Project Report On Customer Study On Security Trading

SUMMER TRAINING REPORT
ON
“CUSTOMER STUDY ON SECURITY TRADING”
India Infoline Ltd.
Summer Training Project Report Submitted Towards The

Partial Fulfillment For Award Of The Degree Of Master of
Business Administration
(2009-2011)
COLLEGE OF SCIENCE & ENGINEERING,

JHANSI (U.P)
UNDER THE GUIDANCE OF

MR. PARAS CHAUDA
(Relationship Manager)
Submitted To: Submitted by:

MR. MANOJ KUMAR SHARMA JEETENDRA PARSERIA
Head Of Business Administration MBA-3rd Sem
ROLL NO:-0914570023
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DECLARATION
I do hereby declare that the Project work entitled “A Customer Study On Security Trading”
submitted for the partial fulfilment for the award of Master’s Of Business Administration of
College Of Science & Engineering , Ambabai, Jhansi (U.P) is my original work and has not
previously formed the basis for the award of any degree, diploma, associate ship, fellowship or
other similar title or recognition.
JEETENDRA
PARSERIA
2
ROLL NO:- 0914570023
ACKNOWLEDGEMENT
I would like to express My sincere thanks to India Infoline Ltd, Noida for giving me the
opportunity to carry out the Summer Internship Program in their organization.
I express my gratitude to Mr. Paras Chauda (Relationship Manager) & Mr. Divyadeep
Arora (Sales Manager) India Infoline Ltd, for their support and guidance during the training
period.
I am very thankful to Mr. Manoj Kumar Sharma, Head Of Business Administration,
College of Science & Engineering, Jhansi (U.P), for giving me the opportunity to complete
my training in India Infoline Ltd and giving me the guidance and interest evinced throughout
the preparation of this project.
I also extend my heartfelt gratitude and thanks to Mr. Ajay Gangele, Assistant Professor,
Master’s Of Business Administration.
I would like to express my note of gratitude towards my Project Mentor Ms. Ruchi Khanna,
Senior Lecturer, Master’s Of Business Administration and all other faculty member of
CSE, Jhansi, my thanks to those who encourage me and give values and moral support to
complete my summer training successfully.
I take this opportunity, also to express My love and sincere thanks to My family members and
friends for their support and advice during various stage of work.
Last but not the least I thank God almighty for giving me the support for the completion of the
task.
JEETENDRA PARSERIA
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ROLL NO :- 0914570023
PREFACE
No professional curriculum is considered complete without work experience. It is well evident
that work experience is an indispensable part of every professional course. In the same manner
practical work in any organization is must for each an every individual, who is undergoing
management course. Without the practical exposure one cannot consider himself as a qualified
capable manager.
Entering in the organization is like stepping into altogether a new world. At first, everything
seems strange and unheard but as the time passes one can understands the concept and
working of the organization and thereby develop professional relationship. Initially it is felt
that as if classroom study was irrelevant and it is useless in any concern working. But
gradually it is realize that all fundamental basic concepts studied are linked in one or other
ways to the organization. But how and what can be done with fundamentals depends upon the
intellectual and applicability of an individual.
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ABSTRACT
Indian capital market has seen unprecedented boom in its activity in the last 15
years in terms of number of stock exchanges, listed companies, trade volumes,
market intermediaries, investor population, etc. However, this surge in activity
has brought with it numerous problems that threaten the very survival of the
capital markets in the long run, most of which are due to the large volume of
paper work involved and paper based trading, clearing and settlement.
Until the late eighties, the common man kept away from capital market and
thus the quantum of funds mobilized through the market was meager. A major
problem, however, continued to plague the market. The Indian markets were
drowned in shares in the form of paper and hence it was problematic to handle
them. Fake and stolen shares, fake signatures and signature mismatch,
duplication and mutilation of shares, transfer problems, etc. The investors
were scared and were under compensated for the risk borne by them. The
century old system of trading and settlement requires handling of huge
volumes of paper work. This has made the investors, both retail and
institutional, wary of entering the capital market. However, lack of
modernization become a hindrance to growth and resulted in creation of
cumbersome procedures and paper work.
However, the real growth and change occurred from mid-eighties in the wake
of liberalization initiatives of the Government. The reforms in the financial
sector were envisaged in the banking sector, capital market, securities market
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regulation, mutual funds, foreign investments and Government control. These
institutions and stock exchanges experienced that the certificates are the main
cause of investors` disputes and arbitration cases.
LITERATURE REVIEW
Investing in equities in a market like India is speculative and involves risk that may be greater
than other types of investment strategies. Before investing an Investor should be careful enough
about him investment decision to avoid erosion of wealth. As seen in the recent times the
volatility of market is more detrimental to the retail investors as it seems to be lucrative for
speculative gains of short duration of time. Hence an investor has to evaluate his options
carefully for a prudent investment, keeping long-term horizon in mind.
The report has tried to bring out the parameters those are of paramount importance to
general public dealing in an equity trading on Intra Day and delivery base trading. The working
methodology has been discussed i.e. the data collection methods, sampling methods and the
survey questionnaire methods. Questionnaire prepared is designed so as to cover a wide range of
customer “touch points”. The report given a view about the investors perception that what they
think while making investments in shares.
A sample of 100 people was selected randomly and survey was done as per the
parameters of the questionnaire. The results of every parameter have been included in this
report and shown graphically (Pie Charts, bar graphs etc.) A complete structure of the research
design has been included.
Apart from above discussed points the brief history of India Infoline Securities Ltd, its business
diversification and a brief introduction about the concept of share trading.
The two largest stock exchanges in India are the Bombay Stock Exchange and the National
Stock Exchange of India. The Indian economy has grown rapidly in the last ten to fifteen years,
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and both of these exchanges have continued to reactively construct new stock market indexes in
order to more accurately represent the overall Indian market.
The Bombay Stock Exchange (BSE) created the BSE 500 stock market index. This index of 500
stocks is designed to better portray the changing nature of the Indian economy, and represents
nearly 93 percent of the market capitalization of the BSE (BSE). Consequently, the BSE 500 is
generally considered representative of the Indian stock market.
India Index Services and Products Limited (IISL) was created in 1998 to provide a variety of
stock market indexes to the National Stock Exchange of India (NSE). IISL has a consulting and
licensing agreement with Standard and Poor’s (NSE website).The NSE S&P CNX 500 (NSE
500), a broad-based index of 500 stocks, was created . According to the NSE, this index
represents approximately 93 percent of the exchange’s market capitalization and approximately
87 percent of NSE turnover, and is therefore representative of
the overall Indian stock market.
We collected values for each index for the last trading day of each month. Data for last trading
day of the month for each index were available from June 1999 to June 2010, so that we have
ninety-six monthly return observations, i.e. from July 1999 to June 2010 for each index. Since
each index represents over ninety percent of the market capitalization of its respective exchange
and each index is representative of the overall Indian stock market, we expect similar results for
our analysis of each of the two data sets over the sample period.
Adoption of the Internet might be an indicator of changes in the society and adopters and non-
adopters might be differentiated according to the demographics (Al-Ashban and Burney, 2001;
Karjaluoto et al., 2002; Sathye, 1999) and attitude towards the use of Internet for trading. In
recent studies, demographic variables such as age, educational level, and income contributed
significantly in discriminating between innovators and early adopters from others (LaBay and
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Kinnear, 1981; Gatignon and Robertson, 1985; Martinez et al., 1998). Doherty et al. (2003)
and (Akinci et al., 2004) found that male and
young customers were most likely to adopt the internet for stock trading. The young, educated,
and affluent embraced the advent of personal computer as the new wave in digital technology
(Lin, 1998; Atkin et al., 1998; Karjaluoto et al., 2002; Mattila et al., 2003; Sathye, 1999).
Another study observed that age and education of the respondents did not discriminate between
Internet users and the non-users of e-banking (Sohail and Shanmugham, 2003).
Attitude is defined as an individual's degree to respond in a favorable or unfavorable way with
respect to a psychological object (Ajzen and Fisherbein, 2000). In the field of Internet stock
trading, the more positive the attitude an individual had towards the object, the more likely was
the behavioral intention to adopt the same (Gopi and Ramayah, 2007). Many studies had
shown the significant effect of the attitude towards intention to adopt the innovation
(Mathieson, 1991; Lu et al., 2003; Shih and Fang, 2004; Ramayahet al., 2003; Teo and
Pok, 2003; Ramayah et al., 2004; Eri, 2004; Ramayah et al., 2005; Ramayah and Suki,
2006). Another study revealed that attitude and social factors significantly influenced the
investors’ intention towards adopting Internet stock trading as they find themselves secure in
this trading.(Lee and Ho, 2003). Majer (2010) attempted to examine 100 investors’ opinion on
issues ranging from Internet security to their willingness to adopt an Internet-based stock
exchange in Canada. It was concluded that Internet stock exchanges would soon catch a
valuable niche market in the area of electronic commerce.
“Patel and Evans (2003)” investigated seasonal patterns in the stock markets of the seven
most industrialized..
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A period of good returns also boost the investor’s self confidence reducing his
psychological risk.(Tversky , A. & Kanheman, D .(1974), Judgement under uncertainity :
Heuristics and Biases, Science.
OBJECTIVE OF THE STUDY
1) To study investor’s behavior towards different Factors and service quality
such as Convenience, Privacy, Timesaving, User-friendly etc. of
investment in Equities.
2) To study the issues and challenges that investor’s face while making
investment in share market.
3) To study the preferences and perceptions of investors regarding various
financial products from the stable of India Infoline Securities Ltd. so that
the firm can benefit from the findings of the report in launching any new
investment product in future.
4) To study the customer behavior in respect of investment in shares.
5) To understand the satisfaction level of clients with India Infoline regarding
service provided by staff.
trade confirmation.
7) To understand the what type of trading should be provided to the
customers.
8) To learn about the different aspects of the customers.
9) To study the satisfaction level of brokerage.
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tips.
11) To study the satisfaction level of flexibility provided by India Infoline.
12) To study the overall satisfaction level.
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TABLE OF CONTENTS
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CHAPTER TITLE PAGE NO
1 Introduction 12 - 13
1.1 History Of India Infoline 14 - 16
1.2 Company Profile 17 - 22
1.3 The Management Team 23 - 25
1.4 Marketing Strategies Of IIFL 26 - 36
1.5 About Demat Account 37 - 45
1.6 Competitors Details 46 - 48
1.7 History Of Stock Exchange 49 - 54
1.8 Products & Services 55 - 61
1.9 Types Of Account 62 - 69
2 Research Methodology 70 - 71
2.1 Objectives Of The Research 72 - 73
2.2 Limitations Of The Study 74 - 75
3 Data Analysis & Interpretation 76 - 106
3.1 Testing Of Hypothesis 107 - 112
4 Conclusion 113 - 114
4.1 Recommendations 115 - 118
4.2 Questionnaire 119 - 130
5 My Experience During Training Period 131 - 132
6 Bibliography 133 - 138
7 Annexure 139
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CHAPTER 1
INTRODUCTION
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INTRODUCTION AND CONCEPT OF SHARE
TRADING
Trading in shares is old phenomena its regulation had been started when securities contract act
had been formed in 1956. Transfer of resources from those with idle resources to others who
have a productive need for them is most efficiently achieved through the securities market. It
provides a channel for reallocation of savings to investments.
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CHAPTER 1.1
HISTORY OF THE
COMPANY
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HISTORY OF THE COMPANY
India Infoline was originally incorporated on October 18, 1995 as Probity Research and
Services Private Limited at Mumbai under the Companies Act, 1956 with Registration No. 11
93797. India Infoline commenced operations as an independent provider of information,
analysis and research covering Indian businesses, financial markets and economy, to
institutional customers. India Infoline became a public limited company on April 28, 2000 and
the name of the Company was changed to “Probity Research and Services Limited”. The name
of the Company was changed to “India Infoline.com Limited” on May 23, 2000 and later to
“India Infoline Limited” on March 23, 2001.
In 1999, India Infoline.com identified the potential of the Internet to cater to a mass retail
segment and transformed our business model from providing information services to
institutional customers to retail customers. Hence India Infoline launched Internet portal,
www.indiainfoline.com in May 1999 and started providing news and market information,
independent research, interviews with business leaders and other specialized features.
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In May 2000, the name of India Infoline was changed to India Infoline.com Limited to reflect
the transformation of our business. Over a period of time, India Infoline.com has emerged as
one of the leading business and financial information services provider in India.
In the year 2000, India Infoline leveraged its position as a provider of
financial information and analysis by diversifying into transactional services, primarily for
online trading in shares and securities and online as well as offline distribution of personal
financial products, like mutual funds and RBI Bonds. These activities were carried on by our
wholly owned subsidiaries.
India Infoline broking services was launched under the brand name of
5paisa.com through our subsidiary, India Infoline Securities Private Limited and
www.5paisa.com, the e-broking portal, was launched for online trading in July 2000. It
combined competitive brokerage rates and research, supported by Internet technology besides
investment advice from an experienced team of research analysts, India Infoline also offer real
time stock quotes, market news and price charts with
multiple tools for technical analysis.
Facilities
India Infoline’s main offices are located in approximately 4,000 square feet of office space
located in Mumbai, India. India Infoline Branches collectively occupy an additional 10,000
square feet of office space located throughout India, As on March 31, 2005, India Infoline has
73 branches across 36 locations in India.
Terminals
Almost 52% of the terminals in the sample are based in the Western region of India, followed
by 25% in the North, 13% in the South and 10% in the East. Mumbai has got the maximum
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representation from the West, Chennai from the South, New Delhi from the North and Kolkata
from the East.
CHAPTER 1.2
COMPANY PROFILE
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Industry Profile
India Infoline Ltd is listed on both the leading stock exchanges in India, viz. the Bombay
Stock Exchange, (BSE) and the National Stock Exchange (NSE). The India Infoline group,
comprising the holding company, India Infoline Ltd and its subsidiaries, straddles the entire
financial services space with offerings ranging from Equity research, Equities and derivatives
trading, Commodities trading, Portfolio Management Services, Mutual Funds, Life
Insurance, Fixed deposits, GoI bonds and other small savings instruments to loan products
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and Investment banking. India Infoline also owns and manages the websites,
www.indiainfoline.com and www.5paisa.com .
India Infoline Ltd, being a listed entity, is regulated by SEBI (Securities and Exchange Board
of India). It undertakes equities research which is acknowledged by none other than Forbes
as ‘Best of the Web’ and ‘…a must read for investors in Asia’. India Infoline’s research is
available not just over the internet but also on international wire services like Bloomberg
(Code: IILL), Thomson First Call and Internet Securities where it is amongst the most read
Indian brokers.
Its various subsidiaries are in different lines of business and hence are governed by different
regulators. The subsidiaries of India Infoline Ltd are:
India Infoline Securities Pvt Ltd
India Infoline Securities Pvt Ltd is a 100% subsidiary of India Infoline Ltd, which is engaged
in the businesses of Equities broking and Portfolio Management Services. It holds
memberships of both the leading stock exchanges of India viz. the Stock Exchange, Mumbai
(BSE) and the National Stock Exchange (NSE). It offers broking services in the Cash and
Derivatives segments of the NSE as well as the Cash segment of the BSE.
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A SEBI authorized Portfolio Manager, it offers Portfolio Management Services to clients.
These services are offered to clients as different schemes, which are based on differing
investment strategies made to reflect the varied risk-return preferences of clients.
India Infoline Commodities Pvt Ltd
India Infoline Commodities Pvt Ltd is a 100% subsidiary of India Infoline Ltd, which is
engaged in the business of commodities broking. Our experience in securities broking
empowered us with the requisite skills and technologies to allow us offer commodities
broking as a contra-cyclical alternative to equities broking. We enjoy memberships with the
MCX and NCDEX, two leading Indian commodities exchanges, and recently acquired
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membership of DGCX. We have a multi-channel delivery model, making it among the select
few to online as well as offline trading facilities.
India Infoline Distribution Co Ltd (IILD)
India Infoline.com Distribution Co Ltd is a 100% subsidiary of India Infoline Ltd and is
engaged in the business of distribution of Mutual Funds, IPOs, Fixed Deposits and other
small savings products. It is one of the largest ‘vendor-independent’ distribution houses and
has a wide pan-India footprint of over 232 branches coupled with a huge number of ‘feet-on-
street’, which help source and service customers across the length and breadth of India.
Its unique proposition of free doorstep expert advice coupled with free pick-up and delivery
of cheques has been met with an enthusiastic response from customers and fund houses alike.
Our business has expanded to include the online distribution of mutual funds, wherein users
can view and compare different product offerings and download application forms which
they can later submit to the product provider.
Mortgages & Loans IILD has also entered the business of distribution of mortgages and loan
products during the year 2005-2006. The business is still in the investing phase and We plan
to roll the business out across its pan-Indian network to provide it with a truly national scale
in operations.
India Infoline Insurance Services Ltd
India Infoline Insurance Services Ltd is also a 100% subsidiary of India Infoline Ltd and is a
registered Corporate Agent with the Insurance Regulatory and Development Authority
(IRDA). It is the largest Corporate Agent for ICICI Prudential Life Insurance Co Ltd, which
is India’s largest private Life Insurance Company.

