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Chapter - 1 Industry Analysis

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INDUSTRY ANALYSIS
Indian stock Market Overview
The Bombay Stock Exchange (BSE) and the National Stock Exchange of India Limited (NSE) are the two primary exchanges in India. In addition, there are 22 Regional Stock Exchanges. However, the BSE and NSE have established themselves as the two leading exchanges and account for about 80% of the equity volume traded in India. The NSE and BSE are equal in size in terms of daily traded volume. The average daily turnover at the exchanges has increased from Rs851crore in 1997-98 to Rs1284crore in 1998-99 and further to Rs2273crore in 1999-2000. NSE has around 1500 shares listed with the total market capitalization of around Rs9, 21,500crore. The BSE has over 6000 stocks listed and has a market capitalization of around Rs9, 68,000crore. Most key stocks are traded on both the exchanges and hence the investor could buy on either of the exchanges. Both exchanges have a different settlement cycle, which allows investors to shift their position on the bourses. The primary index of BSE in BSE Sensex comprises 30 stocks. NSE has the S&P NSE 50 Index (Nifty), which consists of fifty stocks. The BSE Sensex is the older and most widely followed index. Both these indices are calculated on the basis of market capitalization and contain the heavily traded shares from key sectors. The markets are closed on Saturdays and Sundays. Both the exchanges have switched over from the open outcry trading system to a fully automated computerized mode of trading known as BOLT (BSE On Line Trading) and NEAT (National Exchange Automated Trading) system. It facilitates more efficient processing, automatic order matching, faster execution of trades and transparency. The scrip traded on the BSE has been classified into A, B1, B2, C, F, and Z groups. The A group shares represent those, which are in the carry forward system (Badla). The F group represents the dept market (fixed income securities) segment. The Z group scrip is the blacklisted companies. The C group covers the odd lot securities in A, B1, & B2 groups and Rights renunciations. The key regulator governing Stock Exchanges, Brokers, Depositories, Depository participants, Mutual Funds, FIIs and other participants in Indian secondary and primary market is the Securities and Exchange Board of India (SEBI) Limited.

Stock market refers to a market place where investors can buy and sell stocks.( A share of stock represents a part of the equity capital of a publicly held company. this means that a private company decided to allow the public to be part owners of the firms and sold shares of ownership through a stock offerings.) The price at which each buying and selling transaction takes is determined by the market forces. (I.e. demand and supply for a particular stock) Bombay Stock Exchange is known to be the oldest stock exchange in the entire Asian region. If someone wants to know about the history of the India share market, it becomes synonymous with the history of the Bombay Stock Exchange. It started functioning in 1875 with the name 'The Native Share and Stock Broker's Association'. Under the Securities Contracts (Regulation) Act, 1956, the association got its recognition as a stock exchange in 1956. When it started, it was just an association of persons but with the recognition it got transferred to a corporate and demutualised entity.

Trading items in Bombay Stock Exchange Equity or Shares Derivatives (Futures and Options) Debt Instruments

MSRMI The main index of BSE is known as the BSE SENSEX or simply SENSEX (Sensitivity Index). It is an index which comprises of 30 financially sound company scrips, with an option to be reviewed and modified from time-to-time. The index calculation is based on the 'Free-float Market Capitalization' methodology. Leading bourses like the Dow-Jones also follow this methodology. National Stock Exchange (NSE) is considered to be the leader in the stock exchange scenario in terms of the total volume traded. The market capitalisation the National Stock Exchange touched about $921.31 billion at the end of May 2010. The National Stock Exchange received the recognition of a stock exchange in July 1993 under Securities Contracts (Regulation) Act, 1956. The products that are traded in the National Stock Exchange are:-

Equity or Share Futures (both index and stock) Options (Call and Put) Wholesale Debt Market Retail Debt Market

INDIAN EQUITY MARKET:

The Indian equity market has become the third biggest after China and Hong Kong in the Asian region. According to the latest report by ADB, it has a market capitalization of nearly $600 billion. As of March 2009, the market capitalization was around $598.3 billion (Rs 30.13 lakh crore) which is one-tenth of the combined valuation of the Asia region. The market was slow since early 2007 and continued till the first quarter of 2009. The Indian equity market depends on three factors

Funding into equity from all over the world Corporate houses performance Monsoons

The equity market is also affected through trade integration policy. The country has advanced both in foreign institutional investment (FII) and trade integration since 1995. This is a very attractive field for making profit for medium and long term investors, short-term swing and position traders and very intraday traders The stock market in India does business with two types of fund namely private equity fund and venture capital fund. It also deals in transactions which are based on the two major indices Bombay Stock Exchange (BSE) and National Stock Exchange of India Ltd. (NSE). The Indian market has 22 stock exchanges. The larger companies are enlisted with BSE and NSE. The smaller and medium companies are listed with OTCEI (Over The counter Exchange of India). The functions of the Equity Market in India are supervised by SEBI (Securities Exchange Board of India). The Indian Equity Market was not well organized or developed before independence. After independence, new issues were supervised. The timing, floatation costs, pricing, interest rates were strictly controlled by the Controller of Capital Issue (CII). For four and half decades, companies were demoralized and not motivated from going public due to the rigid rules of the Government. 3

MSRMI The 90s was the most crucial in the stock market's history. Indians became aware of 'liberalization' and 'globalization'. In May 1992, the Capital Issues (Control) Act, 1947 was abolished. SEBI which was the Indian Capital Market's regulator was given the power and overlook new trading policies, entry of private sector mutual funds and private sector banks, free prices, new stock exchanges, foreign institutional investors, and market boom and bust. In 1990, there was a major capital market scam where bankers and brokers were involved. With this, many investors left the market. Later there was a securities scam in 1991-92 which revealed the inefficiencies and inadequacies of the Indian financial system and called for reforms in the Indian Equity Market.

SCOPE OF INDIAN STOCK MARKET:

With globalization and innovation in the financial markets at its peak - it is very essential to study the market risks and requirements. Over the years, the India stock market has undergone major changes to remain at par with the global peers. With global trade and finance getting more dynamic day by day, the India stock market is not far behind to experience these developments. This has helped the financial structure of India get more innovative.

Main Players in Indian Stock Market are:The India stock market is steered on by the two exchanges viz, Bombay Stock Exchanges (BSE) and National Stock Exchange (NSE). The trade and business of the entire country is dependent on the performance of these two main stock exchanges. Any minor developments in the economy might push the indexes on these exchanges down or vice versa.

KEY STRENGTHS OF INDIAN STOCK MARKET

The India stock market boasts of a fully automated trading system on all stock exchanges, provides a wide range of products. It is an integrated platform to trade in both cash and derivatives and has a host of around 4,000 corporate brokers all across India. The stock market of India has made considerable progress following its international peers and the modern market mechanisms have helped them create a niche for themselves. The market regular, Securities and Exchange Board of India (SEBI) plays an important role in the management of the stock exchanges in India. The regulatory methods are sound - in terms of intermediaries, trading mechanism, settlement cycles, risk management, derivative trading. The usage of Information technology is to a large extent responsible for the outstanding performance of the stock markets in India. The two main players of the India stock market - NSE and BSE have outshone all the other exchanges and majority of the stocks are listed on these two exchanges. The market participants are ever increasing, the volume of securities has been growing, transaction costs are getting reduced, and there is significant improvement in efficiency, transparency and safety.

MSRMI Important elements of India stock market Investors Issuers Intermediaries Regulators

Opportunities for foreign Investors in Stock Market:

Direct Investment opportunities for foreign investors in Stock markets in India: The stock market in India now allow the foreign companies to hold majority shares of the India companies apart from some restricted companies. Some companies the foreign stake may be 100%. Investment through Stock Exchanges in Stock markets in India: The Foreign Institutional Investors (FII) may operate in the Stock markets in India being registered with the Reserve Bank of India (RBI) and the Securities and Exchange Board of India

STOCK BROKER:
A stock broker or stockbroker is a regulated professional broker who buys and sells shares and other securities through market makers or Agency Only Firms on behalf of investors. A broker may be employed by a brokerage firm SERVICES PROVIDED ARE A transaction on a stock exchange must be made between two members of the exchangean ordinary person may not walk into the NSE (for example), and ask to trade stock. Such an exchange must be done through a broker. There are three types of stockbroking service. Execution-only, which means that the broker will only carry out the client's instructions to buy or sell. Advisory dealing, where the broker advises the client on which shares to buy and sell, but leaves the final decision to the investor. Discretionary dealing, where the stockbroker ascertains the client's investment objectives and then makes all dealing decisions on the client's behalf

Similar Roles of Stock Broker are

Roles similar to that of a stockbroker include Investment advisor Financial advisor A stockbroker may or may not be also an investment advisor, and vice versa. 5

MSRMI IMPACT OF E-BUSSINESS ON STOCK BROKING:The following are the major impacts of e-business and stock broking industry

1)Internet made the securities market as transparent for all customers as it was for sophisticated professionals and investment gurus in the Market. The biggest impact of Internet was that it made a large amount of information available out there. Gone are the days when the key financial data that investors needed to make informed and profitable decisions was available only to the lucky few ``on the inside''. Now the turnover and profit figures, brokers' forecasts, details of how and why company directors buy shares and all the rest of it are just a few mouse clicks away for everybody. 2)Small trades could be executed at a fraction of the cost that was previously charged to customers for similar trades. This encouraged a number of small investors to invest the money they can spare from the banks into share market. The investment community grew at an exponential rate when it became certain that investing is for everyone. A popular slogan summarizes it all You dont have to be rich to be an investor. But have to be an investor to be rich. 3)Quality research and stock analysis could be disseminated to a number of people by e-mails and alerts. Investment tips and news scoops found themselves a more efficient medium to spread. This improves market activity and trading volumes, benefiting brokers with their commissions. Investment houses could provide these services, at a price, to investors who were interested, in an efficient and orderly way. 4)e-Business didnt come alone, it came along with automated stock exchanges, electronic document holding services and efficient banking systems. Together these empowered a retail investor to provide a cheaper, more fun, more convenient and more reliable way of trading in shares than the old-fashioned way of using a bank or a broker

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Major Challenges and Issues faced by online stock brokers:

1)Lack a global brand name, trust and reputation. Have to build these from scratch. When a known brand offers the same broking service at a comparable cost, these organizations lose out. 2)Lack of well established branches puts these companies at a disadvantage when compared to players like the local banks which have a presence in every corner of the country. This spreads the reach of the brick-and-mortar players. 3)Inability to provide a range of financial services discourages people who would rather see all their different investments and banking needs consolidated. Lack of an umbrella service encourages people to look for brokers who provide complete financial services. 4)The bulk of their client base is made up of retail investors. Institutional investors and other high value and high volume customers prefer the traditional and blue chip brokers. Retail investors are typically easy come easy go and might prove to be inconsistent in trading habits. Retail investors have gained the confidence to trade shares independently, without the help of a professional broker during the recent Bull Run. But in a correction, many will get burned and lose confidence and thus affect the revenues of brokers. 5)Hiring highly skilled personnel, analysts, researchers and business experts turns Out to be too expensive for the newer firms

