A

Project Report

On

ANALYSIS OF INVESTOR IN THE STOCK

MAREKT AND D-MAT SERVICES AT
SHAREKHAN LTD. UDAIPUR

For the partial fulfillment of

BACHELOR OF BUSINESS MANAGEMENT

Session : 2010 – 2011

Submitted By: Submitted To:

Suman Kataria Mrs. Rajni Arora
B.N.P.G. Girls College, BBM Coordinator
Udaipur
 PREFACE

It is well evident that work experience is an indispensable part of every this practical
profession course. In the same manner practical training in any every individual who is
undergoing financial course without the practical exposure one cannot consider himself
as a qualified manager, during the training period the student learns through his own
experience, the real situation of corporate and to put theoretical knowledge into practice.
This experience is very valuable for the student & plays a leading and important role in
the career life of the student. Hence to fulfill this requirement, the I completed my
training is SHAREKHAN LTD.
When I entered in organization, I felt like stepping into altogether a new world. At
first everybody seems strange and unheard but as the time passes, one understanding the
concept & the working of the organization and their by develop professional relationship.
Initially it is felt as if classroom study was irrelevant and it is use less in my concern’s
working but gradually it is realized that all the basic fundamental concept studied are
linked in one other ways to the organization but how & what can be done with the
fundamentals depends upon the intellectual & applicability of the individual it is just the
matter to modify the theory so to apply it is to given practical solution sincerely believe
that ther is no better place to learn training.
My topic of study as “ANALYSIS OF INVESTOR IN STOCK MARKET &D-
MAT SERVICES AT SHAREKHAN LTD.”
 ACKNOWLEDGMENT

I express my sincere thanks to my project guide, Mr. Vivek Khaturia Designation

Assistance Sales Manager Deptt. Finance, 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 to Dr. G.P.Bisaria (Director of B.N.P.G. Girls College gudie
Dr. Rajni Arora) for their help and cooperation throughout the project
 EXEUTIVE SUMMARY

I worked as a management trainee under a sales executive. Where they had assigned me
sales profile . They provided me leads of those people who visits share khan website. My
work is to call those people and convert their call in sales. In which first I have to explain
about the share khan then tell them about the product of share khan in which they can
invest their money. There are lots of products and portfolio for short term, midterm and
long term for the investment and for this first they have to open D-mat account and
trading account. There are two schemes for the D-mate account.
First one is retail or fast trade. This scheme is for normal client. In this there is opening
chare that is 750rs. And one is margin check that is 5000rs. And this is refundable they
can withdrawal the money after the opening of account.
Seconds one is prepaid account in this they have to give advance brokerage like 2000,
6000, 18000, 30000, 60000, 100000; this amount is valid for one year and in this there is
no opening charges for D-mat and trading account and the share khan also provides trade
tiger of share khan it’s a software basis to open their account in share khan and then we
have to follow their deadliness. Then we have to update their status in LMS.
 CONTENT

S.NO. TOPIC PAGE NO.

1. INTRODUCTION OF STOCK MARKET 07
2. INTRODUCTION OF SHAREKHAN LTD 15
3. PRODUCTS DETAILS OF SHARKHAN LTD 22
4. THEORITICAL FRAMEWORK OF INVESTMENT AND 27
D-MATERIALIZATION OF SHARES
5. OPTIONS AVALIABLE FOR INVESTMENT 31
5.1 FIXED DEPOSITS 31
5.2 NATIONAL SAVING CERTIFICATES 32
5.3 LIFE INSURANCES 32
5.4 PUBLIC PROVIDENT FUND 33
5.5 REAL ESTATES 33
5.6 SHARE MARKET 33
5.7 DERIVATIVES 34
5.8 COMMODITY MARKET 35
5.9 INITIAL PUBLIC OFFER 35
5.10 MUTUAL FUNDS 35
5.11 SECURITIES MARKET 36
5.12 EQUITY INVERSTMENTS 36
5.13 PORTFOLIO 36
5.14 DEBT INVESTMENT 36
6 RESEARCH METHODOLOGY 39
7 ANALYSIS AND INTERPRETATION 44
8 CONCLUSION & SUGGESTIONS
9 BIBLIOGRAPHY
10 ANNEXURE
 INDUSTRY
PROFILE

History of Indian Stock Market

India has a well-established securities market with a long history of organized trading.
The earliest recorded capital market dealing in India has transactions in loan stocks of the
East India Company towards the end of 18th Century. By 1830, a wide range of bank and
cotton mill securities were being trade in Mumbai and Calcutta. The Enactment of the
Companies Act, 1850 which introduced the concept of limited liability ot India, served to
stimulate activity in the securities markets.
Trading in securities is taken place in India right from the close of the 18 th
century. The first stock exchange in India was set up in 1875 in Bombay known as Native
stock Exchange. This was the first stock exchange set up in Aisa as the Tokyo stock
exchange was set up in 1878. The first Stock exchange in the world was set up about two
hundred years ago in London.
The stock exchanges were placed under the exclusive regulation of the
Government through proclamation in 1950 of the constitution of India. Under the
securities through proclamation in 1950 of the Constitution of India. Under the securities
contracts (Regulation) Act., 1956 only those stock exchanges recognized by the
Government were permitted and the Government was vested with wide pores of
supervision and control exchanges. Soon after the implementation of this Act, the
Government recongnized the exchanges at Bombay, Calcutta, Ahmedabad, Delhi,
Madras, Hyderabad and Indore.