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India Infoline Investment Services Ltd
India Infoline Investment Service Ltd is also a 100% subsidiary of India Infoline Ltd. It has
an NBFC license from the Reserve Bank of India (RBI) and offers margin-funding facility to
the broking customers.
India Infoline Insurance Brokers Ltd
India Infoline Insurance Brokers Ltd is a 100% subsidiary of India Infoline Ltd and is a
newly formed subsidiary which will carry out the business of Insurance broking. We have
applied to IRDA for the insurance broking license and the clearance for the same is awaited.
India Infoline is India's leading retail financial services company with over 177 locations in
more than 19 states. While our size and strong balance sheet allow us to provide you with
varied products and services at very attractive prices, our over 4400 Client Relationship
Managers are dedicated to serving your unique needs.
India Infoline is lead by a highly regarded management team that has invested crores of
rupees into a world class Infrastructure that provides our clients with real-time service & 24/7
access to all information and products. Our India Infoline Network offers real-time prices,
detailed data and news, intelligent analytics, and electronic trading capabilities, right at your
finger-tips. This powerful technology is complemented by our knowledgeable and customer
focused Relationship Managers. India Infoline offers a full range of financial services and
products ranging from Equities to Insurance to enhance your wealth and hence, achieve your
financial goals. India Infoline Client Relationship Managers are available to you to help with
your financial planning and investment needs. To provide the highest possible quality of
service, India Infoline provides full access to all our products and services through multi-
channels.
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CHAPTER 1.3
THE MANAGEMENT
TEAM
THE MANAGEMENT TEAM
Mr. Nirmal Jain
Nirmal Jain is the Founder and Chairman of India Infoline Ltd. He holds an MBA degree
from IIM Ahmedabad, and is a Chartered Accountant (All India Rank 2) and a Cost
Accountant. He has had an impeccable professional and academic track record. He started his
career in 1989 with Hindustan Lever Limited. During his stint with Hindustan Lever, he
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handled a variety of responsibilities, including exports and trading in agro-commodities with
Rs3bn annual turnover. He then joined hands with two local brokers to set up their equity
research division, Inquire, in 1994. His work set new standards for equity research in India. In
1995, he founded his own independent financial research company, now known as India
Infoline Ltd.
Mr. R Venkataraman
R Venkataraman is the Co-Promoter and Executive Director of India Infoline Ltd. He
holds a B. Tech degree in Electronics and Electrical Communications Engineering from IIT
Kharagpur and an MBA degree from IIM Bangalore. He has held senior managerial positions
in various divisions of ICICI Limited, including ICICI Securities Limited, their investment
banking joint venture with J P Morgan of USA and with BZW and Taib Capital Corporation
Limited. He has also held the position of Assistant Vice President with G E Capital Services
India Limited in their private equity division. He has varied experience of more than 14 years
in the financial services sector.
VISION OF THE COMPANY
“Our vision is to be the most respected company in the financial services space.”
WHERE INDIA INFOLINE STAND IN THE MARKET
INDIA INFOLINE one of the leading financial intermediaries and India's most
popular website for business and investment. Its Website has been rated as 'Best of
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the Web' by Forbes, under the Asia Investing category.
Besides providing up-to-date and comprehensive information on business and
industry, It is also a leading investment intermediary for Mutual Funds, Bonds, ICICI
/ IDBI Bonds, Govt. Relief Bonds, Insurance, IPOs and Fixed Deposits in India.
India Infoline is direct brokers/ agents with leading financial institutions like RBI,
UTI, LIC, GIC, ICICI, IDBI and other private mutual fund like HDFC, Alliance,
Prudential ICICI, Templeton, TATA, HSBC, Standard & Chartered, Sun F&C, Birla,
DSP Merrill Lynch, Kotak, IL&FS, Sundaram, Zurich and Reliance.
The company has more than 500 Investor points in all the leading cities across
India, with a team of trained and qualified investment advisors and 1500+associates
(sub brokers). Company e-broking web site 5paisa.com, which deals in shares,
provides you fast, secure and easy to use trading facilities combined with a wealth of
outstanding products and features. Thus, we are uniquely placed with both online and
offline presence to maximize customer satisfaction.
India Infoline is a growing organization, which is an ideal place for individuals with high
ambitions. The working atmosphere is highly charged with a young and energetic team of
qualified professionals.
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CHAPTER 1.4
MARKETING
STRATEGIES OF IIFL
MARKETING STRATEGY OF INDIA INFOLINE
Market Positioning:
Market positioning statements of India Infoline are “At India Infoline we give
you single window service” and “We also ensure your comfort”. So, India Infoline
focus on the consumers who prefer almost all investment activities at same place by
providing number of various financial services. At India Infoline a person can
purchase or sell shares, debentures etc. and at the same place also demat it. India
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Infoline also provides other investment option to the same person at same place like
Mutual Fund, Insurance, Fixed Deposit, and Bonds etc. and help the person in
designing his portfolio. By this way India Infoline provides comfort to its customers.
Target Market:
India Infoline uses demographic segmentation strategy and segment people
based on their occupation. India Infoline uses selective specialization strategy for
market targeting. Target person for the India Infoline Stock Broking and India
Infoline Investment Service are persons who can work as sub-broker for the
companies. Companies focus on Advisors of Insurance and post office, Tax
consultants and CAs for making sub-broker.
Marketing channel System:
India Infoline uses one level marketing channel for investment product
distribution. Sub-brokers work as intermediary between consumer and company.
Company has both forward and backward flow of activity through channel. Company
distributes stationery, brokerage, and information forward to its sub-broker. The sub brokers
send filled forms, queries, amount of investment etc. back to the company.
Training Channel Members:
India Infoline provides training to the sub-brokers because they will be viewed
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as the company by the investors. The executives of India Infoline explain various
new schemes of investment to the sub-brokers with its objective, risk factors and
expected return. Company also periodically arrange seminar to guide sub-brokers.
Advertising and Promotion:
The objective of advertising of India Infoline is to create awareness about
services of India Infoline among investors and sub-brokers.
India Infoline also publishes its weekly Stock Market Newsletter ‘Market Mantra’.
KEY COMPETETIVE STRENGHTHS
Diverse Branch Network
Since Company inception in FY 2000 Company and its subsidiaries have grown from a single
location to a nationwide network spread over 177 Offices in 19 states. They have a pan India
distribution networks for the purpose of distribution of financial products and services. Such a
diverse and integrated network provides a centralized platform to there clients.
Bouquet of financial products and services
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Company and its subsidiaries offer various financial services and products ranging from
equity, F & O and wholesale debt, mutual fund, insurance and IPO distribution, equity
research analysis, depository services to cater to the specific needs of the retail and
institutional investors thus providing all these services in a single platform.
Advanced Technology team that delivers market leading product innovation
There ongoing investment in technology is a key element in expanding there product and
service offerings, enhancing there delivery systems, providing fast and consistent client
service, reducing processing costs, and facilitating there ability to handle significant increases
in client activity without a corresponding rise in risk and staff.
Strong Sales and Marketing Teams with continuous reinvestment and
training
Company’s relationship manager channel (through a team of 4400 Relationship Managers)
offers a single point contact to retail customers whereby their high net worth clients have
separate relationship managers catering to them. These managers offer personalized services to
the customers helping build strong and continuing relationships with them. Also, our
marketing associate channel helps Company and its subsidiaries in client acquisitions at
minimal costs with client loyalty. The marketing associate’s channel also helps Company and
its subsidiaries in increasing their penetration in smaller town and cities.
Strong cross Selling Opportunities
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With 177 branches spread over 19 states all over India and variety of financial products and
offerings coupled with online, relationship manager & marketing associate channels, Company
and its subsidiaries have strong cross product selling opportunities thus providing a multi-
channel delivery systems to there diverse client base of 3,25,000 clients.
Strong Team of Experienced Promoters
India Infoline has a strong team of promoters who are Managers from Indian Institute of
Management and have several years’ experience in financial services industry.
Leading Product innovation and marketing strategies
Management is innovative and nimble and has historically introduced many new and
innovative products to the market place that have played a significant role in their growth.
Company’s relationship manager model has introduced private banking experience to the
clients.
The relationship managers are trained and incentives to work with their client base and
enhance ability to cross sell and leverage the large client base.
India Infoline have launched marketing associate model.
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Strong market presence and increased market share leads to virtuous cycle
of growth and profitability
They’re growing client base and market share have increased their market presence, brand
recognition enhanced their profitability and increased the available credit facilities from the
banks further strengthening its strong balance sheet.
KEY BUSINESS STRATEGIES
Their focus on the client has allowed Company and its subsidiaries to offer a range of services
that have changed the investing landscape and created a new model of financial services that
melds people and technology to provide an integrated human assisted technology interface
service for investors who range from self-directed full-time active investor to those who prefer
to deal with through a marketing associate in smaller towns and cities. Their key strategies
include:
 Defend and maintain their differentiation as the firm that delivers
ethical and useful services
 Build and expand “Investing Insight” through product offerings such
as Equity Analysis which is objective.
 Uncomplicated and not driven by commission.
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 Give clients new levels of choice tailored to their desire for help, tools
for investing their assets, their willingness to pay for additional
services and the level of business they can do with the company.
 Provide clients with tools, relationship managers and choices that
support their desired investment outcomes. India Infoline has
developed a client specific approach as a core element of its business
strategy and are constantly focusing on acquiring new clients and
expanding their customer base. They believe that the strong secular
growth of the Indian financial Markets, due to increased household
penetration of financial assets; increasing liquidity and market
capitalization of Indian Markets, led by the listing of many public
sector entities; and the increasing affluence of Indian households and
savers provides an impetus to the growth perspective.
They believe that this diversification and growth strategy will continue to produce results and
allow Company and its subsidiaries to grow business at a rapid pace irrespective of market
conditions. In addition, management believes that the growth of the Indian financial markets,
due to increased household penetration of financial assets; increasing liquidity and market
capitalization of Indian markets, led by the listing of many public sector entities; and the
increasing affluence of Indian households and savers, favors our long term growth outlook.
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The core pillars of our business strategy are discussed below:
Increase the number of Client Relationships
They are focused on increasing the number of client relationships through a wide network of
offices throughout India and having more number of relationship managers to service these
relationships. They plan to grow their business by growing the number of client relationships.
During a downturn of the markets they believe that increased number of client relationships
will add stability to their earnings.
Multiple Channels – Enhance Customer Experience and Opportunities to
interact with us
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Company’s clients can access their products and services through 177 offices spread across 19
states; through operator assisted call Centers; or through their website www.India
Infoline.com; or through their respective relationship managers or through marketing
Associates. These multiple channels provide flexibility to the clients and allow them to utilize
their existing business Relationship with them through any channel from any part of India.
Company’s strategy is to provide the most convenient, efficient and value added channel to the
client at the lowest possible cost, and allow the clients with choice and varied access points.
India Infoline believe that their multiple channel strategy has been particularly effective in the
affluent segment where many sophisticated clients like to have a close-by office they can
access and yet have the flexibility of Internet account management, transactions and electronic
funds transfer and settlement.
Relationship Manager driven sales model, provide high quality service and
exploit cross-sell opportunities
Company’s clients benefit from the personal attention and advice of the trained and motivated
relationship managers. All its relationship managers are qualified and educated professionals,
who have been extensively trained in-house to provide the products and services to the clients.
These relationship managers are encouraged to develop long-term relationships with the
clients and can access a variety of resources within the Company, such as insurance specialists,
research services and others to add value to their clients. Most of the clients have dedicated
relationship managers irrespective of the channel they use.
Brokerage Offering
36
Company’s retail equity business primarily covers secondary market equity broking. It caters
to the needs of individual Indian and Non-resident Indian (NRI) investors. They offer broker
assisted trade execution and automated online investing and trading facilities to their
customers. Automated online investing and trading includes automated order placement and
execution of market and limit equity orders; and advanced trading platforms for active traders.
All investors have full access to real – time quotes, personalized portfolio tracking, charting
and quote applications, real-time market commentary, real-time quotes and news.
Online Automated Channel
Automated Online Business contributes more than 34.6% of its overall revenues. They control
more than 20% market share in the online business. Clients are able to obtain financial
information and execute trades on an automated basis through their online channel using
product offerings like Power India Infoline and India Infoline Market Trader. Online
channels include the India Infoline Group Professional Network that provides access via their
web-site www.India Infoline.com to information and trading service on the Internet.
This covers the Equity, Debt & Derivatives segment in the Indian;
Some of the unique features are:
37
i. Trading via branch network, telephones and Internet account. That is
Both online and offline (by telephone).
ii. Automated Extended Margin Trading Facility.
iii. Integrated Trading and Depositary Account.
iv. Technology transforming desktop into NEAT like terminal for Internet
trading.
v. One Screen for both Cash and Derivatives Trading.
vi. Facility to Buy Today & Sell Tomorrow itself.
vii. Equity Research Department which studies the market and provides
information.
viii. Up-to-date news, data and analysis via India Infoline.com.
ix. Equity Analysis Report to support your investment decisions.
38
CHAPTER 1.5
DEMAT ACCOUNT
ABOUT DEMAT ACCOUNT