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List of Stock Exchanges Companies and Market Information:

Sr. no 1 2 3 4 As on December No of exchanges No of companies No of issues of companies Capital of companies RS) 31st 1946 stock 7 listed 1125 stock 1506 listed listed 270 ( Cr. 1961 7 1203 2111 753 1971 8 1599 2838 1812 1975 8 1552 3230 2614 1980 9 2265 3697 3973 1985 14 4344 6174 9723 1991 20 6229 8967 3204 1 1995 22 8593 11784 59583

5 6 7 8

Market value of capital of listed cos. (Cr. Rs ) Capital per listed cost (4/2) lakh Rs Market value of capital per listed Cos.(lakh Rs.) Appreciated value of capital per list cos. (lakh Rs)

971 24 86 358

1292 63 107 170

2675 113 167 148

3273 168 211 126

6750 175 298 170

25302 224 582 260

1102 79 514 514 1770

47812 1 693 5564 803

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1. Competition in the industry: Indian stock market has shown a significant change over the past 1 decade due to high inflows from FII and institutional buyers. Investors wants to invest in securities which gives high returns to them,with the introduction of derivatives in the Stock market, flow of money in the market has increased drastically. So brokerage firms gets commission through each transaction from their client through selling or buying the securities. Because of this healthy environment more and more brokerage firms entered into this industry decreasing brokerage commissions and causing a severe impact on the margins of other major brokerage firms Presently total 55 Broking firms are operating in the industry 2. Potential of new entrants into industry : Indian Share market has seen a tremendous change in their functioning,organizing and the brokerage revenues.Since more and more people wants to invest money into securities which gives higher return,so many of them showing interest to keep money in Share market. So this allows many brokerage firms to start business in this industry and also if they satisfies with SEBI norms there is no such difficulties to enter into this industry In India, broking firms primarily work as agents for buying and selling of stocks and other financial instruments and take commission for each transactions done by the broking firms. Right now Indian brokerage market going through wonderful phase with high growth rate. By 2015 Indian brokerage company expected to reach total trading volume $ 6535.7 billion. Presently total 55 Broking firms are operating in the industry and because of good momentum in the growth,more and more are broking firms willing to come into this industry.

Power of Customers:
In this industry investors are very sensitive and conscious to brokerage charges and the service providing to them,because this is not a one time selling or buying process the client will pay for each transaction for both buying or selling the securities.Clients will bargain with the brokerage firms,if they feel the brokerage charges is too high they will shift to other firm,and also Relationship managers plays a key role for attaining a client for his organization

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4.Threat of substitute products:

There are so many substitute products present in the market Some of them are: 1. Fixed Deposits 2. Mutual Funds 3. Insurance 4. Bonds and Debentures 5. Post office savings.

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Chapter - 2 Company Analysis

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COMPANY PROFILE
Indiabulls Securities Ltd is India's leading capital markets company with All-India Presence and an extensive client base. The company is engaged in the securities brokerage industry. They provide range of services to their clients in securities brokerage, including equities, commodities, wholesale debt, futures and options, depositary services, research services, insurance, initial public offering (IPO), and mutual fund distribution The company's primary business activity is to carry on business of stock and share broker on National Stock Exchange of India Ltd and Bombay Stock Exchange Ltd, and other related ancillary services. They are a depositary participant with the National Securities Depository Ltd (NSDL) and Central Depository Services (India) Ltd (CDSL) for settlement of dematerialized shares Indiabulls Securities Ltd was incorporated on June 9, 1995 as a private limited company with the name GPF Securities Pvt Ltd. Indiabulls Group is one of the top business houses in the country with business interests in financial markets like

S c ritie &Driv tiv s eu s e a e Bkg ro in

S c re F a c g e u d in n in

In diab ulls was

Mrtg g &H u in o ae os g F ac in n e

F a c lP d c in n ia ro u ts D trib tio is u n

Cn u e F a c g o s mr in n in

Promoted by Sameer Gehlaut, Rajiv Rattan and Saurabh Mittal who are engineering graduates from the Indian Institute of Technology in Delhi and attracted more than Rs.700 million as investments from venture capital, private equity and institutional investors such as LNM India Internet Ventures Ltd., Transatlantic Corporation Ltd., Farallon Capital Partners, L.P., R R Capital Partners L.P., and Infinity Technology Trustee Pvt. Ltd. and has developed significant relationships with large commercial banks such as Citibank, HDFC Bank, Union Bank, ICICI Bank, ABN Amro Bank, Standard, Chartered Bank, Lord Krishna Bank and IL&FS. 12

MSRMI The Company and its subsidiaries have facilities from the above mentioned banks and financial institutions aggregating to Rs. 1760 million. The Company headquarters are co-located in Mumbai and Delhi, allowing it to access the two most important regions for Indian financial markets, the Western region including Mumbai, rest of Maharashtra and Gujarat; and the Northern region, including the National Capital Territory of Delhi, nearby cities, parts of Haryana, Uttar Pradesh and Punjab; and access the highly skilled and educated workforce in these cities. The Marketing and Sales efforts are Head quartered out of Mumbai, with a regional headquarter in Delhi; and its back office, risk management, internal finances etc. are headquartered out of Delhi, allowing. The Company to scale these processes efficiently for the nationwide network. Indiabulls has been conferred the status of a Business Super brand by The Brand Council, Super brands India. Indiabulls Securities Ltd., Depository Participant with National Securities Depository Limited (NSDL) and Central Depository Services Ltd. (CDSL) provides dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them. Under the Portfolio Investment Scheme offered by the Indiabulls Equity Analysis The retail arm of Indiabulls Securities Ltd, offers online (through www.indiabulls.com) and offline services, its well-researched expertise and financial products to the retail investors.

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MISSION AND VISION

It is very difficult to define Indiabulls mission and vision because it has diversified its business into many verticals with different motives. But to mention some we can summarize them as the following: To provide financial consultancy services; to provide investment advisory services on the internet or otherwise; provide financial consultancy in the area of personal and corporate finance; publish books and CD ROMs and any other information related to the above.

To conduct depository participant services; to conduct de-materialisation and re-materialisation of

shares; set up depository participant centers at various regions in India and to perform all related, incidental, ancillary and allied services. To carry on the business of portfolio management services, investment advisory services; custodial services; asset management services; leasing and hire purchase; mutual fund services and to act as brokers of real estate and financial instruments.

To receive funds, deposits and investments from the public, Government agencies, financial

institutions and corporate bodies; grant advances and loans; conduct advisory services related to banking activities, project financing, funding of mergers and acquisition activities; fund management and activities related to money market operations.

To acquire Lands, Properties in Real Estate and provide quality products in Residential,
Commercial and SEZs.

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Profile of the organization

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

Sameer Gehlaut, Chairman, CEO & Whole Time Director: Rajiv Rattan, President, CFO & Whole Time Director: Saurabh Mittal, Director

Major Products and Services

Indiablls Financial Services Limited is a provider of a range of financial products and services in India. Indiabulls is an integrated financial services powerhouse providing: Consumer Finance Housing Finance Commercial Loans Life Insurance Asset Management Research and advisory services Consumer secured credit Commodity brokerage services Depositary services Equity and Derivative trading Forex Services Mortgage and home loans Securities brokerage services Indiabulls Equity Analysis

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ORGANIZATIONAL HIERARACHY
CHIEF EXECUTIVE OFFICER

EXUCUTIVE VICE PRESIDENT

VICE PRESIDENT

BRANCH MANAGER

BRANCH MANAGER

BRANCH MANAGER

RELATIONSHIP MANAGER

RELATIONSHIP MANAGER

RELATIONSHIP MANAGER

MANAGEMENT TRAINEE

MANAGEMENT TRAINEE

MANAGEMENT TRAINEE

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COMPETITORS
SR.N0 1 2 3 4 5 6 7 NAME OF THE STOCK BROKING FIRM ICICI Direct ShareKhan India InfoLine HDFC Securities Angel Broking Religare Karvey Securities

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SWOT analysis of organization

STRENGTHS:
Online trading platform. Diverse branch network provides ample apportunities to penetrate deep into the existing and untapped market. Indiabulls offers its clients a pool of financial services and products. No annual maintenance charges. No custodial charge It does not keep any condition as to collect minimum amount of brokerage from its clients Most competitive brokerage and DP charges (on delivery 0.5% and on intraday 0.1%) Equity analysis report to support the investment decision of its clients. Trading via branch network, telephones and internet account i.e both online and offline. Induction of new employees through an extensive computer based training. Real time online transfer fund and exposure updating facility with HDFC, CITIBANK and ICICI

WEAKNESSES:
It should have its own mutual funds as indiabulls is providing advices in mutual fund. It should provide tips via SMS. There should be a separate set of staff working in fields and trading on behalf of their clients. Position to answer the question of their clients relating to the current market position as they are on field. Commodities are not traded online. It does not provide with the indices of major world markets, ADR prices of indian scripts. Due to the continuous need to meet the targets , some of the relationship managers crack under pressure and thus leave the organization.

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OPPOURTUNITIES
Financial services like banking. Market expansion i.e opening branches at untapped areas. Indiabulls is registered with Luxembourg stock exchange and so can target other stock exchange. Atm facility should be provided for easy withdrawals. The capital market in the last few years has turned out to be one of the favorables avenues for the retail investors. Rapid penetration of internet and computers

THREATS
Companies like share khan, ICICI Direct , Kotak, and Private brokers are major threats to indiabulls Banks with demat facility jockeying for position. Local brokers capable of charging lower brokerage. Industry competitors vying for the same target segment. Changes in sebi guidelines & other tax implications Government regulations.

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Chapter - 3 Discussion on Training

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1. Roles and Responsibilities: During my summer training at Anand rathi shares and stock brokers ltd, I had to do various roles and achieve given responsibilities so as to cater the needs of the company, which are given below. Understand the working process of stock broking companies. Arrangement of meeting and seminars with branch manager. Meet the branch managers of other broking houses to know about their strategies and process. Generate leads for the company. Get knowledge about cold calling practically. Doing research on behalf of company. Learn about interaction between various departments at branch. Learn the business environment under which firm is operating. 2. Description of tasks handled Visiting each of the company office in the city. Meeting the branch manager of competitors to know their company knowhow. Meeting the existing and prospective customers of broking firm and do survey on behalf of company as a research. To create awareness about Anandrathi shares and stock brokers Ltd. 3. Contribution to company In the growing competition & availability many options will be able to exist which can cater the market efficiency & effectively, no about this only supplement the quality services and many other factors. With the help of this study the company will be able to identify the loose points, which it should improve upon to deliver the best of service to investors. It will help the company to find out the investment behavior for the investors. The undertaken was part for attainment of this objective for the company in Bangalore city. To researcher To bride practical orientation with the theoretical and conceptual it is pertinent for one to enter in the corporate world. By this project the researcher not only fulfilled his requirement of MBA degree programme but also learn a lot in the field of marketing, the researcher has got an opportunity of implementing her theoretical knowledge of management programme in his practical life.