Meaning and stock Exchange

The stock exchange is an organized market for purchase and sale of listed industrial and
financial securities. The securities traded on stock exchanges include shares and
Debentures of public limited Companies.
Accordingly to the Securities Contract (Regulation) Act 1956, Stock exchange is
and association, organization or body of individuals. Whether incorporated or not,
established for the purpose of assisting, regulation and controlling business in buying
selling and dealing securities.
The growth in the Stock Exchange of the country is spectacular and can be
attributed to increase in number of instrument offered, listed companies and tight credit
policy of banks as a result of which Indian corporate sector has been relying upon capital
markets for raising funds for their needs.

Definition
What the term Stock Exchange implies is evident from the following features
of an exchange
S Security provided for investors.
T Tax benefits, planning and exemptions.
O Optimum return on investment.
C Cautious approach.
K Knowledge of market.
E Eligibility for accruals.
X Xchange of securities transacted.
C Cycolpedia of listed companies.
H High yield.
A Authentic Information.
N New Entrepreneurs encouraged.
G Guidance of investors and companies.
E. Equity cult.
Regulation & Need of Stock exchange:

The need to regulate stock exchanges was felt in 1921 first when atlay committee
recommended Bombay Stock Exchange Securities Contract Control Act Passed in 1925.
Ltater on, Securities contract (Regulation) Act was made in 1956 and securities Contract
(Regulation) Rule in 1957. Certain powers now vest with SEBI 30 th January 1992, on
promulgation of SEBI, Act, 1992.
 The Securities Contracts, (Regulation) Act, 1956 was enacted to prevent
undesirable transactions in securities by regulation the business of dealing terein, by
prohibitions options and by providing for certain , by prohibiting matters. The provisions
and rules enable smooth functions of the stock Exchange. The Act, empowers the Stock
Exchange to regulate the functioning of Exchanges through their bye- laws such as

1- Maintains of a clearing house for all business transacted at the Exchange.

2- Determination and declaration of market rates.
3- Regulation of blank transfers and carries over business.
4- Regulation of jobbing business.
5- Limitation of business done by members.
6- Fixation of margins, brokerage, fine fee, etc.

Importance of Stock Exchanges

The main function of the Stock Exchange is to act as a medium by which securities can
be converted into case and vice-versa. Stock Exchange has a set mechanism the price of
securities on the basis and supply of securities. The importance of the stock exchange is
as follows:-
1- Providing regular market to the securities.
2- Encouraging investment habits in general public.
 3- Providing liquidity to the securities.
4- Providing a mechanism for continue our evolution.
5- Encouraging capital formation.
6- Acting as an intermediary between buyers and sellers.
7- Providing stability in the prices of securities.
8- Publishing regularly stock price quotation.
9- Providing facility of a trading hall for the member to transact business.

Role of Stock Exchange in the Capital Market

Capital market provides long term capital to the industrial sector for the
expenditure on land, plant and machinery, building etc. which are permanent and used for
production. The long term finance is met by the market.

Capital Market is of two types

1- Primary Capital Market.
2- Secondary Capital Market.
In simple term primary capital market is called the market of new issues and
secondary capital market is called the market of exiting issues.

PRIMARY AND SECONDARY MARKETS

Also termed as new market is concerned with primary issue of securities by

enterprises for their establishment. Expansion, modernization and reorganization etc.
Primary market is related to the generation of capital through new issue of shares,
debentures and bonds, where investors may directly apply for the allotment of securities.
The operation of primary market includes (1) new issue by existing or new company. (2)
right issue and (3) issue of debentures and bonds. Primary market is considered to be the
easiest way through funds may be collected for corporate sector.
The SEBI has issued certain procedural guideline for the simplification and
standardization of liberation economic policy, the primary market has shown a
tremendous growth in the last few years.

SECONDARY MARKET

It is that market where securities are regularly bought and sold. The primary
market is related with the issue whereas the secondary market relates to the trading of
such securities The secondary market provides liquidity to the investor. Trading in
secondary market is governed by the bye laws and regulation of the stack exchange
concerned. After the securities are listed on a recongnized market these can be freely
transferred through its members. The trading operation are carried for a fixed number of
number of hour in a trading hall called trading ring. The stock exchange provides
necessary information to the investor. The SEBI has issued various guideline to regulate
and control the operations of secondary markets there are different type of secondary
markets operating in the country.

1. Recognized Stock Exchange

Recognized Stock Exchange means a stock exchange which for the time being has
been recognized by the central government under section 4 of the securities contract
(Regulation) Act 1956. According to SEBI directions all operations in securities must be
transacted only through recongnized stock exchange in the country.
 National Stock Exchange (NSE)
The National Stock Exchange of India Limited has genesis in the report of the
High Powered Study Group on Establishment of New Stock Exchanges, which
recommended promotion of the National Stock Exchange by financial institutions to
provide access to investors from all acroos the country on an equal footing. Based on the
recommendations. NSE was promoted by leading Financial Institutions at the behest of
the Government of India and was incorporated in November 1992 as a tax-paying
company unlike other stock exchanges in the country.
On its recognition as a stock exchange under the securities contracts (Regulation)
Act 1956, in April 1993, NSE commenced operations in the wholesale Debt Market
(WDM) segment is June 1994. The Capital Market (Equities) segment commenced
operations in November 1994 and operations in Derivatives segment commenced in June
2000.