The term Demat, in India, refers to a dematerialized account. For individual Indian citizens to
trade in listed stocks or debentures. The Securities Exchange Board of India (SEBI) requires
the investor to maintain a Demat account. In a demat account shares and securities are held in
electronic form instead of taking actual possession of certificates. A Demat Account is opened
by the investor while registering with an investment broker (or sub broker). The Demat
account number which is quoted for all transactions to enable electronic settlements of trades
to take place.
39
Access to the demat account requires an internet password and a transaction password as well
as initiating and confirming transfers or purchases of securities. Purchases and sales of
securities on the Demat account are automatically made once transactions are executed and
completed.
DEMAT OPTIONS
Banks score over others Around 200 “depository participants” (DPs) offer the
demat account facility. A comparison of the fees charged by different DPs is
detailed below. But there are three distinct advantages of having a demat
account with a bank — quick processing, accessibility and online transaction.
Generally, banks credit your demat account with shares in case of purchase, or
credit your savings accounts with the proceeds of a sale on the third day.
Banks are also advantageous because of the number of branches they have.
Some banks give the option of opening a demat account in any branch, while
40
others restrict themselves to a select set of branches. Some private banks also
provide online access to the demat account. So, you can check on your
holdings, transactions and status of requests through the net banking facility.
A broker who acts as a DP may not be able to provide these services.
FEES INVOLVED
There are four major charges usually levied on a demat account: Account
opening fee, annual maintenance fee, custodian fee and transaction fee. All the
charges vary from DP to DP.
ACCOUNT OPENING FEE
Depending on the DP, there may or may not be an opening account fee.
Private banks, such as HDFC Bank and UTI Bank, do not have one. However,
players such as ICICI Bank, Globe Capital, Karvy Consultants and the State
Bank of India to do so. But most players levy this when you re-open a demat
account, though the Stock Holding Corporation offers a lifetime account
opening fee, which allows you to hold on to your demat account over a long
period. This fee is refundable.
41
ANNUAL MAINTENANCE FEE
This is also known as folio maintenance charges, and is generally levied in
advance.
CUSTODIAN FEE
This fee is charged monthly and depends on the number of securities
(international securities identification numbers — ISIN) held in the account. It
generally ranges between Rs 0.5 to Rs 1 per ISIN per month. DPs will not
charge custody fee for ISIN on which the companies have paid one-time
custody charges to the depository.
TRANSACTION FEE
The transaction fee is charged for crediting/debiting securities to and from the
account on a monthly basis. While some DPs, such as SBI, charge a flat fee
per transaction, HDFC Bank and ICICI Bank peg the fee to the transaction
value, subject to a minimum amount. The fee also differs based on the kind of
transaction (buying or selling). Some DPs charge only for debiting the
securities while others charge for both. The DPs also charge if your instruction
to buy/sell fails or is rejected. In addition, service tax is also charged by the
DPs.
In addition to the other fees, the DP also charges a fee for converting the
shares from the physical to the electronic form or vice-versa. This fee varies
42
for both demat and remat requests. For demat, some DPs charge a flat fee per
request in addition to the variable fee per certificate, while others charge only
the variable fee.
For instance, Stock Holding Corporation charges Rs 25 as the request fee and
Rs 3 per certificate as the variable fee. However, SBI charges only the variable
fee, which is Rs 3 per certificate. Remat requests also have charges akin to that
of demat. However, variable charges for remat are generally higher than
demat. Some of the additional features (usually offered by banks) are as
follows. Some DPs offer a frequent trader account, where they charge frequent
traders at lower rates than the standard charges. Demat account holders are
generally required to pay the DP an advance fee for each account which will
be adjusted against the various service charges. The account holder needs to
raise the balance when it falls below a certain amount prescribed by the DP.
However, if you also hold a savings account with the DP you can provide a
debit authorization to the DP for paying this charge. Finally, once you choose
your DP, it will be prudent to keep all your accounts with that DP, so that
tracking your capital gains liability is easier. This is because, for calculating
capital gains tax, the period of holding will be determined by the DP and
different DPs follow different methods. For instance, ICICI Bank uses the first
in first out (FIFO) method to compute the period of holding. The proof of the
cost of acquisition will be the contract note. The computation of capital gains
is done account-wise.
43
OPENING A DEMAT ACCOUNT
Steps involved in opening a demat account First an investor has to approach a DP and fill up
an account opening form. The account opening form must be supported by copies of any one
of the approved documents to serve as proof of identity (POI) and proof of address (POA) as
specified by SEBI. Besides, production of PAN card in original at the time of opening of
account has been made mandatory effective from April 1, 2006.
All applicants should carry original documents for verification by an authorized official of the
depository participant, under his signature. Further, the investor has to sign an agreement with
DP in a depository prescribed standard format, which details rights and duties of investor and
DP. DP should provide the investor with a copy of the agreement and schedule of charges for
their future reference. The DP will open the account in the system and give an account
number, which is also called BO ID (Beneficiary Owner Identification number). The DP may
revise the charges by giving 30 days notice in advance. SEBI has rationalized the cost structure
for dematerialization by removing account opening charges, transaction charges for credit of
44
securities, and custody charges vide circular dated January 28, 2005. Further, SEBI has vide
circular dated November 9, 2005 advised that with effect from January 9, 2006, no charges
shall be levied by a depository on DP and consequently, by a DP on a Beneficiary Owner (BO)
when a BO transfers all the securities lying in his account to another branch of the same DP or
to another DP of the same depository or another depository, provided the BO Account/s at
transferee DP and at transferor DP are one and the same, i.e. identical in all respects. In case
the BO Account at transferor DP is a joint account, the BO Account at transferee DP should
also be a joint account in the same sequence of ownership.
ADVANTAGES OF DEMAT ACCOUNT
The benefits are enumerated as follows:
1) It’s a safe and convenient way to hold securities.
2) Immediate transfer of securities is there.
3) There is no stamp duty on transfer of securities.
4) Elimination of risks associated with physical certificates such as bad
delivery, fake securities, delays, thefts etc.
5) There is a major reduction in paperwork involved in transfer of securities,
reduction in transaction cost etc.
6) Change in address recorded with DP gets registered with all companies in
which investor holds securities electronically eliminating the need to
correspond with each of them separately.
7) Transmission of securities is done by DP eliminating correspondence with
companies.
45
8) Automatic credit into demat account of shares, arising out of
bonus/split/consolidation/merger etc.
9) Holding investments in equity and debt instruments in a single account.
DISADVANTAGES OF DEMAT ACCOUNT
The disadvantages of dematerialization of securities can be summarized as follows:
1) Trading in securities may become uncontrolled in case of dematerialized
securities.
2) It is incumbent upon the capital market regulator to keep a close watch on
the trading in dematerialized securities and see to it that trading does not
act as a detriment to investors.
3) The role of key market players in case of dematerialized securities, such as
stock-brokers, needs to be supervised as they have the capability of
manipulating the market.
4) Multiple regulatory frameworks have to be confirmed to, including the
Depositories Act, Regulations and the various By-Laws of various
depositories.
46
5) Additionally, agreements are entered at various levels in the process of
dematerialization. These may cause anxiety to the investor desirous of
simplicity in terms of transactions in dematerialized securities.
6) However, the advantages of dematerialization outweigh its disadvantages
and the changes ushered in by SEBI and the Central Government in terms
of compulsory dematerialization of securities is important for developing
the securities market to a degree of advancement. Freely traded securities
are an essential component of such an advanced market and
dematerialization addresses such issues and is a step towards the
advancement of the market.
CHAPTER 1.6
COMPETITORS
DETAILS
47
COMPETITORS DETAILS
KARVY
KARVY is a premier integrated financial services provider, and ranked among
the top five in the country in all its business segments, services over 16 million
individual investors in various capacities, and provides investor services to over 300
corporate, comprising the who is who of Corporate India. Karvy has a professional
management team and ranks among the best in technology, operations and research
of various industrial segments.
ICICI DIRECT
ICICI Web Trade Limited (IWTL) maintains www.icicidirect.com (herein
48
after referred to as the "Website") whereas IWTL is an affiliate of ICICI Bank
Limited and the Website is owned by ICICI Bank Limited. IWTL has launched and
established an online trading service on the Website.
HDFC SECURITY
HDFC security is the subsidiary of HDFC (Housing Development Financial
Corporation). www.hdfcsec.com would have an exclusive discretion to decide the
customers who would be entitled to its online investing services. www.hdfcsec.com
also reserves the right to decide on the criteria based on which customers would be
chosen to participate in these services .The present web site (www.hdfcsec.com)
contains features of services that they offer/propose to offer in due course. The
launch of new services is subject to the clearance of the regulators. i.e. SEBI, NSE & BSE.
INDIABULLS SECURITIES LIMITED
Indiabulls Securities Limited was incorporated as GPF Securities Private
Limited on June 9, 1995. The name of the company was changed to Orbis Securities
Private Limited on December 15, 1995 to change the profile of the company and
subsequently due to the conversion of the company into a public limited company;
the name was further changed to Orbis Securities Limited on January 5, 2004. The
name of the company was again changed to Indiabulls Securities Limited on
February 16, 2004 so as to capitalize on the brand image of the term “Indiabulls” in
the company name. ISL is a corporate member of capital market & derivative