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Chapter - 3 Analysis of research undertaken

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1.INTRODUCTION

1.1 COMPANY PROFILE Indiabulls is Indias leading Financial Services and Real Estate company having presence over 763 locations in more than 206 cities. Indiabulls serves the financial needs of more than 18,70,000 customers with its wide range of financial services and products from securities, derivatives trading, depositary services, research & advisory services, insurance, consumer secured & unsecured credit, loan against shares and mortgage & housing finance. With around 5000 Relationship Managers, Indiabulls helps its clients to satisfy their customized financial goals. Indiabulls through its group companies has entered Indian Real Estate business in 2005. It is currently evaluating several large-scale projects worth several hundred million dollars. Indiabulls Financial Services Ltd is listed on the National Stock Exchange, Bombay Stock Exchange, Luxembourg Stock Exchange and London Stock Exchange. The market capitalization of Indiabulls is around USD 800 million, and the consolidated net worth of the company is around USD 500 million. Indiabulls and its group companies have attracted USD 300 million of equity capital in Foreign Direct Investment (FDI) since March 2000. Some of the large shareholders of Indiabulls are the largest financial institutions of the world such as Fidelity Funds, Capital International, Goldman Sachs, Merrill Lynch, Lloyd George and Farallon Capital. Indiabulls is ranked 52th in the list of most valuable companies in India in BT500. Business of the company has grown in leaps and bounds since its inception. Revenue of the company grew at a CAGR of 184% from FY03 to FY07. During the same period, profits of the company grew at a CAGR of 268%. Indiabulls became the first company to bring FDI in Indian Real Estate through a JV with Farallon Capital Management LLC, a respected US based investment firm. Indiabulls has demonstrated deep understanding and commitment to Indian Real Estate market by winning competitive bids for landmark properties in Mumbai and Delhi. In April 2006, Indiabulls announced demerger of its real estate division to a separate entity. 23

MSRMI I wish to take this opportunity to introduce Indiabulls Securities Ltd. to you as a Technology Oriented Financial services Company offering Integrated Equity analysis, Stock Trading, Derivatives trading, Depositary services, backed by real time risk management systems and fast trade execution. Indiabulls also provides its clients with valuable real-time information, access to breaking news and market happenings, along with in-depth and insightful analysis.

1.2 GROWTH STORY

Indiabulls has emerged as one of the leading and fastest growing financial company in less than two year, since its initial public offering in September 2004. It has a market capitalization of around USD 800 million and consolidated net worth of around USD 500 million.

2000-01

Indiabulls Financial Services Ltd. established Indias one of the first trading platforms with the development of an in house team.

2001-04

Indiabulls expands its service offerings to include Equity, F&O, Wholesale Debt, Mutual fund, IPO distribution and Equity Research. Indiabulls ventured into Insurance distribution and commodities trading. Company focused on brand building and franchise model.

2005-04

2004-07

Indiabulls came out with its initial public offer (IPO) in September 2004. Indiabulls started its consumer finance business. Indiabulls entered the Indian Real Estate market and became the first company to bring FDI in Indian Real Estate. Indiabulls won bids for landmark properties in Mumbai.

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2007-08

Indiabulls has acquired over 115 acres of land in Sonepat for residential home site development. Merrill Lynch and Goldman sac, one of the renowned investment banks in the world have increased their shareholding in Indiabulls. Indiabulls is a market leader in securities brokerage industry, With around 31% share in online trading, Farallon Capital and its affiliates, the worlds largest hedge fund committed Rs. 2000 million for Indiabulls subsidiaries Viz. Indiabulls Credit Services Ltd. and Indiabulls Housing Finance Ltd. Steel Tycoon Mr. LN Mittal promoted LNM India Internet venture Ltd. acquired 8.2% stake in Indiabulls Credit Services Ltd.

2008-09

Indiabulls entered in a 50/50 joint venture with DLF, Kenneth Builders & Developers (KBD). KBD has acquired 35.8 acres of land from Delhi Development Authority through a competitive bidding process for Rs 450 crore to develop residential apartments. Indiabulls Financial Services Ltd. is included in the prestigious Morgan Stanley Capital International Index (MSCI). Farallon Capital has agreed to invest Rs. 6,440 million in Indiabulls Financial Services Ltd.

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1.3 SERVICES PROVIDED BY THE INDIABULLS

1. Equities & Derivatives: 2. IndiaBulls equity analysis: 3. Depository Service: --Value added services for seamless delivery. -- Comprehensive services for independent investors, active traders & Non-Resident Indians.

1. EQUITIES AND DERIVATIVES Our Retail Equity Business caters to the needs of individual Indian and Non-Resident Indian (NRI) investors. Indiabulls offers broker assisted trade execution, automated online investing and access to all IPO's. Through various types of brokerage accounts, Indiabulls 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. 2. INDIABULLS EQUITY ANALYSIS Building and maintaining your ideal portfolio demands objective, dependable information. IndiaBulls Equity Analysis helps satisfy that need by rating stocks based on carefully selected, fact-based measures. And because we're not focused on investment banking, we don't have the same conflicts of interest as traditional brokerage firms. This objectivity is only one important difference in our ratings

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TYPE OF CATEGORIES
1. EVERGREEN: --These stocks are steady compounders, churning out steady growth rates year on year. They are typically significant players in their markets, with sound strategies that will help them achieve and sustain market dominance in the long run. They have strong brands, management credentials and a consistent track record of achieving super normal shareholder returns. We expect stocks in this category to compound at between 18-20% per annum for the next five to ten years.

2. APPLE GREEN: -- These are stocks that have the potential to be steady compounders and are attempting to move upwards, to turn Evergreen. They rank a shade below the Evergreen companies, only because their potential in the five to ten years' time is still not very clear, although they might grow at rates faster than that of the Evergreen stocks in the next year or two. They could grow at 25-30% per annum over the next two to three years.

3. EMERGING STAR: -- These are typically young companies, often in niche businesses, that have the potential to grow and dominate their niches. Even better, they might turn out to be real giants, if their niches explode into full-blown markets in their own rights. These stocks are potential ten-beggars but you need to be patient.

4. UGLY DUCKLING: -- These are companies that are trading below their fair value or at values, which are at a significant discount to that of their peer group, due to a combination of circumstances. But things are now starting to happen in these companies or in their markets that are likely to cause a reevaluation of their prospects. These stocks could double in two to three years' time. 5. VULTURE'S PICK: -- These are companies with valuable assets or brands that have been trashed to ridiculously low prices. Buy a Vulture's Pick and wait for a predator who finds its assets undervalued to come along. This could be a long wait but the returns could be startlingly high.

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ONLINE TRADING ACCOUNT

Indiabulls offers two products: 1. 2. Get More At Indiabulls. NIB - Normal Indiabulls PIB - Power Indiabulls

NIB Normal Indiabulls: A multitude of ways to access your account either through priority access to Relationship Manager over phone OR online access to your Account & Research Tools. Enjoy priority telephone access that gives you direct access to your Relationship Manager. Stay on the top of your investments with a snapshot of your Account Statements. Get access to Portfolio statement and access to digital contract notes.

PIB Power Indiabulls: Trading just got faster It is advance trading software which great deals of versatility even at low band width assuring speed and total functionality ensuring speed and total functioning of a brokers terminal. An active trader market execute traders and get confirmation of the some computers terminal need to be 128 Bits Encrypted (Supported by explorer version 5 and above) Regardless of how the market is performing or which way the economic winds are blowing as traders, are researching, charting, crafting a strategy, buying and selling. Investors are getting in, getting out and moving on to the next trade. Choose from a comprehensive offering of accounts, platform and product. Customize technology and services to support the way of work. Choose from a broad spectrum of sophisticated trading tools using a fast desktop Trading Software. - Trading just got faster. Features of PIB: Live Streaming Quotes Fast Order Entry Tic by Tic Live Charts Technical Analysis Live News and Alerts

Extensive Reports for Real-time Accounting

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MSRMI 1.4 INTRODUCTION OF STOCK MARKET A stock, also referred to as a share, is commonly a share of ownership in a corporation. In British English, the word stock has another completely different meaning in finance, referring to a bond. It can also be used more widely to refer to all kinds of marketable securities. Where a share of ownership is meant the word share is usually used in British English.

HISTORY
The first company that issued shares is considered Northern-European copper mining enterprise Stora Kopparberg, in the 13th century.

QUICK FACTS ON STOCKS AND SHARES

Owning a stock or a share means you are a partial owner of the company, and you get voting rights in certain company issues. Over the long run, stocks have historically averaged about 10% annual returns However, stocks offer no guarantee of any returns and can lose value, even in the long run. Investments in stocks can generate returns through dividends, even if the price.

How does one trade in shares?

Every transaction in the stock exchange is carried out through licensed members called brokers. To trade in shares, you have to approach a broker however, since most stock exchange brokers deal in very high volumes, they generally do not entertain small investors. These brokers have a network of sub-brokers who provide them with orders.The general investors should identify a sub-broker for regular trading in shares and place his order for purchase and sale through the sub-broker. The sub/broker will transmit the order to his broker who will then execute it.

What are active Shares?

Shares in which there are frequent and day-to-day dealings, as distinguished from partly active shares in which dealings are not so frequent. Most shares of leading companies would be active, particularly those, which are sensitive to economic and political events and are, therefore, subject to sudden, price movements. Some market analysts would define active shares as those, which are bought and sold at least three times a week. Easy to buy or sell.

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What is Demat account?

Demat refers to a dematerialized account. Though the company is under obligation to offer the securities in both physical and demat mode, you have the choice to receive the securities in either mode. If you wish to have securities in demat mode, you need to indicate the name of the depository and also of the depository participant with whom you have depository account in your application. It is, however desirable that you hold securities in demat form as physical securities carry the risk of being fake, forged or stolen. Just as you have to open an account with a bank if you want to save your money, make cheque payments etc, Nowadays, you need to open a demat account if you want to buy or sell stocks. So it is just like a bank account where actual money is replaced by shares. You have to approach the DPs (remember, they are like bank branches), to open your demat account. Let's say your portfolio of shares looks like this: 150 of Infosys, 50 of Wipro, 200 of HLL and 100 of ACC. All these will show in your demat account. So you don't have to possess any physical certificates showing that you own these shares. They are all held electronically in your account. As you buy and sell the shares, they are adjusted in your account. Just like a bank passbook or statement, the DP will provide you with periodic statements of holdings and transactions. Is a demat account a must? Nowadays, practically all trades have to be settled in dematerialized form. Although the market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of up to 500 shares to be settled in physical form, nobody wants physical shares any more. So a demat account is a must for trading and investing.