Bombay Stock Exchange (BSE)

The Stock Exchange, Mumbai Popularly Known as “BSE” was established in
1875. It is a voluntary non-profit making Association of Persons (AOP) and is currently
engaged in the process itself into demutualised and corporate entity. It has evolved over
the years into its present status as the premier stock exchange in the country. It is the first
stock exchanges in the country to have obtained permanent recognition in 1956 from the
Govt. of India under the securities contracts (Regulation) Act 1956.

Over the Counter Exchange of India

OTCEL can be defined as an exchange without a specified trading floor. It does

not have the market place physically and the market is spread across the country through
counter. All the counters are connected through a computer network and transactions
takes place through satellite communication.
Over the counter Exchange of India (OTCEI) was promoted as a non profit
making Organization and has been registered as a limited company under section 25 of
the Companies Act. 1956. OTCEI is a company limited by shares but because of its status
under section 25 of companies Act 1956, it does not use the work limited with its name.
COMPANY
PROFILE
 INTRODUCTION TO SSKI:

SSKI group also comprises institution broking and corporate Finance. While the
institutional broking division caters to the largest domestic and foreign institutional
investors, telecom and media. SSKI holds a sizeable portion of the market in each of
these segments.

SHARE KHAN BACKGROUND:

Share khan is one of the leading retail brokerage firms in the country. It is the retail
broking arm of the Mumbai-based SSKI group which has over eight decades of
experience in the stock broking business. Share khan offeres its customers a wide range
of equity related services including trade execution on BSE, NSE, Derivatives, depository
services, online trading, investment advice etc.

With more than 150 share shops in 80 cities, and India’s premier portal,
www.sharekhan.com, we reach out to customers like no else. Sharekhan offers you trade
execution execution facilities on the BSE and the NSE for cash as well as derivatives,
depository services and most importantly, investment advice tempered by 80 years of
research and broking experience.

The frim’s online trading and investment site-www.sharekhan.com was launched

on Feb 8, 2010. The site gives access to superior content and transaction facility to retail
customer across the country. Region approx-2000 online share trading accounts per
Month are opened. Share Khan’s ground network includes over 300 centers in 140 cities
in India, of which 63 are fully owned branches.
 With a legacy of more than 80 years in the stock markets, the SSKI ground,
ventured into institutional broking and corporate finance 18 years ago. Presently SSKI is
one of the leading players in institutional broking and corporate fiancé activates. SSKI
holds a sizeable portion of the market in each of these segments SSKI’s institutional
broking arm accounts for 7% of the market for Foreign institutional portfolio investment
and 5% of all Domestic institutional portfolio investment in the country. It has 60
institutional clients spread over India, For East, UK and US. Foreign Institutional
Investors generate about 65% of the organizations revenue, with a daily turnover of over
US$ 2 million. The Corporate Finance section has a list of very prestigious clients and
has many firsts to its credit, in terms of the size of deal, sector tapped etc. The group has
placed over US$ 1 billion in private equity deals. Some of the clients include BPL
cellular Holding, Gujarat Pipava, Essar, Hutchison, Planet Asia and shopper’s Stop.
 FINANCIAL PERFORMANCE OF SHARE KHAN:

Share khan is India’s leading retail financial services company. They have over 588 share
shops across 213 cities in India. While their size and strong balance sheet allow them to
provide customer with varied products and services at very attractive prices, their over
750 client relationship Mangers are dedicated to serving customer unique needs.

Share khan is lead by a highly regarded management team that has invested crores
rupees into a world class infrastructure that provides clients with real time service & 24/7
access to all information and products. Their flagship share khan Professional Network
offers real-time prices, detailed data and news, intelligent analytics, and electronic trading
capabilities, right at your fingertips. This powerful technology complemented by their als.

Share khan client relationship Mangers are available to the customers to help with
their financial planning and investment needs. To provide the highest possible quality of
service, Share khan provides full access to all our products and services through multi-
channels.

BENEFITS OF INVESTING WITH SHARE KHAN:

 ACCESSIBILITY
Share Khan provides ADVICE, EDUCATION, TOOLS AND EXCUTION
services for investors. These services are accessible through centers across the
country (Over 250 locations in 123 cities), Over the internet (through the website
www.sharekhan.com) as well as over the Voice Tool.
 CONVENIENCE
AN investor can call on Dial-n-Trade number (1-600-22-7050) to get investment
advice and execute you transactions.
 ADVANTAGES
1. Secure Order by Voice Tool Dial-n-Trade.
2. Automated Portfolio to keep track of the value of your actual purchases.

3. 24 x 7 Voice Tool access to your trading account.

4. Personalized Price and Account Alerts delivered instantly to your Cell
Phone &
E-mail address.
5. Special Personal Inbox for order and trade confirmations.
6. On-line Customer Service via Web Chat.
7. Anytime Ordering
PRODUCTS
DETAILS OF
SHAREKHAN
LTD.

PRODUCT DETAILS OF SHARE KHAN:

Share khan offers the following products:-

CLASSIC ACCOUNT:

This account allows the client to trade through our website and is suitable
for the retail investor who is risk-averse and hence prefers to invest in stocks or who do
not trade too frequently.

FEATURES:

 Online trading account for investing in Equity and Derivatives.