segment of The National Stock Exchange of India Ltd. At present, ISL accounts for
approximately 3% of the total daily turnover of the Exchange with 32,359 client
relationships and 70 branches spread across the country as of April 30, 2004.
49
CHAPTER 1.7
HISTORY OF STOCK
EXCHANGE
50
51
HISTORY OF STOCK EXCHANGE
The only stock exchanges operating in the 19th century were those of Bombay set up in 1875
and Ahmadabad set up in 1894. These were organized as voluntary non-profit making
organization of brokers to regulate and protect their interests. Before the control on securities
trading became a central subject under the constitution in 1950, it was a state subject and the
Bombay securities contract (CONTROL) Act of 1952 used to regulate trading in securities.
Under this Act, the Bombay stock exchanges in 1927 and Ahmadabad in 1937.
During the war boom, a number of stock exchanges were organized in Bombay, Ahmadabad
and other centers, but they were not recognized. Soon after it became a central subject, central
legislation was proposed and a committee headed by A.D. Gorwala went into the bill for
securities regulation. On the basis of committee’s recommendations and public discussions the
securities contracts (regulations) Act became law in 1956.
52
DEFINITION OF STOCK EXCHANGE
“Stock exchange means anybody or individuals whether incorporated or not, constituted for
the purpose of assisting, regulation or controlling the business of buying, selling or dealing in
securities.” It is an association of member brokers for the purpose of self regulation and
protecting the internets of its members. It can operate only if it is recognized by the Govt.
under the securities contract (regulation) Act, 1956 the recognition is granted under section 3
of Act by the Central Govt. ministry of finance.
REGULATION OF STOCK EXCHANGE
The securities contract (regulation) is the basis of the stock exchange in India. No exchange
can operate legally without the Govt. permission or recognition. Stock exchanges are given
monopoly in certain areas under section 19 of the above Act to ensure that the control and
regulation are facilitated. Recognition can be granted to a stock exchange provided certain
condition are satisfied and the necessary information is supplied to the government.
Recognition can also be withdrawn, if necessary. Where there are no stock exchanges, the
government can license some of the brokers to perform the function of stock exchange in its
absence.
53
SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI)
SEBI was setup as an autonomous regulatory authority by the Government of India in 1988 “to
perform the interest of investors in the securities and to promote the development of, and to
regulate the securities market and for matters connected therewith or incidental thereto.” It is
empowered by two Acts namely the SEBI act, 1992 and the securities contract (regulation) Act
1956 to perform the function of protecting investor’s right and regulating the capital market.
Bombay Stock Exchange
The stock exchange, Mumbai, popularly known as “BSE” was established in 1875 as “The
Native share and stock broker association”, as a voluntary non-profit making association. It
has an evolved over the year into its present status as the premiere stock exchange in the
country. It may be noted that the stock exchanges the oldest one in the Asia, even older than
the Tokyo Stock Exchange, which was founded in 1878.
The Exchange, while providing an effective and transparent market for trading in securities,
uphold the interest of the investors and ensure redressed of their grievances, whether against
the companies or its own member brokers. It also strives to educate and enlighten the investors
by making available necessary informative inputs and conducting investor education
programmes.
A governing board comprising of 9 elected directors, 2 SEBI nominees, 7 public
representatives and an executive director is the apex body, which decides the policies and
regulates the affairs of the exchanges.
54
The executive director as the chief executive officer is responsible for the day today
administration of the exchange. The average daily turnover of the exchange during the year
2008-09 (April-March) was Rs. 6984.19 crores and average number of daily trades 15.69
lakhs.
Sensex is calculated using a market capitalization weighted method. As per this methodology,
the level of the index reflects the total market value of all 30-component stocks form different
industries related to particular base period. The total market value of a company is determined
by multiplying the price of its stock by the number of shares outstanding. Statisticians call an
index of a set of combined variables (such as price and number of shares) a composite Index.
An Indexed number is used to represent the results of this calculation is order to make the
value easier to work with the track over a time. It is much easier to graph a chart based on
Indexed values than one based on actual values world over majority of the well-known Indices
are constructed using “Market capitalization weighted method”.
In practice, the daily calculation of SENSEX is done dividing the aggregate market value of
the 30 companies in the Index Divisor. The keeps the Index comparable over a period or time
and if the reference point for the entire Index maintenance adjustments. SENSEX is widely
used to describe the mood in the Indian Stock Markets. Base year average is changed as per
the formula new base year average = old base year average* (new market value/old market
value).
55
National Stock Exchange
The NSE was incorporated in Now 1992 with an equity capital of Rs. 25 crores. The
international securities consultancy (ISE) of Hong Kong has helped in setting up NSE. ISE
has prepared the detailed business plans and installation of hardware and software systems.
The promotions for NSE were financial institutions, insurance companies, banks an SEBI
capital market ltd., Infrastructure leasing and financial services ltd. and stock holding
corporation ltd.
It has been set up to strengthen the move towards professionalization of the capital market as
well as provide nation wide securities trading facilities to investors.
NSE is not an exchange in the traditional sense where brokers own and mange the exchange.
A two tier administrative set up involving a company board and a governing abroad of the
exchange is envisaged.
NSE is a national market for share PSU bonds, debentures and government securities since
infrastructure and trading facilities are provided.
The base period for the close of prices on Nov 3, 1995, which makes one year of completion of
operation of NSE’s capital market segment. The base value of the Index has been set at 1000.
At present, there are 24 stock exchanges recognized under the securities contact (regulation)
Act, 1956.
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CHAPTER 1.8
PRODUCTS &
SERVICES
57
FUNCTIONAL AREAS OF INDIA INFOLINE
The product range offered by India Infoline includes
A. Equities
B. Portfolio Management Service
C. Research
D. Commodities
E. Mortgages
F. Invest Online
G. Insurance
A) EQUITIES
India Infoline provided the prospect of researched investing to its clients, which was hitherto
restricted only to the institutions. Research for the retail investor did not exist prior to India
Infoline. India Infoline leveraged technology to bring the convenience of trading to the
investor’s location of preference (residence or office) through computerized access.
58
B) PORTFOLIO MANAGEMENT SERVICE
Our Portfolio Management Service is a product wherein an equity investment portfolio is
created to suit the investment objectives of a client. We at India Infoline invest your resources
into stocks from different sectors, depending on your risk-return profile. This service is
particularly advisable for investors who cannot afford to give time or don't have that expertise
for day-to-day management of their equity portfolio.
C) RESEARCH
Sound investment decisions depend upon reliable fundamental data and stock selection
techniques. India Infoline Equity Research is proud of its reputation for, and we want you to
find the facts that you need. Equity investment professionals routinely use our research and
models as integral tools in their work. They choose Ford Equity Research when they can clear
your doubts.
D) COMMODITIES
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India Infoline’s extension into commodities trading reconciles its strategic intent to emerge as
a one-stop solutions financial intermediary. Its experience in securities broking has empowered
it with requisite skills and technologies. The Company’s commodities business provides a
contra-cyclical alternative to equities broking. The Company was among the first to offer the
facility of commodities trading in India’s young commodities market (the MCX commenced
operations only in 2003). Average monthly turnover on the commodity exchanges increased
from Rs 0.34 bn to Rs 20.02 bn. The commodities market has several products with different
and non-correlated cycles. On the whole, the business is fairly insulated against cyclical
gyrations in the business.
E) MORTGAGES
During the year under review, India Infoline acquired a 75% stake in Moneytree Consultancy
Services to mark its foray into the business of mortgages and other loan products distribution.
The business is still in the investing phase and at the time of the acquisition was present only
in the cities of Mumbai and Pune. The Company brings on board expertise in the loans
business coupled with existing relationships across a number of principals in the mortgage and
personal loans businesses. India Infoline now has plans to roll the business out across its pan-
Indian network to provide it with a truly national scale in operations.
F) INVEST ONLINE
India Infoline has made investing in Mutual funds and primary market so effortless. All you
have to do is register with us and that’s all. No paperwork no queues and No registration
charges
G ) INSURANCE
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An entry into this segment helped complete the client’s product basket; concurrently, it
graduated the Company into a one-stop retail financial solutions provider. To ensure maximum
reach to customers across India, we have employed a multi pronged approach and reach out to
customers via our Network, Direct and Affiliate channels. Following the opening of the sector
in 1999-2000, a number of private sector insurance service providers commenced operations
aggressively and helped grow the market. The Company’s entry into the insurance sector
derisked the Company from a predominant dependence on broking and equity-linked revenues.
The annuity based income generated from insurance intermediation result in solid core
revenues across the tenure of the policy.
FUNDAMENTAL INFORMATION
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Under this parameter the company’s share is compared with the industry and market which is
based on the following parameters:
Revenue: Income generated from sales of the product.
Market Capital : Number of shares * market price.
Price/Sales: Stock's current price / revenue per share
SCHEDULE OF CHARGES
NSDL
CDSL
Documents required:
1) Residence Proof
2) Identity Proof
3) Bank A/C Proof
D. EQUITY & DERIVATIVE