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OWNERSHIP
The owners and financial backers of a company may want additional capital to invest in new projects within the company. If they were to sell the company it would represent a loss of control over the company. Alternatively, by selling shares, they can sell part or all of the company to many part-owners. The purchase of one share entitles the owner of that share to literally share in the ownership of the company, including the right to a fraction of the assets of the company, a fraction of the decision-making power, and potentially a fraction of the profits, which the company may issue as dividends. However, the original owners of the company often still have control of the company, and can use the money paid for the shares to grow the company. In the common case, where there are thousands of shareholders, it is impractical to have all of them making the daily decisions required in the running of a company. Thus, the shareholders will use their shares as votes in the election of members of the board of directors of the company. However, the choices are usually nominated by insiders or the board of the directors themselves, which over time has led to most of the top executives being on each other's boards. Each share constitutes one vote (except in a co-operative society where every member gets one vote regardless of the number of shares they hold). Thus, if one shareholder owns more than half the shares, they can out-vote everyone else, and thus have control of the company.

SHAREHOLDER RIGHTS
Although owning 51% of shares does mean that you own 51% of the company and that you have 51% of the votes, the company is considered a legal person, thus it owns all its assets, (buildings, equipment, materials etc) itself. A shareholder has no right to these without the company's permission, even if that shareholder owns almost all the shares. This is important in areas such as insurance, which must be in the name of the company not the main shareholder. In most countries, including the United States, boards of directors and company managers have a fiduciary responsibility to run the company in the interests of its stockholders. Nonetheless, as Martin Whitman writes: "...it can safely be stated that there does not exist any publicly traded company where management works exclusively in the best interests of OPMI [Outside Passive Minority Investor] stockholders. Instead, there are both "communities of interest" and "conflicts of interest" between stockholders (principal) and management (agent). This conflict is referred to as the principal/agent problem. It would be naive to think that any management would forego management compensation, and management entrenchment, just because some of these management privileges might be perceived as giving rise to a conflict of interest with OPMIs."

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Even though the board of directors run the company, the shareholder has some impact on the company's policy, as the shareholders elect the board of directors. Each shareholder has a percentage of votes equal to the percentage of shares he owns. So as long as the shareholders agree that the management (agent) are performing poorly they can elect a new board of directors which can then hire a new management team. Owning shares does not mean responsibility for liabilities. If a company goes broke and has to default on loans, the shareholders are not liable in any way. However, all money obtained by converting assets into cash will be used to repay loans, so that shareholders cannot receive any money until creditors have been paid.

MEANS OF FINANCING
Financing a company through the sale of stock in a company is known as equity financing. Alternatively debt financing (for example issuing bonds) can be done to avoid giving up shares of ownership of the company.

TRADING
Shares of stock are usually traded on a stock exchange, where people and organizations may buy and sell shares in a wide range of companies. A given company will usually only trade its shares in one market, and it is said to be quoted, or listed, on that stock exchange.However, some large, multinational corporations are listed on more than one exchange. They are referred to as inter-listed shares.

BUYING
There are various methods of buying and financing stocks. The most common means is through a stock broker. Whether they are a full service or discount broker, they are all doing one thing arranging the transfer of stock from a seller to a buyer. Most of the trades are actually done through brokers listed with a stock exchange such as the New York Stock Exchange. There are many different stock brokers to choose from such as full service brokers or discount brokers. The full service brokers usually charge more per trade, but give investment advice or more personal service; the discount brokers offer little or no investment advice but charge less for trades. Another type of broker would be a bank or credit union that may have a deal set up with either a full service or discount broker. There are other ways of buying stock besides through a broker. One way is directly from the company itself. If at least one share is owned, most companies will allow the purchase of shares directly from the company through their investor's relations departments. However, the initial share of stock in the company will have to be obtained through a regular stock broker. Another way to buy stock in companies is through Direct Public Offerings which are usually sold by the company itself. A direct public offering is an initial public offering a company in which the stock is purchased directly from the company, usually without the aid of brokers.

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When it comes to financing a purchase of stocks there are two ways: purchasing stock with money that is currently in the buyers ownership or by buying stock on margin. Buying stock on margin means buying stock with money borrowed against the stocks in the same account. These stocks, or collateral, guarantee that the buyer can repay the loan; otherwise, the stockbroker has the right to sell the stocks (collateral) to repay the borrowed money. He can sell if the share price drops below the margin requirement, at least 50 percent of the value of the stocks in the account. Buying on margin works the same way as borrowing money to buy a car or a house using the car or house as collateral. Moreover, borrowing is not free; the broker charges you 8-10 percent interest.

SELLING
Selling stock in a company goes through many of the same procedures as buying stock. Generally, the investor wants to buy low and sell high, if not in that order; however, this is not how it always ends up. Sometimes, the investor will cut their losses and claim a loss. As with buying a stock, there is a transaction fee for the broker's efforts in arranging the transfer of stock from a seller to a buyer. This fee can be high or low depending on if it is a full service or discount broker. After the transaction has been made, the seller is then entitled to all of the money. An important part of selling is keeping track of the earnings. It is important to remember that upon selling the stock, in jurisdictions that have them, capital gains taxes will have to be paid on the additional proceeds, if any, that are in excess of the cost basis.

1.5 TECHNOLOGYS ON TRADING

Stock trading has evolved tremendously. Since the very first Initial Public Offering (IPO) in the 13th century, owning shares of a company has been a very attractive incentive. Even though the origins of stock trading go back to the 13th century, the market as we know it today did not catch on strongly until the late 1800s. Co-production between technology and society has led the push for effective and efficient ways of trading. Technology has allowed the stock market to grow tremendously, and all the while society has encouraged the growth. Within seconds of an order for a stock, the transaction can now take place. Most of the recent advancements with the trading have been due to the Internet. The Internet has allowed online trading. In contrast to the past where only those who could afford the expensive stock brokers, anyone who wishes to be active in the stock market can now do so at a very low cost per transaction. Trading can even be done through Computer-Mediated Communication (CMC) use of mobile devices such as hand computers and cellular phones. These advances in technology have made day trading possible. The stock market has grown so that some argue that it represents a country's economy. This growth has been enjoyed largely to the credibility and reputation that the stock market has earned.

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TYPES OF SHARES
There are several types of shares, including common stock, preferred stock, treasury stock, and dual class shares. Preferred stock, sometimes called preference shares, have priority over common stock in the distribution of dividends and assets, and sometime have enhanced voting rights such as the ability to veto mergers or acquistions or the right of first refusal when new shares are issued (i.e. the holder of the preferred stock can buy as much as they want before the stock is offered to others). A dual class equity structure has several classes of shares (for example Class A, Class B, and Class C) each with its own advantages and disadvantages. Treasury stock are shares that have been bought back from the public.

1.6 DERIVATIVES
A stock option is the right (or obligation) to buy or sell stock in the future at a fixed price. Stock options are often part of the package of executive compensation offered to key executives. Some companies extend stock options to all (or nearly all) of their employees. This was especially true during the dot-com boom of the mid- to late- 1990s, in which the major compensation of many employees was in the increase in value of the stock options they held, rather than their wages or salary. Some employees at dot-com companies became millionaires on their stock options. This is still a major method of compensation for CEOs. The theory behind granting stock options to executives and employees of a corporation is that, since their financial fortunes are tied to the stock price of the company, they will be motivated to increase the value of the stock over time.

1.7 PRIMARY MARKET (IPOS)

In financial markets, an Initial public offering (IPO) is the first sale of a company's common shares to public investors. The company will usually issue only primary shares, but may also sell secondary shares. Typically, a company will hire an investment banker to underwrite the offering and a corporate lawyer to assist in the drafting of the prospectus. The sale of stock is regulated by authorities of financial supervision and where relevant by a stock exchange. It is usually a requirement that disclosure of the financial situation and prospects of a company be made to prospective investors. The Federal Securities and Exchange Commission (SEC) regulates the securities markets of the United States and, by extension, the legal procedures governing IPOs. The law governing IPOs in the United States includes primarily the Securities Act of 1933, the regulations issued by the SEC, and the various state "Blue Sky Laws".

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SECONDARY MARKET
The secondary market (also called "aftermarket") is the financial market for trading of securities that have already been issued in its initial private or public offering. Stock exchanges are examples of secondary markets. Alternatively, secondary market can refer to the market for any kind of used goods.

HISTORY
Secondary markets have a long history, beginning perhaps with a flourishing trade in commercial bills of exchange in 12th and 13th century France. It was the French King Philip the Fair who created the profession of broker, or "couratier de change," in order to regularize this market. Amsterdam's Bourse, which began operations in 1611, was the first true stock exchange, and this reflected the importance of Holland in world trade at that time.

FUNCTION
In the secondary market, securities are sold by and transferred from one speculator to another. It is therefore important that the secondary market be highly liquid and transparent. The eligibility of stocks and bonds for trading in the secondary market is regulated through financial supervisory authorities and the rules of the market place in question, which could be a stock exchange.

1.8 BOMBAY STOCK EXCHANGE

The stock exchange, Mumbai, which was established in 1875 as The native Share and stockbrokers association(a voluntary non-profit making association), has evolved over the years into its present status as the premier Stock Exchange in the country. The Stock Exchange, Mumbai (BSE) is generally referred to as Gateway to the capital market in India. As Indian economy is opening up, the Exchange has brought its operation at par with international standards. However, the objectives and role of the stock exchange, Mumbai has remained the same as enunciated by our founding fathers and given to us as mandate in 1877 through the charter. A governing board comprising of 9 elected directors (one third of them retire every year byrotation), an Executive Director, three government nominees, a RBI nominee and five public representatives, is the apex body, which regulates the exchange and decides its policies. The governing board following the election of Directors annually elects a President, Vice-president and an Honorary Treasurer from among the elected directors. The Executive Director and Chief Executive Officer is responsible for the day to day administration of the exchange. The Exchange has obtained permission from Securities and Exchange Board of India for expansion of its BSE-On-Line-Trading (BOLT) network to locations outside Mumbai. In terms of the permission granted by SEBI, the members of the Exchange are free to install their trading terminals to cities where there are no Stock Exchanges. However, at centers where other Exchanges are located, the Exchange is required to sign a Memorandum of Understanding with these Exchanges. The Exchange has signed Memorandum of Understanding with Stock Exchanges, viz., Calcutta, Pune, Ahmedabad, Saurastra-Kutch (Rajkot), Madhya pradesh, Vadodra, Magadh (Patna), Jaipur, Coimbatore and 35

MSRMI Chennai (Madras) to provide BOLT connections to the members of these exchanges after obtaining necessary clearance from SEBI.Bombay stock Exchange Limited is the oldest stock exchange in Asia. It was popularly known as BSE, it was established in 1875.It is the first stock exchange in India to obtain permanent recognition in 1956 from the Government of India under Securities contracts Act, 1956.The exchanges pivotal and pre-eminent role in the development of Indian capital market is widely recognized and its index, SENSEX, is tracked worldwide.