 Both NSE & BSE online and Trading through website live terminal
 Both Cash & F&O
 No brokerage commitment required
 Integration of On-line trading, Saving Bank and Demat Account.
 Instant cash transfer facility against purchase & sales of shares.
 Competitive transaction charges.
 Instant order and trade confirmation by E-mail.
 Streaming Quotes. (Cash & Derivatives).
 Personalized market watch.
 Single screen interface for cash and derivative and more.
 Provision to enter price trigger and view the same online in market watch.

SPEEDTRADE:-

SPEEDTRADE is an internet-based software application that enables anyone to

buy and sell in an instant. It is ideal for active traders and jobbers who transact frequently
during day’s session to capitalize on intra-day price movement.

FEATURES:-
  Instant order Execution and Confirmation.
 Single Screen trading terminal (NSE AND BSE BOTH)
 Real-time streaming quotes, tic-by-tic charts.
 Market summary (cost traded scrip, highest value etc.)
 Hot keys similar to brokers terminal.
 Alerts and reminders.
 Back-up facility to place trades on direct phone lines.

DIAL-N-TRADE-
Along with enabling access for their trade online, the CLASSIC and
SPEEDTRADE ACCOUNT also gives their customers Dial-n-trade services. With this
service, all the customers need to do is dial to their dedicated phone lines 1-800-22-7050.

IPO On-line
The customers can apply all the forthcoming IPO online hassle-free.

CHARGES
TABLE-1
Charge Classic Account Speed Trade Account
Special rate of Account Rs. 750/- Rs. 1000/-
Opening
Monthly Commitment Rs. NIL Rs. 500/-
Rate of Brokerages Intraday-0.10% Intraday- 0.10%
Delivery-0.50% Delivery-0.50%

SOURCE:www.sharekhan.com
Refundable in case the brokerage is more than Rs. 500/-=p.m. Or quarterly generated
brokerage to be 1500/- **Taxes as per govt.

For speed Trade the monthly refcurring fee of Rs.500 per month is very nominal
considering the benefits of the product. This access charges will be debited to all the new
customers signed up after Sep 15 2004. And at the end of the month if the client has
contributed more than Rs. 500 as brokerage the access charge of Rs. 500 will be credited.
Back to the clients account. Please not- this credit of Rs. 500 will be refunded only to
customers who have contributed more than Rs. 500 as brokerage during the month.

DEPOSITORY CHARGES:

Account Opening Charges Rs. 750

Special rate of Account Opening Rs. 750/-
Rs. 300 Per annum from second year
onwards

BROKERAGE CHARGED

0.10% Plus Taxes for Each leg of Intra-day trade

0.50% Plus Taxes for trades resulting in delivery.

EXPOSURE: 4 to 6.6 TIMES (ON MARGIN MONEY)

TIE UPS: Tie up with six banks i.e. HDFC Bank Ltd, Oriental Bank of Commerce, IDBI
Bank Ltd., Citi Bank, United Bank of India and UTI Bank for online money transfer.

DOCUMENT REQUIRED
  As per KYC guide lines there needs to be photo identity and Address proof of the
customer. The required documents are mentioned below:

Identity Proof Residence/Address Proof

Passport Passport (valid)
Pan Card Voter’s ID
Driving License Driving Licence (Valid)
Voter’s D Bank Statement (latest)
MAPIN UIN Card Telephone Bill (latest)
Electricity Bill (latest)
Ration Card
Flat Maintenance Bill (latest)
Insurance Policy (latest)
Leave-Licnese Purchase
Agreement (latest)
 2 Photographs
 1 Cheque of Rs. 500 in Favour of S.S. Kantilal Ishwarlal Securities Pvt. Ltd. (For
classic Account), Or
 1 Cheque of Rs. 1000/- in Favour S.S. Kantilal Ishwarlal Securities Pvt. Ltd. (For
classic Account),

THEORITICAL
FRAMEWORK
 OF
INVESTMENT
&
D-MATERIALIZATION

INVESTMENT

What is Investment?
Invest is a term with several closely related meanings in fiancé and economics. It
refers to the accumulation of some kind of assest in hopes of getting future return from it.
  In theoretical economics, investment means the purchase (and thus the
production) of capital goods-goods which are not consumed but instead used in
future production.

Examples: Including Building a railroad, or a factory, clearing land, or putting oneself

through college.

 In finance, investments means buying monetary or paper asset, for example equity
investment or real stat investment may than provide a future income and increase
in value.

Investment is spending on capital goods by firms and government, which will allow
increased production of consumer goods and services in future time periods. Be careful
not to consfuse the economist’s definition of investment with another interpretation-that
investment involves putting funds into financial assets such as stocks and shares.

TYPES OF INVESTORS

Investors- who do good amount of homework about the industry and company they
want to invest in & usually with medium to long term horizon.
Speculators- Bet on future movement in the price of an asset. Who try to make big bucks
in a short time?

Momentum Traders- Intra-day traders.

HEDGERS:- Manage the risk associated with price of asset.

D-MAT PROCESS

NSDL 2
DP
5 4 1
7

REGISTRAR
INVESTOR

The process is as follows:-

 Surrendering of certificate to DO for D-MAT
 NSDL is informed by the DP through electronic connectivity

 Original share certificate are submitted to the registrar by DP

 The request for D-MAT from NSDL to the registrar.

 Registrar credit an equivalent number and inform to NSDL.]

 NSDL update its own account and informed to the DP.

 DP credit it in the account to the investor and informed to the investor.