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Equity Business caters:
 Needs of independent investors.
 Active traders.
 Non-Resident Indian (NRI) investors.
India Infoline offers:
 Broker assisted trade execution.
 Automated online investing.
 Access to all IPO's.
India Infoline offers the purchase and sale of securities, which includes
Equity, Derivatives and Commodities Instruments listed on National
Stock Exchange of India Ltd (NSEIL), The Stock Exchange, Mumbai
(BSE) and NCDEX.
63
CHAPTER 1.9
TYPES OF ACCOUNT
TYPES OF ACCOUNTS
 Investor Terminal : Investors/ Students

64
 Trade Terminal : Day Trader/ HNI’s
All of this comes to you backed by your Relationship Manager available to you 24x7.
 India Infoline is one of India's leading retail financial services
company with 177 locations spread across 19 States.
 Over 4400 Client Relationship Managers are dedicated to serving your
unique needs.
 Is complemented by our knowledgeable and customer focussed
Relationship Managers.
 Provides our clients with real-time service & 24/7 access to all
information and products.
65
PRICING FOR RETAIL CLIENTS
Investor Terminal
•De-mat A/C Opening Charge: Rs5500 + Rs 250 For life time.
• Margin Money: Rs 250
•Min Margin Retainable: Rs 1000
•Brokerage:
Trading 0.05% each side + ST
Delivery 0.50% each side + ST
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PRICING FOR HNI CLIENTS
Trader Terminal
De-mat A/C opening charge: Rs5500
•Initial Margin: Rs 100000 (Compulsory)
•Brokerage:
Trading 0.05% each side + ST
Delivery 0.50% each side + ST
(Negotiable to 0.05% each side & 0.50%)
•Account Access Charges
NIL
•Min Account Balance
Concept of Min Rs 1,000 to be maintained in form of cash / securities to keep account active.
This can be withdrawn only on closure of account.
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SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI)
SEBI is a regulatory governing body of security market. The SEBI Act 1992 was enacted to
empower SEBI with statutory powers for:
a) Protecting the interests of investors in securities.
b) Promoting the development of the securities market.
c) Regulating the securities market.
Its regulatory jurisdiction extends over corporate in the issuance of capital and transfer of
securities. It has powers to register and regulate all the market all market intermediaries and
also to penalize them in case of violations of the provisions of the ACT, rules and regulations
made there under. SEBI has a full autonomy and authority to regulate and develop an orderly
securities market.
68
Financial market can be divided into following four
sub-markets
Financial Market
Money Market Capital Market
Primary Capital Secondary Capital
Market Market Market Market
69
Primary Market
It provides opportunity to issuers of securities government as well as corporate to raise
resources to meet their requirements of investments. In this market companies issue fresh
security sin exchange of funds through public issues or private placements. The market design
for primary market is provided in the provision of Companies Act, 1956 which deals with
issues, listing and allotment of securities. The investors have to apply the shares by filling the
application form issue by the company along with the application money.
Company can issue shares at face value, at premium or at discount. Another method of pricing
which is now days common is issuing the securities through online system of the stock
exchange. The company is required to enter in to an agreement with the stock exchanges
which have the requisite system for online offer of securities.
The advantages for this new system are:-
(a) The investors part with money only after allotment.
(b) It eliminates refunds except in case of direct applications.
(c) It reduces the time taken for issue process.
Secondary Market
Secondary market is the place for sale and purchase of existing securities. It enables an
investor to adjust his holdings of securities in response to changes in his assessment about risk
and return. It essentially comprises of the stock exchanges which provide platform for trading
of securities and a host of intermediaries who assist in trading of securities and clearing and
settlement of trades.
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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.
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CHAPTER 2
RESEARCH
METHODOLOGY
72
RESEARCH METHODOLOGY
Topic: “Customer Study On Security Trading”
Objective: To study the satisfaction level while security trading.
Hypothesis:
H1: Recommendation to friend is dependent on the service quality.
H2: More the frequency of trading higher is the percentage of earning traded.
H3: Higher the Respondent higher is the investment on trading.
H4: Higher the service quality higher the satisfaction level.
Research Design: Descriptive
Sampling Design : Convenience
Sample Size : 100
Sample Unit : Individual involved in Security Trading.
Data Collection Method : Primary Survey, Questionnaire Method.
Survey Area : Noida.(NCR)
Data Analysis : Using SPSS (12 version) for f-test & testing
hypothesis.
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CHAPTER 2.1
OBJECTIVES OF
RESEARCH
74
OBJECTIVES OF THE RESEARCH
1) To study investor’s behavior towards different Factors and service
quality such as Convenience, Privacy, Timesaving, User- friendly
etc. of investment in Equities.
2) To study the issues and challenges that investor’s face while making
investment in share market.
3) To study the preferences and perceptions of investors regarding
various financial products from the stable of India Infoline Securities
Ltd. so that the firm can benefit from the findings of the report in
launching any new investment product in future.
4) To study the customer behavior in respect of investment in shares.
5) To understand the satisfaction level of clients with India Infoline
regarding
service provided by staff.
regarding
trade confirmation.
7) To understand the what type of trading should be provided to the
customers.
8) To learn about the different aspects of the customers.
9) To study the satisfaction level of brokerage.
75
regarding
tips.
regarding
trade confirmation.
12) To study the satisfaction level of flexibility provided by India
Infoline.
CHAPTER 2.2
LIMITATIONS OF
THE STUDY
76
LIMITATIONS OF THE STUDY
1) To study share market is a very vast topic and the search is just limited to a
small portion.
2) Due to the reluctant nature of the respondents it was not an easy task to
collect relevant information from them.
3) Sometime it was difficult to make the respondents understand the purpose
of the survey.
4) Busy schedule of the respondents was also a major hindrance to establish a
contact with them.
5) It may be possible the information provided by them is not true.
77
CHAPTER 3
DATA ANALYSIS &
INTERPRETATION
78
DATA ANALYSIS AND INTERPRETATION
ANALYSIS OF FREQUENCIES:
1). Investment trading:
Investment Preference
Freque Valid Cumulati