BSESENSEX
The BSE Sensex is a value-weighted index composed of 30 companies with the base April 1979 = 100. It has grown by more than four times from January 1990 till date. The set of companies in the index is essentially fixed. These companies account for around one-fifth of the market capitalization of the BSE. We can use information from April 1979 onwards in estimating the long-run rate of return on the BSE Sensex and that comes to 0.52% per week (continuously compounded) with a standard deviation of 3.67%. This translates to 27% per annum, which translates to roughly 18% per annum after compensating for inflation.

1.9 LISTING OF SECURITIES

Listing means admission of securities to dealings on a recognized stock Exchange .The securities may be of any public limited company, central Or state government, Quasi-governmental and other financial institutions/corporations,municipalities etc. The objectives of listing are mainly to: Provide liquidity to securities Mobilize savings for economic growth Protect interest of investors by ensuring full disclosures

NEW COMPANIES: Minimum capital- New companies can be listed on the exchange, if their issued and subscribed equity capital after the public issue, is Rs.5 cr and above. Minimum public offer: -As per rule 19(2) (b) of the securities contracts rules 1957,securities of a company can be listed on a stock exchange only when at least 25% of each class or kind of securities is offered to the public for subscription.

COMPANIES LISTED ON OTHER STOCK EXCHANGES: The companies listed on other stock exchanges and seeking listing on these exchanges are required to fulfill the following criteria, Minimum issued equity capital of Rs.3 crores to Rs.10 crores. Profit track record for at least 3 years. Minimum market capitalization of Rs.20 crores, based on average price of last 6 months. Trading for a minimum 50% of the total trading days during days the same 6 months on any stock exchange.

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1.10 NATIONAL STOCK EXCHANGE

The National stock exchange of India has limited genesis in the report of the high-powered study group on establishment of new stock exchange, which recommended promotion of a National stock exchange by financial institutions to provide access to investors from all across the country on an equal footing. The National Stock Exchange (NSE), located in Bombay, is India's first debt market. It was set up in 1993 to encourage stock exchange reform through system modernization and competition. It opened for trading in mid-1994. It was recently accorded recognition as a stock exchange by the Department of Company Affairs. The instruments traded are, treasury bills, government security and bonds issued by public sector companies. November 1992 April June 1993 1994 Incorporation Recognition as a stock exchange Wholesale debt market segment goes live Capital market (equities) segment goes live Establishment of NSCCL, the first clearing Corporation Launch of S&P CNX Nifty Setting up of NSDL, first depository in India

November 1994 April April 1995 1996

November 1996

May July

1998 1998

Launch of NSES website, www.nseindia.com Launch of NSES certification program in Financial market Launch of automated lending and borrowing Mechanism Commencement of Internet trading Commencement of trading in index options Launch of exchange traded funds (ETF) Commencement of trading in retail debt market Launch of Futures & Options in BANK Nifty index

February 1999 February 2000 June January January June 2001 2002 2003 2005

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4.1. DIFFERENT COMPETITORS The major players in online trading INDIABULLS INDIAINFOLINE KOTAKSTREET SHAREKHAN ICICIDIRECT HDFCSECURITIES

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4.2 COMPANY BACKGROUND Indiabulls is Indias leading Financial Services and Real Estate company having presence over 763 locations in more than 206 cities. Indiabulls serves the financial needs of more than 18,70,000 customers with its wide range of financial services and products from securities, derivatives trading, depositary services, research & advisory services, insurance, consumer secured & unsecured credit, loan against shares and mortgage & housing finance. With around 5000 Relationship Managers, Indiabulls helps its clients to satisfy their customized financial goals. Indiabulls through its group companies has entered Indian Real Estate business in 2005. It is currently evaluating several large-scale projects worth several hundred million dollars. Indiabulls Financial Services Ltd is listed on the National Stock Exchange, Bombay Stock Exchange, Luxembourg Stock Exchange and London Stock Exchange. The market capitalization of Indiabulls is around USD 800 million, and the consolidated net worth of the company is around USD 500 million. Indiabulls and its group companies have attracted USD 300 million of equity capital in Foreign Direct Investment (FDI) since March 2000. Some of the large shareholders of Indiabulls are the largest financial institutions of the world such as Fidelity Funds, Capital International, Goldman Sachs, Merrill Lynch, Lloyd George and Farallon Capital. Indiabulls is ranked 52th in the list of most valuable companies in India in BT500. Business of the company has grown in leaps and bounds since its inception. Revenue of the company grew at a CAGR of 184% from FY03 to FY07. During the same period, profits of the company grew at a CAGR of 268%. Indiabulls became the first company to bring FDI in Indian Real Estate through a JV with Farallon Capital Management LLC, a respected US based investment firm. Indiabulls has demonstrated deep understanding and commitment to Indian Real Estate market by winning competitive bids for landmark properties in Mumbai and Delhi. In April 2006, Indiabulls announced demerger of its real estate division to a separate entity.

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ONLINE ACCOUNT TYPE

SIGNATURE ACCOUNT: Plain Vanilla Account with focus on Equity analysis is a paid service even for A/c holders. POWER INDIABULLS: access to R.M. Analysis. The equity

Account with sophisticated trading tools, low commissions and priority

PRICING OF IB ACCOUNTS
SIGNATURE ACCOUNT ACCOUNT OPENING: Rs 900 DEMAT: Nil, No AMC for this DP INITIAL MARGIN: NIL BROKERAGE: Negotiable

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POWER INDIABULLS
FEATURES OF POWER INDIABULLSTM :

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

ACCOUNT OPENING: Rs 750 DEMAT: Nil, No AMC for this DP INITIAL MARGIN: NIL BROKERAGE: Negotiable (Based on volume)

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MSRMI 2. OBJECTIVES The Broad objective of the project is to make clients and let them know about the different services offered by the Indiabulls .

This project will accomplish to understand the problem faced by the existing client and find ways to solve there queries at client level otherwise let the above level know about there problem.

To understand and analyse online trading at india bulls.

To make a comparative study of competitors of indiabulls.

To check the awareness of customers about the services provided by India Bulls.

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MSRMI RESEARCH METHODOLOGY A Research is careful investigation or inquiry, especially through search for new facts in any branch of knowledge. It is a systemized effort to gain more knowledge. Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. We study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research methods or techniques but also the methodology. Researcher always needs to understand the assumptions underline various technique and they need to know the criteria by which they can decide that certain technique and procedures will be applicable to certain problems and other will not. The predefined objective can be achieved by following ways: o Studying the buying behavior of customer. o Comparing sales of different players. TYPE OF RESEARCH: Personal interview approach was adopted for the project. In this type of research, the researcher has to contact the person directly to know the available information and analyze the data was available in interviewers statements. This was one of the main sources for the project. The other approach was PERSONNEL RESEARCH. It is based on the personal knowledge. It is applicable to phenomenon that can be expressed in terms of words. RESEARCH PROCESS: Research Process consists of a series of action or steps necessary to effectively carry out the research and the desired sequencing of these steps. The various steps, which provided guidelines to the research process pertaining to the project, are as follows: Formulating the research problem Formulation of research problem involves understanding the problem thoroughly and rephrasing the same into meaningful terms from an analytical point of view. Extensive literature survey It is necessary for the researcher to conduct an extensive survey connected with the problem. For the purpose manual, company records, journals, published data can be used. 1) Development of working hypotheses Working hypotheses is a tentative assumption made in order to draw out and rest its logical or empirical consequences.

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MSRMI 2) Preparing the research design The researcher will be required to prepare a research i.e. he will have to state the conceptual structure within which research would be conducted. The function of research design is to provide the collection of relevant evidence with minimum expenditure of efforts, time and money. For this project, Random Sampling was used among the above-mentioned types. Since the time period was limited to 2 months, the sampling size was limited to 75. 3) Collection of data While deciding the methods of data collection to be used for study the researcher should keep in mind two types of data viz. Primary Data The Primary Data are those, which are collected a fresh and for the first time and thus happen to be original in character. Secondary Data Secondary data means data that are already available i.e. they refer to the data which have already been collected and segregated by someone else. The researcher has to determine the various sources of obtaining secondary data. Secondary data may be published or unpublished in nature. . Data Collection Data used for the project was the secondary and primary data. Technical or trade journals (NCFM MODULES) Books, magazines and newspaper and Internet Public record and statistics, historical documents and sources of public information. Methods of Data Collection Personal Interview Questionnaire & Telephonic Interview. 4) Analysis of data Analyses of data can of two types: Quantitative analysis Qualitative analysis Thus analysis of data require a number of closely related operations such as establishment of categories, the application of these categories into raw data through tabulation, chart and then draw inferences. Analysis work is generally based on the computation of various percentage, co-efficient etc. by applying various statistical formulae.

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MSRMI 5) Preparation of Reports After analysis, the next step is in the preparation of the report. The report has been prepared according to the report writing principles. The methodology adopted for the present study was focus discussion, interview
and close observation through in-house study. Since the project is based on action research it was necessary to collect maximum information from the Client.

Editing The first task in data is editing. It is the process by which data are prepared for subsequent coding. As it is very subjective process, editing is the process of examining errors and omission in the collected data and making necessary in the same this is desirable when there is more inconsistency in the responses. Tabulation: It includes cross tabulation of questionnaire by classification of responses appropriate graphical representation question with comments. Analysis and interpretation: Analysis and Interpretation are the central steps in the research process. The goal of analysis is to summaries the collected data in such a way that they provide answer to questions that triggered while research. Interpretation is the research for border, meaning of research finding. Hence, questionnaire was analyzed separately and interpretation was done to bring meaning and implication of the study. Hence analysis could not be completed without interpretation and interpretation cannot proceed without analysis.

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Data collection &competition Analysis

SHAREKHAN
COMPANY BACKGROUND Sharekhan, one of India's leading brokerage houses, is the retail arm of SSKI. With over 510 share shops in 170 cities, and India's premier online trading portal www.sharekhan.com, our customers enjoy multi-channel access to the stock markets.