OPTIONS
 AVAILABLE
FOR
INVESTMENT

OPTIONS AVAILABLE FOR INVESTMENT:

1- FIXED DEPOSITS:
Fixed deposits remain the most popular instrument for financial
savings in India. They are the middle path investments with adequate returns and
sufficient liquidity. There are basically three avenues for parking savings in the
 form of fixed deposits. The most common are bank deposits. For nationalized
banks, the yield is generally low with a maximum interest of 10 to 10.5% per
annum for a period of three years or more.

2- NATIONAL SAVING CERTIFICATES (NTSCs):-

National Savings Certificates (NSC) is an assured return scheme,
armed with powerful tax rebates under Section 88 of the Income Tax Act, 1961.
Interest is payable at 8 per cnet, compounded half-yearly for a duration of 6 years.
NSC combines growth in money with reductions in tax liability as per the
provisions of the Income Tax Act, 1961. The scheme offers a coupon of 8 per
cent, compounded semi-annually. SO, Rs 1000 invested in NSCs become Rs
1,586.87 on maturity after 6 years.
3- LIFE INSURANCESL
Life insurance is a contract that pledges payment of an amount to the person
assured or his nominee on the happening of the event isured against. The contract
also provides for the payment of premium periodically to the corporation by the
policyholder. Life insurance is university acknowledged to be an institution,
which eliminates ‘risk’, substituting certainty for uncertainty and comes to the
timely aid of the family in the unfortunate event of death of the breadwinner
4- PUBLIC PROVIDENT FUND (PPF):-
The Public Provident Fund (PPF) is probably the most popular of all the tax
saving scheme. PPF is a savings cum tax saving instrument. It also serves as a
retirement planning tool for many of those who do not have any structured
pension plan conversing them. Under Section 88 of the Income Tax Act, you can
invest up to Rs. 70000 of your income to claim a rebate of upto 30 per cent
depending upon the rate of rebate applicable in your case. The PPF account may
be opened at any branch of the State Bank of India (SBI) and its subsidiaries, a
few branches of the other nationalized banks, and all head post offices. The
minium deposit is Rs 500 Minimum deposit required in a PPF account in Rs. 500
in a financial year Maximum deposit limit it Rs. 70000 in a financial year.
Maximum number of deposits is twelve In a financial year. The account matures
 for closure after 15 years.

5- REAL ESTATES:
Real estate is a legal term (in some jurisdictions ) that encompasses land along
with anything permanently affixed to the land, such as buildings. Fixtures include
buildings, fences and things attached to buildings, such as plumbing, heating, and
light fixtures. Property that is not affixed is regarded as personal property. Fox
example, furniture and draperies are items of personal property. Within the real
estate sector, foreign investment is now permitted in construction and project
development related to both residential and commercial development related to
both residential and commercial development in

6- SHARE MARKET:
The capital of the company is divided into the number of equal parts known as
shares and holders of these shares are called shareholders or owner of the
company and company provide part of profit to shareholder out of net profit is
known as dividend and at the time of loss the shareholders have to bear the loss
also.

TYPES OF SHARES:-
EQUITY SHARES:
Equity Shares is the owners capital in the company. The holders of these shares
are the real owners of the company. They have control over the working of the company.
Equity shareholders are paid dividend after paying it to the preference shareholders.
PREFERENCE SHARES:
These shares have certain preferences as compared to other types of shares. These
shares are given two preferences. First is for payment of dividend and second is for
repayment of capital at the time of liquidation of company.

DEBENTURES:
Debenture is a document under the company’s seal which provides for the
payment of principal sum and interest thereon at regular intervals. A debenture holder is a
creditor of the company. A fixed rate of interest is paid on debentures irrespective of
profit or loss. Debentures are payable in priority over share capital. Debenture holders
have no right over the management of company.

7. DERIVATIVES:

Derivatives are the instrument and Derivative contract is a financial instrument

whose payoff structure is derived from the value of the underlying asset.
There are 3 types of Derivative contracts
 FORWARD CONTRACT: It is an agreement entered today under which one
party agrees to buy and the other agrees to sell on a specified future date at an
agreed price.
 FUTURE CONTRACT: It is a standardized contract between two parties where
one party commits to sell and the other commits to buy, a specified quantify of a
specified assets at an agreed price on a given date in the future.
 OPTION CONTRACT: It is a contract between two parties under which the
buyer of the option buys the right and not the obligation to buy or sell, a
standardized quantity of financial instrument at or before a pre determined date at
a price which is decided in advance. Options are of two types- Calls and puts
options:
Calls give the buyer the right but not the obligation to buy a given quantify of the
underlying asset, at a given price on or before a given future date.
 Puts given the buyer the right, but not the obligation to sell a given quantity of
underlying asset at a given price on or before a given future date.

8. COMMODITIES MARKET:
Commodity markets are markets where raw or primary products are exchanged.
These raw commodities are traded on regulated exchanges, in which they are
bought and sold in standardized contracts. A commodity has value, which
represents a quantity of human labor. The fact that it has value implies
straightaway that people try to economies its use. A commodity also has a use
value, and exchange value and a price.

9. INITIAL PUBLIC OFFER (IPO)

An initial public offering (IPO) is the first sale of a corporation common shares to
public investors. The main purpose of an IPO is to raise capital for the
corporation. The first sale of stock by a private company to the public, IPO’s are
often issued by smaller, younger companies seeking capital to expand but can also
be done by large privately owned companies looking to become publicly traded.