ncy Percent Percent ve Percent
Valid strongly
10 10.0 10.0 10.0
disagree
Disagree 23 23.0 23.0 33.0
Agree 37 37.0 37.0 70.0
strongly
30 30.0 30.0 100.0
agree
Total 100 100.0 100.0
79
Investment preference
40
30
20
10
Percent
0
strongly dissaggre Disagree agree strongly agree
Investment preference
Interpretation: out of 100 respondents surveyed 67% people believe that

they do prefer most of investment in security trading.
80
2) Convenience Preference
Convenience Preference
Freque Valid Cumulati

ncy Percent Percent ve Percent
Valid not
importan 11 11.0 11.0 11.0
t
partially
importan 11 11.0 11.0 22.0
t
Importan
35 35.0 35.0 57.0
t
most
importan 43 43.0 43.0 100.0
t
Total 100 100.0 100.0
convenience preference
50
40
30
20
10
Percent
0
not important partilly important important most important
convenience preference
Interpretation: Out of 100 respondent surveyed 78%peopel believe that

convenience is the important factor for security trading, while rest 22%
believes that it is not an important factor.
81
3) Privacy Preference
Privacy Preference
Frequen Valid Cumulativ

cy Percent Percent e Percent
Valid not
22 22.0 22.0 22.0
important
partially
18 18.0 18.0 40.0
important
Important 20 20.0 20.0 60.0
most
40 40.0 40.0 100.0
important
Total 100 100.0 100.0
privacy preference
50
40
30
20
Frequency
10
0
not important partially important important most important
privacy preference
Interpretation: in the question of privacy preference 60% of the

respondent believe that they need privacy in their transactions, while
other 40% differ from them.
82
4) Time Saving Preference
Time Saving Preference
Cumulati
Frequen Valid ve
cy Percent Percent Percent
Valid not
8 8.0 8.0 8.0
important
partially
23 23.0 23.0 31.0
important
Important 39 39.0 39.0 70.0
Most
30 30.0 30.0 100.0
important
Total 100 100.0 100.0
time saving preference

50
40
30
20
10
Percent
0
time saving preference
Interpretation: 69% of the respondent favor this factor that time saving is
important for their security trading, while 23% says that it is partially
important for security trading.
83
5) User Friendly Preference
User Friendly Preference

Valid not
7 7.0 7.0 7.0
important
partially
24 24.0 24.0 31.0
important
Important 40 40.0 40.0 71.0
most
29 29.0 29.0 100.0
important
Total 100 100.0 100.0
user friendly preference

50
40
30
20
10
Percent
0
user friendly preference
Interpretation: in the factor of user friendliness 69% respondent mark

that it is important factor in security trading, mean while 24% and 7%
tick the mark on partially and not important.
6) Brokerage Preferring
84
Brokerage Preferring

Valid not
7 7.0 7.0 7.0
important
partially
19 19.0 19.0 26.0
important
Important 28 28.0 28.0 54.0
most
46 46.0 46.0 100.0
important
Total 100 100.0 100.0
brokerage preferring
50
40
30
20
10
Percent
0
brokerage preferring
Interpretation: brokerage is the factor which highest response of

importance i.e. 74% while got only 24%.
85
7) Exposure Preferring
Exposure Preferring

Valid not
2 2.0 2.0 2.0
important
partially
22 22.0 22.0 24.0
important
Important 38 38.0 38.0 62.0
most
38 38.0 38.0 100.0
important
Total 100 100.0 100.0
exposure prefering
50
40
30
20
10
Percent
0
exposure prefering
Interpretation: Out of 100 respondent surveyed 76% people believe that

exposure is the important factor for security trading, while rest 22%
believes that it is not an important factor.
86
8) Guidance Preferring
Guidance Preferring

Valid not
11 11.0 11.0 11.0
important
partially
26 26.0 26.0 37.0
important
Important 41 41.0 41.0 78.0
most
22 22.0 22.0 100.0
important
Total 100 100.0 100.0
guidance prefering
50
40
30
20
10
Percent
0
guidance prefering
Interpretation: in the factor of guidance 63% respondent mark that it is

important factor in security trading, mean while 26% and 11% tick the
mark on partially and not important.
87
9) Research Report Preferring
Research Report Preferring

Valid not
5 5.0 5.0 5.0
important
partially
23 23.0 23.0 28.0
important
Important 45 45.0 45.0 73.0
most
27 27.0 27.0 100.0
important
Total 100 100.0 100.0
research report prefering

50
40
30
20
10
Percent
0
research report prefering
Interpretation: under the various service factors, research reports got

72% importance out of 100.
88
10) Dial Up Trade Preferring
Dial Up Facility Preferring

Valid not
15 15.0 15.0 15.0
important
partially
34 34.0 34.0 49.0
important
Important 32 32.0 32.0 81.0
Important 19 19.0 19.0 100.0
Total 100 100.0 100.0
dial up facility prefering

40
30
20
10
Percent
0
not important partially important important important
dial up facility prefering
Interpretation: 49% people says that dial up facility is not or partially

important for them while rest 51% says that it is important for them.
89
11) Trading Information Preferring
Trading Information Preferring

Valid not
10 10.0 10.0 10.0
important
partially
25 25.0 25.0 35.0
important
Important 34 34.0 34.0 69.0
most
31 31.0 31.0 100.0
important
Total 100 100.0 100.0
trading information prefering

40
30
20
10
Percent
0
trading information prefering
Interpretation: trading information is important for 65% out of 100%

respondents while other 25% and 10% says it is partially and not
important for them.
90
12) Convenience Rating
Convenience Rating

Valid Poor 6 6.0 6.0 6.0
Fair 18 18.0 18.0 24.0
Good 47 47.0 47.0 71.0
Excell
29 29.0 29.0 100.0
ent
Total 100 100.0 100.0
convenience rating
50
40
30
20
10
Percent
0
poor f air good excellent
convenience rating
Interpretation: 47%% people says that convenience of their existing

security trading firm is good, 29% says its excellent, mean while rest says
its fair or poor.
91
13) Privacy Rating

Valid Poor 3 3.0 3.0 3.0
Fair 28 28.0 28.0 31.0
Good 48 48.0 48.0 79.0
Excell
21 21.0 21.0 100.0
ent
Total 100 100.0 100.0
privacy rating
60
50
40
30
20
10
Percent
0
poor fair good excellent
privacy rating
Interpretation: privacy level is good says by 48% respondent, of their

existing security trading firm, 21% says it’s excellent, while 28% says it
fair and rest says its poor.
92
14) Time Saving Rating
Time Saving Rating

Valid Poor 7 7.0 7.0 7.0
Fair 30 30.0 30.0 37.0
Good 40 40.0 40.0 77.0
Excell
23 23.0 23.0 100.0
ent
Total 100 100.0 100.0
time saving rating

50
40
30
20
10
Percent
0
time saving rating

93
15) Brokerage Service Rating
Brokerage Service Rating

Valid Poor 1 1.0 1.0 1.0
Fair 13 13.0 13.0 14.0
Good 37 37.0 37.0 51.0
Excell
49 49.0 49.0 100.0
ent
Total 100 100.0 100.0
brokerage service rating