ONLINE ACCOUNT TYPES Classic Account / Applet: Investor in equities Speed Trade: Trader in equities & derivatives

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PRICING FOR RETAIL CUSTOMERS CLASSIC A/C

ACCOUNT OPENING: Rs 750 (lifetime) DEMAT: 1st year: free a/c opening INTIAL MARGIN : NIL MINIMUM MARGIN: NIL BROKERAGE: Trading 0.10% each side + All Taxes Delivery 0.50% each side + All Taxes (Negotiable based on volume)

SPEED TRADE
ACCOUNT OPENING: Rs 1000 (Refundable against brokerage in Month + 1) DEMAT: 1st year: Incl in Account Opening INTIAL MARGIN : NIL MINIMUM MARGIN: NIL BROKERAGE: Trading 0.10% each side + All Taxes Delivery 0.50% each side + All Taxes (Negotiable based on volume) ACCOUNT ACCESS CHARGES Monthly Rs 500, adjustable qtrly against brokerage of Rs 9000/- for qtr No access charges for gold customers ( Above 1 lac brokerage p.a) CLASSIC ACCOUNT : The CLASSIC ACCOUNT is a Sharekhan online trading account, through which you can buy and sell shares through our website www.sharekhan.com in an instant. Along with enabling access for you to trade online, the CLASSIC ACCOUNT also gives you our Dial-n47

MSRMI Trade service. With this service, all you have to do is dial 1-600-22-7050 to buy and sell shares using your phone.

9 Features of the CLASSIC ACCOUNT that enable you to invest effortlessly Online trading account for investing in Equities and Derivatives via sharekhan.com Integration of: Online trading + Bank + Demat account Instant cash transfer facility against purchase & sale of shares Reasonable transaction charges.Instant order and trade confirmation by e-mail Streaming quotes Personalized market watch Single screen interface for cash, derivatives and more Provision to enter price trigger and view the same online in market watch

SPEED TRADE ACCOUNT

SPEEDTRADE is an internet-based software application that enables you to buy and sell shares in an instant. Its ideal for active traders and jobbers who transact frequently during day's trading session to capitalize on intra-day price movements. Speed Trade provides all the features of Classic, with the added functionality of trading in derivatives from the same single-screen software interface. 7 Features of Speed trade that enable you to trade effortlessly Instant order Execution & Confirmation Single screen trading terminal Real-time streaming quotes, tic-by-tic charts Market summary (most traded scrip, highest value) Hot keys similar to a brokers terminal Alerts and reminders Back-up facility to place trades on Direct Phone lines Our Dial-n-Trade service gives you the convenience of buying and selling shares over the phone by calling our dedicated phone lines at 1-600-22-7050. Features of DIAL-N TRADE that make the stock market easier to access Dedicated Toll-Free number for order placements. 1. Automatic fund transfer with phone banking** 2. Simple and secure IVR based system for authentication No waiting time. Enter TPIN to be transferred to our teleprocess.

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INDIA INFOLINE COMPANY BACKGROUND

Indiainfoline was founded in 1995 and was positioned as a research firm In 2000 e-broking was started under the brand name of 5 paisa.com. A part from offering online trading in stock market the company offers mutual funds online. It also acts as a distributor of various financial services i.e. GOI securities, Company Fixed Deposits, Insurance. Limited ground network, present in 20 Cities Online Account Types Investor Terminal: Investors / Students Trader Terminal: Day Traders / HNIs

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PRICING FOR RETAIL CLIENTS INVESTOR TERMINAL ACCOUNT OPENING: Rs 500 DEMAT 1ST YR: Rs 250 INITIAL MARGIN: Rs 2500(Compulsory) MIN MARGIN RETAINABLE: Rs 1000 BROKERAGE: Trading 0.10% each side + ST Delivery 0.50% each side + ST

PRICING FOR HNI CLIENTS TRADER TERMINAL ACCOUNT OPENING: Rs 500 DEMAT 1ST YR: Rs 250 INITIAL MARGIN: Rs 5000(Compulsory) MIN MARGIN RETAINABLE: Rs 1000 BROKERAGE: Trading 0.10% each side + ST Delivery 0.50% each side + ST ( Negotiable to 0.05% each side & 0.25%) ACCOUNT ACCESS CHARGES Monthly Rs 800, adjustable against Brokerage Yearly Rs 8000, adjustable against brokerage 52

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KOTAKSTREET
COMPANY BACKGROUND Kotakstreet is the retail arm of kotak securities. Kotak Securities limited is a joint venture between Kotak Mahindra Bank and Goldman Sachs. ONLINE ACCOUNT TYPES Twin Advantage / Green Channel : 2 DPs, Limit against shares Free Way: Flat Rs 999 Cover Charge p.m, 0.03% per transaction High Trader : 4 Times Exposure Cash & Derivatives, Cash Expressway : Spot payment, additional 0.5% charges For Kotak Fast Lane / Keat Lite / Keats Desktop are trading interfaces.Keat Desktop with advanced tools comes at a charge of Rs 500 p.m, Non refundable.

PRICING OF KOTAK ACCOUNT OPENING: Rs 800 INITIAL MARGIN: Rs 5000(Compulsory) MIN MARGIN RETAINABLE: Rs 1000 BROKERAGE SLAB WISE: Higher the volume, lower the brokerage. Even older customers (on 0.25% & 0.40%) have been moved to the slab wise structure wef 1/4/2004

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SLAB STRUCTURE OF KOTAK Delivery Vol p m < 1 lakhs 1 lakhs - 5 lakhs < 10 lakhs 10lakhs - 25 lakhs 25lakhs 2 Cr 2 Cr - 5 Cr > 5 Cr Brokerage * 0.65% 0.60% Square Vol off p m 0.10% Both Sides 0.08% Both Sides 0.06% Both Sides 0.05% Both Sides 0.04% Both Sides Brokerage **

Brokerage is inclusive of All Taxes ** Min Brokerage of Rs 0.01 per share Derivatives Vol off p m < 2 Cr 2 Cr - 5.5 Cr 5.5 Cr - 10 Cr > 10 Cr Brokerage

0.07% Both Sides 0.05% Both Sides 0.04% Both Sides 0.03% Both Sides

Brokerage is inclusive of All Taxes 5 lakhs -10 lakhs 10 lakhs -20 lakhs 20 lakhs -60 lakhs 60 lakhs 2 Cr >2 Cr 0.50% 0.40% 0.30% 0.25% 0.20%

DP Charges Extra Brokerage is inclusive of All Taxes * Min Brokerage of Rs 0.05 per share

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ICICIDIRECT
COMPANY BACKGROUND ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an Affiliate of ICICI Bank Limited and the Website is owned by ICICI Bank Limited.

ACCOUNT TYPES ICICI DIRECT E-INVEST ACCOUNT: Plain Vanilla Account with focus on 3 in 1 advantage. Differentiated in services within the account. 1. Cash on spot 2. Margin Plus Premium Trading interface of ICICIDirect Link is given to DBC partners and HNIs ACCOUNT OPENING: Rs 750 SCHEMES: For short periods Rs 750 is refundable against brokerage g generated in a qtr. These schemes are introduced 3-4 times a year. DEMAT: NIL, 1st year charges included in Account Opening Plus a facility to open additional 4 DPs without 1st yr AMC INITIAL MARGIN: Nil BROKERAGE: All brokerage is inclusive of stamp duty and exclusive of other taxes.

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DEAL CLINCHERS V/S ICICIDIRECT

POOR ONLINE INTERFACE Slow website interface with no real-time quotes creates a dissatisfaction among high frequency traders. MARGIN TRADING RESTRICTION The margin trading system is available up to 2:45 p.m, with outstanding net positions under margin segment automatically squared off at any time between 2:45 3:30 p.m. Thus no control of square off price. MORNING TRADES ISSUE Being one of the websites with largest no of after hour orders which are pushed 1st thing in the morning, creates a choking of orders to the exchange, causes delay of confirmations for new order placed during the early morning trades. RESTRICTION OF BTST The sale of shares purchased is restricted to T+1 day and is not permitted on T+2 Day. NO LEVERAGE FOR DELIVERY TRADES Delivery is restricted to the total money allocated into the trading account. NO FLEXIBILITY ON LEVERAGE ON INTRA-DAY TRADES The leverage of 4 times is available for intra- day trades. RESTRICTION OF BANK ACCOUNT The choice of bank is restricted to ICICI Bank. HIGHER BROKERAGE RATES WITH SLABS The delivery brokerage is pegged at 0.75% and trading at 0.10% each side, this makes is very unviable for customers dealing in large volumes. Although progressively the delivery and trading brokerage reduce as volumes go up.

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HDFC SECURITIES
COMPANY BACKGROUND HDFC Securities, a trusted financial service provider promoted by HDFC Bank and JP Morgan Partners and their associates, is a leading stock broking company in the country, serving a diverse customer base of institutional and retail investors. HDFCsec.com provides investors a robust platform to trade in Equities in NSE and BSE , and derivatives in NSE. Our website will support you with the highest standards of service, convenience and hassle-free trading tools. Our research team tracks the economy, industries and companies to provide you the latest information and analysis. Our content offers financial information, analysis, investment guidance, news & views, and is designed to meet the requirements of everyone from a beginner to a savvy and well-informed trader.

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ONLINE ACCOUNT TYPE

HDFC ONLINE TRADING A/C: Plain Vanilla Account with focus on 3 in 1 advantage.

PRICING OF HDFC ACCOUNT

ACCOUNT OPENING: Rs 750 DEMAT: NIL, 1st year charges included in Account Opening INITIAL MARGIN : Rs 5000/- for non HDFC Bank customers ( AQB) BROKERAGE : Trading 0.15%* each side + ST Delivery 0.50%** each side + ST * Rs 25 Min Brokerage per transaction ** Rs 8 Min Brokerage per transaction

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DEAL CLINCHERS V/S HDFC SECURITIES

POOR ONLINE INTERFACE Apart from having no product to cater to Day-Traders, the hdfcsec.com website is plagued with downtime. The same is currently being revamped. LACK OF FOCUS ON BROKING The core business of HDFC is Housing Finance and that of HDFC Bank is Banking. Broking as a business is a small part of the portfolio of financial services and hence the commitment to resources is limited. NO LEVERAGE Leverage is available to clients even for Intra-Day trades, effectively all clients are on cash and carry system. NO FLEXIBILITY IN COMMERCIAL TERMS The delivery brokerage is pegged at 0.5% and trading at 0.15% each side, this makes it unviable for customers dealing in large volumes.

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4.3 REQUIREMENT FOR OPENING ONLINE ACCOUNT

INDIABULLS DEPOSITORY SERVICES
Dematerialization and trading in the demat mode is the safer and faster alternative to the physical existence of securities. Demat as a parallel solution offers freedom from delays, thefts, forgeries, settlement risks and paper work. This system works through depository participants (DPs) who offer demat services and the securities are held in the electronic form. Indiabulls Depository Services offers dematerialisation services to individual and corporate investors. We have a team of professionals and the latest technological expertise dedicated exclusively to our demat department, apart from a national network of franchisee, making our services quick, convenient and efficient. At Indiabulls, our commitment is to provide a complete demat solution which is simple, safe and secure.

