d-mat a/c before I make my selection?

Question 4. In which manner should I manage my d-mat a/c?

Question 5. When should I buy to minimize my costs and sell to maximize the profits?

Question 6. What are the risks involved share market investing?

Question 7. How do I go about investing share market?

Question 8. What are the costs of opening d-mat a/c?

Question 9. How is income from share trading taxed?

Question 10. Which category of share is best for investment?

Question 11. What is the grievance redressal facility available for share trading invests.

QUESTIONAIRE

Demographic Data

Contact Person: ________________________________________


Address:_____________________________________________

Designation: ________________________________City:____________________

Phone No.:_________________ Fax:_______________ E-mail:__________________

Website: ______________________

1. Existing broker:

 ISL  ICICI  Other (Local Broker)

2. In which you prefer to do investment?

 Equities  Derivatives  Other

3. What type of trading you prefer to do?

 Intraday  Delivery Based  F&O

4. What age group is best for the investment according to you?

 18-25  25-40

 40-55  Above 55

5. What is your purpose of trading?

 Investment  Financial Support  Earning  Profession  Other

6. What is the frequency of your trading?


 Daily  Alternative Day  Twice a Week  Weekly  Monthly

7. Are you satisfied with the service provided by the Indiabulls?

 Yes  No

8. Are you planning to attach with Indiabulls?

 Yes  No

 Can’t Say

Bibliography

Books referred
 Investment management: V.K. Bhalla
 Options, Futures and other Derivatives : John C. Hull
 Financial management: M.Y. Khan, Jain
 Financial Management : Prasana Chandra
 Research Methodology: C.R. Kothari.

Websites Referred

 www.indiabulls.com
 www.nseindia.com
 www.bseindia.com
 www.equityresearch.com