10. MUTUAL FUNDS:

A mutual fund is a basket of investment brought from the money of investors and
managed by a set of experts. It raises money from the investors regularly by
coming out with new schemes which carry a particular name depending upon
their investment portfolio. For e.g. DSP FMCG fund will only invest in the shares
and debt of the FMCG companies. The return received by the schemes is
highlighted in the form of a higher NAV.

11. SECURITIES MARKET:

A place or places where securities are bought and sold, the facilities and people
engaged in such transactions, the demand for and availability of securities to be
traded, and the willingness of buyers and sellers to reach agreement on sales.
 Securities market include over-the-counter markets the new York Stock Exchange
the Chicago Board of Trade and the American Stock Exchange.

12. EQUITY INVESTMENT:

When we buy a share of a company we become a shareholder in that company.
Shares are also known as equities, Equities have the potential to increase in value
over time. It also provides your portfolio with the growth necessary to reach your
long term investment goals. Research studies have proved that the equities have
outperformed most other forms of investments in the long term.

13. PORTFOLIO:
A Portfolio is a combination of different investment assets mixed and matched for
the purpose of achieving and investor’s goal (s). Items that are considered a part
of your portfolio can include any asset you own from shares, debentures, bonds,
mutual fund units to items such a gold, art and even real estate etc. However, for
most investors a portfolio has come to signify an investment in financial
instruments like shares, debentures, fixed deposits, and mutual fund units.

14. DEBT INVESTMENT

Investment in the financing of property or of some endeavor, in which the
investor loaning funds does not own the property or endeavor, nor share in its
profits. If property is pledged, or mortgaged, as security for the loan, the invested
may claim the property to repay the debt if the borrower defaults on payments.
Also see equity investment.

TRADING PROCEDURE

Now the question arises how the trading takes place

Types of Order
Order Entry & Unique code
Unique order number
Time stamping of Orders
Trade Number
Posted to back office of the Broker/Sub-broker
Issue of Contract Note/Sales Purchase Note

1- Execution of Order
Orders got executed on finding the right match.
Matching Priority:
Best buy order-with highest price
Best sell order- with lowest price
The unmatched orders are queued in the system by price time priority basis.

2- Flow of Trading

3- How trades are settled?

Trades are settled on a T+2 basis
Netting of trades
Securities pay-in
Funds Pay-in
Securities Pay-out
Funds Pay out
Auction for shortages

4- Settlement Calendar
Activity Day
Trading T
Funds Pay-in T+2
Securities Pay-in T+2
Funds Pay-out T+2
Securities Pay-out T+2
Auction for Shortage T+3
Auction Pay-in/Pay-out T+5

5- Formalities Before Trading

Identify Broker/Sub-Broker
Client Registration
Client Agreement
Risk Disclosure document
Allotment of Unique Client Code
Margin Payment
Demat Account
 RESEARCH
METHODOLOGY

RESEARCH METHODOLOGY
Research methodology is the way to systematically solve the problem Research is
common parlance to refer to a search for knowledge.
Research comprises defining problem formulation hypothesis or suggesting solution,
collecting, organizing or evaluating data and reaching conclusion and at last carefully
testing conclusion to determine whether fit the formulated hypothesis.
Research is a careful investigation or enquiries for new facts in any branch of knowledge.
Researchers are basically systematic enquiry with customer’s critical examination with
objective to search new facts or interpret know facts in light.

R - Rational way of thinking

E - expert and exhaustive treatment
S - search for solution
E - Exactness
A - Analytical
R - Relationship of facts
C - Careful recording
H - Honestly and Hard-work

TITLE OF THE RESEARCH

“ANALYSIS OF INVESTOR IN THE STOCK MARKET AND DMAT SERVICES AT
SHAREKHAN LTD”

DURATION OF THE PROJECT

45 DAYS

OBJECTIVE OF THE STUDY

 To provide details about the various products and plans offered to customers in
the market.
 To evaluate their product and investing decision of investors in the stock market.
 To analyse the D-mat services provided by SHAREKHAN CO.LTD.
 To recongnize area of improvement
 TO define the area and reason of SHAREKHAN CO.LTD. having an edge over
other.

TYPE OF RESEARCH

 Exploratory research based on primary Data collected through Questionnaires

from the clients of Sharekhan.

Sample size & Method of Selecting Sample

  Sample size consists of 50 clients of Sharekhan. The method of selecting sample
in Non-probability sampling.

SCOPE OF THE STUDY

 The research consists of study of products of various brokerage houses in the city
of Udaipur. A detail analysis of the brokerage houses, their products, their
services.

 To conduct a customer survey so as to define the various needs and requirement

of investors with the objective to facilitate them with the facilities and services.

LIMITATIONS OF STUDY
The limitations of the study are the following

1. Data Constraint:
Sometimes people are not giving accurate information:
 The project relies on the data provided by clients of sharekhan where they reveal
the positive aspect of their plans and policies but some loopholes remain
uncovered.
 The primary data is based on the data provided by the client and the prospective
client where they may avoid providing their exact view.
2. Time Constraint:
 The number of other brokerage house is very large so it is not possible to cover all
the brokerage houses to evaluate actual competition. Thus the project is limited to
Sharekhan Ltd.
3. Margin money is necessary in our company for open a Demat A/c.
4. Market is so much volatile so investors are not interested to invest in the share
market.
5. Many people don’t aware from SHAREKHAN CO. LTD.
6. It is very difficult to make understand people the concept of demat Accounts.
7. As I am new to this share market it becomes difficult to solve the queries of
customers.
8. Cost constraint.
9. As I have to do marketing work it becomes difficult to roam in hot weather.