OPENING A DP ACCOUNT WITH INDIABULLS You can open a Depository Participant (DP) account through Indiabulls branch. There is no fee for opening DP accounts with Indiabulls. However a nominal deposit (refundable) is charged towards services, which will be adjusted against all future billings.

DOCUMENTS REQUIRED TO OPENING OF DEMAT ACCOUNT: -REQUIREMENT FOR OPENING DEMAT A\C: All investors have to submit their proof of identity and proof of address along with the prescribed account opening form. Proof of identity: You can submit a copy of Passport, Voters ID card, Driving license or pan card Proof of address: You can submit a copy of Passport, Voters ID card, Driving licence, PAN card with photograph, Ration card or Bank passbook as proof of address. You must remember to take original documents to the DP for verification Passport-size photograph The above are mandatory requirements as per Securities and Exchange Board india

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4.4 DEMATERIALIZATION WITH INDIABULLS

Dematerialization is the process by which a client can get physical certificates converted into electronic balances maintained in his account with the DP.

FEATURES:
Holdings in only those securities that are admitted for dematerialization by Central Depository Securities Ltd (CDSL) & NSDL can be dematerialized. Structure of holding in the securities should match with the account structure of the depository account. Now shares in different order of names can also be dematted.

EXAMPLE:
If the shares are in the name of X and Y, the same cannot be dematerialized into the account of either X or Y alone. However if the shares are in the name of X first and Y second, and the account is in the name of Y first and X second, then these shares can be dematerialized in this account. Only those holdings that are registered in the name of the account holder can be dematerialized. Physical shares, which have not been transferred and are still there with a transfer deed, cannot be dematted. Only a few companies have been given the permission to offer Transfer-cum-Demat. The list of these companies can be viewed here.

4.5 REMATERIALIZATION
Rematerialization is the process by which a client can get his electronic holdings converted into physical certificates. The client has to submit the rematerialisation request to the DP with whom he has an account along with a Remat request form. The physical shares will be posted by the company directly to the clients.

TRADES
For all sales made by clients, the shares will have to be given to the broker, so that the Pay In can be made by the broker to the stock exchange concerned. For that it's essential that the shares be transferred to the account of the broker well before the deadline date. You must confirm with your broker the settlement date and settlement number and then submit your instructions to your DP. Also it's important to give the instructions to your DP as early as possible. 61

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PLEDGE
Pledge enables you to obtain loans against your dematerialized shares. So you get liquidity without having to sell your shares. A highly simplified procedure may be availed of for pledging of securities in the electronic mode. The pledged securities continue to be reflected in the DP account of the clients (pledgor) but the concerned securities are "blocked" and cannot be used for any transactions. As and when the pledge is to be removed, based on confirmations received from both the pledgor and the pledgee, the blocked securities will be released to "Free Balance" of the account holder. A very big advantage of using pledges in the electronic mode is that the securities continue to be in your account and therefore all benefits--viz Dividend, Bonus and Rights--accrue to the holder, ie you and not the bank (pledgee).

CORPORATE BENEFITS
Corporate benefits are benefits given by a company to its investors. These may be either monetary benefits like dividend, interest etc or non-monetary benefits like bonus, rights etc.

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DIFFERENT CHARGES TAKEN BY INDIABULLS FOR ITS SERVICES

COMPARISON CHART:
ICICI Account Opening Charges Brokerage (%) Exposure on Cash Exposure on Securities Annual Maintenance Charges Banking facility Rs. 750 Kodak Rs. 800 Indiabulls

Rs.00 for Demat 900 for trading (ONE TIME) Delivery Intraday Delivery Intraday Delivery Intraday 0.85 NIL NIL Rs500 ICICI Bank 0.15 4 times 0.5 4 times NIL Rs. 260 Kotak/Hdfc/Citi Kotak/Hdfc/Citi N.A. 0.15 4 times 0.4% 4 times 0.04% 10 times

80% of the Market Value NIL All Banks HDFC/ICICI/Citibank/ABN Ambro/UTI/PNB Through Phone

Net Banking ICICI Bank facility Off-line Trading N.A.

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5. ANALYSIS LEARNING ABOUT DEMATERIALIZATION

HOW TO CONVERT YOUR SECURITY TO DEMAT FORM Process of conversion of securities into the demat form Securities specified as being eligible for dematerialization by the depository in its bye laws and as under the SEBI (Depositories and Participants) Regulations, 1996 (the Regulations) can be converted or issued in a dematerialized form. The process of conversion of securities into a dematerialized form or the issuance of the same in a dematerialized form can be explained thus: 1. Firstly, the issuer company, whose securities are eligible for dematerialization, has to enter into an agreement with a depository for dematerialization of securities already issued, or proposed to be issued to the public or existing shareholders . 2. The investor is given an option to hold the securities in a dematerialized form and it is his prerogative to exercise the option to hold the securities in that manner. 3. The depository enters into an agreement with the participants who are the agents of the depository and cofunctionaries in the process of dematerialization of securities. 4. Any person can then enter into an agreement, through the participant, with the depository for availing the services provided by the depository. 5.Upon the entering into such agreement with the depository, the person has to surrender the certificate pertaining to the securities sought to be dematerialized to the issuer. This surrender is affected in the following manner (i) The person (beneficial owner) who has entered into an agreement with the participant for dematerialization of the securities has to inform the participant about the details of the certificate of such securities. (ii) The beneficial owner has to then surrender the said certificate to the participant. (iii) The participant informs the depository about the particulars of the securities to be dematerialized and the agreement entered into between him and the beneficial owner. (iv) The participant then transfers the certificate pertaining to the said securities to the issuer along with the details and particulars of the securities. (v) These certificates are mutilated upon receipt by the issuer and substituted in the records against the name of the depository, who is the registered owner of the said securities. A certificate to this effect is sent to the depository and all stock exchanges where the security is listed.

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BENEFITS OF DEPOSITORY SYSTEM

In the depository system, the ownership and transfer of securities takes place by means of electronic book entries. At the outset, this system rids the capital market of the dangers related to handling of paper. NSDL provides numerous direct and indirect benefits, like:

Elimination of bad deliveries

In the depository environment, once holdings of an investor are dematerialized, the question of bad delivery does not arise i.e. they cannot be held "under objection". In the physical environment, buyer was required to take the risk of transfer and face uncertainty of the quality of assets purchased. In a depository environment good money certainly begets good quality of assets.

Elimination of all risks associated with physical certificates

Dealing in physical securities have associated security risks of theft of stocks, mutilation of certificates, loss of certificates during movements through and from the registrars, thus exposing the investor to the cost of obtaining duplicate certificates and advertisements, etc. This problem does not arise in the depository environment.

No stamp duty

For transfer of any kind of securities in the depository. This waiver extends to equity shares, debt instruments and units of mutual funds.

Immediate transfer and registration of securities

In the depository environment, once the securities are credited to the investors account on pay out, he becomes the legal owner of the securities. There is no further need to send it to the company's registrar for registration. Having purchased securities in the physical environment, the investor has to send it to the company's registrar so that the change of ownership can be registered. This process usually takes around three to four months and is rarely completed within the statutory framework of two months thus exposing the investor to opportunity cost of delay in transfer and to risk of loss in transit. To overcome this, the normally accepted practice is to hold the securities in street names i.e. not to register the change of ownership. However, if the investors miss a book closure the securities are not good for delivery and the investor would also stand to loose his corporate entitlements. The exclusive demat segments follow rolling settlement cycle of T+2 i.e. the settlement of trades will be on the 2nd working day from the trade day. This will enable faster turnover of stock and more liquidity with the investor.

Faster disbursement of non cash corporate benefits like rights, bonus, etc. NSDL provides for direct credit of non cash corporate entitlements to an investors account, thereby ensuring faster disbursement and avoiding risk of loss of certificates in transit.

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Reduction in brokerage by many brokers for trading in dematerialized securities Brokers provide this benefit to investors as dealing in dematerialised securities reduces their back office cost of handling paper and also eliminates the risk of being the introducing broker. Reduction in handling of huge volumes of paper Periodic status reports to investors on their holdings and transactions, leading to better controls.

Elimination of problems related to change of address of investor, transmission, etc

In case of change of address or transmission of demat shares, investors are saved from undergoing the entire change procedure with each company or registrar. Investors have to only inform their DP with all relevant documents and the required changes are effected in the database of all the companies, where the investor is a registered holder of securities.

Elimination of problems related to selling securities on behalf of a minor

A natural guardian is not required to take court approval for selling demat securities on behalf of a minor.

Ease in portfolio monitoring

Since statement of account gives a consolidated position of investments in all instruments.

Disadvantages of Dematerialization
The disadvantages of dematerialization of securities can be summarized as follows: A. Trading in securities may become uncontrolled in case of dematerialized securities. B. 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. 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. C. Multiple regulatory frameworks have to be confirmed to, including the Depositories Act, Regulations and the various Bye Laws of various depositories. 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. 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 are 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. 66

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GROWTH OF DEMATERILIZATION
Data Related to dematerialization

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Explanation of diagram:
The monthly average turn over was 129.27 crores shares in the total turn over segment and 0.677 crores shares was in demat segment. This clearly reveals that the growth in the dematerialization process was not keeping pace with the growth in the total turn over of shares in the Indian capital market (Stock Exchange). This shows that in spite of popularity of the dematerialization process or electronic buying, selling and possessing of shares are not popular. The popularity of buying and selling of shares through electronic mode/dematerialization process can be studied through the volume of the shares transferred through electronic mode and hence, an attempt is also made through delivery wise analysis of the total turn over shares. Here, analysis has also been conducted on the growth of the total volume of delivery of shares in the BSE and delivery of the same through electronic/demat mode. Table & Graph shows that Total Volume Delivery of Shares in BSE and Demat Segment

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71

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Explanation of Diagram
The analysis of the table reveals that the monthly average delivery in the BSE over the period from January 1998 to April 2000, was 55.72 crores shares and the same in the demat segment mode was 0.677 crores shares revealing a poor share through the new mode. The total delivery represents the Delivery of A-Group, B1-Group, B2 Group and demat Group securities at BSE. The delivery of demat segments represents the exclusive demat transaction. However when an attempt was made to find out the annual growth of the delivery through both modes it revealed that delivery is the Indian Capital market was growing on an average at a rate of 2.6173 crores share and delivery of share through the demateriatised segment was on an average of 0.458 crores shares per month. When these trends in the growth were tested with the students 't' test, both segments growth wore found significant at/ percent level. This leads to the conclusion that in the volume wise analyse/comparison conducted both for the total turn over and turnover through demateriatised process and the total delivery in the BSE and delivery through the demat mode have not grown as the generally know physical/paper mode have grown. This may be due to lack of information and also short direction after he inception of the scheme. The volume analysis conducted earlier may represent the number of shares dealt in the stock exchange, but there one certain, shares, which are high in market value and certain other companys shares are low in value therefore the value of the shares dealt in the dematerialization becomes essential one. Table & Graph shows that total turnover & Exclusive demat segment turnover at BSE (Value-Wise analysis)

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5. ANALYSIS
The number of trading days in a month has been ranging between 16 days (January 2000) and 23 days (July 1998). From the Table IV - 5 it can be observed that the average daily turnover in a month have been at a rate of Rs. 13.83 crores per month in the total segment and in the demat segment it was on an average Rs. 1.3113 crores per month. When verify the result, the student 't' statistics have showed that the growth in both the segments are significant are 1 percent level. While anlaysed the average daily turnover in a month it was found that Rs. 1949.67 crores in the total segment. At the same time in the demat segment the monthly average daily turnover was Rs. 11.40 crores during the trading days. From the above result it can be concluded that the average daily turnover was growing at a minimum rate in rate in demat segment, when compare to total segment. This may be due to the infancy stage of demat segment. But how ever in the latest periods (i.e. from January 2000) it is growing at a fast rate.