60
50
40
30
20
10
Percent
0
brokerage service rating
Interpretation: brokerage service is excellent says by 49% respondent, of

their existing security trading firm, 37% says it’s good, while 13% says it
94
16) Exposure Rating
Exposure Rating

Valid Poor 3 3.0 3.0 3.0
Fair 21 21.0 21.0 24.0
Good 42 42.0 42.0 66.0
Excell
34 34.0 34.0 100.0
ent
Total 100 100.0 100.0
exposure rating
50
40
30
20
10
Percent
0
exposure rating
Interpretation: exposure is good says by 42% respondent, of their existing

security trading firm, 34% says it’s excellent, while 21% says it fair and
rest says its poor.
95
17) Guidance Rating
Guidance Rating

Valid Poor 2 2.0 2.0 2.0
Fair 17 17.0 17.0 19.0
Good 44 44.0 44.0 63.0
Excell
37 37.0 37.0 100.0
ent
Total 100 100.0 100.0
guidance rating
50
40
30
20
10
Percent
0
guidance rating

96
18) Research Rating
Research Rating

Valid Poor 7 7.0 7.0 7.0
Fair 33 33.0 33.0 40.0
Good 34 34.0 34.0 74.0
Excell
26 26.0 26.0 100.0
ent
Total 100 100.0 100.0
research rating
40
30
20
10
Percent
0
research rating
Interpretation: privacy level is good and excellent says by 60%

respondent, of their existing security trading firm, 40% says it’s fair and
poor.
97
19) Dial Up Facility Rating
Dial Up Facility Rating

Valid Poor 19 19.0 19.0 19.0
Fair 30 30.0 30.0 49.0
Good 32 32.0 32.0 81.0
Excell
19 19.0 19.0 100.0
ent
Total 100 100.0 100.0
dial up facility rating

40
30
20
10
Percent
0
dial up facility rating
Interpretation: privacy level is good and excellent says by 51%

respondent, of their existing security trading firm, 49% says it’s fair and
poor.
98
20) Trading Information Rating
Trading Information Rating

Valid Poor 22 22.0 22.0 22.0
Fair 15 15.0 15.0 37.0
Good 49 49.0 49.0 86.0
Excell
14 14.0 14.0 100.0
ent
Total 100 100.0 100.0
trading information rating

60
50
40
30
20
10
Percent
0
trading information rating
Interpretation: exposure is good says by 49% respondent, of their existing

security trading firm, 14% says it’s excellent, while 22% says it poor.
99
21) OftenYou Trade
Often You Trade

Valid Occasion
12 12.0 12.0 12.0
ally
once a
22 22.0 22.0 34.0
week
2-3
times/we 36 36.0 36.0 70.0
ek
every day 30 30.0 30.0 100.0
Total 100 100.0 100.0
often u trade
40
30
20
10
Percent
0
occasionally once a w eek 2-3 times/w eek every day
often u trade
Interpretation: 36% people says that they trade 2-3 times in week, and
30% says they trade daily, while 22% and 12% says they trade once a
week or occasionally.
100
22) Invest Of Trading
Invest Of Earning

Valid up to
22 22.0 22.0 22.0
5%
5-10% 42 42.0 42.0 64.0
10-
29 29.0 29.0 93.0
15%
>15% 7 7.0 7.0 100.0
Total 100 100.0 100.0
invest of earning
50
40
30
20
10
Percent
0
up to 5% 5-10% 10-15% >15%
invest of earning
Interpretation: most of the people say that they invest 5-15% their
earning in security trading, while 22% say they invest only up to 5% and
only 7% says they can invest more than 15%.
101
23) Service Quality
Service Quality

Valid Poor 8 8.0 8.0 8.0
Fair 30 30.0 30.0 38.0
Good 44 44.0 44.0 82.0
Excell
18 18.0 18.0 100.0
ent
Total 100 100.0 100.0
service quality
50
40
30
20
10
Percent
0
service quality
Interpretation: service quality is good says by 44% respondent, of their

102
24) Satisfaction Level
Satisfaction Level

Valid Dissatisfied 6 6.0 6.0 6.0
somewhat
33 33.0 33.0 39.0
satisfied
Satisfied 46 46.0 46.0 85.0
highly
15 15.0 15.0 100.0
satisfied
Total 100 100.0 100.0
satisfaction level
50
40
30
20
10
Percent
0
dissatisfied somew hat satisfied satiesfied highly satiesfied
satisfaction level
Interpretation: 46% respondent are satisfied with their service provider

and 33% says they are somewhat satisfied.
103
25) Recommend To Friend
Recommend To Friend

Valid No 35 35.0 35.0 35.0
Yes 65 65.0 65.0 100.0
Total 100 100.0 100.0
recommend to friend
70
60
50
40
30
20
Percent
10
0
no yes
recommend to friend
Interpretation: 65% respondent says they will recommend this trading

firm to their friends and relatives.
104
26) Gender Of Respondent
Gender Of Respondent

Valid Male 78 78.0 78.0 78.0
Femal
22 22.0 22.0 100.0
e
Total 100 100.0 100.0
gender of respondent
100
80
60
40
Frequency
20
0
male female
gender of respondent
Interpretation: 78% of the respondents are male.
105
26) Age Of Respondent
Age Of Respondent

Valid 20-34
45 45.0 45.0 45.0
years
35-49
33 33.0 33.0 78.0
years
50-64
18 18.0 18.0 96.0
years
>65
4 4.0 4.0 100.0
years
Total 100 100.0 100.0
age of respondent
50
40
30
20
10
Percent
0
20-34 years 35-49 years 50-64 years >65 years
age of respondent
Interpretation: 78% of the respondents of age between 20 to 49 do invest

in shares.
106
27) Education Of Respondent
Education Of Respondent

Valid High
4 4.0 4.0 4.0
school
under
2 2.0 2.0 6.0
grad
Grad 39 39.0 39.0 45.0
pg/profes
55 55.0 55.0 100.0
sional
Total 100 100.0 100.0
education of respondent
60
50
40
30
20
10
Percent
0
high school under grad grad pg/professional
education of respondent
Interpretation: 94% of the respondents are highly educated.
107
28) Occupation Of Respondent
Occupation Of Respondent

Valid Govt
11 11.0 11.0 11.0
service
private
45 45.0 45.0 56.0
service
business 28 28.0 28.0 84.0
Retired 16 16.0 16.0 100.0
Total 100 100.0 100.0
occu of respondent
50
40
30
20
10
Percent
0
govt service private service business retired
occu of respondent
Interpretation: 73% of the respondents are from private sector and

business.
108
29) Income Of Respondent
Income Of Respondent

Valid up to
28 28.0 28.0 28.0
15000
15001-
38 38.0 38.0 66.0
30000
30001-
29 29.0 29.0 95.0
45000
>45000 5 5.0 5.0 100.0
Total 100 100.0 100.0
income of respondent
40
30
20
10
Percent
0
up to 15000 15001-30000 30001-45000 >45000
income of respondent
Interpretation: 95% of the respondents are of income level less than

45000/-
109
CHAPTER 3.1
TESTING OF
HYPOTHESIS
110
TESTING OF HYPOTHESIS
1) Recommendation to friends to depended on the service quality offered
by company.
Crosstabs
Case Processing Summary
Cases
Valid Missing Total
Percen
N Percent N t N Percent
above and below
mean values of
100 100.0% 0 .0% 100 100.0%
service quality *
recommend to friend
Above and Below mean values of service quality * recommend to friend

Crosstabulation
Recommend to
friend
No Yes Total
above and 1.00 Count 18 20 38
below mean % within
values of above and
service quality below mean 47.4% 52.6% 100.0%
values of
service quality
2.00 Count 17 45 62
% within
above and
below mean 27.4% 72.6% 100.0%
values of
service quality
Total Count 35 65 100
% within
above and
below mean 35.0% 65.0% 100.0%
values of
service quality
111
Chi-Square Tests
Asymp. Exact Exact
Sig. (2- Sig. (2- Sig. (1-
Value Df sided) sided) sided)

Pearson Chi-
4.121(b) 1 .042
Square
Continuity
3.291 1 .070
Correction(a)
Likelihood Ratio 4.080 1 .043
Fisher's Exact
.053 .035
Test
Linear-by-Linear
4.080 1 .043
Association
N of Valid Cases 100
a Computed only for a 2x2 table
b 0 cells (.0%) have expected count less than 5. The minimum expected count
is 13.30.
H1: The above hypothesis is accepted at the significance level of 0.042
(p=4.121).Thus recommendation for security trading depends on service
quality offered by the company.
112
2) More the frequency of trading higher is the percentage of earning
traded.
Correlations
Invest of Often You
earning trade
Invest of earning Pearson
1 .368(**)
Correlation
Sig. (2-tailed) . .000
N 100 100
often u trade Pearson
.368(**) 1
Correlation
Sig. (2-tailed) .000 .
N 100 100
**Correlation is significant at the 0.01 level (2-tailed).
(p=0.368).thus higher the frequency of trading higher is the investment on
trading.
113
3) Higher the no. of respondent higher will be the investment on trading.
Correlations
Invest of Income of
earning respondent
Invest of earning Pearson
1 .395(**)
Correlation
N 100 100
income of Pearson
.395(**) 1
respondent Correlation
N 100 100
** Correlation is significant at the 0.01 level (2-tailed).
(p=0.395). The correlation of 0.395 can be attributed as moderate and thus it is
believed that higher the no. of respondent higher will be the investment on
trading.
114
4) Higher the service quality higher the satisfaction level .
Correlations
Service Satisfactio
quality n level
service quality Pearson
1 .721(**)
Correlation
N 100 100
satisfaction level Pearson
.721(**) 1
Correlation
N 100 100
**Correlation is significant at the 0.01 level (2-tailed).
H4: The above hypothesis is accepted at 0.00 level of significance (p=0.721).
A high degree of correlation is found at 0.721 which shows that higher the
service quality, higher will be the satisfaction level.
115
CHAPTER 4
CONCLUSION
CONCLUSION
116
The perception of people about the share market is relatively weak but they can be influenced
by giving them appropriate information about how to invest, when to invest, so that there
confidence will build up.
There is a lot of scope for trading companies in respect of investment they get from their
client, which can be improved by giving them better service facilities, which will not only
increase their investment but also would result in their recommendation about investing
through their company in share market.
Those who are already trading do not have complete information about the basic terms related
to the market which opens up the gate for the companies to increase their awareness by giving
them full information about the market through seminars or conference.
117
CHAPTER 4.1
RECOMMENDATION
RECOMMENDATIONS
 INTRODUCTION PROGRAMS must be held for the sales teams
before letting them go into the field. In these induction classes the
experienced sales staff employees should share their valuable live
118
experiences and knowledge, which they have experienced while in
field.
 Weekly magazines must be published and distributed to the investors
that can help them for making better investments.
 Sales team must be fully equipped with latest technology such as using
Laptop that can be used for making presentation to the customers
especially to the corporate clients about their product and services
provided by them.
 Make your site user friendly so that more and more people know about
trading and do the same also.
 Advertisement through Canopy, help to generate leads.
 Company should advertise with a concern that has a brand name in the
market.
119
Other Recommendations
Strong Need Of Brand Building
Promotional Strategies
Solid Network Required To Develop The Business Further
Make The Branch Self Informative
The RM should provide an in depth demonstration of the software and client
should be assisted regularly.
Provision of a manual for online clients for ease of operation.
Time lag between the complaints put and follow up should be reduced.
Database should be verified properly, so that repeated entries do not occur.
This will reduce inconvenience to the clients, who complained about
multiple calls received.
120
Promotional Strategies
 Press publicity:
 Outdoor publicity:
Press Publicity:
 Paper inserts.
 Advertisements in newspaper (local and national).
 Interest cards distribution.
 Mailers/personal invitations to selective section of the society.
 Leaflets
Outdoor Publicity:
 Banners in commercial areas and prime sites.
 Air balloons at shopping complex.
 Bus stands shelters.
 Off site ATM for developing business
121
CHAPTER 4.2
QUESTIONAIRRE
122
QUESTIONAIRRE
Customer Study on Security Trading