TARGET/TASKS
 The Target for summer intership program is SHAREKHAN CO. LTD. Is
convincing people to invest of STOCK MARKET through our company.

 Convince people to open DEMAT accounts inspire them to trade with our
company.

 Overall Target- To open 10 DEMATS accounts within 45 days.

 Target Achieved- I have opened 8 DEMAT accounts.

 ANALYSIS
&
INTERPRETATION
Financial Performance of Share Khan:

Share Khan is India’s leading retail financial services company. They have over 588
share across 213 cities in India. While their size and storng balance sheet allow them to
provide customers with varied products and services at very attractive prices, their over
750 Client Relationship Managers are dedicated to serving customers unique needs.
Share khan is lead by a highly regarded management team that has invested crores of
rupees into a world class infrastructure that provides clients with real time service & 24/7
access to all information and products. Their flagship Share Khan Professional Network
offers real time prices, detailed data and news, intelligent analytics and electronic trading
capabilities, right at your fingertips. This powerful technology complemented by their
als.
Share Khan client Relationship Managers are available to the customers to help with their
financial planning and investment needs. To provide the highest possible quality of
service, Share khan provides full access to all our products and services through multi-
channels.
ANALYSIS IS AS FOLLOWS
 When the investors were asked, for how long they are investing in the stock market. The
datas collected were as follows:
No. of years No. of investors in %
Less than 1 year 10
1-3 years 20
4-6 years 60
More than 6 years 10
 When the investors were asked, which type of trading do they normally prefer.
The datas collected were as follows:

Types of trading No. of investors in %

Intraday 42
Delivery 36
Both 22
 When the investors were asked, how much brokerage they are paying
The dates collected were as follows:

Brokerage Charged No. of investors in %

0.3-.30 paisa 38
.02-.20 paisa 23
.01-.10 paisa 31
More than 0.30 paisa 08
 When investors were asked about their satisfaction in working with Sharekhan
Ltd.

Satisfied or Not No. of Investors in %

Yes 73
No 27
When the investors were asked Are they satisfied with the investment which they
received with sharekhan

Satisfied or Not No. of Investors in %

Yes 65
No 35
 When the investors were asked about the area where the co could not meet the
client’s expectation level. The following results were depicted.