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MSRMI 5.1 ANALYSIS ON FUTURE OF ONLINE TRADING

Broker-wise (From July 1999 to June 2000) Brokers*

Business

Done Brokerwise Brokerage Paid contracts % to Total outstanding for (Rs. in Lakh) more than 60 days Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil 22.8492 2.2779 2.1251 2.0480 2.0302 1.9348 1.9221 1.6025 1.4975 1.4028 1.2963 1.2835 1.0007 0.9840 0.9506 0.9372 0.9033 0.8951 0.8422 0.8248

Business Done

UTI Securities & Exchange 58095249148.70 364.8050 Ltd. AJCON Capital Markets 5791667584.90 29.7400 Ltd. KJMC Capital Market 5403176981.62 27.8800 Services Ltd. PNR Securities Ltd. 5207165284.77 36.9500 DSP Merrill Lynch Ltd. 5161988027.92 45.0300 S S Kantilal Ishwarlal 4919280820.11 119.9500 Securities IDBI Capital Market 4887066448.82 119.1550 Services Mukesh Babu Securities Ltd.4074343429.84 72.1000 ICICI 3807355200.00 0.0000 Bonanza Portfolio Ltd. 3566594657.13 21.4200 Dolat Capital Market Ltd. 3295896951.91 89.2250 ICICI Brokerage Services 3263458260.80 87.1400 Ltd. Roongta Capital Markets 2544422898.95 66.6400 Pvt. Ltd. J M Morgan Staniey 2501907205.83 61.3900 Securities ICICI Sec. & Fin. Co. Ltd. 2416875564.40 0.0000 Bhagirath Merchant Stock 2382992171.44 60.8500 Brok. Mata Securities India Pvt. 2296753616.21 21.8550 Ltd. Dhanki Securities Pvt. Ltd. 2275933637.13 52.7800 ABN Amro Asia Equities (I) 2141347460.32 55.4500 Ltd. Deutsche Bank 2097139250.00 0.0000

From the above chart we can easily see that share is very spread. 77

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Ifs and Buts of Indian online share trading

You have some money to dubble with. Trading shares on BSE/NSE has always been your dream. When will you ever find the time? And besides, the hassle of finding a broker is not easy. Realizing there is untapped market of investors who want to be able to execute their own trades when it suits them, brokers have taken their trading rooms to the Internet. Known as online brokers, they allow you to buy and sell shares via Internet. There are 2 types of online trading service: discount brokers and full service online broker. Discount online brokers allow you to trade via Internet at reduced rates. Some provide quality research, other dont. Full service online brokerage is linked to existing brokerages. These brokers allow their clients to place online orders with the option of talking/ chatting to brokers if advice is needed. Brokerage rates here are higher. 5Paisa.com, ICICIDirect.com, IndiaBulls.com, Sharekhan.com, Geojit securities.com, HDFCsec.com, Tatatdw.com, Kotakstreet.com are some of the online broking sites in India. There are currently close to 50 online brokerages in India with ICICIDirect, Home Trade, KotakStreet, Sharekhan, Motilal Oswal, IndiaBulls and 5Paisa being some major players. However, due to limited volumes, no online brokerage is currently making money and a shakeout is imminent in the near future. The going is expected to get tougher with the advent of capital account convertibility. Players such as TD Waterhouse have already entered the Indian market, while others such as Schwab are expected shortly. On an average, Rs 40 crore per day (Rs 1,000 crore per month) is likely to be the threshold breakeven for online brokerages. However Hiren Gada, senior VP, Home Trade is not unduly perturbed. We at Home Trade believe there is scope for multiple players as the entire segment is in a growth stage. Hence, notwithstanding the current sentiment in the market, potential for online trading is still immense in India. Says Manish Shukla, VP, Internet broking, Motilal Oswal, By mid-2002 we should be able to see substantial volumes in the domestic market for Internet-based stock trading. In the next 18 months a lot of players will get in, the market will change form and shape, and many people will get out. You will have the survivors and stable volumes.

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5.3 COMPETITOR STRATEGIES

According to me ICICI DIRECT and KOTAK are the main competitor of the INDIABULLS. 1. ACCOUNTING CHARGES of all the banks are close to the figure of Rs. 750-800 and if INDIABULLS has to win the race in the competition they have to lower down their accounting charges up to Rs. 600. 2. BROKERAGE CHARGES: brokerage charges of the entire competitor are similar with the INDIABULLS i.e. .40% except ICICI that is charging .55%. So the strategy to compete with ICICI is to provide more service with the same brokerage. 3 U.S.P OF INDIABULLS: - Unique selling purpose of INDIABULLS is the free transaction of shares. Customers of INDIABULLS can make transactions anytime, anyhow and without paying any charges thats why the customers are happy and deal more with the INDIABULLS. Competitors of INDIABULLS are charging for. every transaction

1. RESEARCH REPORT: - SHAREKHAN is the leader under this segment with 86%.

icici 15% 5% 5% 20% 10% 10% 10% kotak sec. indiabulls hdfc 5paisa 25% alm ondz uti sharekhan

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MSRMI 2. EXPOSURE: - INDIABULLS exposure is 4-10 time

5% 15% 25% 15% 15% 15% 10%

icici kotak sec. indiabulls hdfc 5paisa almondz others

THE BEST DEFENCE IS GOOD OFFENCE

INDIABULLS should select a strategy of POSITION DEFENCE under which INDIABULLS should be focused on customer satisfaction and the product availability and treat their customer as GOD. The best way of competing with the competitor is to make your customer satisfied, which results in the loyalty of your customers for your company. INDIABULLS should continuously do a RESEARCH AND DEVELOPMENT PROGRAMME, which will result in the information about the customers. For that they should appoint a R&D depts. Which will continuously do this work.

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5.4 LIMITATIONS
The various Limitations are:- LACK OF AWARENACE OF STOCK MARKET: -- Since the area is not known before it takes lot of time in convincing people to start investing in shares primarily in IPOs. MOSTLY PEOPLE COMFORTABLE WITH TRADITIONAL BROKERS: -- As people are doing trading from there respective brokers , they are quite comfortable to trade via phone. LACK OF TECHNO SAVY PEOPLE AND POOR INTERNET PENETRATION: -- Since most of the people are quite experienced and also they are not techno savy. Also internet penetration is poor in India. SOME RESPONDENTS ARE UNWILLING TO TALK: -- Some respondents either do not have time or willing does not respond as they are quite annoyed with the phone call. INACCURATE LEADS: -- Sometimes leads are provided which had error in it which varies from only 5 digit phone number to wrong phone number MISLEADING CONCEPTS: -- Some people think that Shares are too risky and just another name of gamble but they dont know its not at all that risky for long investors.

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OBSERVATIONS AND FINDINGS

Findings: Investment in equities and derivatives is mainly done by the age group of 25-40 It is found that main goal of trading is earning rather than investment. 49% of customers like to trade in F & O, 33% in intra day & rest in Delivery Almost 69% of customers are satisfied with the services provided to them. Major group of customers will have to invest in ICICI than in INDIABULLS. 52% of customers prefer to invest in derivatives, 40% in equities & rest in others. 48% of people shows positive attitude in joining INDIABULLS.

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

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SUGGESTION & RECOMMENDATION

Exiting customers should be provided better response & services so that by there good Word Of Mouth Company will get more customers. Advertisements should be given in the magazines related to Business, Management service, Electronics media, and business world or by installing stalls in different-different areas etc. Awareness should be created among the prospective clients. Most of the respondents inquired about the conformation of the branch office of India bulls in jabalpur because up to yet most of the companies have their franchise office or brokers there. So it requires doing advertisement there on large scale. Office space requirement: Min.1000 sq feet (for each Department) Different office for both online and offline department.

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CONCLUSION

Indian economy has been globalized and the capital market has been linked to the international financial market. Foreign individuals and institutional investors have encouraged participating into it. So, there is a need for raising the Indian Capital market in to the international standards in terms of efficiency and transparency. One such measure is the passing out of the Depository Act during the year 1996. The draw back of the old system and the pool proof measures sought to improve efficiency in transfer and transparency standards prompted to evaluate the functioning of the dematerialization process and to focus on the 8 developments of the depository system in the Indian capital market. After research it was found that there is good potential market available for Indiabulls in JABALPUR to venture into. The reason for this is: Few competitors Untapped / Growing market Indias biggest Marble market. Most of existing companies are charging high rates on the service provided by them. It is first branch office of any share trading company. Indiabulls has a good chance to capture the market as the company is having USPs and technology, which other companies are not providing.

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BIBLIOGRAPHY

Securities Market (Basic) Module :--NCFM Economic Times. Training Kit Provided by the IndiaBulls. Economic times

Websites:
www.indiastat.com www.indiabulls.com www.equitymaster.com www.icicidirect.com www.sdfcsecurities.com www.sharekhan.com www.kotakstreet.com

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QUESTIONAIRE
Demographic Data Contact Person: ________________________________________ Address:_____________________________________________ Designation: ________________________________City:____________________ Phone No.:_________________ Fax:_______________ E-mail:__________________ Website: ______________________ 1. Existing broker: ISL ICICI Other (Local Broker)

2. From how many years you are dealing with your Existing Broker? _______________________________________________________________ _______________________________________________________ 3. In which you prefer to do investment? Equities Derivatives Other

4. What type of trading you prefer to do? Intraday Delivery Based F&O

5. What age group is best for the investment according to you? 18-25 25-40 86

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Above 55

6. What is your purpose of trading? Investment Profession Financial Support Other Earning

7. What is the frequency of your trading? Daily Weekly Alternative Day Monthly Twice a Week

8. Are you satisfied with the service provided by the Indiabulls? Yes No

9. Are you planning to attach with Indiabulls? Yes Cant Say If Yes, Why? ___________________________________________ If No, Why? ____________________________________________ No

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