Tick all relevant boxes.
1. I prefer to do most of my investments in securities?
Agree Satisfied Disagree No Need
123
2. The Trading firm you own a D-Mat A/c.
Trading Firm D-Mat A/c

India Bulls The A/c you prefer to use
India Infoline mostly
ICICI Direct ___________________
Kotak Securities
ShareKhan
124
3. How important is each of the following in your preference for
security trading?
FACTORS Most Important Partially Not
Important Important Important

Convenience
Privacy
Time saving
User friendly
125
4. How Important are each of the following services for preferring a
particular security trading company?
SERVICES Most Important Partially Not
Important Important Important

Brokerage
Exposure
Guidance
Research Report
Dial up trade facility
Information about
Trading
5. How do you rate each of the following facilities provided by your
security-trading firm?
126
FACTORS Excellent Good Fair Poor
Convenience
Privacy
Time saving
User friendly
127
6. How do you rate each of the following services provided by your
trading company?
SERVICES Excellent Good Fair Poor

Brokerage
Exposure
Guidance
Research Report
Dial up trade facility
Information about
Trading
7. How often do you trade?
128
Every 2-3 Once a Occasionally
day times/wee week
k
8. What percentage of your earnings do you invest in share trading?
129
Up to 5% 5-10% 10-15% 15-20% or
more
9. How do you rate the service quality of your security-trading firm?
130
Excellent Good Fair Poor
131
10. To what extent are you satisfied by the services offered by your
security-trading firm?
Highly Satisfied Somewhat Dissatisfied

Satisfied Satisfied
11. Would you like to recommend your trading firm to your friends
and relatives?
132
Yes No
133
CHAPTER 5
MY EXPERIENCE
DURING TRAINING
PERIOD
MY EXPERIENCE DURING TRAINING PERIOD
134
The 14th of June2010, I was introduced to senior officials, at India Infoline and from the very
first day I was believed to be Sincere and Responsible. I along with other trainees underwent a
theoretical training for a day in which I was made aware of India Infoline Ltd- as a Share
Trading and Broking company, its history and formation and its financial products. I along
with the other trainee was taught what is a De-mat Account, why an individual should have an
account, and last but not the least how to open a De-mat Account. After that I was also given a
demo session of telecalling to equip our self for cold calling. The very next day I was very
much comfortable with the environment and products of India Infoline and I was also given
the responsibility to make some cold and reference calls, in order to do telephonic marketing
of De-mat Account after a week.
During this project, I was then given practical exposure by gaining an opportunity to sit in
front of the trading terminal and watch and learn how online trading is done and various
aspects related to it. It was a wonderful experience to observe how market behaves and also
how the jobbers react in response to the fluctuations in the market in order to benefit both the
company as well as the customers.
After observing how the market is performing and gaining knowledge about key terms related
to this field like- limit, exposure, margin call, circuit(upper and lower), brokerage charges, put
and call options, I was given somewhat more practical exposure as I was sent to a lead call
with one of my seniors to observe and learn how the deal gets finalized and what sort of
questions a client can ask and in which manner we should response. But even though first few
days at India Infoline was really a struggle period for me and then gradually as I kept on
gaining knowledge and experience about its financial products I started performing well and
soon I was able to develop a network of some prospective clients for my company.
135
CHAPTER 6
BIBLIOGRAPHY
136
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24) Miners superfast shares warning BBC News, Tuesday 3 November
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138
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139
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40) (About The India Infoline Company) www.indiainfoline.com
41) (About The National Stock Exchange) www.nseindia.com
42) (About Bombay Stock Exchange) www.bseindia.com
43) (About Security Exchange Board Of India) www.sebi.gov.in
44) (About Money Controlling at Trading) www.moneycontrole.com
45) Magazine Business Today 2nd Edition July 23 , 2000
46) Newspaper Economic Times Of India September 11, 2001
47) India Infoline Brochures and Mannuals June 22 , 2002
48) http://www.seekingalpha.com
49) http://www.CIA.gov
50) http://www.investopedia.com
51) http://www.belgiumview.com
52) http://www.charitytimes.com
53) http://www.ncfm.com
54) http://www.economist.com
55) http://www.opalesque.com
56) http://www.tempelhove.de/en/scientific.in
57) http://www.nytimes.com
58) http://www.ftknowledge.com
59) http://www.amazon.com
140
60) http://www.businessinsider.com
61) http://www.iht.com
62) http://www.afajof.org/afa/forthcoming/.pdf
63) http://www.economics.com
64) http://www.sciencedirect.com
65) http://www.business world.com
66) http://www.5paisa.com
67) http://www.scribed.com
68) http://www.googlescholar.com
69) http://www.wikipedia.com
70) http://www.google.com
71) http://www.mbafantasy.com
72) http://www.indiabulls.com
73) http://www.karby.com
74) http://www.sharekhan.com
75) http://www.publicradio.org
76) http://www.cnbc.com
77) http://www.webcitation.org
78) http://www.advancetrading.com
79) http://www.business.timesonline.co.uk
80) http://www.reuters.com
81) http://www.bis.org
141
CHAPTER 7
ANNEXURE
142
ANNEXURE
Please fill the following particulars
Name ________________________ Phone No______________

Female Gender
Male
1) Age (in
Years)
20-34 35-49 50-64 65+
years years years
2) Education
High Under Grad. PG/
School Grad. Professional
3) Occupation
Govt. Private Business Retired

Service Service
4) Income (in Rs. per Month)
Up to 15001- 30001- Above

15000 30000 45000 45000
143

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SUMMER TRAINING REPORT

India Infoline Ltd.

Summer Training Project Report Submitted Towards The

COLLEGE OF SCIENCE & ENGINEERING,

UNDER THE GUIDANCE OF

Submitted To: Submitted by:

other similar title or recognition.

opportunity to carry out the Summer Internship Program in their organization.

I am very thankful to Mr. Manoj Kumar Sharma, Head Of Business Administration,

the preparation of this project.

Master’s Of Business Administration.

complete my summer training successfully.

No professional curriculum is considered complete without work experience. It is well evident

intellectual and applicability of an individual.

years in terms of number of stock exchanges, listed companies, trade volumes,

market intermediaries, investor population, etc. However, this surge in activity

duplication and mutilation of shares, transfer problems, etc. The investors

century old system of trading and settlement requires handling of huge

institutional, wary of entering the capital market. However, lack of

modernization become a hindrance to growth and resulted in creation of

cumbersome procedures and paper work.

of liberalization initiatives of the Government. The reforms in the financial

cause of investors` disputes and arbitration cases.

carefully for a prudent investment, keeping long-term horizon in mind.

survey questionnaire methods. Questionnaire prepared is designed so as to cover a wide range of

think while making investments in shares.

design has been included.

diversification and a brief introduction about the concept of share trading.

order to more accurately represent the overall Indian market.

generally considered representative of the Indian stock market.

represents approximately 93 percent of the exchange’s market capitalization and approximately

87 percent of NSE turnover, and is therefore representative of

the overall Indian stock market.

and (Akinci et al., 2004) found that male and

Attitude is defined as an individual's degree to respond in a favorable or unfavorable way with

valuable niche market in the area of electronic commerce.

psychological risk.(Tversky , A. & Kanheman, D .(1974), Judgement under uncertainity :

Heuristics and Biases, Science.

OBJECTIVE OF THE STUDY

1) To study investor’s behavior towards different Factors and service quality

such as Convenience, Privacy, Timesaving, User-friendly etc. of

investment in share market.

3) To study the preferences and perceptions of investors regarding various

investment product in future.

4) To study the customer behavior in respect of investment in shares.

5) To understand the satisfaction level of clients with India Infoline regarding

service provided by staff.

6) To understand the satisfaction level of clients with India Infoline regarding

7) To understand the what type of trading should be provided to the

8) To learn about the different aspects of the customers.

9) To study the satisfaction level of brokerage.

11) To study the satisfaction level of flexibility provided by India Infoline.

12) To study the overall satisfaction level.

provides a channel for reallocation of savings to investments.

93797. India Infoline commenced operations as an independent provider of information,

“India Infoline Limited” on March 23, 2001.

In the year 2000, India Infoline leveraged its position as a provider of

wholly owned subsidiaries.

time stock quotes, market news and price charts with

multiple tools for technical analysis.

73 branches across 36 locations in India.

from the East.