Attributes Rank
Brokerage fees 3
Services 1
Research & Advices 1
Complaints handing 2
Product basket 1
 Interpretation
From the very start Stock Market has been an area of interest for the mass,
the investons and for the analyst. It has been a source of earning and profit for large while
some have also experienced its sour taste.
Stock Market has shown various colours to the investors all over the world and
has drawn the attention of many people. It has been one of the reasons for inflation. But
this inflation has not been a loner; It is also backed by increased in purchasing power and
disposable income.
The investors in the stock market have increased and so has completion. A rise in
the number of investors has drawn the attention of the brokerage houses and has lead to
rise in competition and so has increased the number of brokerage houses.
A brokerage house is one with help the investors invest their funds and gain profit
and in return charge brokerage and interest for the funds provided by them. A brokerage
house also provides facilities like account opening, transfer of shares, dematerialization
of shares, provides funds for the trading and so on Different companies have different
policies for providing funds.Few provide 2 Times of your investment while some up to
10 Time.
Every brokerage house has a survey team that helps the dealers and the team
suggests investment and guides them in investing their funds appropriately and gain
profit. The research team provides suggestions to the dealers and the dealers on the basis
of these investment tips help investment of funds.
All the brokerage houses have tie up with different banks to facilitate deposit and
withdrawal of fund. There exist a large number of brokerage houses and offer different
products and plans.
 I strongly believe that a well functioning securities market is conductive sustained
economic growth. There have a number of studies, starting from world Bank and IMF to
various scholars, which have established robust relationship not only one way, but also
the both ways, between the development in the securities market and the economic
growth. An important study by Ross Levine and Sara Zervos (1996) finds that the stock
market development is highly significant statistically in forecasting future growth of per
capita GDP.
This happens, as market gets disciplined / developed/ efficient, it avoids the
allocation of scarce savings to low yielding enterprises and forces the enterprises to focus
on their performance which is being continuously evaluated through share prices in the
market and which faces the threat of takeover. Thus securities market converts a given
stock of investible resource to a larger flow of goods and services.
The securities market fosters economics growth to the extent that it
a) Augments the quantities of real savings and capital formation from any given
level of national income.
b) Increases net capital inflow from abroad.
c) Raises the productivity of investment by improving allocation investible funds.
d)Reduces the cost of capital.
The securities market provides a bridge between ultimate savers and
ultimate investors and creates the opportunity to put the ravings of the cautious at the
disposal of the enterprising thus promising to raise the total level of investment and hence
of growth. The indivisibility or lumpiness of many potentially profitable but large
investments reinforces this argument. These are commonly beyond the financing capacity
of any single economic unit but may be supported if the investor can gather and combine
the savings of many Moreover, the availability of yield bearing securities makes present
consumption more expensive relative to future consumption and, therefore, people might
be induced to consume less today. The composition of savings may also change with
fewer saving being held in the form of idle money or unproductive durable assets simply
because more divisible and liquid are available.
 The securities market facilitates the internationalization of an economy by linking
it with the rest of the world this linkage assists through the inflow of capital in the form
of portfolio investment. Moreover a strong domestic corporate to raise capital in the
international market. This implies that the domestic economy is opened up to
international competitive pressures, which help to raise efficiency. It is also very likely
that existence of a domestic securities market will deter capital outflow by providing
attractive investment that causes investment alternatives to be compared with one another
produces allocation improvement over a system of segregated investment opportunities.
They provide a convenient market place to which investors and issues of securities go
and thereby avoid the need to search a suitable counterpart. The market provides
standardized products and thereby cuts the information costs associated with individual
instruments. The market institutions specialize costs associated with individual
instruments. The market institutions specialize and operate on large scale, which cuts
costs through the use of tested procedures and routines. There are also other
developmental benefits associated with the existence of a securities market.
First the securities market provides a fast-rate breeding ground for the skilled and
judgment Second an active securities market serves as on engine of general financial
development and may, in particular, accelerate the integration of informal financial
traditional assets such as gold and stocks of produce or, indirectly, may provide portfolio
assets for unit trusts, pension funds and similar FIS that raise savings from the traditional
assets for unit trusts pension funds and similar F/s that raise saving from the traditional
sector Third the existence of securities market enhances the scope, and provides
institutional mechanisms, for the operation of monetary and financial policy.
CONCLUSION
AND
SUGGESTION
CONCLUSION:
Indian economy globalizes and the capital market has been linked to the international
financial market. Foreign individuals and institutional investors are now encouraged to
participate into it. So, there is a need for raising the Indian Capital market in to the
international standards in terms of efficiency and transparency. One such measure is the
passing out of the Depository Act in the year 19960 Dematerialization of securities is one
of the major steps aimed at improving and modernizing the capital market and enhancing
the levels of investor’s protection measures which aims at eliminating the bad deliveries
and forgery of shares and expediting transfer of shares.
This study is giving an overview about the security market as is evident from the title of
work. It has given insight into the functioning and components of primary and secondary
market. It made clear the meaning of stock exchange which provides a platform to enlist
the company’s securities and facilitate the buying and selling of various securities like
shares, debenture, bonds, and government securities etc.
As has been discussed at the outset of concluding the work, that to cater to the growing
demands of globalization the trading in securities has been made more grandparent and
easy through the introduction of Depository Act in 1996 and the dealing in securities
have been made convenient through the dematerialization of securities. The regulatory
body SEBI has introduced revised procedures so as to combine the latest procedure of
securities dealing giving impetus on the investor protection.
After taking feedback from customer I knew that SHAREKHAN LTD is popular product
in the market and everyone knows the benefits of online share trading. They want to open
D-MAT account and take advantage of online and offline share trading.
This PROJECT has given us real practical experience of the market. During these 45
days we have meet to different people. I have prepared the questionnaire that has helped
us to know the market trends and customer preference related to D-Mat a/c and
commodity section. I have assessed their queries and grievances. We have also learnt
about how to deal with customers and solve their queries and how to convince theme by
the presenting the products of the company.
I thing that performance can be improved by the adopting some strategy of the marketing
like and know the customer satisfaction related to our company products.
SUGGESTIONS

1. The Sharekhan Ltd. Should reduce its brokerage charges.

As there are large no. of competitors in the market having low brokerage charges,
SHAREKHAN LTD. Should go for reduction for reduction its brokerage charges.
2. The Sharekhan Ltd. Should formulate separate complaint handing deptt. For
handing the complaints of the customers.
3. The sharekhan ltd. Should add some new facilities in addition to its current
facilities like interim fundings etc.
4. As the market is moving to the bull side, the Sharekhan Ltd. Should create the
awareness to the potential investors by tele callings etc.
5. Sharekhan Ltd. Should improve its service quality by providing quick and prompt

services.
6. As most of the market is uncaptured and the investors are unaware of Sharekhan
Ltd. The co. should opt the strategy of aggressive advertisement through
telecallings, pamphlet distribution & make public aware about benefits of
investing with Sharekhan Ltd.
Bibliography

MAGAZINES:
Business world
Business Today
Journals of SHAREKHAN LTD.

NEWSPAPERS:
Business Line.
Economic Times.

WEBSTIES:
www.google.com
www.sharekhan.com
 ANNEXURE-I

QUESTIONNAIRE
Q.1 Your Trading accounts is in which company?

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i) Since when are you trading in the share market?

Less than 1 yr 1-3 yr 4-6 More than 6

Yrs

2) What type of trading do you prefer?

Intraday Delivery Both

3) What is the brokerage charged?

0.3-.30 Paisa .02-.20 Paisa 1-.10 Paisa

More than 0.3 paisa

4) What interests you in share Market?

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5) How often do you gain from it?

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6) What are the reasons for operating with the stated company?

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7) Are you satisfied with the services?

Yes No

8) Are you satisfied with the investment tips?

Yes No
9) What is the margin allowed and what are the services that you expect?

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10) Is there any difference in the service provided by local broker and corporate body? If
yes then please specify?

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11) Have you switched from one firm to another? If yes then reasons and which company
have you switched to?

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12) what are the different attributes that client looks forward for a brokerage house?

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13) What were the areas where the MOST could not meet the client’s expectation level?

Attributes Ranks
Brokerage fees
Services
Research & advices
Complaints handling
Products Basket

Remarks:-

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